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Outsourcing in the steel industry as one of the best methods of competition

Under active competition, when in the market of goods and services several dozens of players appear at the same time, the goal of each company is not simply to stand before the competitor, but also to take its leadership position. Taking into account the world experience and the current trend, “EuroTechMet” company has successfully established its first subsidiary company "EuroTechMet-Service" LLC, which specializes in construction and installation works in different fields of industry. The first outsourcing project was a success, and the company, following this direction, continues to develop and is actively looking for partners to do a joint business in the field of metallurgy.

Benefits of metallurgy outsourcing

In order to become a player of this chain, the customer and the contractor sign an outsourcing contract, which aims to achieve a competitive advantage by reducing costs while increasing production efficiency. The concept of teamwork, developed by the company, allows to deliver all works on turnkey basis under tight deadlines. At the same time, depending on the efficiency and mutual benefit, there may be different variants of division of duties and responsibilities. And that is why, summing up the results of this type of cooperation, it is worth noting its main advantages:

  • cost saving;

  • time saving;

  • professionalism;

  • staff savings;

  • reliability of process functioning.

The main thing is to remember that the profitability of the outsourcing company depends on the final result.

Today many companies actively use the outsourcing service in the processes or business functions, which are not the field of expertise for the enterprise. Under increasing competition, it allows you to stay focused on main processes, to successfully exist and to develop by focusing on asset and resource management, belonging to the core operations. Many Russian companies are mistrustful of outsourcing, as of everything new, while the most advanced foreign and Russian, medium and large companies let even some of their core processes to be outsourced. In the minds of the global business community the idea, that outsourcing is not only a way to save money, but also an access to advanced technologies, is becoming perpetuated.Безымянный.JPG

 

In English the word "outsourcing" literally means the use of other companies' resources, i.e. is a transfer of specific processes or business functions to an outside company on the basis of a contract. Thus the company expects to reduce expenses on redistribution of a process, without sacrificing quality, by transferring it to professionals, who, using the experience of similar projects and innovative solutions, guarantee the expected results, because only so they can ensure their own profitability.лого ЕТМ-Сервис.png

 

In 2009 “EuroTechMet” company decided to establish a subsidiary company "EuroTechMet-Service" LLC in order to provide specialized construction and assembly works in different industries. Since then the company has been actively developing, implementing various projects at a high technical level - from a single thermal unit built in the production line to the commissioning of the customer’s production complex. By 2011 the company earned a certain reputation and, together with the general partner - the Polish company ZM "Ropczyce S.A.", implemented the project on lining of RH-degasser chambers, put into operation in the oxygen-converter shop of NovolipetskSteel Works. Successful start-up and subsequent operation of the unit at PJSC "NLMK" have led to the development of the production premises of the joint venture company "Ropczyce-Rus", on the territory of which the production of snorkels for RH-degasser has started.2016-04-28_12-01-58.png

 

oday the capabilities of “EuroTechMet-Service” allow to offer and implement projects of different scales, using an integrated approach. Developed by the company, the methods of process structuring of design, batching, delivery, construction/installation and commissioning works allow to deliver the work to the customer on turnkey basis in optimal time. This allows the customer to get rid of searching and making a connection between various subcontractors and to retain only supervising functions. Depending on the efficiency and mutual benefit there may be different terms of duties division and of responsibility delimitation between the customer and “EuroTechMet-Service”.2016-04-28_12-02-41.png

 

The achievements of implemented projects and the detected resources potential had a decisive influence on the company's prospective development policy. The company management has defined the vector of company realization in providing outsourcing services for industrial enterprises.

 

Outsourcing has not yet gained popularity in Russia, because many potential customers do not clearly see the benefits of such a contractual relationship. However these benefits have allowed many foreign companies not only to survive the crisis, but also to get progress in comparison with the more conservative competitors:Безымянный.JPG

 

Cost saving

  • The very meaning of outsourcing implies that the customer pays the contractor for organization and functioning of a process less than it costs to the customer to ensure the functioning of this process on its own.

  • In the case of a new process organization the saving effect considerably increases. The company pays the contractor outsourcer only for results, excluding a substantial part of costs for the purchase of specialized equipment and materials, training of employees and others.

 

Time saving

  • On the basis of the contract of outsourcing, the outside organization is interested in a fast, professional and independent work performance, so it does not take additional time of the customer’s management to organize processes.

