INSIDE RHI MAGNESITA’S GLOBAL LOGISTICS TRANSFORMATION
Behind the materials that forge the world’s most essential industries lies a company whose impact reaches far beyond the factories it serves. RHI Magnesita is more than a supplier of refractories. It is a global network of mining, manufacturing, logistics and recycling, working together to keep the modern industrial world moving.
The company operates 68 main production sites (incl. raw material sites) and runs a vertically integrated system that begins with mining its own raw materials, dolomite and magnesite. At the other end of the cycle, it collects and recycles used refractory products, reintroducing them as secondary raw materials. It is an ecosystem that closes its own loop, giving RHI Magnesita full control from extraction to reuse.
That control is vital. The business runs one of the most complex supply chains in the
world, managing movements of heavy materials across continents. For those leading its logistics transformation, the challenge is not just physical but strategic. It is about creating visibility and resilience across a network that must operate efficiently under constant pressure.
At the centre of this transformation are Daniel Prutti, Head of Global Logistics Planning and Procurement, and Marc Jägers, Global Logistics Innovation Technology Manager. Together, they are driving a long-term shift that is redefining how RHI Magnesita plans, executes and monitors its global logistics.
Prutti, who has been with the company for more than a decade, describes its structure as “vertically integrated, globally orchestrated and regionally managed”. Every layer, from raw material planning to production and freight, is connected through an integrated business planning
Marc Jägers, Global Logistics Innovation Technology Manager
process that aligns procurement, logistics and operations. The aim is to create one consistent rhythm across the value chain.
The system works, but it operates in a world of uncertainty. Tariffs between the United States and Brazil, shipping disruptions, and conflicts that affect transport corridors in Europe are among the challenges the team faces daily. “We cannot control the external environment,” Prutti explains, “but we can control how we respond. Each disruption is an opportunity to test our resilience.”
The energy transition has added another dimension. The conversion of magnesite into magnesia is an energy-intensive process that releases carbon dioxide, and the company has made decarbonisation a central pillar of its strategy. “We are investing in carbon capture, hydrogen and renewable energy,” Prutti says. “Sustainability and logistics are connected. Reducing emissions requires smarter, cleaner movement across our entire network.”
RHI Magnesita’s leadership views sustainability not as an obligation but as an engineering problem that must be solved with creativity. Its closed-loop recycling of refractory materials already reduces waste and emissions, while new digital tools allow the company to monitor carbon impact across its supply chain.
The shift from traditional logistics management to a digitally connected, environmentally aware operation has required more than technology. It has required a new way of thinking about ownership. For years, RHI Magnesita managed its 3PL partners fully in-house, running shared service centres and investing heavily in software products. The approach worked but it was slow. To accelerate progress, the company introduced a hybrid operating model that blends internal control with strategic partnerships.
Under this model, RHI Magnesita retains command of its global logistics strategy and part of its transport management
LOGISTICS RHI MAGNESITA
operations while collaborating with two Fourth Party Logistics partners who provide advanced systems and operational support. “We reached a level of maturity where we realised we could not do everything alone,” Prutti explains. “Transformation is not about doing more, it is about doing the right things and partnering where it brings speed and value.”
The decision to work with two partners for land freight planning and execution around the globe rather than one was deliberate. Both C.H. Robinson Managed Services and 3SC Analytics operate globally, allowing RHI Magnesita to benchmark performance and drive improvement through competition. “We believe in learning through comparison and competition,” says Prutti. “Running two partners side by side helps us measure progress in real time.”
For Marc Jӓgers, cultural fit is just as important as technical capability. “A strong partnership is not only about technology,” he says. “It is about how well a partner understands your company, your way of working and your people. Flexibility and communication make the difference.”
By partnering with the Fourth-party logistics (4PL) companies, RHI Magnesita gets access to the global control tower and technology infrastructure that these companies bring. The highly advanced Transport Management Systems, supported by AI-powered orchestration gives RHI Magnesita operational efficiencies. C.H. Robinson Managed Services has a setup of Control Towers in each of the 3 regions it manages for RHI Magnesita. The Control Towers manage the end-to-end transport process based on direct integrations with RHI Magnesita’s ERP system. Both 3SC Analytics and C.H. Robinson Managed Services are at the forefront of logistics and supply chain AI developments. RHI Magnesita benefits directly from their innovations in creating operational efficiencies and driving down costs.
