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Supply Chain Transformation
Large metallurgical holding
Challenge
Optimize procurement and supply process costs while ensuring the required quality of supplied goods and services and timely production support
Solution
Diagnostics of the supply function, identification of bottlenecks, and determination of performance improvement points
Development of a target operational model for the supply function segmented into the front, middle, and back offices
Implementation of category management and optimization of requirements planning
Building target business processes for inventory management with calculation of stocking levels and parameters
Pilot implementation of changes with subsequent rollout
Development of a system of key metrics and analytical dashboards for performance control
Business Impact
Aligned ERP configuration with optimized business processes and enhancement of their maturity
33% reduction in procurement cycle time (from 60-70 days to 40 days)
15% annual cost savings through supply system optimization and category management
40% supplier base rationalization (1,378 to 800 suppliers)
15% reduction in average monthly inventory levels
Reduction in labor costs and enhancement of personnel competencies
15%
annual cost savings
15%
reduction in average monthly inventory levels
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