NLMK La Louvi¨¨re, an NLMK Group company and one of the leading strip product manufacturers in Belgium, has introduced a digital inventory management solution, which enables the company to minimize warehouse stock levels and ensure uninterrupted order fulfilment. Since the start of system testing in April, stock turnover for the most in-demand feedstock product (steel slabs) improved by 30%.
NLMK La Louvi¨¨re manufactures coils from slabs supplied by NLMK Lipetsk. The supply volume is approximately 1.6 million tonnes of slabs per year. Previously, a traditional supply planning model was used: a planner would make projections of demand by evaluating order volumes, stocks in the warehouse, and slab lead times. The new digital solution goes beyond analyzing the supply cycle and changes in stocks, incorporating numerous other factors, such as demand and lead time variability.
The new digital solution is based on the DDMRP model (Demand driven material requirements planning).
Ilya Guschin, NLMK Group Vice President, Sales, said: ¡°As production becomes increasingly local, smart stock planning emerges as a key success factor. Our new digital solution enables us to ensure timely delivery to our customers while minimizing our stock levels.¡±
About NLMK Group
NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.
NLMK Group¡¯s steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore wind turbines.
NLMK operates production facilities in Russia, Europe, and the United States. The Company¡¯s steel production capacity exceeds 17 million tonnes per year.
NLMK has a highly competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In 12M 2019, the Company generated $10.6 bn in revenue and $2.6 bn in EBITDA. Net debt/EBITDA stood at 0.7§ç. The Company has investment grade credit ratings from S&P, Moody¡¯s, Fitch, and RAEX (Expert RA).
NLMK¡¯s ordinary shares with a 18.6% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). The share capital of the Company is divided into 5,993,227,240 shares with a par value of RUB1. For more details on NLMK shareholder capital, please follow the link.
For more information on NLMK Group, please visit our website.