NLMK La Louviere, an NLMK Group company and one of the leading flat products manufacturers in Belgium, has implemented a digital inventory management solution that minimizes inventory balances while ensuring smooth order fulfillment. Since the start of testing the system in April, inventory turnover for the most demanded range of raw materials (steel billets) has improved by 30%.
NLMK La Louviere produces rolled products from semi-finished products that come from Novolipetsk Metallurgical Plant. The volume of supplies is about 1.6 million tons of slabs per year. Previously, deliveries were planned according to the traditional scheme: the planner made a forecast of the demand for metal, estimating the volume of orders, stocks in the warehouse and the delivery time of slabs. The digital solution analyzes not only the dynamics of stock changes and the delivery cycle, but also many other factors, such as variability of demand and delivery times.
The digital solution is developed based on the DDMRP (Demand driven material requirements planning) approach. demand-driven).
“With localized production, proper inventory planning becomes an important success factor. The digital solution allows to ensure timely deliveries to customers while minimizing the warehouse, "commented Ilya Gushchin, Vice President for Sales of NLMK Group.
Information about NLMK Group
NLMK Group is a vertically integrated metallurgical company, the largest in Russia and one of the most efficient producers of steel products in the world.
NLMK Group's metal products are used in various industries, from construction and mechanical engineering to power equipment and offshore wind turbines.
NLMK's production assets are located in Russia, Europe and the USA. The company's steel production capacity exceeds 17 million tonnes per year.
NLMK demonstrates high cost competitiveness among global manufacturers, the company's profitability is one of the highest in the industry. The company's revenue for 2019 was $ 10.6 billion, EBITDA was $ 2.6 billion. The Net Debt /EBITDA ratio was 0.7x. The company has investment grade credit ratings from S&P, Moody's, Fitch and RAEX (Expert RA).
NLMK's common shares, which free-float is 18.6%, are traded on the Moscow Stock Exchange (ticker “NLMK”), global depository shares - on the London Stock Exchange (ticker “NLMK: LI”). The share capital of the Company is divided into 5,993,227,240 ordinary shares with a par value of 1 Russian ruble. More information about NLMK's share capital can be found here.
For more information about NLMK Group, visit the website.
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