Demo

SAP Point of View and Recommendation
Transforming ENGEN’s Secondary Distribution and Fuels Retailing
With the SAP Intelligent Enterprise October 2020




Table of contents
4 8 14 45 49 60
Executive summary Our understanding The SAP solution Business benefits Why SAP?
Next Steps
3


Executive summary
Our understanding
The Oil and Gas Industry is witnessing unprecedented disruption which is impacting all players across the Oil and Gas value chain. In their efforts to minimize the impact on their bottom line, companies are increasingly turning to innovation and technology to enable cost reduction and optimize their operations.
SAP is committed to partnering with Oil and Gas companies to realize their strategic priorities:
• Meeting global demand for energy
• Adapting to the lower oil price environment
• Deploying digital technology to support capital and operational efficiency
• Exploiting new market opportunities through innovation
The SAP solution
We believe SAP can play an important role in helping Oil and Gas companies transform their business, stay competitive, and deliver against their business imperatives. By moving to an integrated, real-time energy platform, Oil and Gas companies will:
• Driveintegratedportfolioplanningandprojectexecution, supported by an effective supply base
• Managetheconvergenceofproduction,maintenance, engineering, and financials at all enterprise levels
• Increasevisibilityintothehydrocarbonsupplychainand downstream operations
• Integrateenterpriseoperationswithastandardized environment,health,andsafety(EHS)andrisk managementsystem
• Govern and manage the full information lifecycle across keydomainsofassets,people,products,etc.
Business benefits
The potential business benefits of moving to a single, integrated, real-time energy platform are significant. With annual recurring benefits that can provide for a dramatic return on investment (ROI) and payback.
Why SAP?
SAP can support Oil and Gas companies in achieving these benefits with:
• A network of over 3,300 companies in the global oil and
gas industry
• On-premise and cloud solutions developed for Oil and Gas
companies’ core businesses
• Innovative solutions leveraging new technologies such as
the Internet of Things (IoT), artificial intelligence (AI), and
machine learning
• SAP consultants specialized in the oil and gas industry to
support Oil and Gas companies’ global projects
• Value engineering methodology, including benchmarking
with peers and competitors and a business case, to support business processes and KPI improvement
SAP will assist Oil and Gas companies to ensure that the transformation follows a value-focused approach and that new, innovative capabilities deliver immediate business value, ongoing simplification, and total cost of ownership (TCO) reduction.
Next steps
• Understandandagreeuponprogramscope
• Obtainboardapprovalforprogramandinvestment
• Establishjointprogramgovernance • Finalizetermsandconditions
• Signcontractandexecuteprogram
Executive summary
4


Changing business model
Disruption requires change
The unprecedented disruption we are witnessing in the Oil and Gas industry (resulting primarily from changing customer expectations and a global movement towards decarbonization) requires companies to become more agile, innovate quickly, respond rapidly, reduce waste and leverage technology as an enabler and, if done well, a differentiator.
To create opportunities and grow revenue, we are noticing that Oil and Gas companies are extending beyond traditional revenue streams:
Executive summary
At SAP
We appreciate ENGEN’s unique strategy to become a retail stop of choice for their existing and new customers and to move beyond the norm, breaking the traditional perception of a “fuel stop”. To become a true 1stopTM, a “must stop” for every road user, every day. We believe that ENGEN’s strategy of deeper retail penetration than we are seeing in the industry is a competitive differentiator and a bold, yet essential move onto the front foot and into the future of Oil and Gas.
SAP has a platform of capabilities including secondary distribution and retail solutions which, like ENGEN’s strategy, are uniquely positioned to support the future of Oil and Gas, the future of ENGEN.
5


Leading oil and gas companies are utilizing SAP technology and software to increase market opportunity, achieve profit goals, and grow market share.
79%
Lower accident frequency rate
reported by organizations that establish and monitor strong safety measures for people and assets
20%
increased planning & execution personnel productivity
Source: SAP performance benchmarking
44%
Lower unplanned downtime
for organizations adopting preventive and predictive maintenance approach as compared to organizations adopting reactive maintenance approach
10%
Annual savings due to Supply chain optimization
6


