Industrial.Market

Marketplace Industrial.Market is a digital platform in the Russian Federation, where B2B companies of the sector can place and place an order in the categories tail spend (non-strategic purchases), while reducing costs by 5-20% due to competition between dozens of suppliers in each category of goods.

History

2021: Selection from Severstal structure

On July 7, 2021, it became known that PJSC Severstal"" withdrew from its structure B2B marketplace Industrial.Market. Industrial Procurement Center LLC is the parent company of the marketplace, where as of July 2021, Severstal owns 100%.

Severstal announced the launch of the platform in November 2020, providing a critical volume on the platform at the first stage of the project and solved its efficiency problems.

The pilot tests of the Severstal platform were conducted in the II quarter of 2021 in the Vologda Oblast. Over 50 vendors and more than 200 customers were connected to the platform.

The key result of the pilot was the digitalization of the process: reducing the average procurement cycle time from 30-90 days to 1-16 days (compared to purchases according to the stored scheme), reducing the number of interactions in the ordering process by half, placing more than 100 thousand. SKU products on the platform and conducting orders in seven categories, the main of which are electrical equipment and tools. In addition, the growth in procurement through the platform exceeded 200% in the last month of the pilot. Now Severstal plans to scale the decision to its other assets.

Following the results of the pilot, we made two fundamental decisions: the withdrawal of the company from the Severstal perimeter and, accordingly, the creation of the Industrial.Market marketplace, which will be available to external customers. We are convinced of the prospect of digitalization of the procurement process: the volume of the Russian tail spend market is estimated at about $20 billion per year. We plan to become leaders in this market with a share of tens of percent in a few years. Therefore, the separation of the marketplace into a separate structure allows us to scale up business outside the companies included in Severgroup, create a motivation program for the Industrial.Market team and give additional impetus to the foundation of a large range of partnerships, "commented Andrei Laptev, Director of Business Development and Corporate Venture Projects of Severstal.

The market - both from large customers and from suppliers - already has a very strong interest in using the marketplace Industrial.Market. As of July 2021, several agreements with large industrial companies are under signing. If we talk about strategic vision, we plan to become an effective online consolidator of non-strategic procurement in. Russia B2B procurement market To Europe USA in and has undergone a transformation on the use of a similar solution - - Amazon Business five years ago. At the end of 2020, the subsidiary Amazon showed a sales growth of over 50%, stronger than Amazon itself. Industrial.Market brings this transformation to, "added Andrei RussiaNurumov, CEO of Industrial.Market[1]

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