PJSC Tatneft. Annual report 2017
PJSC Tatneft. Annual report 2017

Supply chain

EC9 EN32 EN33 LA14 LA15 HR10 SO9

«Based on the approved Strategy, a Tree of Goals in the field of logistics was formed in 2017. Our main task is to reduce costs and is divided in 5 subtasks: quality improvement, price containment, cost reduction, increase in inventory turnover, and growth of sales to third parties.» Valery Nugmanov, Head of Logistics Department of PJSC Tatneft

The Company purchases and sells a significant range of products and services. Based on the scope of the Company's activities, a large number of business entities and socially significant aspects are involved in these forms of economic relations. The company's procurement activities help to develop innovative solutions, improve the quality and the control system, expand the introduction of standards in industry segments, generally stimulate economic activity, preserve and increase number of jobs, increase the demand for some industries.

Interaction with suppliers is based on the principles of full transparency of made decisions, market and formula pricing, and long-term relationships under framework contracts.

Suppliers of the Company are selected according to the unified rules, only on the basis of an open electronic tender procedure. Each potential supplier has the opportunity to participate in the tender procedure with the obligatory confirmation of compliance with the established criteria.

Potential suppliers are subject to a comprehensive assessment of compliance with corporate requirements.

Following the principles of corporate responsibility, the Company considers whether activities of potential suppliers comply with environmental and social responsibility principles. If a contract tendered requires to check the condition of the health, safety and environment management system of a potential supplier, the Company's specialists conduct an appropriate expert estimation, which may include a request to confirm that potential contractors have necessary capacity and technology, relevant qualifications of specialists, licenses, certificates, including ISO certificates, technical audit conclusions. Also, the tender procedures of the Company provide for the request of information related to the social aspects of the potential supplier's activities, including respect for human rights, working hours and social guarantees of employees.

If non-compliance with the established criteria is identified, applicants are not allowed to tenders.

According to the Company's Health, Safety and Environment Policy, all suppliers and contractors must follow the Company's principles in this field, as well as comply with legal and corporate standards when fulfilling contractual obligations to the Company. The Company controls the compliance of activities of its contractors with these requirements.


Key principles of guaranteeing of the procurement transparency:
  • Openness of procedures and decisions.
  • Transition to open tenders.
  • Categorization and delegation of authority.
  • Renunciation of monopoly of suppliers.
  • Personalization of responsibility of purchasers and engineering services at all stages of procurement.
  • Description of quality parameters in technical specifications.


Improving the procurement transparency
  • Approval of a New Procurement Standard
  • Transition to fully open tenders
  • Complete renunciation of monopoly of suppliers
  • Depersonalization of the procurement
  • Formula pricing
  • Hotline
Category management
  • Categorization of the procurement in shares in the procurement portfolio
  • Delegation of authority
  • Use of categorial procurement strategies
  • Marketing research. Price containment and forecasting
  • Predictive procurement
Efficiency of suppliers, quality of goods
  • Procedure of automatic accreditation
  • Transparent procedure of technical audit
  • Conditions and procedure of incoming control are publicly available
  • Feedback: de-accreditation and stop list
Reduction of the time of procurement
  • Use of framework contracts
  • Implementation of process management. Control of procedure time
  • Standardization of an electronic shop
  • Formation of turnover inventory for regular items


G4 -12

E-auction Efficiency of suppliers Strategic marketing Contractual, claim and financial work Inventory and need management Incoming control and storage of goods Logistics


The Company conducts electronic tenders in an open form with the depersonalized description of properties of goods. This allows to create an active competitive environment during each procurement.

29 thousand existing suppliers are registered on the trading and procurement platform, 6 thousand of them were registered in 2017 and participated in tenders for the supply of goods.

In 2017, Tatneft Group's largest subsidiaries, such as JSC TANECO, PJSC Nizhnekamskshina, LLC Tatneft AZS-Tsentr, LLC Tatneft-AZS-Zapad and others, entered into its single procurement space.

As part of the improvement of the procurement system, the Company introduces mechanisms for categorization of purchases, delegation of authority, and personalization of responsibility. The Company created and published a library of technical requirements for goods. A parametric classifier was developed to systematize the selection of analogues of goods from inventory in the Electronic Shop. The mechanism of "re-order point" is used, that is the creation of inventory of goods for regularly consumed and critical items. The process approach to the procedure of conclusion of contracts is introduced; the optimal time frames for the conclusion of contracts with suppliers are established. To control the contractual work, the mechanism of setting tasks in the "Tatneft" corporate social network is actively used.

Priority tasks for the development of the procurement system in 2017:

  • centralization of procurement in Tatneft Group;
  • reorganization of the structure of purchasers;
  • creation of a modern warehouse management system;
  • optimization of current assets of the Company.

Priority tasks in 2018:

  • creation of an information environment to track the entire life cycle of purchased goods, with the possibility of their redistribution for the needs of other customers;
  • maximum coverage of the purchased range of goods by framework contracts with formula pricing;
  • extension management by categories, development of categorical procurement strategies;
  • marketing research in respect of the main categories of goods, reduction of purchase prices.
Total number of commercial offers received Total price of all published lots Total number of all published lots Number of contracts concluded and specifications thereto
33 402 46 762 222 644 6 195 7 700

* Purpose — to reduce the quantity of one-time, "urgent" purchases

In 2017, customers were provided with equipment and materials to the amount of 29.8 billion rubles, which is 15% more than in 2016 (26.6 billion rubles), including structural units of PJSC Tatneft – to the amount of 15.5 billion rubles (in 2016 – 13 billion rubles), and service enterprises and subsidiaries to fulfill orders of PJSC Tatneft to the amount of 14.3 billion rubles (in 2016 – 13.6 billion rubles).

According to the centralized scheme, inventories to the amount of 22.6 billion rubles (in 2016 – 20.6 billion rubles) were delivered to customers from Tatneftesnab Department warehouses.

The share of transport costs for centralized delivery in the cost of goods did not changed and amounted to 1.2%.

In 2017, Tatneftesnab Department signed about 6 thousand contracts with 1,000 suppliers to the amount of 30 billion rubles (without VAT). 50% of all orders were placed at the enterprises of the Republic of Tatarstan, import contracts amounted to 0.1%. The low share of import contracts indicates a steady decrease in import dependence of the Company.

The main share in the structure of purchases is taken by deliveries according to price books: framework and long-term contracts with an open volume, which allows to perform the procurement without loss of time and resources, as well as improve the efficiency of forecasting the cost of constructed facilities and planning the budget costs.

To date, there are more than 600 price books, which cover about 150 thousand items of the range of goods, and according to which 79% of the total volume of purchases were performed in 2017 (in 2016 – 74%).