  • The customer has the possibility to get ready projects and advanced engineering solutions by addressing to the professionals who have the experience, without contributing months and years to development and improvement of projects.

 

Professionalism

  • Outsourced work has a higher quality, which is achieved due to the outsourcer’s experience in similar projects and the availability of all necessary resources.Безымянный.JPG

Staff saving

  • The introduction of new non-core business processes always leads to an increase in staff and an increase in payment in order to attract experienced staff. In the case of outsourcing the problem of staff increase is excluded.

  • When outsourcing the existing processes, there is a redistribution of the organization's staff, previously involved in secondary functions and directions.

  • Key staff is fully focused on the main processes without wasting their time for non-core issues, what enables to use the abilities of each employee more efficiently.

 

Reliability of process functioning

  • The reliability of outsourcing process performance is greatly enhanced due to qualifications and interchangeability of the outsourcer’s personnel.

  • The customer does not deal with issues related to the staff redistribution caused by vacation and sick leaves.Безымянный.JPG

 

Transparency of the process

  • In outsourcing, the customer evaluates not the process organization, but the ready result of work.

  • In case of unsatisfactory results, the change of outsourcer is easier than a replacement of its own personnel.


Way out of a critical situation

  • Often the enterprise cannot solve the problem associated with the organization of a process in a set timeframe. In this case the reasons may be vary from the skills of its personnel to the lack of necessary equipment. The outsourcer has many more features to professionally solve such a problem.

 

Independence and objectivity

  • The profitability of the outsourcer depends on the final result, and it stimulates to find out true reasons, why the process goes wrong, without hiding the facts that could be uncomfortable for anyone.

  • An employee of the outsourcing company does not feel the top-down pressure, as it may occur to the customer’s employees, so he won’t be afraid to mention "unpleasant moments", when considering the causes of deviation from the optimal process.

 

Reducing the risk

  • In the event of unforeseen additional costs or losses associated with the unsatisfactory organization of the process, the enterprise significantly reduces its risk by sharing it with the outsourcer.

 

In order to maximally increase all the benefits offered by outsourcing to the customer, "EuroTechMet-Service” company is realizing the policy of continuous cooperation with international companies, active exchange of experience and analysis of the latest developments in heat-process engineering and refractories market. Particular attention is paid to improvement of professional skills of the company’s specialists, introduction of new ideas and bold solutions that contribute to the effective management of the production process, expansion of various partnerships, and learning of advanced achievements of the industry.

 

Outsourcing services, offered by “EuroTechMet-Service”, guarantee the expected result of the process, complete privacy and significant increase in the efficiency of the following processes:2016-04-28_12-04-16.png

 

Special heat mounting works

  • nstallation and repair of the refractory lining of metallurgical units, equipment and insulating constructions;

  • anti-corrosion and thermal insulation works;

  • mounting of metal structures and equipment.

 

Construction of industrial furnaces and thermal generating units

  • a full range of special construction and installation works for building-up thermal units in different industries.

 

Commissioning of industrial furnaces

  • commissioning of thermal and heating furnaces for engineering and metallurgical industries;

  • commissioning of burning kilns for ceramics and carbon materials.2016-05-27_10-46-11.png

 

Works with refractory products

  • laying of shaped elements;

  • lining of constructions before installation;

  • insulating fences for industrial thermal generating units made of modern castable and ceramic fibre.

 

Production of metal structures

  • manufacture and installation of industrial metal structures of diverse complexity for general and special purpose.

 

Complement and procurement

  • engineering of refractory processes and operation of metallurgical equipment;

  • supply of heating equipment, refractory materials and non-standard equipment.

 

The company has SRO approvals for all types of activities, including works on the most dangerous and technically complex capital construction objects, corresponding accreditations of engineering and operating personnel (RTN, industrial safety, NAKS, Labor Protection and Safety Department).2016-05-27_10-47-16.png

 

Despite the young age of the company "EuroTechMet-Service", its employees safe keep and enrich the traditions, established by the partners of the head company during several decades. This allows both partners and customers, through personal experience, to get acquainted with the true values of the company:

  • Impeccable fulfillment of contractual obligations;

  • Support for ambitious projects;

  • High production standards;

  • Continuous improvement of service quality;

  • Uncompromised ensuring of workers' safety and health conditions;

  • Fairness and reliability.