International Steel Manufacturing Company

Tasks

Assessment of the client’s supply chain management processes and develop a portfolio of initiatives aimed at improving the economic efficiency of logistics operations.

The project required a thorough evaluation of existing processes, validation of the client’s cost optimization hypotheses, identification of new improvement opportunities, and prioritization of strategic initiatives in line with corporate objectives and the company’s long-term business strategy.

What was done

The project began with a comprehensive review of the client’s logistics operations. The NOYTECH team conducted a series of interviews with key supply chain stakeholders and performed on-site assessments across major functional areas, including finished goods logistics, raw materials logistics, internal transportation, the level of process automation, and the existing performance management system.

This assessment provided a holistic view of the current operating model and enabled the identification of major inefficiencies, operational constraints, and areas of value loss.

The next stage focused on developing hypotheses for improving logistics performance. Each initiative underwent a preliminary assessment of its economic potential, and clear ownership areas were defined. A joint workshop with the client’s team was then held to prioritize the initiatives and align them for further development and implementation.

NOYTECH specialists also conducted benchmarking research into logistics practices adopted by leading companies in the steel and heavy industry sectors. The study covered the degree of logistics centralization, infrastructure management, procurement models, dispatching functions, performance metrics, and analytical capabilities.

This benchmarking exercise enabled the client to compare its current operating model with industry best practices and identify opportunities for strategic improvement.

In addition, the project included the development of a centralized logistics management concept based on a Control Tower approach. The NOYTECH team outlined the operating model for a unified logistics control center, presented implementation examples from heavy industry, and evaluated the applicability of the concept to the client’s business. A business case assessing the economic feasibility of introducing the Control Tower model was also prepared.

Result

Logistics Network and Infrastructure

• Proposition of alternative transportation routes, including expanded logistics corridors through the Caspian region to support access to new markets.
• Recommendation of the establishment of port-adjacent consolidation facilities to reduce storage costs and improve cargo consolidation.
• Identification of priority investments in transportation infrastructure to optimize short-haul logistics operations.

Operational Efficiency

• Proposition of packaging and returnable container optimization measures capable of delivering significant annual cost savings.
• Development of initiatives to reduce logistics losses and improve shipment planning and consolidation efficiency.

Digitalization and Logistics Management

• Design of a centralized logistics management model based on the Control Tower concept, increasing supply chain visibility and reducing operational errors.
• Recommendation of the creation of a unified logistics operations center to coordinate transportation activities and optimize resource allocation.
• Introduction of a structured root cause analysis approach to systematically identify process deviations and improve long-term operational resilience.