NLMK replaced self-written ERP with SAP

The Novolipetsk Metallurgical Combine (NLMK) after long years of use of self-written ERP transferred business to the SAP ERP platform. In total in divisions of production company about 3.5 thousand jobs are automated.

NLMK, one of the largest metallurgical the companies in Russia, completed an implementation project of a new resource management system of the enterprise on the SAP ERP platform. As specified TAdviser in NLMK, before start of the project by the company information systems of own development and also SE-2 system of KOMEK-92 company for accounting and tax accounting were used.

According to the president of NLMK Alexey Lapshin, need of implementation of the ERP system "was caused by requirements in information support of quickly growing group, need to standardize key business processes, to increase their efficiency and to provide conditions for further replication". "Scales of activity of our company required creation of the full-function and powerful solution based on the most modern technologies in the field of management of corporate data", - he explained.

Began preparation of the ERP project of NLMK with updating of an IT command. So, in March, 2008 from RUSAL Vadim Uryas passed to a position of the vice president of NLMK for IT. Then the company for the first time announced the large-scale ERP plans. Practically at once (in October, 2008) the project started in division Stoilensky GOK, it was complete in the summer of 2009. The project in head company NLMK also started with the same moment, however, its implementation ended for a year later. At the moment at these enterprises more than 3.5 thousand users of a new system are registered.

During the ERP project a number of key business processes of NLMK is automated, including management of finance, sales, purchases, projects, production, production planning, fixed asset accounting, financial and tax bookkeeping and others. BDO Unicon acted as integrator of the project.

In plans for further development of the project replication of the solution at other enterprises of NLMK Group and also implementation of functionality of maintenance and repair of the equipment on NLMK enters.

Investments into an implementation project of SAP ERP of the party do not open. Revenue of NLMK in the second quarter made 2010 46.774 billion rubles, in comparison with the last quarter it grew by 33%, and for 75% - in comparison with the same period of last year. The gross profit grew by 45% in comparison with the last quarter and by 2.5 times in comparison with the same period of last year. The net profit of the company for the specified period was was 11.688 billion rubles.