News: Russian steel and mining company Metalloinvest selects Quintiq S&OP to optimize operations
June 4, 2018 - Quintiq, a Dassault Systèmes company and global leader in supply chain planning and optimization (SCP&O), announced today that Metalloinvest, a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel, has chosen Quintiq's sales and operations planning (S&OP) solution to optimize operations across its supply chain. The solution will be implemented at multiple sites, including mining and processing facilities Lebidinsky GOK and Mikhailovsky GOK, and steel plants Oskol Elektrometallurgical (OEMK) and Ural Steel.
Yuriy Gavrilov, Strategy, Development and Transformation Director, Management Company Metalloinvest, commented: "Quintiq's solution enables us to efficiently optimize our entire supply chain, from decision-making on our raw materials supply to increasing our ability to blend our mixture in line with demand for finished steel products. The digitalization of our sales and operational planning function will enable Metalloinvest to reduce operational expenditures, and help us fulfil our contractual obligations with higher precision."
Quintiq will support Metalloinvest’s forecasting and supply planning efforts by streamlining variables such as different order types, tariffs for transportation and changes in raw material prices. Additionally, prices of raw materials to be sourced can be calculated based on global economic factors and market volatility, while multi-currency support eliminates the need to manually calculate conversion rates. The solution enables Metalloinvest to solve complex raw material sourcing challenges by finding the optimum blend of raw material products, such as enriched iron ore, direct reduced iron and scrap. This will ensure profitability is optimized with each decision made. Leveraging formula-based pricing and the opportunity to run multiple pricing scenarios will also allow the company to evaluate their options and optimize their demand plans.
Metalloinvest’s further expansion into the high-quality steel sector spurred the need for a large-scale modernization project. With Quintiq, Metalloinvest will be able to support monthly S&OP cycles with multiple versions of plans that address crucial issues while adhering to the company’s goals across all time horizons.
Metalloinvest is the fifth largest steel producer in Russia by volume with a leading position in roller-bearing steel, bridge construction steel and special bar quality (SBQ). It accounts for approximately 7 percent of total steel production in Russia, with over 2,000 grades of steel being produced at OEMK and Ural Steel.
“Quintiq’s S&OP solution fit Metalloinvest’s challenging requirements. Enriching our products with functionalities built specifically for the metals and mining industries resulted in fast and significant results for our customer,” said Markus Malinen, Vice President EMEAR, Quintiq. “In the future, we hope to further enhance Metalloinvest’s capabilities with solutions that address different planning levels and delivery of projects to support its operations."
Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The company has the world's second largest measured iron ore reserve base and is one of the lowest-cost iron ore producers. Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (10%).
Every business has its supply chain planning challenges. Some of those challenges are large. Some are complex. Some seem impossible to solve. Since 1997, Quintiq has been solving each of those challenges with a supply chain planning & optimization software system. Today, approximately 12,000 users in over 80 countries rely on Quintiq software to plan and optimize workforces, logistics and production. Part of Dassault Systèmes (Euronext Paris: #13065, DSY.PA), Quintiq has offices in the Netherlands, the USA and around the world.