sap oil
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sap oil...
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PT SAP Indonesia 30th May, 2007
Introduction - SAP-Oil and Gas to
¤ SAP AG 2007, 2
System walkthrough with some scenarios
How other oil companies are benefiting
Companies using SAP Oil and Gas
Common business process flows - Downstream
Components of Oil and Gas
SAP Oil and Gas solution map
Agenda
¤ SAP AG 2007, 3
Suppliers & Exploration & Partners Appraisal
Upstream Exploration and Appraisal E&P Contract Management Liquid and Gas Production Allocation and Settlement
Development & Production
Oil & Gas Primary Distribution
Supply, Transmission & Trading Bulk Supply Chain Planning and Optimization Bulk Supply Chain Operations and Scheduling Bulk Supply Chain Execution and Settlement Bulk Supply Chain Reporting and Analytics Physical Oil and Gas Commodity Trading Oil and Gas Paper Trading and Risk Management
Refining & Manufacturing
Enterprise Management & Support
Enterprise Asset and Service Management Investment Planning, Design & Construction Sourcing & Procurement Maintenance Operations and Logistics Success Stories
Refining & Manufacturing Refining Operations Lubes Manufacturing Operations Refining & Manufacturing Success Stories
Hydrocarbon Supply & Gas Transmission
Secondary Distribution
Commercial Customers Sales & Retailing & Channels
Downstream Marketing & Retailing Marketing Planning and Execution Sales Planning and Account Management Opportunity to Cash Customer Service Terminal Management Hydrocarbon Products Transportation Service Station Fuel Management Convenience Retailing Downstream Marketing & Retailing Success Stories
Terminal Management
¤ SAP AG 2007, 4
Suppliers & Exploration & Partners Appraisal
Upstream
Development & Production
Oil & Gas Primary Distribution
Supply, Transmission & Trading
Refining & Manufacturing
Operations Support
Corporate Services
Human Capital Management
Financials
Analytics
Enterprise Management & Support
Secondary Distribution
Commercial Customers Sales & Retailing & Channels
Downstream Marketing & Retailing
Terminal Management
Enterprise Asset and Service Management
Refining & Manufacturing
Hydrocarbon Supply & Gas Transmission
Management Accounting
Operations Analytics
Commercial Customers Sales & Retailing & Channels
Workforce Deployment
Corporate Governance
Workforce Analytics
¤ SAP AG 2007, 5
Corporate Services Environmental Compliance Incentive and Commission Travel Management Real Estate Management Management Management Operations Support Life-Cycle Data Project and Portfolio Global Trade Quality Management Indirect Procurement Global Trade Services Management Management Management
Workforce Process Management
Human Capital Management
Financial Accounting
Financials
Analytics
Enterprise Management & Support
Secondary Distribution
Downstream Marketing & Retailing
Terminal Management
Enterprise Asset and Service Management
Financial Supply Chain Management
Talent Management
Primary Distribution
Supply, Transmission & Trading
Refining & Manufacturing
Refining & Manufacturing
Hydrocarbon Supply & Gas Transmission
Financial Analytics
Upstream
Development & Production
Strategic Enterprise Management
Suppliers & Exploration & Partners Appraisal
Oil & Gas
Upstream
Development & Production
Refining & Manufacturing
Terminal Management
Capture Field Data (SAP S25 zP6 ) Volume Determination (SAP S25 zP6 ) Monitor Reservoir Model
JOA/PSC Development (SAP S2,S24 ) Venture Equity Trading (SAP S2,S24 )
¤ SAP AG 2007, 6
SAP Product Available
Build Reservoir Models
Contractual Allocation (SAP S2,S25
Future Focus
Partner Product Available
Well Abandonment & Site Restoration (SAP S2,S4 )
Partner Product Available with Future Releases
Secondary and Tertiary Recovery
Third Party Drilling Contract Development (SAP S29 )
Depletion Planning
Reserves Accounting and Reporting
Emissions Management (SAP S4,S28 )