8%
More projects
completed on time, on budget, and on scope by top 25% organizations as compared to average performing organizations
15%
Reduced supplier collaboration costs
>78 million
Barrels per day of oil produced by SAP’s oil and gas customers
87%
Fortune 2000 oil and gas
7


Our understanding


The oil and gas transformation Oil and gas companies are facing unique challenges.
Our understanding
Budget and timeline overruns
• Asset-intensive industry requiring massive capital investment
• Poor visibility and control of major projects and partners
• Complex and diverse network of suppliers
Poor operational insight
• Data silos
• Lack of standardization
• Inconsistent data
• Off-system records and analysis
Supply chain inaccuracies and disparate data sources
• Tight margins
• Dynamic variables like price, demand, and delays
• Costly assets
• Weak master data
governance
Weak situational awareness
• Disparate software systems
• Unplanned downtime • Complex government
regulations
“Our industry is changing faster than at any time in our lifetime, driven in part by innovative technological advances.”
BP Web site: https://www.bp.com/en/global/corporate/what-we-do/technology/digital-innovation.html
9


Challenges in oil and gas
Leading oil and gas firms must rise to meet the following challenges and streamline their
operations while continuing to innovate.
Our understanding
Pipeline
•
•
•
•
Capital and spend effectiveness: Capital portfolios and projects suffer overruns in budgets and timelines
Integrated digital oil field operations: Poor operational insight due to lack of transparency; typically multiple data silos exist
Hydrocarbon supply chain: Lack of depth and accuracy into each aspect of the supply chain with disparate data sources
Operational integrity:
Weak situational awareness regarding safety and regulations as status quo drives the organization
Capital and spend effective- ness
Integrated digital oil field operations
Hydro- carbon supply chain
Operational integrity
Enterprise information management
Human resources
Finance
Platform and technology
Offshore production
Onshore production
Refining and gas to liquids
Distribution
Retail
10


Our understanding of Oil and Gas Industry priorities
Our understanding
11


How SAP can support ENGEN’s priorities
The power of One
We believe that the overarching industry priorities resonate with ENGEN’s own priorities. ENGEN will move beyond the barrel with ambitious retail goals; improve customer service and satisfaction through digitization; enhance agility, responsiveness and visibility through a single SAP ecosystem; and bolster asset value and improve margins via data insights and predictiveness.
SAP’s strong ecosystem of targeted Oil and Gas, hydrocarbon logistics and downstream industry solutions positions SAP as the perfect partner to support ENGEN’s strategic imperatives. With standardized integration between our Supply Chain Planning, Oil and Gas and Retail suites – SAP can become ENGEN’s “one stop” Industry 4.NowTM partner.
Hydrocarbon supply and distribution
§ Achieve real-time visibility and execution excellence in each step of the hydrocarbon supply chain
Hydrocarbon processing visibility
§ Improve operations visibility and performance in the hydrocarbon processing environment
Commercial sales and marketing
§ Manage customers, increase collaboration and loyalty, and improve the sales margin
Secondary distribution and fuels retailing
§ Automate logistics processes from the terminal to the consumer, and manage the fuel business
Convenience retailing
§ Manage the convenience retailing business, and increase sales and customer loyalty
8% Lower transportation spend for companies that ensure supply, distribution, and short-term production plans are consistent
26% Lower supply chain planning costs for companies that have visibility into customer demand and sales
Our understanding
Source: SAP Performance Benchmarking.
12


“Industry forces and digital innovations are reshaping the Oil and Gas industry. An unsystematic adoption of new technology may no longer suffice; a holistic approach to digitalization could create significant value....”
World Economic Forum, Digital Transformation Initiative: Oil and Gas Industry, January 2017


The SAP solution


How SAP can help Oil and Gas companies achieve their vision
We believe that SAP can play an important role in helping Oil and Gas companies transform their business, stay competitive, and deliver against their business imperatives.
The SAP solution
SAP has identified five areas where value can be created for Oil and Gas companies
1 Optimized capital spend
2 Maximized return on assets
3 Improved profitability
4 Sustainable operations
5 Integrated enterprise data
15