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complex India market and is rolling out the 4PL concept across all manufacturing and distribution locations in the region. The physical footprint of 3SC Analytics, combined with their state-of-the-art technology solutions and experienced team offers RHI Magnesita a new magnitude of all modes transport management across India.
C.H. Robinson Managed Services is running the 4PL concept for the high volume, high complexity regions in Europe (including Türkiye), North and Latin America. The flexibility the partner offers makes it possible to roll out a 4PL fully integrated technology solution with RHI Magnesita’s current SAP system, while in parallel supporting the integration of the new SAP S/4HANA ERP. Adapting to such a complex and demanding process requires a seasoned team from C.H. Robinson Managed Services and robust technology to accommodate the connection to multiple ERP systems in parallel.
Those lessons were learned through experience. Earlier transformation projects focused heavily on systems and data. Over time, the company recognised that successful change depends equally on people. “We used to think of transformation as a technology project,” says Daniel Prutti. “Now we know it is a people project supported by technology.”
The hybrid model has also made RHI Magnesita’s global footprint more adaptable. With new acquisitions joining the group in recent years, the 4PL structure allows the company to integrate new sites quickly, even if they are not yet connected to the core ERP system. “It used to take months to bring new operations into our logistics network,” says Prutti. “Now we can do it from day one.”
Supporting this new structure is an advanced digital ecosystem. RHI Magnesita operates effectively three transport management systems that are all integrated into a central data lake. The data is consolidated into one model that feeds analytics, business intelligence
and emerging artificial-intelligence tools.
“Our goal is to maintain full control of our data,” Marc Jӓgers explains. “Even when we work through partners, the data stays with us. It is the foundation of our decision-making.”
One of the company’s most sophisticated innovations is its “double digital twin” concept. Every ocean shipment recorded in Oracle is mirrored in a partner’s platform, allowing both sides to analyse performance simultaneously. “It creates transparency and allows continuous improvement,” Marc Jӓgers says. “We can see where to optimise cost, time and sustainability.”
Artificial intelligence is the next step in this evolution. Marc Jӓgers does not see AI as a pure replacement for human expertise but as an assistant that will increasingly handle routine decisionmaking. “We are moving towards a model
Daniel Prutti, Head of Global Logistics Planning and Procurement
where AI supports planners with real-time recommendations,” he says. “It will allow our people to focus on orchestration and strategy rather than manual planning.”
After seven years of ongoing transformation, the team has learned valuable lessons about leading global change. Marc Jӓgers highlights four. First, transformation succeeds when people are at the centre. Second, it requires a dedicated team whose sole focus is driving progress. Third, flexibility is essential when working with partners and systems. And finally, change must happen
in phases. “Large-scale transformation cannot happen overnight,” he says. “It must be broken into measurable steps. That is how you build success that lasts.”
For both leaders, maintaining momentum through constant global disruption has been one of the greatest achievements. “We have built a structure that keeps moving, regardless of what happens around us,” says Daniel Prutti. “That consistency is our strength.”
Looking ahead, RHI Magnesita is preparing for an era in which innovation
will define competitiveness. “The pace of change is accelerating,” says Marc Jӓgers. “AI and digital tools are becoming more accessible, even for smaller players. To stay ahead, we must continue to innovate and refine.”
At the core of that innovation lies data. Daniel Prutti believes the next major step will be mastering the quality, consistency and governance of the company’s information. “Data is the new currency,” he says. “Clean, accurate data is what powers AI and drives business intelligence. It connects everything.”
The company’s vision for the coming years is to unite its three major digital programmes; logistics, advanced planning and ERP modernisation, into one cohesive framework. The aim is to deliver not only operational excellence but a user experience that feels natural and intuitive. “The tools we use at work should be as clear and responsive as those we use in daily life,” says Daniel Prutti. “That is the experience we want for our people and our customers.”
It is an ambitious target, but one that reflects the company’s history of
combining industrial strength with human ingenuity. From its Austrian mines to its digital control centres, RHI Magnesita operates with precision, discipline and a constant appetite for progress.
For all its data, systems and automation, its transformation remains deeply human. It is about how people adapt, learn and collaborate across borders and technologies. That human thread runs through everything RHI Magnesita does, linking the physical and digital sides of its business into one continuous story of evolution.
“Transformation never truly ends,” says Marc Jӓgers. “It is a journey. The challenge is to stay curious, stay connected and keep improving.”
www.rhimagnesita.com
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