Third Party Drilling Contract Management (SAP S2 )
PSC Management (SAP S2,S24 )
Regulatory Reporting (SAP S25 )
Gas Plant Accounting
Revenue Accounting (SAP S25 )
Lease Fuel Valuation (SAP S25 )
zP6 )
Ownership Allocation (SAP S2,S25
zP6 )
Environmental Compliance Health and Safety (SAP S4 )
SAP Product Available with Future Releases
Exploration and Appraisal Drilling for Boundary Determination (SAP S29 )
Surveying, Positioning & Evaluation Joint Venture Management (SAP S2,S24 )
Production Execution (SAP S25 zP6 )
Acquire Leases and Licenses (SAP S2 )
Capacity Management (SAP S25 zP6 )
JOA/PSC Opportunity Analysis (SAP S24 )
Commercial Customers Sales & Retailing & Channels
Allocation and Settlement
Secondary Distribution
Identify Potential Exploration Targets
Well Mapping (SAP S25 )
Liquid and Gas Production
Primary Distribution
JOA/PSC Strategic Planning (SAP S2,S19,S24 )
E&P Contract Management
Hydrocarbon Supply & Gas Transmission
Portfolio and Risk Analysis (SAP S2,S19,S24,S30 )
Exploration and Appraisal
Suppliers & Exploration & Partners Appraisal
Upstream
¤ SAP AG 2007, 7
SAP Product Available
S2,S23 zP4 )
Strategic Planning (SAP
Bulk Transportation Planning (SAP S2,S23 )
Inventory Planning (SAP S2,S23 )
Bulk Schedule / Program Planning (SAP S2,S23 )
Exchanges & Terminalling Planning (SAP S2,S23 )
Allocation Planning (SAP S2,S23 )
Trade Planning (SAP S2,S23 )
Future Focus
(SAP S23 zP5 ) Exchanges & Terminalling Reconciliation (SAP S23 zP5 ) Customs Execution Management (SAP S17,S23 )
Hydrocarbon Quantity Conversion (SAP S23 ) Inventory Reconciliation
zP5 )
Bulk Movement Invoicing & Settlement (SAP S23 ) Inventory Valuation Update & Management (SAP S23 ) Allocation Processing (SAP S23 ) Exchanges & Terminalling Execution and Settlement (SAP S23
zP5 )
Inventory Update & Management (SAP S23
SAP Product Available with Future Releases
(SAP S23 zP5 ) Contract Operations Management (SAP S23 ) Bulk Supply Chain Monitoring & Control (SAP S23 ) Export / Import Compliance Management (SAP S16,S17,S23 ) Bulk Schedule Management (SAP S23 ) Bulk Rail Scheduling (SAP S23 ) Bulk Continuous (nonBatched) Pipeline Scheduling (SAP S23 ) Exchanges & Terminalling Operations Management (SAP S23 ) Freight Management (SAP S23 ) Allocation Management (SAP S23 )
Custody Transfer Management (SAP S23
Bulk Marine Voyage Scheduling (SAP S23 ) Bulk Batched Pipeline Scheduling (SAP S23 ) Bulk Operational Inventory Management
Demand Planning & Forecasting (SAP S2,S23 ) Supply Planning & Sourcing (SAP S2,S23 )
zP5 )
Primary Distribution
Terminal Management
Secondary Distribution
Partner Product Available
Asset Utilization Analyses (SAP S2,S23 )
Bulk Supply Chain Tax Reporting (SAP S2,S23 )
Transportation Performance Analyses (SAP S2,S23 )
Contract Performance Analyses (SAP S2,S23 )
S2,S23 zP2 )
Trading Analyses (SAP
Inventory Analyses (SAP S2,S23 )
Planning Forecast & Actuals Analyses (SAP S2,S23 ) Exchange Balance Reporting (SAP S2,S23 )
S2,S23 zP2 )
Bulk Movement Planned / Actual Analyses (SAP S2,S23 ) Bulk Movement Profit / Loss Analyses (SAP
Treasury & Financial Management (SAP S2,S6 )
S2,S6 zP2 )
Portfolio & Strategy Management (SAP
S2,S6 zP2 )
Partner Product Available with Future Releases
Export / Import Compliance Management (SAP S2,S16,S17 )
Trading Commodity Pricing (SAP S2,S23 zP2 )
Mgmt (SAP S2 zP2 )
Portfolio & Strategy
Position Management (Long/Short; MtM etc) (SAP S2 zP2 )
Paper Contract Management (SAP
zP2 ) Deal Capture Management (paper) (SAP S2,S6 zP2 )
zP2 ) Trade Contract Management (SAP S2,S23 zP2 )
Risk Assesment and Evaluation (SAP S2,S6
Oil and Gas Paper Trading and Risk Management
Commercial Customers Sales & Retailing & Channels
Deal Capture Management (SAP S2
Bulk Supply Chain Physical Oil and Gas Reporting and Analytics Commodity Trading
Supply, Transmission & Trading
Refining & Manufacturing
Bulk Supply Chain Execution and Settlement
Hydrocarbon Supply & Gas Transmission
