Klöckner & Co.

“Implementing HIRO™ into our IT environment will be one of the levers for the further digital transformation of our company.” - Gisbert Rühl, CEO, Klöckner & Co

Challenge : Klöckner & Co is one of the largest producer-independent distributors of steel and metal products and one of the leading steel service companies worldwide. Digitalization is a key pillar of Klöckner´s business strategy to be able to meet the current and future challenges and to secure and expand its leading market position. After successfully automating their IT operations, Klöckner partnered with Arago for digitization of its autonomous SAP based business processes. 

The scenario selected represented a significant manual workload for both Klöckner´s BPO unit as well as for the retained organization in six countries. There are 15,000 blocked orders every month of which roughly 20% is due to a combination of credit limit and overdue.  BPO staff and Klöckner Accounts Receivable Team had to constantly spend significant time and resources on problem resolution to ensure same day delivery to their customers and thus secure revenue.

Arago knowledge automation platform, HIRO, is implemented to learn from experts what, why and when it has to solve tasks. The BPO team of Klöckner trained HIRO to investigate order blocks, dunning levels, prepayments, decide on individual credit limit tolerances and commercial risks and finally release blocked sales orders and/or notify the retained organization. Once HIRO has sufficient knowledge, it started to solve the blocked orders autonomously, needing experts only in case of new knowledge transfer.

The fast implementation of the entire prepayments handling project resulted in:
  • Significant reduction of turn around times  thus securing revenue,
  • 80% reduction of processing and resolution time
  • Significant reduction of manual human effort and only cases with necessary customer interaction left.
  • Upto 80% process automation after 4 weeks of operations