Metinvest Digital, the IT expertise center of the largest Ukrainian mining and metallurgical holding Metinvest, implemented SAP at Metinvest-Shipping, the logistics division of the Metinvest Group.
According to the company’s press-release issued on Thursday, now Metinvest has one of the largest and most complex SAP-landscapes not only in Ukraine but also in Central and Eastern Europe.
It was specified that SAP was implemented in order to organize maximum comfortable platform that integrates processes of economic activities of Metinvest-Shipping with assets using its services into single SAP-landscape. The purpose of the project is to create an end-to-end chain of automation and control of logistics services in the group. Today 16 enterprises of Metinvest are keeping records in SAP.
Metinvest Digital has certain corporate templates which could be adapted and quickly implemented in Metinvest-Shipping. However this company is different from Metinvest enterprises, which produce metal or ore. Specialists have developed a unique solution for the group’s logistics asset, the press release states.
It is also explained that Metinvest-Shipping is a company with a wide portfolio of services. It services rail and road transport, provides sea and river agent, brokerage and inspection services. The company’s business model includes providing both in-house and leased fleet services, as well as procuring logistics services from the market on behalf of customers.
An additional challenge was the integration of the accompanying tender platform for the procurement of automotive services and the proposal to integrate data from the software complex of the information and dispatch service, which uses production assets of “Metinvest”.
The press-service notes that it was impossible to apply either template or ready-made solutions to such services. The developers needed much more time to study similar solution design processes in the industry, because initially there was no project of such level of complexity on the market.
Of the entire project, about half of the solutions were corporate, and the rest were either thoroughly adapted to the needs and characteristics of Metinvest-Shipping, or completely developed from scratch.
The main challenge for the specialists was the unique development of the system, which should take into account a wide range of services and a developed business model that would enable to manage its own and leased vehicles for logistics services, provide purchase and sale of Metinvest-Shipping’s services in Ukraine and abroad, as well as provide services to its subdivisions.
Before the war, there were about a hundred executives working on the project, two-thirds of whom were Metinvest Digital employees, and the rest were outsourced workers. Since the start of the war, the company severed all relations with Russian and Belarusian contractors. Metinvest Digital also refused the services of Ukrainian contractors and redistributed resources among its employees in order to optimize its financial burden. These resources were much less than it was needed, but the specialists of the company managed to adopt all the practices of the contractors, to completely re-plan the work on the project and to complete all the work with the internal expertise.
The work of the project participants of “Metinvest Digital” and “Metinvest Shipping” at the stage of development and integration testing was complicated by active hostilities in the cities of presence, power and Internet outages.
As a result, Metinvest Digital’s developers created up-to-date and fully harmonized data accounting for Metinvest-Shipping in terms of corporate reporting. The project provided the basis for many vectors of its development – integration with consumers of services as well as financial services of buyers of foreign assets.
Over time, the company plans to refine the solution. First, to automate the process of purchasing services by any enterprises of Metinvest Group in Metinvest-Shipping. Secondly, to create an automated workstation (ARM) for the forwarder, so he could work both in Ukrainian and foreign ports.
“Unfortunately, the war has changed the logistics chains of Metinvest-Shipping. But since Metinvest Digital developed the solution from scratch, it already knows how it can be integrated into the material accounting of foreign enterprises. Metinvest Digital took on additional training and support to be able to support the customer in the conditions of war. The company’s specialists also took part in the development of new business processes and coordination with other assets of the new system and terms of cooperation with Metinvest Shipping,” the press release emphasizes.
“Metinvest Digital is a Ukrainian IT company specializing in the digital transformation of large businesses and implementing projects in Ukraine, Europe and North America. The company designs, implements and supports complex IT solutions for technological infrastructure building, information systems development, strategic outsourcing, data migration, system integration, cyber security and information security. “Metinvest Digital is an IT business partner of Metinvest Group, servicing more than 30 enterprises of the holding worldwide. The company is a certified partner of Microsoft (Gold Certified Partner) and SAP (Silver Partner).
Metinvest Shipping handles cargos in the largest ports of Ukraine, as well as organizes railroad shipments in Ukraine and abroad.
“Metinvest is a vertically integrated mining group of companies that manages assets in each link of the production chain, from iron ore and coal mining and coke production to semi-finished and finished steel production, pipe rolling and coil production and production of other high value-added products. The Group consists of mining and metallurgical facilities located in Ukraine, Europe and the USA and has a sales network covering all key global markets.
The major shareholders of Metinvest are SCM Group (71.25%) and Smart Holding (23.75%) that jointly manage the company.
Metinvest Holding LLC is the managing company of Metinvest group.