12345
Optimized capital spend
Plan, manage, and collaborate better by capturing all data across the full project lifecycle in the oil and gas industry. Achieve full visibility and help all stakeholders run efficiently and transparently with project management, procurement, and logistics solutions integrated with finance, logistics, and health and safety.
Solution capabilities
• Capital planning: Reduce planning cycle times, increase profitability, and make finance functions more efficient
• Portfolioandprojectmanagement:Planandtrack project portfolios and execute projects with insight into costs and risks
• Strategicsourcingandsuppliermanagement: Automate and simplify the procurement process to drive compliance and lower procurement costs
• Procuretopayandbusinessnetwork:Centralizecore procurement data for contracts and suppliers for optimal discounts and savings
“Digitalization has the potential to create around $1 trillion of value for Oil and Gas firms.”
World Economic Forum, Digital Transformation Initiative: Oil and Gas Industry, 2017
Benefits
• Better performance: Drive future performance improvements proactively
• Lower risk: Drive on-budget and on-schedule timelines
• Maximum value: Reduce cycle times and improve visibility
• Reduced cost: Standardize and automate processes
The SAP solution
16


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Maximized return on assets
Manage the entire asset lifecycle more efficiently with streamlined enterprise asset management. Real-time visibility and powerful analytics make it easier to maximize their return on assets, including property, plant, and equipment.
Solution capabilities
• Hydrocarbonproductionmanagement:Validatedata, perform production allocations, create forecasts, and capture deferment events
• Hydrocarbonrevenuemanagement:Streamline financial, revenue, and venture processes for exploring, developing, and producing hydrocarbons
• Fieldlogistics:Reducetimeandeffortrequiredfor ordering, scheduling, and delivering field activities and services
Benefits
• Better operational performance • Better-informed decisions
• Maximized asset utilization
• Better forecasting and planning • Increased productivity
• Improved customer satisfaction
• Improved revenue efficiency and cost
transparency
The SAP solution
“SAP Upstream Operations Management provides us with a unified platform and simplified IT landscape. We have full transparency and holistic insight into our production operations – and improved data integrity.”
Sevda Javadova, SOCAR ITRI, Lead UOM team, State Oil Company of Azerbaijan Republic
17


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Improved profitability
Oil and Gas companies can extract significantly more value out of their SAP investment by implementing SAP’s hydrocarbon supply chain solutions.
Solution capabilities Benefits
The SAP solution
• Hydrocarbon supply and distribution: Achieve real- time visibility and execution excellence in each step of the hydrocarbon supply chain
• Hydrocarbon processing visibility: Improve operations visibility and performance in the hydrocarbon processing environment
• Commercial sales and marketing: Manage customers, increase collaboration and loyalty, and improve sales margin
• Secondarydistributionandfuelsretailing:Automate logistics processes from the terminal to the end consumer and manage the fuel business
• Convenienceretailing:Managetheconvenience retailing business and increase sales and customer loyalty
• Gain a 360-degree view of suppliers, strengthening negotiating leverage
• Increasethetransparencyofthepurchasing process for both buyers and suppliers
• Enableamodern,connectedorganizationthat helps HR concentrate on strategic business priorities to support future growth
• Enableoneglobalviewoftheworkforcefor better identification and retention of talent
• Gainvisibilityacrosssystemswithend-to-end management of core financials
"With improved procurement methods, we now have visibility into spending and cost-reduction opportunities. A centralized service group manages spending across the business, and proactive analysis is in place to ensure that business needs are forecasted and addressed.”
Rachean Chanthaweekul, Vice President of Procurement, PTT Global Chemical Public Group Limited
18


