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SIBUR & SAP Executing Russia's Largest IT project

Source: www.gulfoilandgas.com 6/19/2015, Location: Asia

The Russian petrochemical group SIBUR and SAP CIS have signed an agreement on strategic cooperation. SIBUR’s CEO Dmitry Konov, and board member of SAP SE Michael Kleinnemeier attended the signing ceremony at the St. Petersburg International Economic Forum.

The signing of the strategic partnership agreement is a continuation of successful cooperation between SIBUR and SAP, which began with a pilot project to introduce an ERP system at SIBUR's enterprises and Moscow headquarter. The complexity of the implementation process was driven by tight deadlines and the need to launch the ERP system without interrupting production and key business processes, while also maintaining operation of the SAP ERP related information systems.

As part of the design and implementation process, a uniform mechanism for planning and collecting data was developed for all of the Company's enterprises, and more than 400 scenarios were created to test the most critical operations. Employee training was initiated in conjunction with the design process: more than 1,000 remote and more than 200 full-time courses in 13 areas have been held, and more than 3,000 people are ready to work with the new SAP ERP system.

The decision to choose the platform was based on an analysis of the functionality of information systems, taking into account industry specifics. SAP has operated on the Russian market for many years, and is firmly established as a reliable vendor capable of providing solutions that fully satisfy SIBUR's high requirements.

"A first-rate resource management system is a prerequisite to improving service for both customers and partners, increasing business efficiency through more rigorous planning and control, and making the most of production and financial resources. By implementing a modern, ERP-class global information system based on SAP, we'll enhance the efficiency, visibility and control over the Company's business processes," said Dmitry Konov.

"Most companies in the global petrochemical industry, as well as the majority of the largest Russian energy companies and public companies rely on solutions from SAP in their operations. SAP's customers include 98 of the 100 largest chemical companies in the world. And we are pleased that SIBUR has not only entered their ranks, but also is one of our key customers in Russia now. The signing of this agreement is strategically important not only for the successful development of SIBUR's business, but for the industry as a whole," said Michael Kleinemeier.

The cooperation agreement calls for the implementation of the SAP system in all of SIBUR's production facilities. The project is scheduled for completion by 2019.

By implementing SAP throughout the Company, SIBUR expects to see an increase in the accuracy of production planning models, a reduction in the cost of repairs and maintenance, and a general improvement in the reliability of data.

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