NLMK Group, a global steel company, has implemented the SAP Ariba Sourcing procurement management system to improve the efficiency of equipment selection and acquisition. The system allows standardizing the process of selecting suppliers, comparing technical characteristics of equipment and terms of cooperation, and monitoring order fulfillment and compliance with deadlines. The digital solution will reduce procurement operating costs by 20-40%.

SAP Ariba Sourcing is a one-stop-shop solution that combines multiple tasks related to supplier selection within a single system, including the development and approval of basic engineering, preparation of a list of necessary equipment, filling out questionnaires, and selecting a counterparty based on technical and commercial criteria. The system enables all procurement process participants to interact effectively in a single space, saving the company's time and resources.

Anatoly Khebnev, NLMK Group VP, Procurement, said: “Equipment procurement is one of the key stages in CAPEX project implementation, consisting of complex business processes. Their optimization through the use of advanced IT solutions is a prerequisite for maintaining competitiveness in the digital transformation era. NLMK was one of the first companies in Russia to implement the system for the industrial sector, and it plans to expand the use of SAP Ariba Sourcing to cover the purchase of main process equipment in the future.”

About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group’s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.

NLMK operates production facilities in Russia, Europe and the United States. The Company’s steel production capacity exceeds 17 million tonnes per year.

NLMK has a highly competitive competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2019, the Company generated $10.6 bn in revenue and $2.6 bn in EBITDA. Net debt/EBITDA stood at 0.7х. The Company has investment grade credit ratings from S&P, Moody’s, Fitch, and RAEX (Expert RA).

Source from NLMK