use of sap slc / srm solutions at metinvest group of sap slc / srm solutions at metinvest group...

Use of SAP SLC / SRM Solutions at METINVEST Group

Andrey Kovalenko

Head of Purchasing

Business Process Transformation Unit,

METINVEST HOLDING, LLC

Alexander Bulgakov

Head of Purchasing

Corporate Systems Department,

METINVEST HOLDING, LLC

1. Information about the Transformation and Introduction of SAP Program

2. Prerequisites for using SAP SLC / SAP SRM

solutions 3. Overview of SAP SLC processes 4. Overview of SAP SRM processes 5. Efficiency of using SAP SLC / SAP SRM

solutions

Content of report

The current stage

3

Information about the Transformation and Introduction of SAP Program

Since 2011, the METINVEST Group has been implementing the Transformation and Introduction

of SAP Program. The program consists of 4 stages.

Currently, Stage 4 of the program, replication of target process and SAP solutions at the Group's

enterprises, is being implemented.

Stage 1*

Development of multi-level

target models for business

processes, policies and

methodologies.

Development of detailed

target business-

processes

Development of system

models and templates

based on business type

Update and introduction

of changes

to methodology /

processes

Configuration of SAP-

systems based

on developed models

Testing

User training

Data transfer

Launch into industrial

operation

Improvement of templates

Stage 4

Replication of target

processes and ERP

of the system at the

Group's enterprises

Configuration of SAP-systems

based on developed models

Testing

User training

Data transfer

Launch into industrial

operation

User support and development

of functionality at enterprises

equipped with SAP system

Development of a target

model of business

processes

Calculation of economic

feasibility of the selected

target model

Analysis and

development of common

policies and

methodologies

* completed stages

Stage 2*

Developing templates

for future

implementation

(Conceptual design)

Stage 3*

Transformation and

introduction of ERP

at pilot enterprises

4

Information about the Transformation and Introduction of SAP Program

The Transformation and Introduction of SAP Program is one of the company's

strategic projects.

The program aims to increase the transparency and efficiency

of business processes, improve business manageability, and reduce costs

throughout the supply chain to create value for the customer.

The program primarily involves changing business processes within the

company and bringing them in line with international best practices.



solutions 3. Overview of SAP SLC processes 4. Overview of SAP SRM processes 5. Efficiency of using SAP SLC / SAP SRM

solutions

Content of report

6

Prerequisites to use of SLC / SRM solutions

In the first phase of the Transformation and implementation of SAP Program, an evaluation was

made of the maturity of the Metinvest Group's procurement processes. We obtained the following

results:

Strategy

There were no common formalized materials and equipment (M&E) procurement strategies (in most cases,

purchasing of assets was done independently and the principle raw materials were centrally managed)

Processes and regulations

There was no single reference / master data for procurement processes

There was no single base of potential suppliers

Information technologies

There was no single IT system

IT products were not integrated at the inter-divisional or enterprise level of the Group.

Architecture of the implementation of SAP SLC / SRM solutions within METINVEST Holding

SAP ERP

SAP SRM SAP SLC

SAP ERP for non-pilot

assets

Automatic creation of MM contracts (44*)

