Steel group reduces purchasing costs by up to 30 percent with RPA

For the raw material-intensive steel industry, low-cost purchasing plays a particularly business-critical role. However, this global steel manufacturer lacked the capacity to actively review and re-tender 3,500 supplier contracts annually. Servicetrace automated the entire procure-to-pay process so that software robots took over contract review and tendering. For example, the steel group installed a raw material purchasing system at the best market conditions currently available – and thus reduced its purchasing costs by up to 30 percent.

One of the world‘s leading steel manufacturers cooperates with numerous suppliers around the globe. This means the manufacturer has to manage 3,500 supplier contracts every year: When exactly do these contracts expire, what volume of orders does this supplier contract handle, how do the contract terms compare with the current market situation – should the contract be put out to tender again? In addition, purchasers have to enter and compare numerous details about suppliers and contracts in SAP and a data warehouse – manually very time-consuming tasks for which the purchasing department lacks the capacity. The contracts were therefore simply extended. Due to the high optimization potential, the steel group wanted to use Robotic Process Automation (RPA) to make the procure- to-pay process more effective and efficient.

The automation of these tasks led to cost savings of up to 30 percent, depending on the contract, due to better contract conditions and complete transparency in supplier and contract management. At the same time, the highly qualified employees in purchasing are relieved of monotonous administrative tasks, which can now devote themselves to more demanding procurement and negotiation tasks. Another advantage is the transparency and traceability of the entire process. The steel group now benefits from optimized and active contract management at the best current market conditions.

Key Benefits


lower purchase costs for the same volumes


active supplier & contract management


transparency & compliance

Procure-to-Pay (P2P) describes the entire process, from procurement of raw materials and production resources to payment. The aim is to make this process as (cost) efficient, fast and secure as possible.



The Automated Procure-to-Pay Process: People and Software Robots work Hand in Hand

Simple, stable, secure – that‘s why the customer chose X1

The steel producer opted for Servicetrace‘s XceleratorOne (X1) RPA solution because of its ease of use and high stability. Due to the intuitive operability of X1 – automation processes can be designed without IT knowledge in drag- &-drop processes – the steel company was able to automate these purchasing processes in just 30 days.

A further argument for the X1 solution from Servicetrace was the high stability of the implemented process automation. X1 has numerous features for quality assurance – and the higher the quality of an automation process, the higher the stability. With the so-called X1 Secure Session, X1 also relies on a multiply patented technology that offers high security and stability in a unique approach.