BearingPoint announces successful delivery of the SAP SRM 5.0 based Supply Chain Management Project for TNK-BP
The implemented Supplier Relationship Management System has established a continuous management chain for the materials supply system at TNK-BP.
Moscow, Russia, (November 17, 2009) – BearingPoint, an independent management and technology consulting company, and TNK-BP, a leading Russian oil company, which is among the top ten privately-owned oil companies in the world in terms of crude oil production, announced today a successful completion of the SAP SRM 5.0 Based Materials Suppliers Prequalification, Tenders and Reverse Auction Processes Automation Project.
The project objective was to create an integrated system to optimise the materials supplier qualification, contracts approval and authorisation, electronic trade floor for tenders and reverse auctions for materials and implement support for these processes in the SAP SRM system.
The processes covered by this project scope have been the only major link in the materials supply business process that still lacked automation.
“TNK-BP annually spends more than $1.5 billion on materials purchases in Russia with 90 per cent of suppliers being Russian companies, while the range of purchased goods exceeds 150,000 items,” said Alexei Kada TNK-BP Upstream Procurement Director. “SRM implementation enabled TNK-BP to integrate its external market relations in a common supply business process and establish an automated transparent chain from requirement entry to payment for the received goods. Manufacturers and suppliers now are able to receive a more complete and transparent information about tenders, and more promptly respond to company’s requirements thanks to on-line auctions.”
A joint team of BearingPoint consultants and TNK-BP specialists was formed to develop and implement the solution. The project approach was based on BearingPoint’s proprietary Delivery Framework methodology that was aligned with TNK CPP (Capital Value Process) procedures as the standard for IT projects and TNK-BP ERP Project Management Rules methodology as SAP projects methodology.
“The main reasons for choosing BearingPoint for the project were the long-term relationship between the companies, successfully delivered joined past projects and deep knowledge of business processes. Another important factor in choosing the partner was the ability to effectively integrate the solution with already existing solutions. BearingPoint’s consulting model complies with our internal quality standards for solutions implementations and TNK-BP preferences in project management,” – noted Andrey Maslennikov, TNK-BP Projects and SAP Department Director.
The implementation quality was assured by external experts, including consultants from SAP.
The project was launched in the beginning of 2008 and went live in December 2008.
As a result, the procurement processes have been integrated in a single SAP-based system. The system reduces the labour intensity and cost for the tender process, provides transparency and insight into the materials procurement process and cuts materials costs. Thanks to a greater transparency for suppliers and the latest prequalification, tender and auction technology, the system helps TNK-BP to improve its image on the procurement market.
“The oil and gas sector is a key industry for BearingPoint business in Russia and CIS. Our partners and clients had many chances to value BearingPoint's leading positions in consulting for the oil and gas sector. We are pleased with our long-term partnership with TNK-BP and are proud of the fact that the delivered project was the first SAP SRM 5.0 implementation in Russia,”- noted Natalia Krasnoperova, BearingPoint Russia Country Leader.
Notes to editors:
TNK-BP is Russia’s third largest oil company, 50 per cent owned by BP and 50 per cent owned by the AAR Consortium (Alfa Group, Access Industries and Renova). TNK-BP also owns close to 50 per cent of another Russian oil and gas company, Slavneft. TNK-BP accounts for approximately 16 per cent of Russian production (including its share of Slavneft). SEC proved reserves (life of field basis) were 8.1 billion boe as of December 31, 2008. The company’s upstream operations are located in Western and Eastern Siberia and the Volga-Urals region. TNK-BP owns and operates five refineries in Russia and Ukraine, and retails through a network of 1,400 service stations working under the BP and TNK brands.