Public Joint Stock Magnitogorsk Iron & Steel Works : MMK develops digital solutions for metal trading

30.10.2020

Magnitogorsk Iron and Steel Works' (MMK) management consider the development of customer focus as one of the key elements of improving the Company's competitiveness. As part of this approach, MMK has created and developed various client services, including mobile applications that improve the quality and level of sales.

The first of these services is the MMK Client mobile app, the main purpose of which is to inform customers about the execution of contracts for the supply of MMK products online. At any moment, the client can get information on placed and shipped orders and up-to-date data on settlement balances, find out what stage the order is at using data fr om the calendar planning system, and track shipments via certificates and information about dispatched freight cars. Users of the app can also obtain invoices and payment schedules, send claims and track their status.

In addition, MMK customers can use this app to view scanned copies of quality certificates, invoices, railway receipts and to access the MMK metal products catalog.

Sergey Ushakov, Deputy General Director for Sales at MMK, said:
'MMK is a customer-oriented company, so we are digitalising to make our services more convenient for our customers. Thanks to this app, our customers can see the progress of their order online. They can clearly see how to build their reserves and how to plan their order flows. In turn, we can adjust our inventory accordingly, which allows us to free up cash flow for operating activities. But the most important thing is that we have become closer to our clients and have been able to save them time.'

Another application designed to optimise interaction with the plant's customers is the Mobile Sales Assistant application. The purpose of the app, which was introduced in 2019, is to provide the seller with a tool for making quick decisions during negotiations with the client. The seller, when negotiating with the counterparty about delivery volumes and prices, can find all the necessary parameters directly in their mobile phone. By having all product information on hand during negotiations with customers about the supply of MMK products, MMK's sales service employees will be able to make more informed decisions in terms of determining the price range and evaluating production opportunities. The application provides interactive data management and is highly convenient and easy to use. It allows the user to calculate the relative marginality of the order, assessing orders in line with budget indicators and client orders which have already been accepted at the plant based on the 'marginality per hour' indicator.

Mobile Sales Assistant, like other digital services at MMK, is constantly being upgraded. In August 2020, MMK introduced additional features to the app, including the OTIF (On-Time-in-Full) indicator for contractors, as well as data on the seller's operational reporting and updates on the state of settlements for contractors. In September 2020, MMK introduced a feature to reflect the status of orders at the processing stage.

The introduction and development of mobile applications is not the only initiative to improve production and sales activities in MMK's strategic initiative, dubbed Sales: Right on Time. The key element of this strategy was the development of an automated system for operational calendar planning (AS OKPP). The introduction of the automated operational scheduling system now makes it possible to calculate the shipment date at the time of accepting an order, which is useful to both the producer and client. It is also possible to schedule the production and shipment of the order for the customer and production personnel; and to create a client portal, wh ere the client can see all the relevant information and also track the progress of their order online as it moves through the plant.

Pavel Shilyaev, CEO of MMK, indicated that the Company has put a lot of effort into modernising production and expanding its product line and assortment. Today, the consumer is not only interested in the quality of products and the variety of offers, but also in the timely delivery of products. Therefore, as Mr Shilyaev noted, MMK can only increase its competitiveness and customer focus by implementing the best practices for planning the production process.