Magnitogorsk Iron and Steel Works - MMK (Oracle E-Business Suite)

IBS Borlas (file) completed the project on creation on the basis of Oracle applications of E-Business Suite of the portal of suppliers and electronic marketplace for Magnitogorsk Iron and Steel Works. Methodological providing was performed by Cognitive Technologies company.

ERP system of OEBS was implemented at the enterprise during 2003-2005. In a kachetsva of further development of a system the company planned creation of the portal of suppliers (on the basis of iSupplier Portal); creation of electronic marketplace (on the basis of iStore, Sourcing); creation of a management system for internal control (Internal Control Management) and systems of consolidation of financial statements (Financial Consolidation Hub).

Task of the portal of suppliers is creation for suppliers of prior notices of deliveries in which date of shipment, the planned date of arrival on plant taking into account time for transportation, volume of the shipped products given to the way bill is specified. All these data automatically get to a corporate information system of the enterprise, and on their basis the analysis and planning of activity of plant can be performed. Such operation algorithm based on the principles of self-service allowed to cut down administrative expenses, to increase efficiency and accuracy of the information, more effectively to distribute warehouse spaces and to regulate loading of transport. The portal of suppliers is put into commercial operation and is used in 130 workplaces.

The electronic marketplace is urged to expand sales market, to reduce a purchase cycle, to reduce costs and to provide the reasonable choice of suppliers. The platform uses such methods as competitive cards, tenders, electronic biddings. All data are fixed and are available to the further analysis. The buyer has an opportunity to control all process of execution of the order online. According to participants, during this project for the first time in Russia within corporate electronic marketplace legally significant document flow was implemented.

According to Dmitry Kaplan, the director of information technology of MMK, only in two months of trial operation of a system on electronic marketplace more than 20 buyers were registered and more than 500 tons of metal products are sold. The company is going to bring sales volume through ETP approximately to 3% of all sales volume for domestic market already in the nearest future. It is in the long term going to appear completely from paper document flow, to transfer clients of plant to electronic trading and to unroll the systems of biddings by the most demanded products.