Severstal: results of SAP implementation of Transportation Management

On October 21, 2015 it became known of project completion of implementation of the module SAP TM in an IT environment of Severstal company. Control automation system implementation by vendor relations of SAP SRM^[1] is earlier completed^[1].

Project Results

- This year we implemented the localized module SAP TM (transportation management), having actually completed automation of deliveries for clients. Using a system ship and road haulage are controlled, in October internal rail transportation will be brought to a system. I hope that till February-March we will connect export to a system. Actually it means that all shipment documents form in SAP TM. The module is integrated with other accounting systems and allows us to plan logistics in details, - Yury Shekhovtsov, the Chief information officer of Severstal company emphasized.

On production of Severstal (2013)

After implementation of full-scale SAP SRM, for October 21, 2015, in a system 10% of suppliers of the company work. Until the end of 2015 the company is going to connect almost all that means - tenders, tenders will be held only on electronic platform.

Yury Shekhovtsov noted: "Beauty of the solution is that it is completely closed loop: beginning from the declaration and carrying out the tender, "transformation" of the tender into the agreement before transfer of the request in workshop, its comparison to the agreement. Further – tracking of logistics of goods according to the request and further purchase plannings. Absolute integration".

2017: Project Results

On July 24, 2017 the SAP CIS company published results of system implementation of management of transportation of SAP Transportation Management (SAP TM) in structure of business of Severstal company.

System implementation of SAP Transportation Management is a complex project which required considerable transformations in Severstal. Business process optimization, a number of organizational changes and also actually system implementation allowed to increase effective management of a supply chain, to reduce operating expenses and to increase the level of the service provided to clients. Dmitry Sakhno, sales director of raw materials, to purchases and logistics of Severstal

Using tender procedures in interaction with transport companies on the online portal, costs for road haulage on average are reduced by 15%. The SAP TM system simplified process of road haulage and for partners of Severstal. After its implementation the number of idle times of motor transport and errors when loading decreased.

System implementation in process of management of ship batches and a number of large organizational changes allowed the company to create a uniform point of control of export logistics of "CherMK", "Severstal Export", "Neva Metal" and other remote ports and also to reach target indicators on reduction of stocks in port. The project is interesting that this Russia's first SAP solution Transportation Management based on SAP HANA for marine and river transport and also the first solution in the CIS for interaction with haulers based on collaboration portal.

System implementation of SAP TM allows to pass to paperless document flow from the Russian Railway and to reduce time for routine transactions, and planning of transport on the basis of relevant dates of shipment - to minimize penalties for non-use of the stated volumes. SAP implementation of Transportation Management in Severstal – the first such project in the Russian metallurgy. Besides, for the first time in Russia this solution is implemented based on SAP HANA using a standard packet of localization which provides interaction with the ETRAN system at execution of shipping requests of GU-12 and rail waybills. Ara Aguzumtsyan, director of consulting and support of SAP CIS

With system implementation we can provide the additional level of service, providing to clients of Severstal up-to-date information on transportation in a personal account of our online store based on SAP Hybris. Dmitry Sakhno

Notes