Outokumpu connects with Metalshub on procurement

Finland-based metals producer Outokumpu Oyj has reached an agreement with Metalshub, a Germany-based software and digital services provider, on the procurement of stainless steel scrap and other raw materials.

Outokumpu says the two companies are extending their partnership to digitalize Outokumpu’s raw material sourcing activities.

“Our customers expect us to provide a traceable supply chain and, therefore, we have in place stringent requirements on our suppliers, too," the company says. "Developing and digitizing our supply chain processes is an important part of this work.”

Outokumpu previously has used Metalshub for spot demand sourcing through its public tendering process. “Now, Outokumpu has contracted Metalshub to expand the usage from solely public tendering purchases to also capturing direct-to-supplier or contract call-offs via the sourcing platform,” the company adds.

The stainless steel firm says the move has been made to improve operational efficiency and standardize documentation in the collaboration with Outokumpu suppliers and as a necessity to ensure a documented and compliant sourcing process is in place.

“Procurement plays a strategically important role in enabling Outokumpu’s sustainability journey,” says Marc-Simon Schaar, chief procurement officer of Outokumpu. “We have been looking for the best partner to digitize our sourcing process and have decided that the Metalshub supply chain solution is the best option for us when considering raw material sourcing.

"We see this shift as a necessity to ensure a documented, transparent and compliant sourcing process. We are pleased to collaborate with our partner Metalshub further to cover all our raw materials, and we are now inviting our raw material suppliers to join us on the Metalshub platform.”

“We believe digital solutions will transform metals and mining, empowering companies to unlock more value and build a more efficient and sustainable future for the whole industry," adds Dr. Sebastian Kreft, co-founder and managing director of Metalshub. "We are confident that this collaboration will set a benchmark for procurement in the steel industry.”