OMK introduced ASU warehouses at its plant in the Nizhny Novgorod region

2021: Automate Warehouse Management

On September 17, 2021, the United Metallurgical Company announced that it had automated the warehouse management process at its plant in Vyksa (Nizhny Novgorod Region) based on the SAP Extended Warehouse Management (SAP EWM) solution. This made it possible to increase the productivity of warehouses by 20%. The partner in the implementation of the system was the company TLS.

OMK automated and optimized logistics processes at once in two central warehouses with a total area of ​ ​ 11.2 thousand square meters. meters. More than 100 groups of materials are located here: methyses, auxiliary materials, spare parts and equipment from suppliers, their incoming quality control is carried out and distributed to shop warehouses.

As part of the project, OMK integrated the SAP EWM warehouse management system with IT equipment: data collection terminals for warm and cold warehouses, mobile and stationary printers for printing labels with consumables. Both warehouses equipped modern Wi-Fi infrastructure, integrating it into a common corporate global network.

This project ensured the transparency and flexibility of warehouse accounting and freight handling, reliable data on actual stocks and movements of goods in the warehouse in real time. It made it possible to more rationally use warehouse space and effectively organize the placement of goods. The system ensures transparency and efficiency during acceptance. A high level of implemented automation also helps to reduce the number of errors of warehouse workers. As a result of the implementation of SAP EWM in the OMK plant, the number of errors in placing and matching orders was reduced by 70%.

OMK is digitally transforming its business processes, including the execution of supply chains. The implementation of SAP EWM solutions was an organic continuation of this and made the control over the receipt and distribution of spare parts and raw materials on our key asset more transparent and manageable. We supply pipes and railway wheels for strategically important projects of the country, so any failure or delay in deliveries can lead to serious consequences. With the implementation of SAP solutions, we were able to create the optimal minimum necessary stock of materials for production needs. We have a transparent and understandable analytics on the speed of loading machines in warehouses and unloading in production shops. They reduced the labor costs of managing warehouse personnel, "said Igor Savtsov, OMK Information Technology Director.

2019: Complete SAP EWM Implementation

OMK has completed the implementation of the SAP EWM warehouse management solution at the Vyksa Metallurgical Plant. This was announced on January 22, 2020 by SAP CIS. As a result of the implementation, the productivity of warehouses increased by more than 20%, and their capacity - by 35%. The IT project was executed by Logistics Systems Technology.

The system introduced allowed OMK to move from manual document management to complete automation of business processes: warehousing, collection of orders from divisions and distribution of goods and materials according to applications.

Thanks to the automated warehouse management system, all warehouse and personnel processes have become transparent and planned. In addition, the speed of picking warehouse orders has increased significantly and the number of errors in their selection has decreased by 70%. As a result, the time for conducting an annual inventory was reduced by 40%.

All expectations from the IT project were met: with the implementation of SAP EWM, OMK received a resource that significantly increased efficiency in the business processes of warehouse logistics. The effects of the project are long-term: during the implementation of the project, warehouse technologies are modernized, optimized, automated. SAP EWM also enables you to analyze data and improve warehouse operations. noted Vadim Nazarov, head of the department for qualification, certification, inspection of suppliers and technical expertise of the Procurement Directorate of OMK

This project is really special, first of all, because it is one of the first projects to automate logistics warehouses in the metallurgical industry. Thanks to the joint efforts and fruitful work of the combined team of OMK, VMZ and TLS, it was possible to implement a landmark project and achieve high qualitative and quantitative improvements. The experience obtained is very valuable and arouses interest among companies that are only planning to automate their warehouse processes, noted Alexander Krechanin, project manager for TLS

For a large metallurgical company, the clear operation of the warehouse is very important, because the uninterrupted operation of the entire production depends on it. With the implementation of SAP EWM, OMK has a reliable tool for monitoring inventory resources, tasks, inventory and documents online. We note that, thanks to the rapid monitoring of current operations, the company has come to the effective use of its warehouse resources, and, therefore, to a higher quality of activity to meet the most stringent requirements of its customers, commented by Alexey Leontovich, Deputy General Director of SAP CIS

2018: Start implementing SAP Extended Warehouse Management

On October 25, 2018, SAP CIS announced that OMK began implementing a solution for managing the SAP EWM warehouse at the Vyksa Metallurgical Plant (VMZ). It is planned that thanks to the system, the company will reduce labor costs by 15% as a whole, and for the annual inventory - by 30%. In addition, the amount of surpluses and shortfalls will decrease by 50%. LLC Logistics Systems Technology was chosen as the executor for the implementation of the project.

