Partner Success with AWS / Manufacturing / Brazil

December 2024
Usiminas
Enkel

Usiminas, with Enkel’s Support, Reduces R$ 9 Million in Transportation Costs by Optimizing Processes Through AWS Services

Learn how AWS partner Enkel helped the Brazilian steel giant develop an AI-based platform to optimize automation and routing processes, reducing costs and CO2 emissions.

14%

reduction in transportation costs

448

thousand kilometers reduction in distance traveled by trucks

1,577

metric tons of CO2 emission avoided

Overview

Usiminas, supported by AWS Partner Enkel tackled significant challenges in freight pricing and route optimization within the steel industry. By developing a customized automation platform based on AWS services, the Brazilian steel company streamlined logistics processes, leading to a 14% reduction in costs and significant efficiency gains. The project not only cut delivery distances by 448,000 kilometers but also resulted in a notable decrease in CO2 emissions, avoiding the release of 1,577 metric tons. This project enhances Usiminas' market competitiveness and reinforces its commitment to environmental sustainability, demonstrating the positive impact of innovative solutions in the logistics sector.

Automobile manufacturing

Opportunity | Usiminas' Quest for Sustainable and Financial Efficiency

Usiminas is a Brazilian company in the steel sector, considered a leader in the production and sales of steel, and positioned among the largest flat steel complex in the world. Given its positioning in an increasingly competitive sector and its commitment to sustainability, the company recognized the need to optimize and enhance the intelligence of its freight pricing and routing processes. The client faced persistent challenges in advancing their on-premises services. Their internal IT team didn’t have the resources or development skills needed to create the solutions required by the business area.

According to Fabio Ferreira Cavalcante, processes analyst at Usiminas, by seeking a partner capable of understanding business context, who could also help implement cutting-edge technologies, the organization could overcome in-house technical and resource constraints, enhancing its capacity for innovation. By doing so, Usiminas would be able to not only reduce its environmental impact while ensuring better cost efficiency, but also reinforce its commitment to integrating sustainable practices into its operations, ultimately driving innovation and competitiveness in the steel industry.

"This is why the organization embarked on a relentless quest for excellence by seeking to optimize its freight pricing process, with the automation of routing. More than simply reducing logistics costs, we had the goal to chart new horizons, raising the efficiency of deliveries to a new level and, in doing so, leaving a positive mark on the world by significantly reducing the environmental impact of our operations", detailed Cavalcante. This endeavor was not just a quest for savings, but rather a journey toward a more sustainable and efficient future, where every step of the logistics process should be executed with mastery and precision, in harmony with the environment and the company's business objectives.

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With the platform, Usiminas achieved concrete results in terms of savings, efficiency and environmental responsibility"

Fabio Ferreira Cavalcante
Processes Analyst, Usiminas

Solution | AI-powered Platform for Freight Pricing and Route Optimization

Enkel, an AWS partner specialized in artificial intelligence solutions, was chosen by Usiminas to support the development of a customized platform to address these challenges of pricing and route optimization. Cavalcante explains that Enkel was chosen as the partner because it was the only company willing to fully understand their unique needs and take on the challenge of developing a comprehensive solution, integrating both development and infrastructure, specifically crafted to address their complex requirements.

Enkel developed a proof of concept (PoC) to demonstrate how external services could drive efficiency. Then, the partner built a scalable and cost-effective solution using AWS Lambda for code execution; storage was handled by Amazon DynamoDB and Amazon Simple Storage Service (Amazon S3), while Amazon Route 53 is responsible for DNS management, directing traffic to Amazon CloudFront distributions and APIs in Amazon API Gateway. Finally, the notification process relies on Amazon CloudWatch and Amazon Simple Notification Service (Amazon SNS).

The platform utilizes serverless services on AWS and advanced algorithms to automate freight pricing, considering various factors such as origin, destination, number of axles, tonnage, among others. In addition, it optimizes freight routing, defining the most efficient routes for each delivery, including detailed information on total distance, travel time, toll values, value per ton, and also the total freight value.

Usiminas

Outcome | Usiminas and Enkel's Partnership Drives Cost Reduction and Environmental Sustainability

The project carried out by Enkel in partnership with Usiminas resulted in significant changes in the logistics processes of the steel company. Through the optimization of freight pricing and routing, Usiminas achieved a noticeable reduction in logistics costs, as well as increased delivery efficiency. One of the main benefits of this project was the contribution to environmental sustainability.

In the initial phase of the project, which focused on 31% of the company's delivery routes, Usiminas successfully cut CO2 emissions by avoiding the release of 1,577 metric tons, accounting for 7% of total emissions. In addition to the environmental aspect, it was possible to reduce the distance traveled by trucks by 448 thousand kilometers, resulting in a reduction of R$ 9 million, a 14% reduction in costs. This initiative aligns with the company's environmental objectives and demonstrates its commitment to minimizing the environmental impact of its operations.

Furthermore, improvements in freight pricing and routing processes not only reduced Usiminas' logistics costs but also increased its competitiveness in the market. By offering more efficient and economical deliveries, the company strengthened its position in the steel market, consolidating its reputation as a reliable and innovative partner. "The solution we designed along with Enkel using AWS services demonstrates how artificial intelligence can be used to optimize logistics processes, reduce costs, and contribute to environmental sustainability", says Cavalcante. "The platform was a success for Usiminas, which achieved concrete results in terms of economy, efficiency, and environmental responsibility."

About Usiminas

Usiminas is a leading Brazilian company in the steel sector, established on April 25, 1956, in the Vale do Aço region of Minas Gerais state. Recognized as the largest flat steel complex in Latin America and among the top 20 globally, Usiminas operates a system that includes several companies in the steel industry and related sectors. The company prioritizes transparent relationships with the capital market, driving a commitment to deliver high-quality and reliable solutions.

About AWS Partner Enkel

Founded in 2014, Enkel is an AWS Advanced Partner with over 90 professionals operating throughout Brazil and the United States. The consultancy specializes in developing customized and functional solutions in artificial intelligence, cloud infrastructure, DevOps, observability, and machine learning.

AWS Services Used

Amazon CloudFront

Securely deliver content with low latency and high transfer speeds.

Learn more »

Amazon DynamoDB

Serverless database with no server provisioning, patching, or management required. There's no software to install, maintain, or operate, with zero downtime maintenance.

Learn more »

AWS Lambda

AWS Lambda is a compute service that runs your code in response to events and automatically manages the compute resources, making it the fastest way to turn an idea into a modern, production, serverless applications.

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Amazon Route 53

Amazon Route 53 provides highly available and scalable Domain Name System (DNS), domain name registration, and health-checking cloud services.

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