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SEGEZHA GROUP CENTRALISED SERVICE CENTRE

In 2018, the company management decided to centralise the auxiliary business functions of the group, and in October of the same year, the company set up the centralised Segezha Group Service Centre in Kirov.

It has been a common practice among leading Russian businesses to set up centralised service centres since at least 2006.

The goal of such centralised service centres is to consolidate all transactional activities that are not directly related to production.

Such functions include financial and tax accounting, financial and management reporting, procurement, HR management and payroll, IT tech support and others.

Centralising these functions allows the company's business units to focus on completing production tasks.

A centralised service centre offers the following benefits:

Centralisation and standardisation of auxiliary processes.
Ensuring all member companies of the group use the same business processes and methodologies.
Improved tracking of financial performance and operations.
Improved quality of reports and reduced reporting times.
Automation of routine operations.
Reduced cost of auxiliary processes.

History

In 2019 and 2020, the Segezha Group Centralised Service Centre consolidated financial and tax accounting functions as well as the preparation of management reports and treasury operations. Today, the centralised service centre serves more than 45 companies in 7 regions of Russia.

Since the establishment of the centralised service centre, 17 front offices have been set up in Russia to facilitate document exchange between companies and the back office (the centralised service centre).

2020 saw the establishment of the procurement service line.

The plan for 2021 is for the CSC to consolidate HR documentation and payroll processing activities.

In 2020, the company migrated from 1C to the new SAP S4HANA ERP system in the management company and all the major assets of the group and is continuing to deploy the system along with other automation processes such as the adoption of 1C Payroll and HR to streamline HR management and payroll functions. The CSC has been taking an active part in all these processes. For 2021, the SG CSC has the ambitious goal of setting up an SAP competencies centre.

One of the most important goals for the SG CSC for the next two years is to stabilise the existing processes aimed at improving the quality of service and achieving a high level of customer satisfaction with the services provided.

In 2020, the SG CSC moved to a modern 3,200 square-metre office in central Kirov.