Storage and data management of SUEK on the SAP HANA Enterprise Cloud platform

2018

Storage and data management on the SAP HANA Enterprise Cloud platform. Experience of migration and use

• The HANA database opens new opportunities for the analysis of accumulated information, new methods of planning and control and also acceleration of release of the management reporting before SUEK
• SUEK could reach reducing costs for ownership of a SAP landscape due to profitable pricing and flexibility in change of computing powers

Automation of exchange sales

On October 4, 2018 the SAP CIS company and the Siberian Coal Energy Company (SCEC) announced start of a single information trading system (ETIS) based on SAP Commodity Management. This solution will allow SUEK to increase efficiency of sales process and work of the international traders, to provide transparency of preparation of offers, to reduce risks at the conclusion of transactions.

Before creation of a system traders kept offers and calculated economy of transactions in the Excel file, and all approvals happened in mail correspondence. Due to the lack of system approach process was opaque, and calculation of the price often was non-optimal in terms of history of the prices, the market indexes and the general marginality of the transaction.

Reduction of risk of errors in pricing, reduction of quantity of errors when calculating and closing, using functionality of optionality and also reduction of high labor costs became project objectives of automation. Need of support of introduction of offers and their approval from any place in the world became an additional incentive to implementation.

The platform will allow traders to enter independently all information for check and approval into the system via the Fiori-interface which is specially configured for fast formation of offers. After approval of the offer will automatically be transformed to transactions and are supplemented with the data necessary for calculation of economic indicators and comparison with the proposal of the trader. In addition, risk analysis at the conclusion of transactions and formation of the relevant reporting under them will be executed without the address to linear personnel of SUEK. In general project deliverables became: transparency of preparation of the offer and data on the concluded bargains, acceleration of report generation on the approved transactions, increase in efficiency of an operations staff and risk reduction at their conclusion.

"For our company Commodity Management SAP implementation - the important project as SUEK systematically expands sales markets and the customer base. A system will allow traders not only to make out transactions, but also to define as far as they are profitable and as it is necessary to correct conditions that they suited both parties. In addition, the solution allows to calculate different risks to consider all parameters in the course of preparation and the conclusion of transactions. Further it is going to replicate the solution on all foreign offices of SUEK". Vadim Pestun, CIO of JSC SUEK

Transfer of an enterprise management system to a cloud of SAP

On January 19, 2018 SAP CIS and the Siberian Coal Energy Company (SCEC) announced large-scale transition to a cloud of SAP HANA Enterprise Cloud of all divisions of group. The project on transfer of the ERP system in a cloud was implemented in three months by forces of division of SAP Digital Business Services (DBS).

Transition to SAP HANA Enterprise Cloud – a part of five years' IT strategy of SUEK. As the main platform SAP HANA was selected. On project deliverables the volume of the database was reduced by 3 times, and processing of some transactions – accelerated many times: earlier some reports were unloaded from a system on average in 10-15 minutes, using this solution this process takes less than a minute. As of January, 2018 more than 3400 users work with the solution.

The current SAP landscape in SUEK

Implementation of the large-scale project of transition of all SAP infrastructure to a cloud and transfer of a management system of SAP ERP, the data warehouse and SAP SRM opens new opportunities for the analysis of accumulated information, new methods of planning and control, acceleration of release of the management reporting before SUEK. Use of cloud computing in all branches of the company will allow to expand automation of logistics, sales and production blocks.

Choice of the platform: why SAP HANA?

Calls:

• Expansion of level of automation of the processes flowing business within new five-year-old IT of strategy;
• Obtaining competitive advantages thanks to the best world practices and technology innovations;
• Business process optimization;
• Decrease in TSO due to use of SAP products;

Choice reasons:

• Acceleration of reports;
• Reduction of the database for SAP applications;
• Transaction processing acceleration;
• Migration is imperceptible for users;

"SUEK is geographically distributed company. Our group includes more than 60 legal entities working at the huge territory – from the Far East to Switzerland. Because our ERP system on the SAP HANA platform is in a cloud, we get full-fledged data access from any place in the world that will allow us to expand perimeter of use of functionality of a system in all structures of SUEK. Besides, at a cloud solution rather profitable pricing and flexibility in change of computing powers that allows to react quickly to the changing business needs during growth and cost-efficient to perform transformational IT projects". Vadim Pestun, Chief information officer of SUEK

"Transfer of ERP based on SAP HANA in a cloud gives to SUEK many advantages: receiving service from one vendor and rearrangement on it all main risks in system operation and also lack of need to purchase and service the equipment. Besides, presence at SAP of own data processing center in Russia allows the company to store and use personal data with observance of all requirements of the legislation of the Russian Federation". Andrey Sharak, deputy CEO of SAP CIS

In further plans of the company – development of functionality of a system and migration on SAP S/4HANA. And also creation of a single trading information system based on SAP Commodity Management, SAP Hybris Cloud for Customer and SAP Cloud Platform and replication of the solution on new business units.

Results of transition to HANA to NES

• The HANA database opens new opportunities for the analysis of accumulated information, new methods of planning and control and also acceleration of release of the management reporting before SUEK
• SUEK could reach reducing costs for ownership of a SAP landscape due to profitable pricing and flexibility in change of computing powers

2009

JSC SUEK is the largest Russian fuel and energy company. Operational management and accounting activity of the company is conducted in the corporate information system (CIS) of SAP R/3.