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Severstal Industrial Procurement Hub, IPH

Product
Developers: Industrial Procurement Hub (IPH, Industrial Procurement Center)
Date of the premiere of the system: November 2020
Branches: Metallurgical Industry,  Trade
Technology: SCM,  SRM - Supplier Relationship Management

2020: Launch of Industrial Procurement Hub procurement marketplace

In early November 2020, Severstal announced the launch of a marketplace for the purchase of goods aimed at companies in the industrial sector. The project was named Industrial Procurement Hub (IPH, Industrial Procurement Center).

On this online site, B2B companies will be able to place and place an order in the tail spend categories (non-strategic purchases). The platform does not work according to the tender system: the path for the client is similar to the classic B2C-Marketplace, where prices, availability and delivery are determined in advance. At the same time, products on the platform are focused mainly on industrial specifics.

Severstal introduced a single marketplace for giant purchases

In addition to Severstal itself, the service is already used by Power Machines, the Sveza group and the gold mining Nordgold, which are part of Severgroup. But the company plans to bring third-party industrial holdings to the site as well. According to the results of the survey, some of them have already confirmed their interest in switching to the marketplace, they say in Severstal (without disclosing with whom negotiations were held). The total volume of purchases at the first stage will amount to more than 10 billion rubles. per year, the company predicts, of which Severstal itself will carry out purchases through the platform for 1 billion rubles.

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The creation of a single platform will significantly change and at the same time qualitatively simplify the procurement process, ensuring healthy and fair competition for all participants in the process. Thanks to this, it will be possible to reduce the time for procurement operations. And by ensuring price transparency and open competition between suppliers, it is necessary to further reduce the costs of the categories of inventory purchased on the platform, "said Dmitry Sakhno, Director of Raw Materials Sales, Procurement and Logistics at Severstal.
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According to him, automation will significantly reduce the procurement cycle and make it more transparent.[1]

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