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Anil Varma

Sneha Kumari

ERP implementation at BPCL

By:

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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

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What is BPCL?

1951 Agreement between Govt. of India and UK based BURMAH oil co. andSHELL 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 like30% disinvestment, marketing contracts with IBP, MRL and CRL.

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

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ERP in INDIA

Liberalization compete with MNCs

1st implemented by Manufacturing firms, followed byFMCG, automotives, steel, oil, textile and pharma companies.

Popular modules finance and accounting, sales anddistribution, material management and HR.

ERP market share grew with a CAGR of 70%

ERP failed in India

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SAP R/3s Application Modules

Designed to handle all kinds of accounting booksJournal Ledger, accounts payable, accounts receivables, etcFinancial Accounting

Represents cos flow of costs and revenueJobs order accounting, Project accounting, product costing analysis etcControlling

Designed to manage and supervise individual aspects of fixed assets.

Plant maintenance, inventory control, investment management etcAssets Management

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

Supports quality planning and control of manufacturing activities.

Quality inspection, quality planning, etcQuality Management

Supports procurement and inventory functions in daily operations.Purchasing, inventory management, reorder point processing, invoiceverification

Material Management

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

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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.

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IT initiatives at BPCL

Strategic BusinessUnits (SBUs)

Retails Aviations Lubricants LPG I & C Refinery

Finance HRInformation

System

Strategymanagement

Brandmanagement

STEP 1

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STEP 2Improve

communicationsystem

Establishing Intranetusing MS exchange

server and MSwindows NT server

Feasibility testing pilot implementation

Connected 3locations on a VSAT

at 64kbps connection

Connected corporateoffice with various

regional offices

7 web serversemployed in VSAThub in Bangalore

Introduction ofQuery By Mail

(QBM)

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STEP 3Project CUSEC

Selected SAP R/3Appointed Coopers

and Lybrand as

consultant

All its branches linkedto central connectivity

cloud.

Ensured security byemploying SUN

ULTRA 5 firewalls, realsecure, internet

scanner etc

QAS modify andcustomize the SAP

module

Development server new development and

customization andthen moved to QAS for

quality testing

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Reaping the Benefits of ERP Allow I & C customers to track their orders

online

Helped in retaining customers and attracting newones.

E-bizinitiatives

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 theirinventory.

Fleet Card