Korus Consulting has developed a methodology for managing reserves based on 1C for the Irkutsk Oil Company

2024: Development of 1C-based inventory management methodology

Korus Consulting experts designed targeted logistics processes (logistics) for the Irkutsk Oil Company. The methodology, which will be implemented on the basis of "1C:ERP Management of the Holding," will help the hydrocarbon producer to effectively organize the supply of all divisions, as well as regulate the timing of supplies and reserves. Corus Consulting announced this on May 13, 2024.

INC launches new fields, increases the volume of production and processing of raw materials, conducts large capital construction projects. The efficiency of these areas directly depends on the quality of logistics. If supplies fail, a downtime will occur at the production or construction site, which will lead to significant costs. On the other hand, an increase in the volume of purchased materials can result in excessive stocks, overloading of warehouse space and freezing of current assets. INC needed to improve the quality of logistics management at all stages: demand generation, supply planning, supplier selection and contracting, supply and storage of materials and equipment in warehouses, transfer and consumption in departments.

At the same time, INC has a need to update the ERP system, and the company has already planned a transition from 1S:UPP to 1C:ERP Holding Management. These factors prompted the company to start a project to develop a methodology for managing logistics, which will subsequently become the basis for the company's automation. To design the target processes, INC invited the KORUS Consulting team, which had previously carried out a number of projects for the oil company, for example, automation of the logistics loop based on the previous ERP system.

The design of INK target processes covers a large number of main and auxiliary functional areas: inventory management, procurement, warehouse operations, contract management, construction, production, maintenance and repair, transport, as well as regulated accounting, budgeting and treasury. Together, the CORUS Consulting and INC teams organized a facilitation session that helped synchronize expectations between all project team members; Identify project objectives, key risks develop principles of effective interaction. More than 100 INC specialists took part in the development of the methodology.

The goals of this methodology are to reduce the volume of illiquids and unclaimed products, increase inventory turnover and internal level of service by optimizing current processes and developing new ones. For each of these purposes, company experts have formed key performance indicators and business requirements. The specialists then designed targeted logistics business process schemes that include supply planning, vendor selection, inventory movement, contracting, and other work. For different items, depending on their operating properties, different collateral strategies are applied that allow you to effectively use the working capital of the company.

{{quote 'It was important for us to approach the logistics automation project correctly from a methodological point of view, to design optimal business processes in order to reduce costs and increase efficiency. The expertise of KORUS Consulting in the field of inventory management came in handy here, which combines competencies in building process models and extensive experience in automation based on 1C. The project continues, conceptual design and technical implementation are ahead, - said Mikhail Larin, Commercial Director of INC. }}

The implementation project is not just an attempt at another "monster" implementation of systems and a diversion of the company's human resources, it is a real business need for this functionality, for process changes. And, of course, this is fully consistent with the company's IT strategy, - said Stanislav Norkin, Deputy General Director for Information Technology of INC.

The work carried out to form a map of business goals, as well as their decomposition into business requirements and performance indicators, will help INC to implement an IT system that will work based on the real interests of the business. When designing processes, it is also important to take into account the capabilities of the target system in order to further successfully "land" the developed methodology on the 1C platform. To implement these tasks, we use a tool developed within our company - a register of architectural solutions (ADR), which allows you to record the structure of business processes, integration flows, functional requirements and much more, which is necessary for analyzing and designing the system, - said Denis Saltykov, business architect of the 1C department of KORUS Consulting Group of Companies.