TATNEFT Switched over its Logistics Procurement System

Source: www.gulfoilandgas.com 12/24/2012, Location: Asia

The project of switching over the logistics management information system to a new SAP version has been successfully completed at JSC TATNEFT.

The centralized logistics business of TATNEFT Group of Companies' enterprises is provided by a modern SAP based "Electronic store" management system.

In accordance with the decision of the Company's management the "E-store" project has been implemented by the Logistics Department (UMTO) specialists in 2004. As of today the system has been integrated with modules "Logistics", "Finance", "Controlling", "Budgeting", "Project Management" and SAP ERP "TORO" solutions, as well as the electronic trading platform of JSC TATNEFT. Based on the assessment of the "Deloitte & Touche Regional Consulting Services Limited"consulting company the Company's procurement automation level has been assigned 4 points out of 4, and the current state has been assessed as "progressive."

The project of switching over the TATNEFT's centralized procurement management system to the new version SAP ERP 6.0 has been implemented by joint efforts of specialists of UMTO, "Tatneftesnab" Administration and Energy Consulting. The previous SAP R/3 4.6 version of the system was introduced in 2003 and has since ceased to be adequately supported by the developer.

Such processes as management of the centralized procurement (e-Store), tenders arrangement for supply, requests for electronic trading platforms, distribution of purchased materials to structural divisions in accordance with the applications and analysis of contracts with suppliers have been transferred to the new version platform under the project.

In addition to technical switch-over of the system to the new version, the expanded functionality of the SAP ERP 6.0 version has allowed to realize additional capabilities in the system, including the process of managing contracts for the deliveries.

If earlier the operations under the contracts used to be recorded in the system through accounting entries only, then today this process has been further optimized: some tasks have been transferred from accountants to engineers who directly conclude contracts with suppliers. Such functions as proper drafting of an agreement, purchase order formation, registration of the work completion certificate, invoices, supplier services analysis, cost analysis and routine accounting have been automated in the project implementation process.

In addition, the system implements a new give-and-take basis scheme, goods in transit shipment reports, as well as a new agency scheme, under which the customer makes purchases through intermediaries, i.e. agents. Specifically, the agent's report allows analyzing information on procurement in the context of the supplier agents, contracts with the agents, the amount of materials and the amount of the transaction.

Standard user roles have also been worked out that allow to quickly connect new employees to the system, as well as assign new functions and powers, under the project.

Users of the system are the employees of the purchasing department, sales department, accounting and production departments, central warehouse, the department of logistics and materially responsible persons and depots engineers.

Hence, implementation of the project has resulted in obtaining a modern and multifunctional management system, which allows for comprehensive monitoring of the procurement at its every stage and receiving all the necessary reports.


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Related Categories: Freight Forwarding  General  Project Logistics  Shipping & Marine Services  Shipping Lines  Specialized Transport  Warehouse Logistics 

Related Articles: Freight Forwarding  General  Project Logistics  Shipping & Marine Services  Shipping Lines  Specialized Transport  Warehouse Logistics 


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