The key objectives of the project were: tracking the relevance of inventory for planning purchases and processing shop requirements, increasing the speed and accuracy of order processing, optimizing and increasing the transparency of existing warehouse processes, increasing the level of warehouse processing service, as well as reducing the degree of influence of the human factor in warehouse management. An important criterion when choosing a system was to ensure reliable integration with the enterprise management system SAP ERP.

The scope of the project also included the supply and integration of the warehouse management system with IT equipment: data collection terminals and label printers. In addition, work is being done to equip warehouses with modern WiFi infrastructure.

Based on the results of the pilot project for the implementation of SAP EWM in two warehouses of the Vyksa Metallurgical Plant, it is planned to further replicate the system both to other warehouses of VMZ and to warehouses of other enterprises of the OMK group of companies.

"A clear and coordinated warehouse operation is very important for a large industrial enterprise. How processes are built, and how they ensure uninterrupted operation depends on business development, efficient use of resources, and satisfaction of end customers. SAP EWM is the next step of OMC after the inventory optimization solution introduced in 2016. Both systems are built on SAP products and are fully integrated with each other. This will allow the company to effectively manage the warehouse in real time and become even closer to the digital enterprise. " Alexey Leontovich, Deputy General Director of SAP CIS

"During the project, the processes of acceptance, placement, inventory management, task management, reservation and selection of orders, packaging, shipping, labor management, interaction with mobile terminals and other devices will be automated. As of October 2018, the joint project team is completing the first stage of forming a target business process model and preparing a project solution. One of our most important tasks is to prepare the basis for further scaling of the system, which will allow you to implement quick integration with the created objects of the SAP ERP organizational structure with the maximum use of typical business processes and the standard configuration of SAP EWM. " ' Alexander Krechanin, Project Manager for SAP EWM Implementation in OMK Warehouses

2017: SAP Supply Chain Management-based inventory management automation

On February 28, 2017, the Vyksa Metallurgical Plant announced the automation of inventory management. The company has a system for reducing stocks and risks of a shortage of regularly consumed materials. Thanks to the implementation of the project, reserves at VMZ were reduced by more than 100 million rubles, the turnover of warehouse resources accelerated by 27%.

The project was implemented by SAP Digital Business Services using SAP MRP Monitor (SCM Consulting solutions). The system allows you to classify materials by a number of parameters, including seasonality and trends, value, turnover and liquidity. A wide range of indicators will help to improve the accuracy of planning, adjust inventory quantities and the costs of recording, storing and distributing them. The system also allows you to model and select the optimal levels of safety stock, the quantities of batches for its replenishment, form multiple business scenarios and use the most suitable of them.

author = Ara Aguzumqian, Director of Consulting and Support, SAP CIS "We worked on the task for about a year, colleagues from our global team were also involved in the implementation of the project. In the process, we used both knowledge on the specifics of the local market and international expertise of SAP, which allows us to talk not just about the implementation of the solution, but about the process of evolution of the business model. VMZ has established a modern and flexible decision-making system for material planning. Their classification and calculation of insurance stocks were previously done manually. The system reduced the labor intensity of this process, increased its transparency, reduced inventory and freed up the company's funds. "

"VMZ operates in a highly competitive environment. An automated inventory management system is a tool for today's enterprise that greatly facilitates material requirements planning. We note a significant decrease in inventory and an increase in the speed of its renewal, as a result of which the efficiency of the entire enterprise has improved. " Alexander Barykov, Managing Director of Vyksa Metallurgical Plant