Management and technology consultancy BearingPoint delivers category management implementation project, enabling KAMAZ to streamline its procurement planning processes
Moscow, November 5, 2014 — KAMAZ, a leading Russian manufacturer of heavy trucks, has implemented category management and streamlined procurement planning processes for pilot materials. KAMAZ executed the project with support of the management and technology consultancy BearingPoint: the international consultancy has significant experience working with leaders of the automobile industry in Russia and throughout Europe, along with expertise in streamlining procurement and supply processes and implementing them in SAP systems.
The project team was faced with the following tasks: streamline the organizational structure, create new business processes, control efficiency and adapt existing IT solutions. In the course of the project, category strategies were developed and carried out. A simulation model reproduced the process of moving materials based on input data and it now replenishes and manages warehouse supplies, calculating turnover and service quality for purchased materials; a final organizational structure and KAMAZ supply processes were developed and approved, and a procurement planning solution was adapted in the SAP SCM and ERP systems.
One prerequisite for the beginning of the project was the need to guarantee maximum precision of supply planning to achieve the required procurement service quality for the plant. During the course of the project we successfully developed an approach that will make it possible to significantly increase planning precision. That will enable us to keep prices down and achieve the best supply conditions, and to substantially decrease volumes of unsaleable goods and low-turnover inventory, which freeze the company’s working capital.
Rustam Shamsutdinov, Deputy General Director of Procurement at KAMAZ
The project ultimately produced category strategies for two pilot categories that were developed and approved by the steering committee. Category teams were also put together and trained. In addition, a plan to implement the category strategies was developed, and further steps for the team’s cooperation were defined.
This project had a strategic significance, serving as a step onto the path of a modern and competitive company, as KAMAZ is striving to be. An up-to-date and transparent procurement system will help KAMAZ develop cooperation with partners and effectively manage production, and consequently raise the company’s value.
Abadan Atayeva, project leader and advisor of KAMAZ’s Deputy General Director of Procurement
This project was interesting first and foremost because it gave us the opportunity to work with a leader in the automotive industry in Russia and to apply our accumulated experience in streamlining procurement planning and supply systems for leading global manufacturers of trucks and light vehicles. A significant result of the project was the potential to minimize the downtime of a conveyor caused by a lack of required hardware, which is critical for any auto manufacturer.
Elena Litvinova, Partner at BearingPoint and head of the Automotive Industry segment in Russia and the CIS countries
The key to success was the support provided by KAMAZ’s management and engaging a team of experts with profound knowledge of the automobile industry and change management, along with technical expertise in SAP business systems and supply chain management.
Sergey Kuzovkin, Partner at BearingPoint Russia responsible for supply optimization and supply chain management
KAMAZ’s future plans include the systematic implementation of the strategy developed as part of this project, along with the implementation of category management for all procured materials.
The KAMAZ group of companies is the largest automobile corporation in the Russian Federation. OJSC KAMAZ ranks 11th among the world’s top heavy truck manufacturers. KAMAZ’s authorized capital is 35.36 billion rubles. The largest shareholdings belong to the state and commercial banks. The single production complex of KAMAZ Group embraces the whole technological cycle of truck production — from development, production, assembly of vehicles and auto components to marketing of finished products and service maintenance. The group of the process chain includes 12 automobile plants. The following enterprises are included in the Naberezhnye Chelny production facility: Metallurgical Complex (a foundry and forge plant), Engine Plant, Press and Stamping Plant, Automobile Plant, Repair Instrument Plant, Industrial Park “Master”. The largest subsidiary companies outside Naberezhnye Chelny are JSC Neftekamsk Automobile Plant and OAO Tuimazinskiy Zavod Avtobetonovozov (Republic of Bashkortostan), Trailer KAMAZ Inc. (Stavropol). To date, KAMAZ Group includes over 150 organizations located in Russia, the CIS and non-CIS countries.
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