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Sustainable operations
Drive greater situational awareness and optimize process safety and integrity in Oil and Gas companies ’s oil or gas operations. Analyze asset performance, monitor policy and guideline usage, reduce environmental impact, and go beyond compliance in operations using comprehensive oil and gas solutions from SAP.
Solution capabilities Benefits
The SAP solution
• Maximize asset performance: Align processes within and outside the company to improve asset performance and worker productivity
• Help ensure compliance: Improve visibility of compliance performance information to enable an understanding of current status
• Proactively mitigate risks: Be proactive in responding to regulatory changes, improving productivity, and minimizing risks
• Develop and keep talent: Reduce risk, downtime, and days away from work (while training) with comprehensive training and certification programs
• Execute effectively: Share policies across operations to maximize asset productivity and process safety
• Reduced risk and improved governance: Continuous monitoring combined with alerts and notifications
• Increased productivity and reduced incidents: Operational risk managed proactively
• Improved asset utilization: Alignment of work processes with asset performance
• Improved safety: Reduced time, cost, and errors in compliance reporting
• Greater retention: Fewer days away from work
“As we look to meet the evolving operational needs of our business, SAP offerings were a natural selection to deliver an efficient, dependable solution that increased transparency and reporting across our operations with demonstrable success.”
Hal Zesch, CIO and Senior Vice President, Valero Energy Corporation
19


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Integrated enterprise data
Gain real-time insight using and governing enterprise data – anywhere and in real time – with database and database management solutions from SAP. Instantly adapt business processes with live data. Rapidly innovate without constraints by developing intelligent business applications built on a unified data platform.
Solution capabilities
• Manage and integrate data: Integrate, cleanse, and enrich data for use in solid analytical repositories
to enable improved reporting
• Storeandanalyzecontent:Managethelifecycleof structured and unstructured enterprise content and integrate it into critical business applications for process context
• Enforcegovernancepolicies:Createmasterdataina centralized, fully governed process; connect disparate information, and drive legal and regulatory compliance across repositories
• Archiveinformation:Providelarge-scaleenterprisedata retention, enabling compliance with regulatory mandates, reducing risks, enhancing data availability, and enabling analysis and simulation
Benefits
• Maximize operational efficiency: Improved business processes for managing data while reducing overall costs and improving information quality
• Reduce risk: Improved information accuracy, quality, and consistency for increased compliance with internal and external governance and regulatory policies
• Drive better decisions: Enable information availability and analysis, thereby improving operations, situational awareness, and compliance for the enterprise
The SAP solution
“SAP has been critical to our success thus far, and SAP Business Suite applications powered by SAP HANA will be even more important to our success going forward as we move from a transactional- based business to a real-time, performance-driven business.”
Coy Wright, CIO, Pacific Drilling
20


SAP has the Oil and Gas industry covered
Digital business framework
The SAP digital business framework supports Oil and Gas business priorities; providing an intelligent, integrated suite offering unparalleled value.
SAP offers a unique end to end, fully integrated, industry specific coverage to Oil & Gas Companies
The SAP solution
Crude
(Wells)
OR
Terminal
Refined Products Tanks
Gathering
Crude “Staging”
Crude Terminal
Crude Tanks
Refining
Secondary Distribution
Retail outlet
Point Of Sales
Primary Distribution
Primary Distribution
Refinery “Fence Line”
Marine
Aviation
Primary Distribution
Secondary Distribution
SDM, RFNO
Convenience Retailing
Industrial
Omnichannel Marketing Customer-Centric Merchandising Procurement Excellence Digital Supply Chain Omnichannel Customer Experience
End-to-end integration of the Hydrocarbon value chain is a key differentiator Crude to Customer molecule tracking
21


SAP end-to-end Oil and Gas capabilities
Fully covered
A set of horizontally and vertically integrated processes and capabilities ensure that SAP’s Oil and Gas customers are fully covered by SAP and SAP-affiliate solutions, known interfaces, process- rather than transactional-focused workflows, automation and management by exception.
The SAP solution
Full process coverage of the Hydrocarbon and Retail value chains is another key differentiator
22


