Ukrnafta, a leading player in Ukraine’s oil industry, is currently on course of global redevelopment of its operational management systems in order to counter the challenges of the modern markets. A series of transformational projects have been designed by Ukrnafta’s management team in cooperation with highly experienced international consultancies.

A critical part of those transformations is the profound reform of Ukrnafta’s supply chain management system. In order to approach this task with maximum efficiency, Ukrnafta engaged Crown Agents, a global expert in institutional development and supply chain management, to lay the groundwork for the reform with a 2-month pilot advisory project. The project’s key objective is to prepare a set of recommendations for the re-design of the entire supply chain of Ukrnafta. The recommendations draw on the best practices from similar projects implemented internationally and in Ukraine in the private and public sectors. The project is supported by the Government of the United Kingdom through its Good Governance Fund managed by DFID and PwC.

Crown Agents as a global specialist in institutional development and supply chain performance has provided an international team of experts, which are working closely with Ukrnafta’s supply chain team under new management.

The 2-month pilot advisory project has now been completed. The project’s primary goal at this stage was a thorough analysis of the existing processes and potential for the reform of the supply chain system and initiation of the re-design of the procurement functions across all of the Ukrnafta’s operational areas. As part of the study, Crown Agents experts conducted an audit and provided their recommendation in such areas as supply chain strategy and planning, data and IT systems (ERP-Enterprise Resource Planning system), procurement processes, organization and staff, and warehousing and transport of materials.

The reformed procurement function should support Ukrnafta’s short-term business objective to boost oil production from existing wells and a longer-term goal of doubling Ukrnafta’s output within the next 10 years.

This stage of the general reform will serve as the basis for designing the next steps and approaches to the company’s transformation and Crown Agents are glad to support such an enterprise-critical process which will doubtless greatly benefit the overall Ukrainian oil industry.

Robert Whalley, Executive Vice President for Technology & Services:“In the framework of this pilot project with Crown Agents, we have greatly benefitted from a thorough analysis of our entire supply chain and received valuable expert recommendations, which will help us effectively reform our supply system. The next step will be about developing a step-by-step action plan of how to implement all these changes”.

Olga Silvestrova, ‎Senior Procurement Practice Specialist at Crown Agents, London: “We are proud to be a part of the transformational processes at Ukrnafta, as extensive international experience will bring in the required quality, efficiency and impetus to the supply chain reform. The audit of the company’s systems undertaken at this stage of the general reform will ensure the future success. Identifying inefficient processes and above all the potential for further changes is 50% of success of any endeavour”.