Bulk Supply Chain Operations and Scheduling
Development & Production
Bulk Supply Chain Planning and Optimization
Suppliers & Exploration & Partners Appraisal
Supply, Transmission & Trading
Refining & Manufacturing
Secondary Distribution
Commercial Customers Sales & Retailing & Channels
Lubes Production Scheduling (SAP S2,S10 ) Lubes Blending & Packaging (SAP S2,S10 )
Semi-finished Products Blending (SAP S2 )
Emissions Management (SAP S28 )
¤ SAP AG 2007, 8
SAP Product Available with Future Releases
Lubes Production Planning (SAP S2,S10 )
Refined Product Outbound Processing (SAP S2 )
SAP Product Available
Inbound Processing for Base Oils and Additives (SAP S2,S10 )
Partner Product Available
Partner Product Available with Future Releases
Quality Assurance and Control (SAP S2,S10 )
Outbound Processing of Finished Products (SAP S2,S10 )
Warehousing and Storage (SAP S2,S10 )
Supply Chain Monitoring and Control (SAP S10,S19 )
Refinery Production Planning & Scheduling
Lubes Manufacturing Operations
Terminal Management
Crude & Feedstock Inbound Processing (SAP S2 )
Primary Distribution
Supply Plan & Sourcing (SAP S10 )
Future Focus
Refining & Manufacturing
Hydrocarbon Supply & Gas Transmission
Refining Operations
Development & Production
Demand Planning (SAP S2 )
Suppliers & Exploration & Partners Appraisal
Refining & Manufacturing
¤ SAP AG 2007, 9
SAP Product Available
Analyzing local data with Mobile Client (SAP S8 )
Lead Analysis (SAP S8 )
Campaign Monitoring and Analysis (SAP S8 ) Lead Processing (SAP S8 )
Customer Segmentation (SAP S8 ) Surveying Customers with Interaction Center (SAP S8 )
Marketing Planning and Budgeting (SAP S8 ) Campaign Planning and Execution (SAP S8 )
Sales Planning and Forecasting (SAP S8 )
Customer Profitability Analysis (SAP S2,S8 )
In- and Outbound Telesales (SAP S8,S22 ) E-Commerce Sales Order Processing (SAP S2,S8 ) (…)
Activity Processing (SAP S8 ) Opportunity Processing (SAP S8 ) Inquiry Processing (SAP S2,S22 ) Quotation Processing (SAP S2,S8 ) Contract Processing (SAP S2,S20,S8,S22 ) Sales Order Processing (SAP S2,S8,S22 )
Opportunity to Cash
Refining & Manufacturing
Future Focus
Service Performance Analysis (SAP S8 )
Complaints Processing (SAP S2,S8 ) Complaints and Returns Analysis (SAP S8 )
Self-Service Support through FAQ and Solution Search (SAP S8 )
Live Web Collaboration (SAP S8 )
Information Help Desk (SAP S8 )
Customer Service Interaction Center (SAP S8 )
Customer Service
Hydrocarbon Supply & Gas Transmission
SAP Product Available with Future Releases
Analytics for Field Sales Force (SAP S8 )
Sales Pipeline and Funnel Analysis (SAP S8 ) Sales Performance Analysis (SAP S8 ) Account Processing (SAP S8 ) Activity Processing (SAP S8 ) Account Analysis (SAP S8 )
Sales Planning and Account Management
Development & Production
Marketing Planning and Execution
Suppliers & Exploration & Partners Appraisal
Freight Cost Handling (SAP S2,S8 ) Bulk Shipment Reporting (SAP S8 ) (…)
Packaged Products Transportation Execution (SAP S2 )
Packaged Products Transportation Planning (SAP S2 )
Bulk Transportation Execution (SAP S8,S22 )
Bulk Transportation Planning (SAP S8,S22 )
Category Planning & Analytics
Data Upload
Promotion Management Store Promotion Management Merchandise Distribution Customer Loyalty Analysis POS Data Analytics Data Download
Category Planning and Analytics Assortment Management Physical Inventory Store Replenishment Supply Chain Visibility & Tracking Retail Pricing
Partner Product Available with Future Releases
Payment Card Settlement (SAP S8 ) Station Dealer Settlement (SAP S8 )
Fuel Tank Management and Inventory Reconciliation (SAP S8 )
Fuel Book Stock Management (SAP S8 )
Station Fuel Pricing (SAP S8 )
Convenience Retailing
Commercial Customers Sales & Retailing & Channels
Hydrocarbon Service Station Products Fuel Management Transportation
Partner Product Available
S8 zP5 )
Terminal Automation (SAP
