MMK & SKB Kontur Share Results of Kontur.Factoring
Russian steel maker PJSC Magnitogorsk Iron and Steel Works MMK has centralized its factoring operations by connecting financial agents to the
Russian steel maker PJSC Magnitogorsk Iron and Steel Works MMK has centralized its factoring operations by connecting financial agents to the Kontur.Factoring online platform and implementing the one window principle. To work in digital format, MMK chose the electronic platform Kontur.Factoring. MMK has been operating in the factoring services market since 2011. Every year the number of factors and counterparties is increasing. Along with this, the workflow is also growing, which entails an increase in the time spent on processing, signing and sending documents for transactions. In 2018, in order to speed up the workflow and optimize the process of factoring operations, MMK was the first among Russian metallurgical enterprises to transfer the conclusion of factoring transactions to the electronic platform Kontur.Factoring, a development of the Russian company SKB Kontur. In 2018, MMK used the platform to conclude transactions as a buyer, and since 2019, the plant has been working with Kontur.Faktoring and as a supplier.
Over the three years of operation, the number of counterparties increased to 93. The counterparties concluded more than 7 thousand transactions in electronic format, and the total turnover exceeded 37 billion rubles, of which more than 24 billion rubles were carried out in 2020. (this indicator has grown more than 12 times compared to 2018).
Suppliers working on the electronic platform were able to promptly sign notifications and registers in an electronic standardized form, transfer documents to factors in an automated format from SKB Kontur, and, if necessary, quickly switch to another factor without changing the process of assigning obligations and financing.
For the buyer, the advantages of the new approach were the ability to control the assignment process, confirming deliveries on the electronic platform "Kontur.Factoring", as well as to timely reflect information on assigned monetary claims.
In 2020, PJSC MMK finalized the corporate accounting system for accounting for factoring operations and created "robots" that solve typical tasks for the exchange of data between the site and the accounting system. This made it possible to automate processes and speed up the receipt of funding. A set of improvements helped to use the capabilities of digital factoring with maximum efficiency and optimized the work of MMK employees.
There are plans to further automate the exchange of data between the site and the company, set up work through the API, automate the confirmation of deliveries in subsidiaries, which will reduce the number of manual operations and expand factoring capabilities for the Group's companies.