ERP implementation at BPCL

By:
Anil Varma Sneha Kumari

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

• Incorporation of BURMAH SHELL oil refineries ltd. 1952 1975 1991 1998-99 • Furthur disinvestment of 26% to work without govt. • Started production in Ankleshwar. marketing contracts with IBP. and SHELL petroleum co. of India and UK based BURMAH oil co.What is BPCL? 1951 • Agreement between Govt. Gujurat • Taken over by Govt. of India • Rechristened as BHARAT REFINERIES and to BPCL in 1977 • Changes like 30% disinvestment. MRL and CRL. interference .

ERP market share grew with a CAGR of 70% ERP failed in India . oil. material management and HR.ERP in INDIA Liberalization – compete with MNCs 1st implemented by Manufacturing firms. followed by FMCG. automotives. sales and distribution. textile and pharma companies. Popular modules – finance and accounting. steel.

quality planning. investment management etc • Supports the planning and control of personnel activities. invoice verification • Help optimise all task and activities carried out in sales. Sales & Distribution . etc Controlling Assets Management Human Resources Quality Management Material Management • Represents co’s flow of costs and revenue • Jobs order accounting. delivery processing billing. •Supports quality planning and control of manufacturing activities. • Pre-sales support. recruitment. • Purchasing. accounts payable. inventory control. delivery and billing. sales order processing. quotations. • Plant maintenance.SAP R/3’s Application Modules Financial Accounting • Designed to handle all kinds of accounting books • Journal Ledger. accounts receivables. benefits. workforce planning etc. Project accounting. inventory management. product costing analysis etc • Designed to manage and supervise individual aspects of fixed assets. etc • Supports procurement and inventory functions in daily operations. • Quality inspection. reorder point processing. • Payroll accounting.

60% company owned or leased Retail sales accounted for 60% of company’s sales volume Strengthening its retail network by providing Value Added Services.Why ERP in BPCL? 4500 retail outlets. .

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) .

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

5 lakh customers using it. • Easier for them to track the position of their inventory.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. • By march 2001. . 2. Petrocard Fleet Card • Used in retail outlets across the country. • For transport companies.

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