SAP Secondary Distribution and Fuels Retailing
SAP SDM and RFNO
SAP’s industry solution for the downstream Oil and Gas industry is built from two modules which contribute specific downstream capabilities to the SAP S/4HANA Oil & Gas Model Company solution. Secondary Distribution Management (SDM) and Retail Fuel Network Operations (RFNO) work together to cover downstream operations.
Furthermore, RFNO interacts with the SAP S/4HANA Retail Model Company solution (including Food Services and the Customer Activity Repository) to ensure that the two value chains exist within a single, efficient platform.
The SAP solution
SAP S/4HANA® Oil & Gas for Secondary Distribution Management (SDM)
SAP S/4HANA® Oil & Gas for Retail Fuel Network Operations (RFNO)
Automate, integrate and standardize
• Automate the sales and purchase order generation
• Plan optimized delivery of own or 3rd party fleet • Automate settlement processes for whole business
• Run automatically reconciliation process • Manage contracts and own fleet cards
• Automate replenishment order generation
23


SDM and RFNO made simple with SAP S/4HANA
Two processes, one solution
SDM and RFNO cover two unique Oil and Gas processes under one solution and one code base with S/4HANA. Together with the SAP Oil & Gas and Retail Model Companies, SAP provides a unique, holistic solution.
The SAP solution
Refining Oil & Gas to Liquids
End-to-end:
Retail
The SAP single, integrated, real-time energy platform provides a comprehensive, end-to- end solution that:
Automates order and logistics processes
Manages auto replenishment and consumption forecasting on demand
Reduces TCO of truck fleet
Increases visibility into downstream operations
Manages fuel logistics and service stations
Controls the business by dashboards
Secondary Distribution and Fuels Retailing
Solutions:
Integration, Automation and Standardization
SAP S/4HANA® Oil & Gas for Secondary Distribution Management
SAP S/4HANA® Oil & Gas for Retail Fuel Network Operations
§ Order Management for all Oil and Gas products
§ Forecasting and Replenishment
§ Integrated Dispatch Management
§ Interface Controlling and Monitoring
§ Logistics Process Automation through pre- configured
Business Scenarios
§ Service Station Overview § Forecasting and
Replenishment
§ Dealer and Own Station
Settlement
§ Inventory Management § Payment Method and
Fleet Card Settlement
24


Expertise partnership with Implico
Process, People, Systems
SAP’s strategic expertise and co-development partnership with Implico ensures a well rounded team of process, industry and solution experts; including a premium implementation team of Implico consultants who specialize in SDM and RFNO implementations.
The SAP solution
System Interactions Physical Movement
Terminal Mgmt System OpenTAS
Planned Trip
Planned Load
Reconciliation & Settlement PAT
SAP certified App
Connected Truck
SAP certified App
Connected Truck
End Customer Tanks
Service Station network
Multi-channel order generation
Terminal
Load Confirmation
SAP SDM
Sales Forecasting
CPR
Order Mgt
TELESALES
Trip Planning
IDM
Stock Levels
Planned Trip
Sales Forecasting
CSR
SAP RFNO
Dip Readings Consumption history
Delivery Confirmation
Dealer Settlement
Sales Volume (Consumption History) Dip Readings
Core ERP / Hydrocarbon Management
SAP S/4 HANA
SAP SDM and RFNO supports customers with expert standard processes which are also customizable to a customers unique needs
25


Let’s talk SDM
The SAP solution
Distribution Management
Process Management Process Management
and Monitoring and Monitoring
Business Business
SAP S/4HANA® Oil & Gas for Secondary Distribution Management
• Order Management and Pre-Scheduling
• Forecasting
• Stock Management
• Dispatching and Tour-Planning
• Reporting
• Automated SAP Object generation
• Interface Monitoring
• Processing Real Data
• Plausibility Checks
• Creating necessary Forms
• Process Controlling via traffic lights
• Interface Controlling via traffic lights
• Control Cockpits • Reporting
• KPIs
Capabilities
Process Automation
Controlling Controlling
Business Management – Digital Transformation
26


