PHYSICAL RESOURCES PRIORITIZATION

In the context of highly competitive environment, enterprises are looking for a way to increase productivity while reducing financial expenses. This situation leads to the fact that manufacturers affect the level of product quality by reducing it for costs reasons. The purpose of this article is to consider an alternative way to save financial resources without compromising the product quality by prioritizing commodities and materials. Thus, we have used a set of methods relevant to the subject matter: abstract-logical, analytical and economic-statistical methods. We have also generalized the experience of domestic and foreign researchers. Oil and Gas Company was considered as an example. Thus, economic benefit in the amount of RUB 4.016.45 million is achieved by accounting for physical resources by priority. The article also provides the examples of a new way to maintain documentation on a priority basis.


INTRODUCTION
Goods and services markets growth and globalization processes have led to an increase in the level of competition [1][2][3][4][5][6]. Accordingly, enterprises are interested in increasing productivity at low costs. Project management success largely depends on commodities and materials (C&M) management [7][8][9]. The latter includes a whole block of current assets, without which there is no production. They are classified as follows [10][11][12]: • raw materials and supplies; • spare parts; • semi-finished products stocked in warehouses; • purchased and finished products; • construction materials; • fuel and lubricants; • recycling wastes and useful residues; • other tools; • containers. • As a rule, stocks are used as a base in processing material into a finished product [12]. The problem of planning and distributing physical resources is that entrepreneurs often try to save money when it comes to purchasing certain materials. This leads to a decrease in product quality [2].
Maneuvering financial resources is one of the alternative ways to save them depending on the arisen problems [13]. On the one hand, this method allows responding to existing accuracy, on the other hand, the company loses the ability to make long-term plans. This problem is especially pressing for oil and gas enterprises where long-stored resources with no demand lead to an increase in procurement costs [14]. Thus, there is a need to reduce financial production costs without qualitative and quantitative losses. In this regard, the purpose of this article is to consider the possibility of prioritizing commodities and materials.

METHOD
Theoretical and methodological basis of the research involves the theory of sustainable enterprise development management under a variety of management forms and economic development integration processes, as well as works of leading domestic and foreign experts. We have used abstract-logical, analytical, economic-statistical and computationalconstructive methods, as well as methods of dialectic cognition and a system approach.

DATA, ANALYSIS, AND RESULTS
An enterprise has to manage the categories of purchased C&M by listing in order to maximize the value and minimize risks. Each list is characterized by its own C&M procurement process and corresponding number of inspections (coordination and approval) made for appropriate decisionmaking. Lists are reviewed annually, or as necessary [12].
C&M and services are divided into lists based on the following criteria: 1. Criticality -combination of characteristics and risks related to a particular category of C&M/services. They are selected according to the following parameters: • impact on production; • impact on quality; • impact on HSSE; • impact on the enterprise's image.
Criticality is determined expertly with a scoring system for each parameter of the category and by comparing total estimates measured for all categories.
2. Chance to gain additional value through an efficient C&M/services procurement. Let's consider the degree of oil and gas C&M impact (Table  1).
List 1 contains C&M and services which bear the greatest risks for the enterprise at the stages of manufacture and procurement. This category has also the greatest value potential that an effective procurement process can bring. It is the most critical category with the largest number of checkouts.
List 2 contains basically the affordable (but still costly) C&M and services, corresponding level of risks and other factors.
List 3 contains less costly C&M and services that do not have a critical impact on production Prioritized categories of purchased C&M and services are determined based on two parameters: expected amount of money spend for each category and criticality of each category. Priority waves are identified by comparing all categories of C&M and services with each other. Thus, first wave categories (pipes, CMD&A, drilling equipment, specially made equipment, reagents) require enterprise's closer attention in terms of procurement management. Besides, there should be procurement strategies designed for these categories ( Figure 1).  Purchased C&M/services category effective management allows achieving sustainable cost savings in the amount of 5-40% for a particular category.
Declared material and technical resources are been proposed to be standardized in order to rationalize the purchased C&M. In the best case, unclear product description can lead to a loss of time; in the worst case, it can lead to serious financial consequences and cause a supply failure, conflicts, deprive the opportunity to improve the quality of a product or a service. Table 2 shows that the intersection of a declared material and technical resources nomenclature is not the same for all shops (94% of it is unique). Technical review of the problem can reduce the nomenclatural diversity between the shops of the enterprise. This will allow increasing the number of negotiable subjects and reducing the resources purchase price.
List 1 contains material and technical resources declared simultaneously by four shops in 1-4Q 2015 (Table 3). The largest value share of items with demand (81%) is attributed to 5 categories of material and technical resources, 4 of which are characterized by significant purchase regularity (Table 4).  Storage expenses can be reduced at the stage of regular delivery scheduling. Table 6 presents data on annual demand for material and technical resources in 2016. Based on them, there was prepared a report presenting the summarized information about the planned purchases provided by all shops.

DISCUSSION
We have analyzed the supplies, commodity stock, long-stocked resources of the oil and gas enterprise with no demand and found out that procurement activity require closer attention in order to optimize the material supply. There was a need in diagnosing procurement activity in order to compare it with the existing procurement process In this case, one has to fill out a feedback form that contains 225 questions grouped by enterprise directions and questionnaires specially designed for: 1. There is a package of initiatives focused on improving procurement activity [7]; 2. There is a vision, objectives and a procurement strategy coordinated with the general strategy of the enterprise [2,15]. We have allocated areas that require attention: 1. organization's goal is defined, but formally is not repeated into the procurement sphere. Hence, procurement goals and objectives are not agreed among the senior managers; 2. current system of key performance indicators is under development.
High-level procurement KPI are not detailed, not tied to the processes or the motivation system; 3. approach to company's purchasing management has not been compared with those existing in other companies (best practice) until now. This situation does not allow determining whether the existing initiatives are appropriate or not.

CONCLUSION
Thus, physical resources prioritization can significantly save financial resources without without compromising the product quality. The proposed method also allows using an alternative way of maintaining accounting and reporting documentation, drafted in order of priority. This method can be used both at large and small enterprises, including oil and gas ones.