NLMK implements SAP SCM

On October 2, 2013 the SAP CIS company announced the first implementing solution of SAP for optimization of management of warehouse stocks using SAP Inventory Optimization service on Novolipetsk Metallurgical Combine.

Project Tasks

At the end of 2012 on NLMK approved the comprehensive program directed to decrease in stocks. The implementation project of the information management system stocks on the basis of the SAP solution SCM became one of actions within this program.

According to Anatoly Hebnev, the deputy vice president of NLMK for supply, the company the tool using which it is possible to make the weighed decisions on inventory management is necessary: "We see effect of the implementing solution developed by SAP Consulting already at the first operational stages of a new system. Development of uniform corporate regulations on inventory management became an important part of the project — now this process in all divisions is conducted by uniform rules. We estimate economic advantages of the project at hundreds of millions rubles of single economy due to decrease in volumes of a safety stock and release of the current assets allocated for purchases, storage and replenishment and we expect additional effects of implementation regarding optimization of stocks".

"NLMK — not only the leader of the Russian metallurgy, but one of the innovation enterprises in the industry that is confirmed by the award for quality received by the customer according to the results of SAP ERP implementation project. And here — new achievement: the Russia's first implementing solution for inventory management using SAP Inventory Optimization service based on SCM MRP Monitor. We expect that increase in effective management of stocks will provide strengthening of competitive advantages of NLMK at the expense of reaching the new level of stability of production, decrease in product cost and cost optimization" - Roman Ganrio (Zhuravlev), the director of consulting and training of SAP CIS emphasized.