Moscow. August 19, 2011 — JSC „MC „United Engine Corporation (UEC)” has set about optimizing procurement by using e-commerce tools. The company has chosen B2B-Center, Russia’s largest e-commerce system, to conduct procurement.

The transition to electronic procurement is an important step on the way to realizing UEC’s new procurement strategy. The reform of the procurement systems will enable the company to reduce expenses by implementing commerce monitoring systems, a procurement sourcing system, and replicating e-trading practices which have already been in use in the engine-building industry since 2009. The use of an e-commerce platform will allow the corporation to significantly lower the cost of the goods and services it purchases due to open competition among more than 60,000 B2B-Center member companies.

The selection of a partner to realize this task was made based on a competitive procedure taking into account criteria such as the number of deals concluded and the results, the number of suppliers, the cost of services, and successful experience in implementing similar projects. B2B-Center won, with its more than nine years of successful work experience in this market. B2B-UEC, a trading-procurement platform, has been already developed in B2B-Centere-commerce system. This is where purchases of goods, work, and services for the managing company will take place, as well as meeting the production activities of the various enterprises: OAO NPO Saturn, Klimov JSC, UMPO JSC, Perm Engine Company OJSC, Aviadvigatel OJSC, JSC Kuznetsov, Chernyshev Moscow machine-building enterprise, Star OJSC, and others. From September 2011, all engine-building enterprises will start placing orders for supply of goods, work and services on the electronic trading platform. This year, up to 30% of the total purchase volume will be converted into electronic form.

„We believe that e-trading will allow us to increase the efficiency of purchases and sales, provide for their transparency, and also expand our circle of business partners,” says Dmitry Kolodyazhnyy, Managing Director of JSC „MC „UEC”. „In addition, by using e-commerce mechanisms we intend to create a pool of suppliers in the aviation and engine-building industry, make direct contact with producers, cut out inefficient intermediary parties from the procurement process, and create a stiffly competitive environment. The corporation plans to actively build the share of e-trading in the company’s total volume of purchases and sales”.

SPEAKER FROM B2B-CENTER: „The federal law compelling companies with state interest to use e-commerce instruments in their business comes into effect only after six months. But market leaders are already actively implementing a new system of procurement at the basis of which e-commerce mechanism lies. JSC ‚UEC’ is one of the first to turn purchasing into electronic form, which will allow the company to significantly increase openness and transparency in purchasing, by using the potential and resources of the B2B-Center systems”.

As part of their partnership, JSC „MC „UEC” and B2B-Center invite all companies wishing to participate in trading to use the discounts in place until December 31, 2011.

For your reference:

JSC „MC „United Engine Corporation (UEC)” is a wholly-owned subsidiary of OBORONPROM for engine-building assets management.

OJSC OPK „Îboronprom” is a diversified machine-building group founded in 2002. It is part of the Russian Technologies State Corporation. Its primary business lines are helicopter-building (Russian Helicopters, JSC), engine-building (MC „UEC”), and other assets.

B2B-Center is a Russian operator of electronic trading (Economy Development Center, JSC) founded in 2002, and is one of the largest developers of electronic trading systems for corporate clients. The B2B-Center system allows each company to join as both an organizer and so as a participant in trading processes at any level of complexity (there are more than 40 variations): competitive negotiations, price/offers requests, all types of tenders, and others. Currently, the system has conducted more than 100,000 trades with a total value of 800 billion rubles. B2B-Center has more than 62,000 clients and suppliers from 85 countries around the world.

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