ERP IMPLEMENTATIO

N AT

The StoryImplementation in November 2001 – SAP R/3

Main intentions of the company.Service DifferentiationRetain customersIncrease its I & C customers

Results of ERP

ERP in INDIALiberalization – compete with MNCs

1st implemented by Manufacturing firms, followed by FMCG, automotives, steel, oil, textile and pharma companies.Popular modules – finance and accounting, sales and distribution, material management and HR.

ERP market share grew with a CAGR of 70%

ERP failed in India

What is BPCL?1951 •Agreement between Govt. of India and UK based BURMAH oil co. and SHELL petroleum co.

1952 •Incorporation of BURMAH SHELL oil refineries ltd.•Started production in Ankleshwar, Gujurat

1975 •Taken over by Govt. of India•Rechristened as BHARAT REFINERIES and to BPCL in 1977

1991 •Changes like 30% disinvestment, marketing contracts with IBP, MRL and CRL.

1998-99 •Furthur disinvestment of 26% to work without govt. interference

Why ERP in BPCL?4500 retail outlets, 60% company owned or leased

Retail sales accounted for 60% of company’s sales volume

Strengthening its retail network by providing Value Added Services.

IT initiatives at BPCLStrategic Business

Units (SBUs)

Retails Aviations

Lubricants LPG I & C Refinery

Finance HR Information System

Strategy manageme

nt

Brand manageme

nt

STEP 1

STEP 2Improve

communication system

Establishing Intranet using MS exchange

server and MS windows NT server

Feasibility testing – pilot

implementation

Connected 3 locations on a

VSAT at 64kbps connection

Connected corporate office

with various regional offices

7 web servers employed in VSAT hub in Bangalore

Introduction of Query By Mail (QBM)

STEP 3 Project CUSECSelected

SAP R/3

Appointed Coopers and Lybrand as consultant

All its branches linked to central

connectivity cloud.

Ensured security by employing SUN

ULTRA 5 firewalls, real secure, internet

scanner etc

QAS – modify and customize

the SAP module

Development server – new development and

customization and then moved to QAS for

quality testing

SAP R/3’s Application ModulesFinancial Accounting •Designed to handle all kinds of accounting books

•Journal Ledger, accounts payable, accounts receivables, etc

Controlling •Represents co’s flow of costs and revenue•Jobs order accounting, Project accounting, product costing analysis etc

Assets Management •Designed to manage and supervise individual aspects of fixed assets.•Plant maintenance, inventory control, investment management etc

Human Resources •Supports the planning and control of personnel activities.•Payroll accounting, benefits, recruitment, workforce planning etc.

Quality Management •Supports quality planning and control of manufacturing activities.•Quality inspection, quality planning, etc

Material Management •Supports procurement and inventory functions in daily operations.•Purchasing, inventory management, reorder point processing, invoice verification

Sales & Distribution •Help optimise all task and activities carried out in sales, delivery and billing.•Pre-sales support, quotations, sales order processing, delivery processing billing.

Reaping the Benefits of ERP•Allow I & C customers to track their orders online•Helped in retaining customers and attracting new ones.

E-biz initiatives

•Used in retail outlets across the country.•By march 2001, 2.5 lakh customers using it.

Petrocard

•For transport companies.•Easier for them to track the position of their inventory.

Fleet Card

THANK YOU FOR BEARING ME

Mayank BasraSec ACE