Azerbaijan, Baku, May 9 / Trend H.Valiyev /
The German company SAP has completed the implementation of solutions for automating business processes in the State Oil Company of the Azerbaijan Republic (SOCAR), SAP reported.
The company announced the successful results of introducing SAP solutions for human resource management, sales management, financial accounting, material flows, supply chain and risk management in SOCAR's 140 enterprises.
The implementation of SAP solutions will contribute to improving the quality of SOCAR's activity, reducing the time reporting, strengthening financial controls and transparency, standardization and automation of business processes.
The new automated system would allow reception of real-time accurate information for proper decision-making, control over suppliers and customers, accelerate the payroll process, reduce risk of manipulation and fraud, automate verification of security breaches, improve forecasting, cash flow management, interaction with the banking system, and etc.
To achieve these goals in the first stage, SOCAR planned and introduced the following solutions from SAP: SAP FI (financial accounting on IFRS); SAP HR (Human Resource Management); SAP MM (materials management); SAP SD (sales management); SAP FSCM (management of cash flows); SAP GRC (SAP solution for risk management and compliance with external regulatory requirements).
As a result, the time of report making was reduced to 20 days; received reports determine the necessary level and allow for optimization of inventory turnover. The payroll cycle was lowered to five days, standardization of payroll processes resulted in significant cost savings and an analysis and elimination of risks in the system was carried out. Payment has become transparent and controlled; data is automatically transmitted to the bank through the interface.
The introduction of SAP Business Objects Risk Management and SAP Business Objects Access Control for risk management and compliance with external requirements allowed SOCAR to reduce the cost of administering authority, as well as develop an understanding of the importance of sustainability issues and the impact of external and internal environment for the implementation of strategic plans.
Moreover, SOCAR has introduced another innovative solution - SAP Business Objects Planning and Consolidation for consolidated reporting and forecasting. Furthermore, SOCAR carries out the development of embedded functionality for planning and budgeting. Following the results of the introductory steps, SOCAR will be the largest user of the solution in the CIS region. This solution will allow a significant reduction in timing the external and management reporting required for making justified business decisions.
SOCAR aims to continue realizing development program on the basis of SAP solutions during the next four years. Today the company is expected to introduce several modules to improve the effectiveness of the company, particularly: SAP ECM (enterprise content management), SAP APO (supply chain management), SAP IS Oil Downstream, and others.