Transformation of the Management System in the Operational Procurement of NLMK

In today's dynamic economy and competitive environment, effective management of operational procurement plays a crucial role in the success and sustainable development of companies. Optimization of procurement processes not only helps to reduce costs, but also significantly improves the quality and speed of service to production needs, which provides a strategic advantage in the market. The objective of this project is to improve delivery accuracy and reduce inventory turnover to the established level within the strategy of the Supply functional area by creating an effective management system in the Operational Procurement (OP) of NLMK. To achieve this goal, it is necessary to diagnose the current supply processes, identify the main areas of development of production system (PS) practices and Lean management, develop measures and methods of their implementation, and assess the potential effects of implementing the proposed changes in the OP responsible for purchasing technical materials and raw materials worth over RUB 137 billion annually to meet the production needs of NLMK Group. The project to transform the management system in NLMK's Operations Procurement is a comprehensive approach to building a system and a cascade of KPIs, establishing sustainable practices, and creating a culture of applying PS tools that will improve key procurement processes. The paper will describe the diagnostics of the current state of the management system in NLMK's Operations Procurement and propose solutions to fully implement the principles of the production system, including the management system, in order to improve the quality and efficiency of the division's work and achieve the strategy's goals.