19 August ‘20

MMK and ZTZ agree to phase out paper document management by end of 2021

On Tuesday, August 18, Magnitogorsk Iron and Steel Works (MMK) and Zagorsk Pipe Plant (ZTZ) signed an agreement of intent to fully switch to electronic document management by the end of 2021. The document was signed as part of the companies’ first online coordination council, held on August 17-18. As part of the agreement, the companies plan to implement a number of joint projects in the field of digitalisation to improve document management over time. Electronic document management will affect areas such as the exchange of logistics documentation on the corporate information systems using EDI technology (electronic data interchange), legally significant electronic document management of primary accounting documentation with the integration platform Contour.Dudok, as well as financial issues via electronic platform contractoring.

The first online coordination council was attended by MMK's Deputy General Director for Sales Sergey Ushakov, Head of Marketing Denis Chernenko and a number of other specialists, and from ZTZ's side by General Director Denis Safin, Managing Director Andrey lyaskovsky, Operating Director Sergey Lyakh, Deputy Commercial Director Yuri Vinnikov and others. For the first time, the coordination council was held in a fully online format, without delegations visiting production sites due to restrictive measures in force on Russian territory.

In addition to signing an agreement on the full transition to digital document management, the coordination council also discussed a number of issues aimed at improving interaction efficiency. Among the key issues are the development of promising steel grades, cost reduction in production and transportation of rolled products, as well as the prospect of steel deliveries from mill 2500 after its reconstruction.

Director of MMK-Informservice Vadim Feoktistov commented:

"MMK has extensive experience in implementing electronic document management. In addition to successfully using the electronic document management system in 44 organisations of MMK Group with more than 10,000 employees, we share our experience with the open market. We have created a unique product – the ATACH electronic document management system – which is currently on offer to customers.

“The move away from paper and the transition to electronic document management has significantly accelerated the movement of information flows. Working with documents now takes less time and is more efficient. This important aspect of digital transformation will also influence our cooperation with one of MMK's key partners, Zagorsk Pipe Plant.

“I am confident that the transition to electronic document management will make cooperation between our companies more effective."

Managing Director of ZTZ Andrey lyaskovsky said:

"This time, for the first time, we held our coordination council online. I would like to note that this did not hinder the quality and speed of resolving issues in our working groups. On the contrary – we see only advantages to this format. The signing of an agreement on the transition to electronic document management by the end of 2021 was a landmark event." MMK is a strategic partner for us, and the volume of document flow that occurs as part of our cooperation is significant. The transition to ‘digital rails’ will allow us to focus on more important issues regarding improving overall efficiency. In the near future, the IT units of both companies will begin substantive work as part of the digitalisation of document flow."

The next coordination council will be held in March 2021. At present the council plans to continue meeting in an online format.

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