Replication of requests

Qualification status of supplier by groups of materials

Replication of requests

Self-registration

of the supplier

Pre-qualification

of the supplier

Evaluation of the

supplier's activity

Automatic

determination of

procurement volumes

and processing

of requests

Generation of MM

contracts

Choice of M&E /

services supplier

Loading and

processing of requests

Planned replication and mapping architecture of suppliers among the

METINVEST Holding systems

SRM / SLC Buy Side SAP MDG SRM SUS / SLC Sell

Side

SAP ERP

Replication of supplier data

from SLC Sell Side Replication of supplier data

from SLC Buy Side

Replication of supplier data

from MDG

Mapping of the

supplier's data

Replication of supplier data from

SLC Buy Side

Creation and

maintenance

of contractors

Procurement

processes

Maintaining a base of

contractors for forming

a pool of suppliers

in SRM

Self-registration

of the supplier

Content of report



solutions

3. Overview of SAP SLC processes 4. Overview of SAP SRM processes 5. Efficiency of using SAP SLC / SAP SRM

solutions

10

Overview of SAP SLC processes

10

Supplier SLC administrator Buyer Tender committee

for prequalification

Registration on the web portal

Questionnaire approval Questionnaire approval

Submission

of registration documents

Document processing

Assigning "Registered" status

to the supplier

Sending

a Qualification questionnaire

to the supplier Completing

Qualification Questionnaire

Approval of


Making a decision on

the supplier's qualification

Creating the supplier's

qualification profile

11


11




Questionnaire approval

Submission



to the supplier

Completing


Approval of







Document processing

Sending


to the supplier

12

Registration on the web portal 1/5

13


14


15


16


17


17





Submission


Document processing


to the supplier

Sending




Approval of






18

Approval of Self-Registration Questionnaire 1/2

19

Approval of Self-Registration Questionnaire 2/2

20


20




Submission


Document processing


to the supplier

Sending




Approval of







21

Approval of Self-Registration Questionnaire by the Purchaser 1/2

22

Approval of Self-Registration Questionnaire by the Purchaser 2/2

23


23



Document processing


to the supplier

Sending




Approval of









Submission


24

Submission of registration documents

25


25




to the supplier

Sending




Approval of









Submission


Document processing

26

Document processing

27

Document processing

28


28



Sending




Approval of









Submission


Document processing


to the supplier

29

Assigning "Registered" status to the supplier

30


30



Completing


Approval of









Submission


Document processing


to the supplier

Sending


to the supplier

31

Sending a Qualification Questionnaire to the supplier

32


32



Approval of









Submission


Document processing


to the supplier

Sending




33

Filling-in Qualification Questionnaire by the supplier 1/3

34

Filling-in Qualification Questionnaire by the supplier 2/3

35

Completing the Qualification Questionnaire by the supplier 3/3

36


36










Submission


Document processing


to the supplier

Sending




Approval of


37

Approval of Qualification Questionnaire 1/2

38

Approval of Qualification Questionnaire 2/2

39


39








Submission


Document processing


to the supplier

Sending




Approval of




40


40






Submission


Document processing


to the supplier

Sending




Approval of






41

Creating the qualification profile 1/2

42

Creating the qualification profile 1/2

43

Report on suppliers' qualification profiles for category managers, in Excel format



solutions

3. Overview of SAP SLC processes 4. Overview of SAP SRM processes 5. Efficiency of using SAP SLC / SAP SRM

solutions

Content of report

45

Overview of SAP SRM processes

45

Buyer Supplier Approved by

Approval of requests for ERP

Tender creation

Approval of tender

Transmission to

production dispatcher division

Analysis of received offers

Determination of a winner

Approval of a winner

Participation in a tender

Formation of a purchasing basket

Creation of a purchase contract

46


46



Tender creation

Approval of tender

Transmission to








47

Request approval / denial process

48


48



Tender creation

Approval of tender

Transmission to








49


50


51


51



Tender creation

Approval of tender

Transmission to








52

Tender formation

53

Tender formation / tender participants

54

Tender formation

55


55



Tender creation

Approval of tender

Transmission to








56

Approval of tender

57


57



Tender creation

Approval of tender

Transmission to








58

Proposal to make offers for the first round of the competition / tender

59

Proposal to make offers for the first round of the competition / tender

60


60



Tender creation

Approval of tender

Transmission to








61

Participation in a tender 1/4

62


63


64


65


65



Tender creation

Approval of tender

Transmission to








66

Competitive list / quotation summary form

67


67



Tender creation

Approval of tender

Transmission to








68

Approved supplier's proposal

69


69



Tender creation

Approval of tender

Transmission to








70


71


72


72



Tender creation

Approval of tender

Transmission to








73

Tender recommendation

74

Automatically generated contracts in SAP SRM

75

Electronically generated contracts in SAP SRM, transferred to SAP ERP



solutions 3. Overview of SAP SLC processes 4. Overview of SAP SRM processes 5. Efficiency of the use of SAP SLC / SAP SRM

solutions

Content of report

77

Efficiency of using SLC / SRM solutions

■ Establishment of new potential suppliers is performed in a centralized order. Assets only use system data

■ The supplier is qualified one time by purchasing category

■ 9,916 potential suppliers in a single base of suppliers (SAP SLC)

■ About 64 new suppliers are registered each month

■ A single base of suppliers (SAP SLC) is used for all Ukrainian assets of METINVEST Holding

■ The average number of tenders held annually:

52 – for 2014

75 – for 8 months of 2015

■ Average number of bidders: 3

■ Maximum number of bidders: 12

78

Development of SLC / SRM solutions

Metinvest Group continually monitors the use of SLC / SRM by both internal and external users (potential suppliers) in order to identify functional deficits.

Five proposals from direct users of the SAP SRM system have been realized in 2015.

About 8 more proposals are being processed for implementation in 2016.

Thank you!

Any questions?

use of sap slc / srm solutions at metinvest group of sap slc / srm solutions at metinvest group...

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