RHI Magnesita & o9: Sustainability, Supply Chains & Mining

As businesses look to ensure resilient and integrated supply chains, sustainability has become a critical factor in operational decision-making.

RHI Magnesita (RHIM), a supplier of refractory products, systems and services, operates a complex, vertically-integrated chain within heavy industry.

As its products are critical to customers, it needs to ensure resilience across every step of the chain whilst minimising environmental impact.

At the Go&See event in Vienna, co-hosted by o9 Solutions, EFESO and RHI Magnesita, leaders gathered to experience how o9 Solutions is helping RHIM with its digital supply chain planning transformation, with a particular focus on embedding sustainable practices throughout operations

Market demands

The volatile supply chain market has demonstrated how easily one fault can have process-stopping results for global supply chains.

However, beyond operational resilience, companies are now facing increasing pressure to reduce their carbon footprint and adopt circular economy principles.

Organisations that do not take the steps to undergo transformation or build sustainability strategies could be risking falling behind or losing the agility to maintain operations throughout turbulence whilst meeting evolving environmental regulations.

The event acted as an opportunity for business leaders to see first-hand how digital transformation can help develop smooth operations whilst supporting decarbonisation goals.

"For attendees, it was a unique opportunity to hear leaders at a large global enterprise speak candidly about the learnings behind the transformation, the redesign of its operating model, the progress achieved to date and the value across inventory, service performance and planning productivity,” says Alberto Fabregat, SVP, Strategy & Sales at o9.

Embedding sustainability into operations

RHI Magnesita works with some of the world's most demanding industrial processes, with its products forming the backbone of modern infrastructure and mining.

For the company, environmental responsibility has become as critical as operational reliability.

The failure of one refractory element can bring a complex, capital-intensive operation to a standstill, but the environmental cost of inefficient planning and excessive waste can create long-term strategic vulnerabilities.

As Alberto explains, for RHI Magnesita, "The stakes could hardly be higher. Much like a single faulty component can halt an entire automotive assembly line, the failure of one refractory element can bring a complex, capital-intensive operation to a standstill. For RHI Magnesita's customers, reliability is a prerequisite."

The company must have strong global sourcing capabilities that can work across complex projects and networks whilst prioritising sustainable resource management.

The transformation strategy, developed with o9 Solutions, is built around four priorities:

• Optimising inventory - RHIM serves more than 250,000 SKUs across 10,000 customer locations and a network of 67 production sites and more than 250 warehouses. The aim is to open up working capital whilst reducing unnecessary stock holdings that tie up resources and increase waste
• Improving structural efficiency - With such a global network, RHIM faces the risks of fragmented systems. The company is redesigning planning to connect silos, reduce redundant transportation and optimise energy consumption
• Positioning supply resilience as a strategic offering - The company is looking to become contractually committed to supply continuity and resilience, whilst ensuring business continuity plans incorporate environmental considerations
• Leveraging sustainability as a competitive advantage - RHIM is embedding circular economy principles into its planning to reduce CO₂ emissions and build greater self-sufficiency, turning it into an operational and commercial advantage.

Each of these levers demanded a planning platform capable of operating at genuine enterprise scale and adapting as environmental priorities evolved.

Alberto states: "Each of these levers demanded a planning platform capable of operating at genuine enterprise scale, integrating across a fragmented global network and adapting as the business model evolved. That requirement shaped the technology decision as much as any other factor."

Reducing environmental impact through technology

RHIM has gained significant value since implementing the o9 Solutions platform, particularly in areas that directly impact sustainability.

Prior to adopting o9 Solutions, demand planning was conducted at aggregated levels, but the company now has statistical and machine learning-based forecasting.

This enhanced accuracy means reduced overproduction, less waste and lower energy consumption across manufacturing sites.

Moreover, RHIM can undergo automated supply plan generation to enable forward-looking scenario planning that incorporates carbon footprint considerations.

Replenishment and feasibility views have replaced hundreds of localised spreadsheets, creating a single, standardised approach that reduces duplicate efforts and unnecessary transportation.

Teams can now focus on specific issues, identify bottlenecks and proactively evaluate scenarios through an environmental lens.

The company is undergoing controlled agility which operates across a comprehensive planning backbone that prioritises both operational excellence and environmental stewardship.

Alberto says: "Replenishment and feasibility views have replaced hundreds of localised spreadsheets, creating a single, standardised approach across regions. As a result, the role of the planner has fundamentally shifted."

The event demonstrated how accurate forecasting, intelligent inventory positioning, reliable order promising and the ability to absorb disruption without impacting customers or the environment have become the differentiator between success and failure.

Businesses need to make strategic partner decisions, looking at who can design, build and continuously improve products whilst supporting long-term sustainability objectives.

For companies like RHI Magnesita, digital transformation is not simply about efficiency but about building a supply chain that can meet the environmental demands of tomorrow's industrial landscape.