MMK shares its experience of electronic trading platform
A report on this subject was put together by MMK's chief economist of procurement department, Eugene Trakhtengerts, and MMK-INFORMSERVICE's leading expert in the field of procurement, Andrew Suvorkov.
In November 2007, MMK launched its own electronic trading platform (ETP) based on Oracle EBS, that has since been further developed. Since 2010, open trades have been held on the ETP, granting access to contractors without the need to have passed an internal corporate audit. The seller registration form for ETP was introduced in 2011. The number of sellers who participated in the auction is constantly growing. In 2008 there were only 60 sellers, while in 2012 their number exceeded 5,000, and in 2017 there were over 7,000 sellers. The amount of unique items in the auction has also increased from 751 in 2008 to 52,800 by the end of 2018.
In addition to the seller registration form, ETP has additional functions such as that of a personal account with the option to be notified of open trades, the results of auctions, and to post information about participation in an auction on MMK's corporate website.
ETP is constantly developing its mobile app "MMK Supplier". The app significantly increases the convenience and speed of MMK's communication with suppliers. It allows the user to log in via SMS, to monitor MMK's demand for material and technical resources, to be notified in real-time of auctions held at the plant, and to subscribe to mailing lists sorted by categories of interest.
The use of ETP by MMK Group’s companies ensures transparency and grants MMK a degree control through the use of a common list of sellers and items directory. It also enables MMK to use the results of auctions held by all the Group’s companies.
The advantages of electronic auctions include reduction of purchase prices and overhead costs; faster choosing of seller; increase in the validity of the choice of seller; greater control over the procurement cycle from bid to delivery; reduction of corruption risks; ability to maintain a database of suppliers with a history of cooperation.
Lately, MMK's ETP has adopted the latest version of the Oracle e-Business Suite R12 corporate information system as well as RPA (Robotic Process Automation) technology.
The Oracle Modern Business Forum 2019 focused on the cases of Oracle EBS customers which have gone through the stages of digital transformation to improve traditional business processes. Representatives of major Russian and foreign companies shared their experience in developing and using e-Commerce platforms, new approaches to the transformation of procurement systems, and the strategy for the implementation of "Industry 4.0" in the sector.
About MMK
MMK is one of the world's largest steel producers and a leading Russian metals company. The company's operations in Russia include a large steel-producing unit encompassing the entire production chain, from the preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of high-value-added products. In 2018, the company produced 12.7 million tonnes of crude steel and 11.7 million tonnes of commercial steel products. MMK Group had sales in 2018 of USD 8,214 million and EBITDA of USD 2,418 million.
Investor contacts:
Andrey Serov
tel.: +7 (3519) 24-52-97
E-mail: serov.ae@mmk.ru
Media contacts:
Dmitry Kuchumov
tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru
Dmitry Bulin
tel.: +7 (499) 238-26-13
E-mail: bulin.dn@mmk.ru