Replenishment Planning (SAP S22 ) Supplier Managed Inventory Processing Hydrocarbon Quantity Conversion (SAP S8 )
Secondary Distribution
Downstream Marketing & Retailing
Terminal Management
Shared Depot Handling (SAP S8 )
Physical Stock Monitoring (SAP S2,S8 ) Physical Stock and Book Stock Reconciliation (SAP S8 )
Terminal Management
Primary Distribution
Downstream Marketing & Retailing
SAP Product Available with Future Releases
Managing Catalog Content (SAP S8 )
Sales Quotation and Order Analysis (SAP S8 )
Contract Analysis (SAP S8 )
Opportunity Analysis (SAP S8 )
(…continued) Delivery Processing (SAP S2,S8 ) Billing (SAP S2,S8 )
Refining & Manufacturing
Future Focus
Customer Service
Hydrocarbon Supply & Gas Transmission
Opportunity to Cash
Development & Production
Sales Planning and Account Management
¤ SAP AG 2007, 10
SAP Product Available
Marketing Planning and Execution
Suppliers & Exploration & Partners Appraisal
Secondary Distribution
Export Control (SAP S16 )
Data Collation (SAP S22 )
Tour Planning (SAP S22 )
(…continued) Fleet Management (SAP S2 )
Partner Product Available with Future Releases
Hydrocarbon Service Station Products Fuel Management Transportation
Convenience Retailing
Commercial Customers Sales & Retailing & Channels
Downstream Marketing & Retailing
Terminal Management
Partner Product Available
Terminal Management
Primary Distribution
Downstream Marketing & Retailing
¤ SAP AG 2007, 11
System walkthrough with some scenarios
How other oil companies are benefiting
Companies using SAP Oil and Gas
Common business process flows - Downstream
Components of Oil and Gas
SAP Oil and Gas solution map
Agenda
¤ SAP AG 2007, 12
¾ SAP Oil and Gas- Service Station Retailing (SSR)
¾ SAP Oil and Gas – IS-Oil Downstream (IS-Oil)
¾ SAP Oil and Gas – Traders and Scheduler’s Workbench (TSW)
¾ SAP Oil and Gas- Remote Logistics Management (RLM)
¾ SAP Oil and Gas- Production and Revenue Accounting (PRA)
High Level components of SAP Oil and Gas
¤ SAP AG 2007, 13
¾ Bulk Distribution Requirement Planning (BDRP)
¾ Marketing Retail Network (MRN)
¾ Marketing, Contracts and Order Entry (MCOE)
¾ Marketing, Accounting and Pricing (MAP)
¾ Transportation and Distribution (TD)
¾ Exchanges ( EXG)
¾ Tariffs, Duties and Permits (TDP)
¾ Hydrocarbon Products Management (HPM)
IS – Oil Downstream
¤ SAP AG 2007, 14
¾ Silo Management
¾ Gains and losses in transfers
¾ Calculation of base quantities and water
¾ Oil and gas quantity conversion in the Sales cycle
¾ Oil and gas quantity conversion in the Purchasing cycle
¾ Gas quantity conversion
¾ Oil quantity conversion
¾ Oil specific data in the material master
Hydrocarbon Products Management (HPM)
¤ SAP AG 2007, 15
¾ A data pool for creating reports
¾ Split inventory management of the ED portion and the net price of a material
¾ Licenses for excise duty (ED) reductions and exemptions
¾ The revaluation of inventories after excise duty rate changes
¾ The use of several excise duty rates for a material
¾ Calculation and posting of excise duty liabilities and claims for goods movements of dutiable material.
¾ Excise duty for production orders
¾Excise duty processing for inner-company goods movements (excise duty calculation for material that is moved between two plants with various tax rates).
¾ Excise duty processing within the sales and purchase cycle
¾ Oil specific data in the material master
Tariffs, Duties and Permits (TDP)
¤ SAP AG 2007, 16
Exchanges (1)
¤ SAP AG 2007, 17
¾ Reporting and evaluations
¾ Quantity Schedule
¾ Fees
¾ Netting
¾ Logical Inventory Adjustment (LIA)
¾ Terminalling for third party throughput
¾ Exchange data flow
¾ Exchange agreement with different oil companies
Exchanges (2)
¤ SAP AG 2007, 18
Transportation and Distribution (TD) (1)
¤ SAP AG 2007, 19
¾ One of the most used features in the entire IS Oil suite
¾ These activities are carried out across the processes of scheduling, load confirmation, and delivery confirmation.
