The United Metallurgical Company (AO OMK, Moscow) has completed the implementation of the SAP EWM warehouse management solution at Vyksa Steel Works (AO VSW, an OMK subsidiary). The outcome is that warehouse efficiency improved by over 20% and capacity increased by 35%.
This is one of the first materiel warehouse automation projects in the steel making industry. The IT project was implemented by Technology Logistics Systems (TLS).
The new system enabled OMK to transition from manual document control to full business process automation: warehousing, order collection from organizations, and distribution of logistic items based on requisitions.
Thanks to the automated warehouse management system, all the processes at the VSW warehouse have become transparent and predictable. In addition, the delay in putting warehouse orders together has been reduced significantly, and the number of selection errors has been cut 70%. As a result, the time required to conduct an annual inventory has been reduced by 40%.
"All the expectations from this IT project have come true. With the introduction of SAP EWM, OMK acquired a resource that has made warehouse logistics business processes much more efficient. The effect from the project is long-term: it has upgraded, optimized, and automated storage technology. SAP EMW helps analyze data and improve warehousing operations. The OMK IT-project was recognized with a finalist's diploma from the SAP Value Award in 2019 in the category for "Logistics in the Service of Competitiveness", Noted Vadim Nazarov, Division Manager for Supplier Certification, Qualification, and Control and Technical Expert Evaluations within the OMK Procurement Directorate.
"This project is truly unique primarily because it is among the first to automate materiel storage in the steel industry. Thanks to joint efforts and the creativity of the joint OMK, VSW, and TLS team this milestone project could be implemented, and significant qualitative and quantitative improvements realized. The experience gained is very valuable and is of interest to companies that are only now planning to automate their warehousing processes", noted TLS Project Manager Alexander Treshchanin.
"For a major steel maker, proper warehouse
operation is very important because it helps make the entire production process
run smoothly. With the introduction of SAP EWM, OMK acquired a reliable tool to
monitor inventories, tasks, resources, and documentation in real time. We
believe that thanks to real-time everyday activity control, the Company is using
its inventories efficiently, and consequently, has achieved better quality in
meeting its customers' strictest requirements", commented SAP CIS Deputy
General manager Alexey Leontovich.
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