Melroy Miranda XIMR: MMS 2 Roll No.

527 BPCL The case talks about how BPCL was able to speed up its decision making process and respond faster to customer needs by successfully implementing ERP. Reasons for implementing ERP The company was divided into six SBUs. This was done to help focus on specific customer segments and address their individual needs. For this, BPCL needed a system for speedy and effective communication. They realized that faster communication between SBUs would result in faster decision making and the current communication structure hampered the integration of its activities. To achieve this objective BPCL divided its IT initiatives into a three-pronged strategy, wherein it planned to create a communication network within the organization; to create a basic information network for the entire corporation and to process transactions with customers all over the country. It established an Intranet and implemented various applications to facilitate information retrieval from corporate databases. Communication costs drastically reduced due to these measures. The ERP implementation was part of the company's Project CUSEC (Customer Service and Satisfaction). The company selected SAP R/3 as it was already being successfully used by major oil companies in the world. It was also the only package which had an oil industry specific package and an India specific package. Benefits reaped by BPCL due to ERP success SAP R/3 helped BPCL to successfully launch its e-biz initiatives. Its I&C customers could now track the status of their orders online. This allowed the company to firstly retain existing customers and secondly attract new customers. It helped manage inventory. This led to faster processing of customer orders. It was now possible for the company to know the details of receivable of inventories, which in turn made cash management also easier. It also introduced 1. Petrocards which the customers could use at BPCL retail outlets. 2. Fleet cards were given to transport companies which helped them keep track of their inventory.