¾ Transportation and Distribution (TD) application area covers the logistics activities related to: Delivery of product from a delivering plant to a customer Transfer of product between two company-owned locations Receipt of purchased product from a vendor
Transportation and Distribution (TD) (2)
¤ SAP AG 2007, 20
¾ Shipment planning workbench
¾ Interface for delivery confirmation processing
¾ Terminal automations system interfaces
¾ Transportation planning interfaces
¾ Scheduling, loading confirmations and delivery confirmations
¾ Shipment documents and shipment cost processing
¾ Compatibility Checking
¾ Rack Meters
¾ Drivers
¾ Vehicles
Various elements of the TD application area are as follows :
Transportation and Distribution (TD) (3)
Contract pricing Cumulative contract call-off pricing Customer price lists Default pricing dates Head office and branch level pricing Location flexible pricing using the differential reference code (DRC) Time pricing Gross and net volume pricing Formula and average pricing Differential invoicing Origin, destination, and external data in the sales and purchasing cycle Conditional exclusion (highest prices) Alternative pricing date at invoicing External quotation invoice Five-decimal pricing Additional material data in an invoice
¤ SAP AG 2007, 21
¾ ¾ ¾ ¾ ¾
¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾
Various elements of the MAP application area are as follows :
Marketing, Accounting and Pricing (MAP)
¤ SAP AG 2007, 22
Marketing, Contracts and Order Entry (MCOE) (1)
¤ SAP AG 2007, 23
¾ Final Delivery indicator
¾ Restrictions for contract call offs
¾ Excise duty
¾ Automatic Plant determination
¾ Item category re determination
¾ Contact person details
¾ Organizational data as a default partner function
¾ IS Oil Fast Order Entry
Various elements of the MCOE application area are as follows :
Marketing, Contracts and Order Entry (MCOE) (2)
¤ SAP AG 2007, 24
System walkthrough with some scenarios
How other oil companies are benefiting
Companies using SAP Oil and Gas
Common business process flows - Downstream
Components of Oil and Gas
SAP Oil and Gas solution map
Agenda
¤ SAP AG 2007, 25
¾ Updates in the SAP system during all the transactions
¾ Delivery at customer location and delivery confirmation of the actual quantity delivered
¾ Loading of product in the tanker in various compartments
¾ Creation of an IS- Oil TD shipment
¾ Delivery order is created for the sales order
¾ Sales order is created for a customer- credit or cash sales
Downstream process – dispatch of oil products from depot
¤ SAP AG 2007, 26
Process – Step 1: Creation of a sales order
¤ SAP AG 2007, 27
Process – Step 2: Checking status of sales order
¤ SAP AG 2007, 28
Process – Step 3: Stock overview prior to delivery
¤ SAP AG 2007, 29
Process – Step 4: Creation of a delivery
¤ SAP AG 2007, 30
Process – Step 5: Creation of a shipment
¤ SAP AG 2007, 31
Process – Step 6: Compartment planning for truck
¤ SAP AG 2007, 32
Process – Step 7: Start of loading confirmation
¤ SAP AG 2007, 33
Process – Step 8: Start of loading confirmation
¤ SAP AG 2007, 34
Process – Step 9: Oil quantity calculations – quantity conversions
¤ SAP AG 2007, 35
Process – Step 10: Confirmation of loading on truck
¤ SAP AG 2007, 36
Process – Step 11: Stock overview (in transit)
¤ SAP AG 2007, 37
Process – Step 12: Status of delivery after loading confirmation
¤ SAP AG 2007, 38
Process – Step 13: Documents created in the system
¤ SAP AG 2007, 39
Process – Step 14: Confirmation of delivery to customer
¤ SAP AG 2007, 40
Process – Step 15: Status of shipment after Confirmation of delivery to customer
¤ SAP AG 2007, 41
Process – Step 16: Tracking of delivery status
¤ SAP AG 2007, 42
Process – Step 17: Material documents after delivery confirmation
¤ SAP AG 2007, 43
Process – Step 18: Accounting documents after delivery confirmation
¤ SAP AG 2007, 44
System walkthrough with some scenarios
How other oil companies are benefiting
Companies using SAP Oil and Gas
Common business process flows - Downstream
Components of Oil and Gas
SAP Oil and Gas solution map
Agenda
¤ SAP AG 2007, 45
References
¤ SAP AG 2007, 46
company The Group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocomm Group turnover exceeds US $ 22 bn Reliance Group revenue is equivalent to about 3.5% of India's GDP RIL is the largest exploration acreage holder among the private sector companies in India with 30 domestic exploration blocks covering an area of about 300,000 sq km The Company has the world’s largest grass root refinery in the world with an installed capacity of 33 million tonnes of crude processing capability There are 23 Terminals with presence all across India for distribution of petro-products all over India Over 2000 retail outlets all over India currently
Reliance is the first private sector IndianFortune Global 500
Case Study- Reliance Industries
¤ SAP AG 2007, 47
¾ Power ¾ Life Sciences
¾ Petrochemicals ¾ Telecom
