ChelPipe Group and SAP Signed a Memorandum of Cooperation
As part of the St. Petersburg International Economic Forum (SPIEF 2018) ChelPipe Group and SAP CIS entered into a memorandum of cooperation in the field of digital transformation. The document was signed by Boris Kovalenkov, General Director of ChelPipe Group, and Natalia Parmenova, General Director of SAP CIS, in the presence of Andrey Komarov, Chairman of the Board of Directors of ChTPZ, PJSC, and Stefan Höchbauer, President of SAP Middle and Eastern Europe.
The Memorandum describes ChelPipe Group’s digital transformation plans. According to this document, the company is planning to unify and improve the efficiency of business processes with the assistance of a unified system based upon SAP S/4HANA within the period from 2018 to 2025.
‘The digital transformation is an integral part of the company’s strategy up until 2025. With the aid of business process automation and reengineering, we are planning to create for our company additional competitive advantages, optimize our costs, advance the efficiency of the management system and to maintain our technological leadership in the industry’, noted Boris Kovalenkov, General Director of ChelPipe Group.
When implementing this project, the company is planning to standardize and automatize the key business processes: financial and economic activity planning, management of production, sales, procurement, logistics and personnel. A software product for the pipe industry will be developed on the basis of the production management system. ChelPipe will train personnel for the digital transformation in the Competency Center in cooperation with SAP.
‘Our cooperation commenced in 2017 when ChelPipe launched a business process reengineering project based upon SAP S/4HANA. And today we declare that ChelPipe Group is planning to implement the full range of our solutions: from production to business management. This project holds a prominent place in the Group’s large-scale digital transformation program, said Natalia Parmenova, General Director of SAP CIS.
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ChelPipe Group is one of the leading industrial groups of the metallurgical complex of Russia. Following the results of 2017, the company’s share in the aggregate shipments of Russian pipe manufacturers was 17.5%. ChelPipe Group comprises iron and steel metallurgy enterprises and companies: Chelyabinsk Pipe Rolling Plant, Pervouralsk Pipe Plant, a warehouse complex that realizes tubular goods in regions, META, a company engaged in the preparation and processing of scrap metal; main equipment production enterprises SOT, ETERNO, MSA (the Czech Republic); Rimera Group of Companies represents the oil and service business.