Case study

Besides importing the oil products NIC LLC, the largest Mongolian oil company also deals with their storage, delivery and wholesale and retail trade. NIC LLC owns more than 400 refueling stations, 16 storage spots
and more than 250 petrol tankers across the country. The first project stage covered the activities of Petrostar LLC, the daughter company dealing with fuel wholesale and retail trade in Ulan-Bator.

Automation of the entire fuel delivery chain became the most vital task for the company employees: from fuel purchases from Russian vendors including settlements with customs and tax authorities to its sales to refueling stations and calculations of natural losses for each technological transaction. The Customer invited Navicon company to solve this task due to Navicon's proven reputation as one of the most professional Russian teams in the Microsoft Dynamics implementation market. Besides, the company's assets include the successful interaction experience with the leading fuel and energy enterprises in Russia and Europe, in particular, with "PetroResource" (Lundin Petroleum) from Sweden, MOL from Hungary, TNK Ug, etc. The experience gained at these projects allowed penetrating into the branch specifics and applying such knowledge to solve the tasks of Petrostar LLC in Mongolia.    

The solution realized by Navicon consultants allows reflecting the fuel accounting specifics in several dimensions. Following the common practice the oil companies apply two units of measure for fuel accounting: liters and kilograms. The task is complicated by the necessity to use several factors to ensure correct recalculations between these measure units for each transaction, including density, temperature, etc.

The project resulted in the following values to the customer:
- the company employees can automatically recalculate natural losses with regard to the calculated reference values;
- automated settlements with Mongolian customs and tax authorities;
- Microsoft Dynamics NAV installed at the headquarters is integrated with the IT systems supporting the work of oil depot terminals and refueling stations. This helps to import the fuel movements data between the fuel depot terminal and refueling stations, its sales to the refueling stations and consequently to control the fuel consumption. 

At present the system works only with the refueling station in Ulan-Bator. The customer's nearest plans include expansion of the pilot project to other companies of the group.

"We've gained an interesting and useful cooperation experience with an international company included into TOP10 of the Mongolian taxpayers. The market in this country is still too narrow from the viewpoint of modern IT technologies. But we hope that due to such a successful project in one of the largest companies within the country we will be able to found a basis for the future expansion of Microsoft solutions on the Mongolian market and thus to acquire the leading position here", says Vladimir Sharov, CCO, Navicon.

"We have been using Microsoft Dynamics NAV for a long time. But it is only through our cooperation with Navicon company that we became persuaded that we have not made a mistake. Due to the professionalism of our partners our system today meets our requirements towards the process automation specific for our industry. Therefore we plan the further system expansion: in the nearest future we hope to implement the solution in three daughter companies and in 19 regional oil plants of NIC LLC company", comments Mr. Khaliunbat, CEO, NIC LLC.