Dedicated SAP core group of around 200+ team members More than 700 man years of SAP implementation experience Expertise in major Industry verticals ¾ Oil & Gas ( using IS Oil) ¾ Insurance ( Using IS Insurance)
country
Currently live at over 200 locations within and outside the
operations
refinery and Go live coincided with the going live of refining
First Implementation for Refinery Business in February 1999 Implementation started during the construction phase of the
Case Study- Reliance Industries Implementation
¤ SAP AG 2007, 48
System walkthrough with some scenarios
How other oil companies are benefiting
Companies using SAP Oil and Gas
Common business process flows - Downstream
Components of Oil and Gas
SAP Oil and Gas solution map
Agenda
Improving Regulatory Compliance • Improved transparency and auditability of activities • Reduce risks of fines and penalties Increase Speed & Efficiency • Automate - eliminate errors due to manual processes Increasing Transparency & Accountability • Increase data transparency Reducing Operating Costs & Increasing Efficiency • Reduce administration, improve business processes Improving Service Delivery • Faster access to relevant information Increase Speed & Efficiency • Automate - eliminate errors due to manual processes Increasing Transparency & Accountability • Improve transparency and auditability of activities Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes • Reduce transaction costs
Allocation and Settlement
Bulk Supply Chain Execution and Settlement
¤ SAP AG 2007, 49
Business Objectives:
Scenario:
Business Objectives
Increasing Revenue • Improve capacity utilization Increasing Transparency & Accountability • Increase data transparency • Provide decision support Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes • Lower logistics costs Increase Speed & Efficiency • Increase collaboration (internally & externally Increasing Revenue • Improve capacity utilization Lowering Working Capital • Shorten order-to-cash cycle Reducing Operating Costs & Increasing Efficiency • Lower logistics costs • Reduce inventory levels Improving Corporate Strategy • Definition and monitoring of a set of targets for business activities Increasing Transparency & Accountability • Provide decision support
Bulk Supply Chain Operations and Scheduling
Bulk Supply Chain Planning and Optimization
Bulk Supply Chain Reporting and Analytics
¤ SAP AG 2007, 50
Business Objectives:
Scenario:
Business Objectives
Improving Customer Service • Improve service quality Increasing Revenue • Efficient campaign planning and management • Improve customer retention and loyalty Lowering Working Capital • Reduce out-of-stock situation Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes Improving Customer Service • 24x7 customer self-service • Better service levels • Complaint management and tracking • Improve service quality • Provide a single face to the customer
Convenience Retailing
Customer Service
¤ SAP AG 2007, 51
Business Objectives:
Scenario:
Business Objectives
Improving Customer Service • Collaborate with business partners Improving Regulatory Compliance • Comply with future accounting and regulatory reporting requirements Increase Speed & Efficiency • Automate - eliminate errors due to manual processes Increasing Security • Improve document control, integrity and retention Reducing Operating Costs & Increasing Efficiency • Improve accounting processes Improving Corporate Strategy • Capital budgeting and allocation process • Support for the strategic planning process Increase Speed & Efficiency • Increase collaboration (internally & externally Increasing Revenue • Develop new markets Increasing Transparency & Accountability • Accurately calculate project risks
E&P Contract Management
Exploration and Appraisal
¤ SAP AG 2007, 52
Business Objectives:
Scenario:
Business Objectives
Improving Service Delivery • Faster access to relevant information Increasing Transparency & Accountability • Increase data transparency Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes • Lower logistics costs • Integrate processes across divisions and functions Managing Fixed Assets & Resources • Minimize investment in operating facilities • Improve physical inventory process • Improve return-on-investment (ROI) of fixed assets • Optimize capital equipment and asset utilization Reducing Operating Costs & Increasing Efficiency • Reduce transaction costs • Lower communications expenses • Reduce administration, improve business processes
Hydrocarbon Products Transportation
Investment Planning, Design & Construction
¤ SAP AG 2007, 53
Business Objectives:
Scenario:
Business Objectives
