LUKOIL
Procurement Management System implementation on the basis of SAP SRM 7.01
To achieve maximum efficiency the following objectives were set:
SRM system implementation project was executed as part of the implementation of an integrated information solution of LUKOIL Mid-East Ltd. (IIS LMI project) implying the automation of project, finance, procurement, maintenance management, as well as document flow support.
The achievement of the objectives set was implemented on the basis of the SRM system of the SAP SRM 7.01 module and includes the following functionality:
During the system implementation integration with the accounting system on the basis of SAP ERP was realized.
The international industry classifier of materials and services in the oil & gas industry, FPAL (First Point Assessment), was selected as a standard and implemented. The FPAL international classifier is used for the categorization of purchased goods and services, as well as for the classification of suppliers.
The following may be referred to the key SAP SRM implementation results:
The system implementation lets Iraqi suppliers study the best global practices and obtain practical experience in the area of electronic purchases which may be used while working with other large foreign companies implementing projects in the territory of Iraq.
Key benefits achieved:
Therefore, suppliers were successfully re-oriented at strategic purchases and market work due to the extension of the supplier base and reduction of time and effort expenses on routine and small purchases, the competitiveness of purchases was increased by involving a greater number of suppliers, the purchase process transparency and manageability was increased by procedures unification, the data confidentiality and the storage of records on actions performed in the system by purchase process participants were ensured.
"Thanks to the "SAP suppliers relationships management" solution the process of our current purchases has become more efficient and transparent. In addition, we managed to increase our base of suppliers and reduce the purchasing cycle duration.
Working in the software environment, we managed to simplify the whole process "from purchasing to payment". Now a reduced administrative component and increased efficiency are typical of it.
The SRM use increased the purchasing competitiveness by involving a greater number of suppliers and accelerated the purchasing process due to the cancellation of "paper" work".
Procurement and Contracting Organization Director of Lukoil Mid-East Ltd., Ivan Beltyukov
* The project was implemented by the Parma-Telecom company (ITPS Group)
** The material is available in Russian version only
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