July 04, 2012 // By: Marina Titova
Innovation in Oil Industry
Located in Surgut, western Siberia, Surgutneftegas is a top-flight Russian oil company and one of the world’s ten largest privately owned oil-producing enterprises. It identifies and develops oil fields, extracts and processes oil and gas, markets crude oil products, and conducts research in various areas. In 2010, the company’s 109,000 employees, who are distributed over 16 regions in Russia, garnered revenues of almost 16 billion dollars.
To keep a firm grip on its broad spectrum of business activities, Surgutneftegas requires effective logistics support. All of the company’s departments and managers need to obtain up-to-date information and analyze available supplies and materials on a day-to-day basis. With up to 75,000 articles in circulation and requiring distribution, this is a major challenge.
Rinat Gimranov, CIO of Surgutneftegas, spent some considerable time searching for a solution to the problems his company faced in processing its material inventory data. “Material analysis had been our weak point for ages. The functions in our existing reporting tool were highly complex, and we had a lot of company-specific special features,” explains Gimranov. “These complex models generated mammoth volumes of data, which meant that even minor structural or logical changes entailed a major investment. In short, working with our old reporting tool was like trying to move a mountain.”
To make effective use of information supplied by the SAP R/3 Logistics Information System (LIS), Surgutneftegas needs to categorize data by plant, warehouse, revenue value, party, G/L account, and usage. In the SAP Business Warehouse solution, this took two hours, while the ETL (extract, transform, load) process took five times as long. It was impossible to update the data instantaneously or to conduct simultaneous reporting. To make matters worse, the material availability reports were not particularly detailed. All in all, the solution did not match up to today’s business requirements.