Improving Corporate Strategy • Production Growth Improving Regulatory Compliance • New business opportunities - participate in cutting edge "green tags" or "carbon credits" market Increasing Transparency & Accountability • Improvement of regulatory compliance Lowering Working Capital • Improve capacity utilization Reducing Operating Costs & Increasing Efficiency • Improve asset and maintenance management Increase Speed & Efficiency • Speed innovative products / designs to market Increasing Revenue • Improve capacity utilization • Maximize profitability by product Lowering Working Capital • Increase inventory turns Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes
Liquid and Gas Production
Lubes Manufacturing Operations
¤ SAP AG 2007, 54
Business Objectives:
Scenario:
Business Objectives
Managing Fixed Assets & Resources • Optimize capital equipment and asset utilization • Reduce down-time Reducing Operating Costs & Increasing Efficiency • Improve procurement processes Increasing Revenue • Efficient campaign planning and management • Extend market share • Improve customer retention and loyalty • Maximize profitability by customer • Develop new markets Improving Regulatory Compliance • Comply with future accounting and regulatory reporting requirements • Reduce risks by permanent compliance tracking with internal and external regulations Increasing Transparency & Accountability • Improve transparency and auditability of activities • Support risk management Reducing Operating Costs & Increasing Efficiency • Removing maintenance of interfaces (Financial Accounting, Cash Management and Risk Management)
Maintenance Operations and Logistics
Marketing Planning and Execution
Oil and Gas Paper Trading and Risk Management
¤ SAP AG 2007, 55
Business Objectives:
Scenario:
Business Objectives
Improving Customer Service • Increase multi-channel delivery of services Increasing Revenue • Enable cross-sell/up-sell capability Lowering Working Capital • Shorten order-to-cash cycle Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes • Re-deploy labor to higher value-added activities • Reduce order processing costs Improving Corporate Strategy • Support for the strategic planning process Increasing Revenue • Maximize profitability by customer • Maximize profitability by product Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes • Improve inventory visibility
Opportunity to Cash
Physical Oil and Gas Commodity Trading
¤ SAP AG 2007, 56
Business Objectives:
Scenario:
Business Objectives
Improving Regulatory Compliance • Improve manufacturing plant operations by optimizing operating conditions against permit constraints Increasing Revenue • Improve capacity utilization Managing Fixed Assets & Resources • Reduce down-time Reducing Operating Costs & Increasing Efficiency • Improve inventory visibility • Reduction of costs for integration with Accounting and Finance Management Improving Customer Service • Strengthen partnerships and account management • Improve forecast accuracy Increasing Revenue • Efficient sales planning and management • Improve customer retention and loyalty • Maximize profitability by customer
Refining Operations
Sales Planning and Account Management
¤ SAP AG 2007, 57
Business Objectives:
Scenario:
Business Objectives
Improving Regulatory Compliance • Reduce risks of fines and penalties • Comply with future regulatory reporting requirements Lowering Working Capital • Reduce out-of-stock situation Managing Fixed Assets & Resources • Improve physical inventory process Reducing Operating Costs & Increasing Efficiency • Automation and standardization of business processes • Reduction of costs for integration with Accounting and Finance Management Improving Service Delivery • Reduce administration, improve business processes Increasing Revenue • Improve customer retention and loyalty Reducing Operating Costs & Increasing Efficiency • Reduce transaction costs • Reduce inventory levels
Service Station Fuel Management
Sourcing & Procurement
¤ SAP AG 2007, 58
Business Objectives:
Scenario:
Business Objectives
Improving Service Delivery • Collaborate with business partners • Improved quality and accuracy Increase Speed & Efficiency • Automate - eliminate errors due to manual processes Lowering Working Capital • Reduce out-of-stock situation Reducing Operating Costs & Increasing Efficiency • Improve inventory visibility
Terminal Management
¤ SAP AG 2007, 59
Business Objectives:
Scenario:
Business Objectives
• Earnings Before Depreciation, Interest, And Tax • Capacity Utilization • Netback value Number of Orders without Complete and Accurate Documentation Operating Cash Flow Days Of Sales In Backlog Customer Invoicing, Accounting Costs Inventory Carrying Costs Delivery Performance to Scheduled Commit Date Cost of Goods Sold Detailed Schedule Creation Time Distribution Costs Inventory accuracy Delivery Performance to Scheduled Commit Date Cost of Goods Sold Capacity Utilization Inventory Carrying Costs Total Supply Chain Costs
• • • • • • • • • • • • • • • • Distribution Costs • Forecast Accuracy • Inventory accuracy
Allocation and Settlement
Bulk Supply Chain Execution and Settlement
Bulk Supply Chain Operations and Scheduling
