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IT innovation → How digitalization connects MTX Group companies
Digitalization helps connect the companies within MTX Group
Text: Luděk Vokáč
Industrial digitalization has been a key point of discussion for MTX Group. Their companies have been focusing on it intensively not only in production, but also in their “background processes”. Digitizing and automating them is not as palpable as production line automation, but it dramatically improves efficiency.
Replacing tall stacks of paper with a mostly automated digital data stream. That’s the ideal office of today and the future. MTX Group is also jumping on this trend. “Our goal is to have completely paperless offices in the near future,” says Jiří Vítek, Group IS Director. Digital circulation and archiving documents are good for the environment, but it also has other unexpected benefits. This is especially true at MTX Group, because a group of interconnected companies relies on intense and detailed communication with each other. “Since our trading company METALIMEX is business partners with both our suppliers and clients, most transactions involve three parties,” explains Jiří Vítek. This means all paperwork such as invoices, orders, and other documents doesn’t just circulate between METALIMEX and the end client, but it is also handled by the individual group companies. It’s a good example of a potential area for digitization and automation, and METALIMEX is trying to make the most of it. The group uses three information systems that are custom made to suit the needs of the individual companies and their production. They are interconnected, so as much information as possible is exchanged automatically. For example, when a client puts a request to METALIMEX, it enters it into the relevant company’s system and automatically calculates price and delivery estimates, which are then automatically sent back to METALIMEX. After the client confirms it, an order is created. When the finished product leaves the company and is sent to the client, the system automatically creates issue notes for METALIMEX together with invoices that account for current exchange rate issued by the Czech National Bank and several other documents. The Group also uses automatic currency hedging for foreign trades. “We don’t speculate on exchange rates. We secure them and thus also the amount for the transaction date,” explains Vítek. The group’s IT systems can also automatically check received invoices and they deal with inventory records and logistics. “In this respect, it doesn’t matter if it’s raw materials, spare parts, or overhead materials such as protective equipment, bottled water, packaging etc.,” says the information systems director. For example, if the inventory is getting close to a specified limit, the systems can automatically alert the purchasing manager and offer him solutions based on current demand. "Either directly to the tendered supplier, if there is a valid supplier price list, or as an auction in the electronic auction system," says Vítek. Automation also makes it possible to handle long-term orders and call-offs for a given time period using what’s known as ‘EDI communication’, which makes production planning easier, especially for the automotive industry. “We have also automated our HR onboarding processes. Using internal questionnaires, we monitor how satisfied our employees are and how we can utilize their skills. A number of training sessions and courses are now done digitally," describes Vítek. In the future, MTX Group wants to digitize more than just standard procedures such as safety training. It also wants to facilitate certification for external suppliers to access the plants. "We also teach employees to work with the IT helpdesk. Since we have recorded all our requirements, we can plan our work better and we know how our capacities are utilized” concludes Vítek.
Jiří Vítek
Jiří Vítek has over 25 years of experience in information systems and he has been working for MTX Group for seven years. However, he had worked with the group before that as a representative of another company that was tasked with implementing information systems for the group. He started at MTX Group as a programmer and analyst, later he was given the task of leading the entire ICT department. "Over time, we found out that the job involves so much that we split this position into two roles (Group IS Director and Group IT Director), which allows us to focus on the companies in the group conceptually," says Jiří Vítek.
