International Steel Group Leverages AXIOM/mx Open from AXIS Computer Systems as Key Building Block for New Generation Information Systems

Profile
International Steel Group (ISG) has quickly become one of North America’s largest integrated producers of steel, with over 16 million tons of annual shipments. The company was formed in April, 2002 when W. L. Ross & Co. purchased the assets of LTV Steel, including two integrated steel mills, a finishing facility, and a coke plant. In October 2002, ISG acquired a sheet mini-mill previously operated by Acme Steel Company. In May 2003, ISG acquired the assets of Bethlehem Steel, including five steel-making mills, three steel finishing mills, interest in several joint ventures, and other assets.

Challenge
When ISG officially announced its formation in 2002, the company had no operational information systems other than for process control. With plans to start producing and selling steel within a month, ISG had to get basic business systems up and running almost immediately. Furthermore, ISG did not want to repeat the mistakes of the past by making huge investments in mainframe-based systems and large IT support staffs.

ISG needed a full scope of integrated business and production systems, but wanted them to be largely off-the-shelf software packages developed for and already proven in the steel industry. They needed an enterprise management system capable of running a very large company, but also wanted solutions that would have a low total cost of ownership (TCO). In other words, they needed a solution that already fit the business, that could be run mid-range platforms, and that could be managed by a relatively small IT staff.

Why AXIS?
With the help of TMP/Hudson Global Services, ISG selected the AXIOM® Enterprise Resource Management System from AXIS Computer Systems, Inc. to form the foundation of the company’s new information systems, including support for all sales, procurement, production, quality, and financial management functions. ISG selected AXIS and the AXIOM solution because:

• The AXIOM software was designed specifically for the needs of steel producers, meaning ISG could start deployment almost immediately without the need for major customization.
• It was clear that AXIS was dedicated to serving the metals industry. AXIS people already understood the steel-producing environment and immediately related to ISG’s issues, terminology and needs.
• AXIS had a proven track record of effectively partnering with companies in the steel industry.
• AXIS could provide the necessary implementation support for rapid deployment using industry-experienced in-house resources and closely aligned implementation partners.
• With AXIOM, ISG had the flexibility to deploy on just about any UNIX, Linux, or Windows computing platform, and to grow the system incrementally to support any number of users.

Because of all these points, ISG felt that AXIOM would enable them to:

• Implement quickly
• Support their growing business at any size
• Keep the cost of systems and support low

Results
All 11 of ISG’s principle mills, as well as corporate headquarters and a rapidly growing number of railroad and mine sites, are now using the AXIOM system to manage key business functions.

ISG’s initial mills (LTV) were up and running on AXIOM’s sales, procurement, and financial applications within just six weeks, and are already using AXIOM for many aspects of production control. The Acme mill and Bethlehem facilities were all live with AXIOM G/L, A/P, and purchasing applications within a few weeks of acquisition. ISG is now in the process of bringing up full AXIOM production planning, scheduling, and control at all sites, and plans to be fully live on AXIOM for virtually all business and production management functions in under two years.

Just as important as the speed of implementation is the reduction in IT cost structure – an aspect that is vitally important to being competitive in today’s global steel market. Using AXIOM, ISG is targeting an 80% total cost reduction from the combined IT costs of the acquired companies! Even during the heavy implementation period, ISG’s IT staff is significantly lower than the ‘steady state’ support staff for the legacy systems AXIOM is replacing.

ISG’s story of growth from startup to a steel industry leader in lightening speed is well known. AXIS is proud to be playing a role in making that happen by helping ISG implement a new generation of information systems that is well suited to today’s more aggressive and more cost-effective North American steel industry.

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