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.