Social signaling is the theory that we buy certain things based on the message they tell the world about us or the social status associated with the products. Today, consumers consider the consequences of their spending habits and how their purchases directly reflect their own personal, deep-seated beliefs.
Being a brand known for having quality products is no longer enough to win new consumers. Nowadays, consumers are looking for products and brands aligned with their own values.
Noticing the relevance of their social footprint, companies from all sectors are getting on the sustainability path. A 40-year-old steel company based in Brazil is proud of its decision to diversify its operations and expand sustainability through dynamism and excellence. Considered a regional leader in the steel sector, Grupo Aço Cearense is one of the largest recyclers in Brazil, using scrap in its steel production process that has a production capacity of 1,000,000 tons per year in 2019.
Revitalizing Existing Processes
Serving 16,000 active customers throughout the country, the company understood the importance of transforming administrative, commercial, and industrial budgeting processes in order to stand out and be recognized as the best company in production, commercialization, and steel distribution in Brazil.
Working with SAP partner Solveplan, an expert in financial planning and analytics, Grupo Aço Cearense modernized its entire budget planning process. Solveplan was responsible for the execution of the project, helped by the SAP BusinessObjects Business Intelligence suite.
SAP Analytics Cloud was chosen to meet the needs of the budget planning process. It was used to build a strong and flexible platform that could raise historical system data for desired insights associated with a budgeting tool.
Reaping the Benefits of Continued Advancement
According to Manuel Robalinho, SAP Analytics Cloud consultant, “Grupo Aço Cearense uses SAP Analytics Cloud to manage and streamline the company’s budget processes and operations. Thanks to this unique platform, we’re able to spend less time on budget processes and more time on scenario analysis to improve future sales and margin results.”
With the planning capabilities in SAP Analytics Cloud, Grupo Aço Cearense was able to optimize the distribution of its budget across many companies and operation areas. A decrease in time spent reviewing budget processes was made possible, culminating in the:
- Development of a decentralized corporate tool to collect information for Grupo Aço Cearense’s monthly budget that decreased the time required to draft a budget by approximately 67%
- Creation of a participatory forecast that boosted confidence in the development of budgets through credibility, accountability, and auditing
- Accessibility to external payroll and vacation registration systems providing easy availability to planning information
- Provision of simple and affordable performance indicators for top management
- Enablement of access to auditable values in one unified system
Paving the Way for the Future
Grupo Aço Cearense has no plan to stop when it comes to its positive impact on the environment and advancement in its business practices. A few things on the horizon include using artificial intelligence (AI) and machine learning in customer credit control and introducing SAP and deep learning technologies for automated scrap metal classification. The future is looking bright for Grupo Aço Cearense indeed.
To learn more about Grupo Aço Cearense’s future business plans, review its SAP Innovation Awards 2020 Pitch Deck.