As the largest metallurgical company in the South Caucasus, Baku Steel Company CJSC (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 industrial operation with real-time processing capabilities. As a result of the project, all critical operational processes of BSC, as well as those of its Azerboru and AzFerAl production facilities, have been unified on a single SAP platform, enabling the establishment of 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 the human factor, increased efficiency in production and logistics, measurable performance, advanced forecasting and analytics capabilities, and readiness for the integration of future technologies. Following the transition to live operation, the first positive results in terms of operational efficiency and data management are already being observed.
As part of the project, the following SAP system modules were fully integrated:
- Finance (FI, CO, AA, FM, CM);
- Procurement and Logistics (MM);
- Production (PP);
- Quality Management (QM);
- Sales (SD);
- Plant Maintenance Planning (PM);
- Document Management (DMS).
As a result, all operational processes across the group’s companies have been brought under the management of a single digital platform.
In addition, to enhance efficiency and minimize human factors in critical processes such as goods receipt, sales, production, and inventory counting, handheld terminals, connections to weighing equipment, and interactive labeling systems integrated with SAP were implemented. These solutions enable process automation and real-time data flows.
A Strategic Digital Milestone (All Processes on a Unified Platform):
Galib Mammadov, Head of Digital Transformation at BSC and SAP S/4HANA Project Manager, noted:
“The go-live of the SAP S/4HANA system represents one of the most important steps for BSC on its digital transformation journey. Within the project, key operational processes were unified on a single platform, making management more transparent, agile, and data-driven. At the next stage, we plan to further enhance operational efficiency through artificial intelligence–based and analytical solutions and to build decision-making processes entirely on a digital foundation”.
The project was implemented by the BSC Digital Transformation
Department team in collaboration with Nagarro, SAP’s first Gold
Partner in Türkiye. As planned, the project was completed within 13
months. During this period, data standardization and user training
were carried out in full, multi-stage testing was conducted, and
pilot implementations were successfully completed.
Boosting International Competitiveness with SAP S/4HANA:
Sultan Askarov, Deputy CEO of BSC and Curator of the SAP S/4HANA project, noted:
“For BSC, the SAP S/4HANA project represents not only a technological upgrade, but also a critically important step toward strategic agility and innovative leadership. The system ensures full operational transparency, real-time management, and data-driven decision-making. This transformation directly contributes to the company’s sustainable growth, strengthens its international competitiveness, and supports adaptation to next-generation industrial models”.
It is worth noting that today a handover and acceptance certificate was signed between Muhammed Yusuf Cetin, Member of the Board of Directors of Nagarro Global and Chief Curator of the SAP S/4HANA project, and Sultan Askarov, Deputy CEO of BSC and Project Curator.
During the meeting, held with the participation of the governing
bodies of both companies, plans and prospective areas for further
cooperation were discussed. At the next stage, BSC plans to
introduce new solutions within the SAP ecosystem, including SAP
Analytics Cloud, mobile applications, expanded digital integration
with business partners (e-sourcing, e-commerce, and banking
integrations), as well as further strengthening information
security. The implementation of SAP Analytics Cloud will enable the
establishment of a unified management and reporting structure
across the group’s companies.
The key priorities of the company’s digital transformation strategy include the automation of operations, strengthening data-driven management through artificial intelligence and analytical solutions, the integration of predictive analytics into business processes, and the minimization of human errors
Hosting SAP systems at the state-owned Data Processing Center not only aligns with the country’s digital development policy, but also reflects the company’s commitment to information security and modern management principles. This approach enables more efficient and integrated management of operational processes, while also supporting the creation of a reliable and sustainable infrastructure for the implementation of future technological innovations.
As a result of this large-scale transformation, BSC, alongside 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 value.