SDM enables an optimized Order to Cash process
Embracing Fuel Facs and optimization
SAP and Implico appreciate ENGEN’s current landscape and aspirations to replace a multitude and 3rd party and in-house developed applications and functionality with, as far as possible, a single platform with standardized processes.
We embrace ENGEN’s decision to remain on Fuel Facs. Fuel Facs is a popular Terminal Management system and familiar to both SAP and Implico. Many projects integrating to Fuel Facs have already been completed and hence interfaces are existing, well known and stabilized.
We also suggest that ENGEN embrace the use of OptEngine in order to fully replace ORTEC. Unlike ORTEC, which is a system that would be kept in play purely for route planning, OptEngine can be viewed as an “Algorithm-as-a-Service”. In the new version of SDM, OptiTool will not be required and SDM will be both the data source and user interface for optimization. When required, relevant data will be passed to OptEngine through a web service for calculation and the results passed back to SDM. Hence there is no 3rd party system holding data or being transacted in – merely an optimization engine being consumed by SDM.
The SAP solution
Back-Office
Demand forecast & replenishment (CPR / CSR)
SAP SDM
Order Management (Tele Sales)
Trip Planning
(IDM)
Data Collation
(PAT)
Terminal Management (Fuel Facs)
End to End Scenario – Order to Cash Secondary distribution and logistics
Multichannel Order creation
OptEngine (Trip Optimizer)
Connected Truck
27


Continuously replenish and “track your truck” with SDM
The SAP solution
Automated order generation based on the customer behavior
• Flexible algorithms to support various business cases: bulk fuels and bottle business
§ Integration of dip/meter readings
§ Customer replenishment based on fixed dates and dip reading
§ Automatic creation of sales call lists
§ Creation of customer orders and automatic sending to dispatchers
Continuous Product Replenishment (CPR)
Sales Forecasting
Online Status during the tour and truck localization possible due to GPS integration
Vehicle / Tour planning
Trip planning and monitoring with Integrated Dispatch Management (IDM) 28


More on Fuel Facs
Fighting the FUD
SAP appreciates that with every big move, there is a certain level of fear, uncertainty and doubt (FUD). Uncertainty gives rise to negative “what-if” questions which, in some cases, prevents the move altogether and ultimately, stifles growth. In this case, “what if Fuel Facs no longer works after implementing SDM?” Well, besides the fact that Implico’s team of implementation consultants have integrated with Fuel Facs many times over, we will be transparent about what changes are required to enable stable interfacing between S/4HANA Oil & Gas SDM and Fuel Facs – starting right now:
The SAP solution
Master Data Interface
Interfaces from SAP to Fuel Facs must be updated due to the following:
§ Customers
In S/4HANA, they are created as Business Partners
§ TransportUnits
In S4IDM, transport units are represented by Fleet objects (Equipment Master)
Transactional Data Interface
• The biggest impact is on the Delivered Sales scenario, since on SDM the trip document is created upfront in SAP and sent to Fuel Facs with all relevant information (Driver, Vehicle, Compartments, Products, Planned Load Qty, Orders)
• SDM solution provides specific IDocs to send the information from Data Collation document (Load Info / Orders) to Fuel Facs and to receive back the real loaded quantities (Load Confirmation)
• IDOC Monitor tool is used for Outbound interfaces and SDM Interface Monitor is used for Inbound interfaces
Fuel Facs integration
Main changes
29


SDM and S/4
Successful to the Core
Naturally SAP S/4HANA Oil & Gas for Secondary Distribution Management (SDM), being part of the S/4 suite, interacts with many other modules, features and functions of S/4. The embedded nature of the capability is precisely what gives rise to many of the benefits of implementing SDM and is something that is unique to SAP.
The SAP solution
SAP Secondary Distribution Management (SDM)
Demand forecasting and replenishment
Order Management
Integrated Dispatch Management
Process Automation Tool (PAT)
Continuous Product Replenishment (CPR)
Tele Sales
Trip Planning
Trip Document
Freight Cost Calculation
Pre-Scheduling
Loading Confirmation
Continuous Station Replenishment (CSR)
Automatic Replenishment Order
Delivery Confirmation
Billing Doc / Invoice
Returns
Gains & Losses
Left on Board
Freight Service PO / Service Entry Sheet
Secondary Distribution Management (SDM) Sales and Distribution (SD)
Sales and Distribution / Accounting Materials Management (MM)
Materials Management / Accounting
SAP SDM process integration with S/4HANA Core modules
30