Bulk Supply Chain Planning and Optimization
Bulk Supply Chain Reporting and Analytics
¤ SAP AG 2007, 60
Key Performance Indicators:
Scenario:
Key Performance Indicators
Customer Satisfaction Index Operating Expenses Headcount Supplier on time Delivery Performance Inventory accuracy Number of Callbacks as % of total inquiries Percentage of Customer Complaints Percentage of Customers getting served via Internet Protocol Percentage of Service Requests Customer Satisfaction Index Administration Costs Reductions Customer Invoicing, Accounting Costs Cycle Time: Inquiry to Contract Fast close support Faultless Invoices Cash Flow Economic Profit - Capital Charge Internal Rate Of Return Finding & Development costs Reserves replacement ratio
• • • • • • • • • • • • • • • • • • • •
Convenience Retailing
Customer Service
E&P Contract Management
Exploration and Appraisal
¤ SAP AG 2007, 61
Key Performance Indicators:
Scenario:
Key Performance Indicators
• Rate Of Return On Capital • Material Management and Planning Costs • • • • •
• Average Development Cost per New Product • Number of End Products,SKUs • Time to Market • • • •
• Operating Cash Flow • Inventory Carrying Costs
Investment Planning, Design & Construction
Liquid and Gas Production
Lubes Manufacturing Operations
Marketing Planning and Execution
Oil and Gas Paper Trading and Risk Management
¤ SAP AG 2007, 62
• • • • •
Hydrocarbon Products Transportation
Campaign/Event Cost Revenue Ratio Contact Efficiency Percent of New Customers per Year Percent Revenue Growth – Existing Customers
Return On Capital Employed Lost Time Incident Ratio Lifting Costs Production Stoppage Hazardous Materials Emissions
Delivery Date Accuracy Delivery Performance to Customer Request Date Distribution Costs Order Fulfillment Costs Perfect Order Fulfillment
Key Performance Indicators:
Scenario:
Key Performance Indicators
Revenue Revenue Per Full-Time Equivalent Employee Sales Selling Expenses Contract Negotiation Time
• • • • • • • • •
• Contribution Margin Rate • Gross Profit • Inventory Turnover
Physical Oil and Gas Commodity Trading
Refining Operations
Sales Planning and Account Management
Service Station Fuel Management
¤ SAP AG 2007, 63
• Cost of Goods Sold • Operating Cash Flow • Operating Revenue Margin Operating Revenue Margin Average Inventory Return On Capital Employed Material Stock shortfalls
• • • • • •
Opportunity to Cash
Customer Satisfaction Index Sales Cycle Time (Orders) Cycle Time: Inquiry to Contract Order Fulfillment Costs Invoice Accuracy Rate Order Receipt to Order Entry Complete Time
Key Performance Indicators:
Scenario:
Key Performance Indicators
¤ SAP AG 2007, 64
• • • •
Terminal Management
Inventory Inventory accuracy Inventory Days of Supply (Quantity) Shrinkage
Key Performance Indicators:
Scenario:
Key Performance Indicators
Focus and Accountability
Objectives & Measurement Mechanisms Continuous monitoring
Adapt, Change and Learn
¤ SAP AG 2007, 65
Therefore, an Information Systems Planning project was started as part of the Change Plan implementation in August 1997 to arrive at the long term IT Strategy for the oil company resulting in….
Requires Information Technology Embedded into Business Processes
Restructure along SBU’s
Roadmap for one of the countries
¤ SAP AG 2007, 66
Sales Sales Process Process Automation Automation
Health, Health, Safety Safety and and Environment Environment
Payroll Payroll
Optimisation Optimisation solutions solutions
Time Time and and Attendance Attendance capturing capturing
E Commerce
Production Production Planning Planning
Transportation Transportation
M M II SS
Excise/ Excise/ Customs Customs & & Statutory Statutory Reqmt. Reqmt.
CAD/CAM CAD/CAM
Terminal Terminal Automation Automation
Data Data Warehouse Warehouse
Sales Sales and and Distribution Distribution •• Order Order Entry Entry •• Shipping Shipping •• Billing Billing •• Sales Sales Analysis Analysis •• Pricing Pricing and and Commissions Commissions
Human Resources
LPG consumer Accounting
Financial Financial •• GL GL •• AP AP & & AR AR •• Costing Costing •• Fixed Fixed Assets Assets
Materials Materials Mgmt. Mgmt. •• Procurement Procurement •• Inventory Inventory •• Quality Quality •• Contract Contract Management Management
Internet, Internet, Intranet& Intranet& Extranet Extranet
Service Service •• Project Project Mgmt. Mgmt. •• Maintenance Maintenance
Document Document Management Management System System
Core System
E-mail E-mail
… a complete solution map
Refinery Refinery
in in
Systems Systems
Execution Execution
Manufacturing Manufacturing
Bar Bar Code/Labels Code/Labels
EDI EDI (Electronic (Electronic Data Data Interchange) Interchange)
¤ SAP AG 2007, 67
System walkthrough with some scenarios
How other oil companies are benefiting
Companies using SAP Oil and Gas
Common business process flows - Downstream
Components of Oil and Gas
SAP Oil and Gas solution map
Agenda
¤ SAP AG 2007, 68
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