Industry in Russia: import-substitution, cost optimization, effective purchases

Industry in Russia: import-substitution, cost optimization, effective purchases

From 25 to 27 in the Marriott Grand the annual conference on the Russian Industry topics: import-substitution, cost optimization, effective purchases.

During the 4th annual meeting of the regulating state authorities, industrial companies, equipment and component suppliers, profiled associations took place and the discussion of possible industry development, exploitation of adaptation methods for new working conditions and features of production localisation.

The current turbulent geopolitical situation had cast a shadow on the large-scale and export-oriented business in Russian Federation. As the sanctions exchange takes place, there is a strong necessity for lowering the import dependency of Russia. In the strategic industries, the level of import dependency reaches 80% and this fact signifies a potential threat, for the national security and for competitiveness of Russian economy as a whole.

The Government of Russia declared the incentive to re-build the economic model of development and transfer to import-substitution of technologies, raw materials, and components in the strategic industries, using the internal resources. The adoption of the Law “On industrial policy” is believed to be the basis for development of local production, to activate processes of import-substitution, revive the investment of economy sectors and, through that, enhance the competitiveness of economy in the global perspective.

Large amount of experts evaluate the situation not from the point of view of threat, but as an opportunity to act according to the strategy of rapid growth of local production in all sectors and regions. The named course for import-substitution is believed to be the driver for growth of industrial sector.

Experts of different industries and companies participated in the conference, among those were: Fund for Industry Development, Unified Electronic trade service, KES-Holding, Rosvodokanal, Kordinat, NLMK, MMK, Chamber of Commerce and Industry of Russian Federation, Russian Union of Business and Industry, GDP Quadrat, State Corporation Rostekh, B2B-Center, Eriell Group, NP CMAKP, University of Economic Policy named after E. T. Gaydar, Drilling Company “Eurasia”, “Cliver ” LLC Facility and others.

The first day of the meeting was devoted to the analysis of the known limitations and future opportunities, the participants discussed the working instruments and practical implementation of import-substitution programs, implementation of the Law “On the Industrial policy”, key trends of Russian economy and industry in the current crisis scenario, opportunities and threats for import-substitution in the different areas of economy, sectorial analysis was conducted. Workshop-management company, the B2B Center, delivered a speech on “Ways of electronic trade – trading with maximum efficiency”.

On the second day participants conducted the review over the instruments, decisions and practices for lowering import-dependency. The partner of the Conference, representative of the Unified Electronic Trade Service conducted the discussion on the theory of the development of the effective suppliers pool and minimization of costs through the right partners. During the second day there were also discussions on the innovative purchasing tactics as one of the factors for Russian economy development. GDP expert addressed the practice of localisation of industrial projects.

The crisis forces business owners and company managers to rewrite their financial strategies. As the costs minimise, the optimisation occurs, the requirements for the production are becoming higher. It is known, that one of the main articles for corporate expenses are the trade-purchasing expenses. Smart organization of the purchasing and supplies is the key for developing the corporate structure that will be prone to crisis, maintain the volume of production, corporate resources, valuable human resources, and, in general, the general course of business. On day three of the conference, various aspects of price minimization on the different steps of the supply chain were discussed.

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