Home / News / Ukraine / ArcelorMittal Kryvyi Rih announces a tender for a large-scale upgrade of the SAP platform

ArcelorMittal Kryvyi Rih announces a tender for a large-scale upgrade of the SAP platform

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The planning and accounting of the financial and economic activities of the entire enterprise depends on the SAP system: accounting and tax accounting, the purchase of materials and production equipment, the hiring of new employees, the conclusion of contracts with partners, the shipment and sale of products.

ArcelorMittal Kryvyi Rih announces a tender for a large-scale upgrade of the SAP platform

ArcelorMittal Kryvyi Rih begins the migration of the enterprise information system SAP ERP to the S /4 HANA version. This is the largest SAP product update in the last 10 years. The enterprise will install a state-of-the-art SAP platform with embedded intelligence, including artificial intelligence, machine learning and advanced analytics. The company is currently looking for suppliers and consultants to implement this project.

The planning and accounting of the financial and economic activities of the entire enterprise depends on the SAP system: accounting and tax accounting, the purchase of materials and production equipment, the hiring of new employees, the conclusion of contracts with partners, the shipment and sale of products. The current ERP-system of the enterprise is updated every day with new data within the framework of dozens of implemented business processes. Over the years, a huge number of them have accumulated, and over the next 7-10 years they will grow many times.

The version of the SAP ERP system that ArcelorMittal Kryvyi Rih is currently using will be supported by the product supplier for another 7 years, but the transition to the new platform is necessary today. Migration of the accumulated historical data to the new version of SAP S /4 HANA and maintaining the operability of already implemented business processes are the key tasks of modernizing the system. After analyzing the options for transitioning to the new platform, the company chose the option of transition using the system conversion method.

Background: SAP ERP ECC 6.0 system was implemented in ArcelorMittal Kryvyi Rih in 2009. It was one of the largest SAP implementations in Ukraine, covering all operations of a mining and metallurgical enterprise with a full production cycle: finance, production, procurement, sales, repairs.

The version of the system, which now employs about four thousand active users of ArcelorMittal Kryvyi Rih, is regularly updated, but from the point of view of its functional evolution and performance optimization, the possibilities are almost exhausted.

The new SAP S /4 HANA platform more effectively solves urgent business problems that were previously much more difficult to implement due to insufficient technology development or high labor intensity.

Details: SAP S /4HANA provides real-time analytics, seamless integration with Internet of Things and Big Data platforms, cloud-based solutions, and a user-friendly interface. The key features for ArcelorMittal Kryvyi Rih are increased application performance, especially reports. Technical simplification of objects and principles of data storage, built-in analytics will allow you to receive online reports where previously many hours of preliminary loading and the creation of cumbersome reports were required. Many manual routine operations will be automated.

An important tool is the use of forecasting models within Machine Learning. These are special settings with which you can "predict" certain business indicators of a process based on indicators in documents for past periods. For example, by "training" the model for assessing the timeliness of delivery of a material, it will be possible to determine the timeliness or potential risk of delivery delays in the purchase order already at its creation. In any business operation, it will be possible not only to analyze the actual indicator, but also to determine the trend or potential result.

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