SDM and Master Data
One master
The embedded nature of SDM in S/4HANA ensures that S/4 Master Data can be seamlessly leveraged by SDM. This not only positions your S/4 data as an asset but enhances process efficiency and reduces data redundancy. These elements are unique to SAP due to the breadth, depth and targeted (industry specific) nature of SAP’s solutions.
The SAP solution
SAP OGSD Secondary Distribution Management
Order Management
Integrated Dispatch Management
Process Automation Tool (PAT)
Customer Master
Business Partner (Plant)
Customer Master
Vendor Master
Equipment (Fleet Object)
Equipment (Fleet Object)
Business Partner (Driver)
Business Partner (Driver)
Business Partner (Vehicle Depot)
Storage Objects
Business Partner (Forwarding Agent)
Demand forecasting and replenishment
Customer Master (CPR Data)
Service Station Master * (CSR Location)
Material Master
Material Master
Storage Objects
Material Master
Secondary Distribution Management (SDM) IS-OIL BDRP
Sales and Distribution (SD)
Materials Management (MM)
Plant Maintenance (PM)
SAP SDM leveraging Master Data
31


Let’s talk RFNO
The SAP solution
Service Station Network Management
Process Management Process Management
and Monitoring and Monitoring
Business Business
SAP S/4HANA® Oil & Gas for Retail Fuel Network Operations
• Dealer Settlement
• Fleet and Payment Card Handling
• Stock Management
• Forecasting
• Fuel Demand Forecasting and Replenishment
• Fuels Pricing
• Inventory Management
• Administration of exceptions
• Automated SAP Object generation
• Automated Station accounting • Interface Monitoring
• Processing Real Data
• Plausibility Checks
• Process Controlling via traffic lights
• Interface Controlling via traffic lights
• Control Cockpits
• Reporting • KPIs
Capabilities
Process Automation
Controlling Controlling
Business Management – Digital Transformation
32


RFNO covers fuels replenishment
Two parts to the overall story
Together with SAP Retail, RFNO covers our Oil and Gas customers’ full replenishment processes. RFNO targets the replenishment of fuels products whilst SAP Retail, including Food Services and the Customer Activity Repository (CAR), takes care of the convenience retail side of the business. Given ENGEN’s strategies of being a major retail player, creating company wide visibility, ensuring process efficiency, commodifying data, understanding interdependencies and growing margins; we see it as a strategic imperative that ENGEN moves towards a single platform for fuel and retail, which only SAP can provide.
Convenience Product Replenishment Process
§ Sales figures from POS System triggers product purchase and procurement process avoiding out-of-stock situations
§ Process is done in SAP CAR
Customer
Service Station
Service Station
Convenience Products
Inventory
CODO
Fuels Product Replenishment Process
§ Sales & Inventory data are used to forecast sales and generate replenishment orders for given horizon
§ Replenishment orders build basis for dispatching activities
§ Product gets loaded at terminal / refinery an transported to service station
The SAP solution
Fuels Products
Warehouse
Delivery
Supplier
Delivery
Oil Company
Terminal
Scheduling & Dispatching
Replenishment – CODO scenario
33
Order
Meter Readings Tank Dips
POS /
Card Terminals


