Surgutneftegas and Pipe Metallurgical Co. act together in questions of management and vendor interaction

The companies "Surgutneftegas" and Pipe Metallurgical Co. (Pipe Metallurgic Company) improving business processes among themselves use information technologies on a basis SAP SRM.

Start

For the first time began to use a corporate information system based on SAP ERP at the enterprises of Pipe Metallurgic Company in 2006. In 2009 all Russian divisions of the company were covered by a system. It allowed Pipe Metallurgic Company to improve planning processes, to reduce costs at all production phases and sales of products, to increase customer service quality.

In Surgutneftegas vendor interaction based on SAP SRM is also performed.

Being old partners, Pipe Metallurgic Company and Surgutneftegas made the decision on cooperation within two information systems for simplification of work on deliveries of pipe products and optimization of document flow between two companies.

In 2008 SAP implementation of SRM for supply management and purchases in Surgutneftegas - the company of which about 14% of oil production in Russia are the share came to the end. As a result electronic biddings became transparent, their duration in each separate case was reduced to seven-ten days, the cost of the material resources which are purchased by the company fell by 9%.

Solution

Process of implementation was implemented step by step. In the beginning the concept of information exchange is developed. The decision - to consider SAP SRM of Surgutneftegas within the project as a link between corporate information systems of two companies is made. Then approved workflows, carried out setup of necessary procedures, developed technical means and implemented possibilities of exchange of documents.

Result

System implementation of information electronic exchange allowed to permit a number of questions, arising in the course of relations of production between Pipe Metallurgic Company and Surgutneftegas. In particular, timely obtaining information for planning and formation of orders at the enterprises of Pipe Metallurgic Company is provided, the possibility of double-sided rapid response for the fast solution of the arising questions in the course of approval of deliveries appeared, instant tracking of shipments of products by the company consumer and operational obtaining and closing of finance and accounting documents at settlement is also provided.