As the largest metallurgical company in the South Caucasus, Baku Steel Company (BSC) has successfully completed the implementation of the SAP S/4HANA system as part of its digital transformation strategy. The system has been launched into commercial operation in real time.
As a result of the project, all critical workflows at BSC, as well as its Azerboru and AzFerAl production sites, have been consolidated onto a single SAP platform, creating a fully integrated digital management infrastructure.
The key advantages of the new system include compliance with international standards, unified real-time management, full integration of transparent and traceable processes, minimization of human error, increased production and logistics efficiency, measurable performance, forecasting and analytics capabilities, and readiness for the integration of advanced technologies. With the transition to live operation, initial positive results in operational efficiency and data management are already being observed.
The following SAP system modules were fully integrated as part of the project:
– Finance (FI, CO, AA, FM, CM);
– Purchasing and Logistics (MM);
– Production (PP);
– Quality Management (QM);
– Sales (SD);
– Maintenance Planning (PM);
– Document Management (DMS).
As a result, all operational processes across the group’s companies were transferred to a single digital platform.
Furthermore, to improve efficiency and minimize human error in critical processes such as goods receiving, sales, production, and inventory, handheld terminals connected to weighing equipment, as well as interactive labeling systems integrated with SAP, were implemented. These solutions ensure process automation and real-time data flow.
Galib Mamedov, Head of Digital Transformation at BSC and SAP S/4HANA Project Manager, noted: “The launch of the SAP S/4HANA system is one of the most important steps in BSC’s digital transformation journey. As part of the project, key workflows were consolidated on a single platform, making management more transparent, flexible, and data-driven. In the next phase, we plan to use AI and analytics-based solutions to improve operational efficiency and build fully digital decision-making processes.”
The project was implemented by the BSC Digital Transformation team in collaboration with Nagarro, the first SAP Gold Partner in Turkey. As planned, the project was completed within 13 months. During this period, data standardization, user training, multi-stage testing, and pilot implementations were fully completed.
Sultan Askar, Deputy CEO of BSC and Project Manager for SAP S/4HANA, noted: “The SAP S/4HANA project is not only a technological upgrade for BSC, but also a critical step toward strategic agility and innovation leadership. This system ensures complete operational transparency, real-time management, and data-driven decision-making. This transformation directly contributes to the company’s sustainable growth, increased international competitiveness, and adaptation to next-generation industrial models.”
A transfer and acceptance certificate was signed between Muhammed Yusuf Cetin, Member of the Board of Directors of Nagarro Global and Lead Project Manager for SAP S/4HANA, and Sultan Askar, Deputy CEO of BSC and Project Manager.
During the meeting, which was attended by the management teams of both companies, plans and promising areas for further cooperation were discussed. In the next phase, BSC plans to implement new solutions in the SAP ecosystem. These include SAP Analytics Cloud, mobile applications, expanded digital integration with business partners (e-sourcing, e-commerce, banking integrations), and further strengthening information security. The implementation of SAP Analytics Cloud will enable the creation of a unified management and reporting structure across the group’s companies.
The key priorities of the company’s digital transformation strategy are automation of operations, strengthening database management using artificial intelligence and analytical solutions, integrating predictive analytics into processes, and minimizing human error.
Hosting SAP systems in a state-owned data center not only aligns with the country’s digital development policy but also reflects the company’s commitment to information security and modern governance principles. This approach facilitates more efficient and integrated management of operational processes, as well as the creation of a reliable and sustainable infrastructure for the implementation of future technological innovations.
As a result of this major transformation, BSC, along with the modernization of its current operations, continues to strengthen its position as a regional leader adapting to the digital industrial standards of the future and viewing technology as a strategic asset. (Report)