ERP implementation at BPCL

By:
Anil Varma Sneha Kumari

The Story
Implementation in November 2001 SAP R/3
Main intentions of the company.
Service Differentiation Retain customers Increase its I & C customers

Results of ERP

What is BPCL?
1951

Agreement between Govt. of India and UK based BURMAH oil co. and SHELL petroleum co. Incorporation of BURMAH SHELL oil refineries ltd. Started production in Ankleshwar, Gujurat Taken over by Govt. of India Rechristened as BHARAT REFINERIES and to BPCL in 1977 Changes like 30% disinvestment, marketing contracts with IBP, MRL and CRL.

1952

1975

1991

1998-99

Furthur disinvestment of 26% to work without govt. interference

ERP in INDIA
Liberalization 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

SAP R/3s Application Modules

Financial Accounting
Designed to handle all kinds of accounting books Journal Ledger, accounts payable, accounts receivables, etc

Controlling
Assets Management Human Resources Quality Management Material Management

Represents cos flow of costs and revenue Jobs order accounting, Project accounting, product costing analysis etc

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

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

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

Supports procurement and inventory functions in daily operations. Purchasing, inventory management, reorder point processing, invoice verification Help optimise all task and activities carried out in sales, delivery and billing. Pre-sales support, quotations, sales order processing, delivery processing billing.

Sales & Distribution

Why ERP in BPCL?

4500 retail outlets, 60% company owned or leased

Retail sales accounted for 60% of companys sales volume

Strengthening its retail network by providing Value Added Services.

IT initiatives at BPCL

STEP 1
Retails Aviations

Strategic Business Units (SBUs)

Lubricants

LPG

I&C

Refinery

Finance

HR

Information System
Brand management

Strategy management

STEP 2
Improve communication system Establishing Intranet using MS exchange server and MS windows NT server Feasibility testing pilot implementation

7 web servers employed in VSAT hub in Bangalore

Connected corporate office with various regional offices

Connected 3 locations on a VSAT at 64kbps connection

Introduction of Query By Mail (QBM)

STEP 3
Project CUSEC
Selected SAP R/3
Appointed Coopers and Lybrand as consultant All its branches linked to central connectivity cloud.

Development server new development and customization and then moved to QAS for quality testing

QAS modify and customize the SAP module

Ensured security by employing SUN ULTRA 5 firewalls, real secure, internet scanner etc

Reaping the Benefits of ERP

E-biz initiatives
Allow I & C customers to track their orders online Helped in retaining customers and attracting new ones.

Petrocard
Fleet Card

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

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