NLMK Group, an international metallurgical company, has implemented the SAP Ariba Sourcing procurement management system to improve the efficiency of equipment selection and procurement. The system allows you to standardize the process of selecting suppliers, compare the technical characteristics of equipment and terms of cooperation, monitor the implementation of tasks and meeting deadlines. The digital solution will reduce the operating costs of the procurement process by 20-40%.
SAP Ariba Sourcing combines many tasks related to the selection of suppliers within one information system: development and approval of basic engineering, preparation of a list of required equipment, filling out questionnaires and choosing a contractor based on technical and commercial criteria. The system allows all participants in the procurement process to effectively interact in a single space and thus save the time and resources of the company.
“The purchase of equipment is one of the key stages in the implementation of investment projects, which includes complex business processes. Optimizing them with advanced IT solutions is a prerequisite for maintaining competitiveness in the digital transformation era. NLMK was one of the first in Russia to implement a system for the industrial sector and plans to expand the use of SAP Ariba Sourcing in the future for the purchase of basic technological equipment, "commented Anatoly Khebnev, Vice President for Procurement of NLMK Group.
Information about NLMK Group
NLMK Group is a vertically integrated steel company, the largest in Russia and one of the world's most efficient steel producers.
NLMK Group 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 United States. The company's steel production capacity exceeds 17 million tonnes per year.
NLMK demonstrates high cost competitiveness among global manufacturers, and the company's profitability is one of the highest in the industry. The company's revenue for 2019 was $ 10.6 billion, EBITDA - $ 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 have free-float of 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, please visit the website.
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