"Within NLMK Group, procurement is organized to work with a mix of centralized and decentralized structure, which is led by a Central procurement team. This central team will maintain consistency in the approach to procurement across the group companies through coherent frameworks, policies and procedures.
This Centre-led procurement model is deployed to create balance between leveraging organizational scale (centralized procurement) whilst retaining flexibility in providing customized support for individual group companies (decentralized procurement).
The Procurement Heads at each company of the group are responsible for the actual procurement of goods and services in accordance with the approved policy, strategies and category plans; and must follow approved procedures and internal procurement requirements.
As part of the central procurement team the “Center of Competency” acts is accountable for the development and maintenance of the procurement framework, including setting of procurement policy, procurement processes, providing necessary tools and templates and in supporting with appropriate skill development.
Complementing the category organization within procurement, cross-functional teams are organized to support the category management with the aims of optimizing end-to-end business processes, implementing purchasing pricing approaches and etc. " p. 2