Gerdau is a worldwide steel company with a century-old track record. To stay at the forefront of technological transformation and apply business intelligence throughout the iron ore processing chain, it has relied on its SAP ERP and GeneXus for SAP Systems. In addition, it is developing a project to manage scrap metal using Artificial Intelligence and SAP Leonardo.
The digital transformation story shared by Gerdau in this post is an example of sustainability, because it is about optimizing the entire management involved in a recycling steel chain. Also, it showcases an integration that combines different technologies to grow the business.
Gerdau is a company dedicated to steel manufacturing that originates in Brazil and expands to the rest of the world. It currently operates in 14 countries and is considered the largest recycler in Latin America, transforming millions of tons of scrap metal into steel annually.
A few years ago, for its subsidiaries in Argentina and Uruguay, Gerdau focused on further optimizing its resources and processes in an intelligent manner by using cutting-edge technology. At that time, it already had SAP ERP to handle its management process but needed a system that extended the way the merchandise is managed. Also, it needed an e-commerce platform that went a little further than the traditional platforms focused on sales more common than steel or scrap metal.
In that context, Gerdau explored the solutions offered by the market and found GeneXus for SAP Systems.
Integration of technology and Artificial Intelligence as a recipe for success in optimizing functionalities
After making sure that with GeneXus for SAP Systems Gerdau would be able to leap into digital transformation, together with the software house Simplifica Software two new technology solutions were developed which are currently operational in Uruguay and Argentina.
1- Consignment management system:
This system was developed from scratch with GeneXus for SAP Systems to carry out merchandise transactions. The consignment management system currently controls how consignments are handled between consignee and consignor.
In the area of steel scrap recycling, innovation was achieved through an ecommerce system called e-Gerdau, in which automation and new functionalities were applied to integrate and encompass steel purchasing processes, taking into account the particularities of the market.
Now that it has used software to optimize two systems that support important management processes, Gerdau will resort to Artificial Intelligence with the aim of carrying out the scrap selection process using image recognition and volume sensors.