RFNO for settlement
1stopTM, 1cardTM
RFNO takes care of your settlement processes and allows you to work with multiple card issuers. If you prefer to produce your own card, RFNO can help with that too. Integration with any point of sale (POS) system is possible or if you are looking to replace your POS with something more stable, our affiliate product, GK Drive, is there to help (standard interfacing with GK Drive available in Model Company for Retail).
The SAP solution
Payments
Service Station
Customer
CODO
Fuels Products
Company Fleet Card Invoice
Card Transactions & Authorizations
POS Oil Company Sales
Bank / Card Issuer
Card Issuer
Dealer
Fuel Inventory Management
Payment Card & Third-party R
Fleet Card Settlement
§ Clearing House Settlement:
[-] Invoice vs. Accepted Transactions
Company Fleet Card R
Settlement
§ Fleet Card Settlement:
[-] Invoice vs. Accepted Transactions [-] Customer invoice including details
Dealer Settlement
R
POS /
Card Terminals
Station Replenishment
§ Forecast calculation § Trip planning
Meter Readings / Tank Dips
Haulier
3rd parties
§ [+] Sales of fuels (commission)
§ [+] CP Card (Fleet, Payment Cards) Sales § [-] CP Sales (%)
§ [-] Cash sales CO/3rd Party products
§ [-] Payment Card Settlement Fee
Fuel Inventory Management
§ Service Station Fuel Inventory.:
§ Physical stock reconciliation
§ Meter readings vs. POS Sales volume
Settlement – CODO scenario
34


Continuously replenish and understand your stations Service Station Network Overview
Capabilities:
§ Quick overview of own service stations (address data, business partners, recent documents and upcoming events)
§ Show overall status of the station (open, closed, or under maintenance)
§ Easy navigation panel to master data, station document and to assigned business partners
Service Station Overview
Manage the wet inventory by
automating:
§ accurate consumption forecast and; § replenishment order generation (also
for consigned products)
Provide service stations with a steady supply of products to:
The SAP solution
•
•
fulfil business requirements and cover customer consumption behavior, keep continuously expected material and tank levels
Continuous Station Replenishment (CSR)
Replenishment Order Generation
35


RFNO and S/4
A Model Core
Naturally SAP S/4HANA Oil & Gas for Retail Fuel Network Operations (RFNO), being part of the S/4 suite, interacts with many other modules, features and functions of S/4. The embedded nature of the capability is precisely what gives rise to many of the benefits of implementing RFNO and is something that is unique to SAP. Something else that is unique to SAP is our cross industry integrated products, features, processes and capabilities that will result in, should you choose to leverage them, ultimate process coherence, less waste, shorter fulfillment times, shortened lead times, less out of stocks, lower safety stocks and greater margins. These benefits, and more, are achievable by combining S/4 Model Company for Oil & Gas (including SDM and RFNO) with S/4 Model Company for Retail (including Food Services, CAR and POS).
SAP S/4HANA Retail Fuel Network Operations
The SAP solution
Interfaces and Monitor
Inbound Data Processing
RFNO Document
Continuous Station Replenishment (CSR)
IDoc / ALE
SAP S/4HANA PO
RFC BAPI
Data Check, Supplement and Conversion
Dealer Settlement
Clearing House Settlement
Fleet Card Settlement
Results List
Business Transaction Determination
Reconciliation and Posting
Replenishment Orders
XML / Flat MR, DR, PC
Service Station Point of Sales (POS)
CSR Analysis
S4 Supply Chain Secondary Distribution Sales and Distribution
Sales and Distribution / Accounting Materials Management / Accounting Secondary Distribution Management
Settlement Sales Orders
Material Movements
Stock Differences
Trip Planning
Billing Doc / Invoice
SAP RFNO process integration with S/4HANA Core modules
36


Migrating to RFNO
To-be or not To-be
We believe, and have demonstrated, that RFNO will cover all of ENGEN’s requirements in the fleet card, dealer settlement and inventory management spaces.
As-is Scenario
To-be Scenario
Inventory Management
Dealer Settlement
Payment Card Settlement
Fleet Card Settlement
The SAP solution
Fuel Retailing Operations
Fuel Pricing
Automated Stock Replenishment (ASR)
Turnover Levy (TLA)
Bespoke Engen Diesel Club (EDC)
SAP S/4HANA RFNO
RFNO Settlement
Continuous Station Replenishment (CSR)
Architecture migration To-be design
Retail Fuel Pricing (RFP)
SAP Real Estate
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§ § §
§
§
§
§ §
RFNO requirements Build on what you have
With known interfaces and leveraging already existing S/4 Master Data, RFNO fits perfectly into ENGEN’s SPICE program.
Service Station POS interface
§ Inbound to RFNO: Transactional data for fuels and convenience, dips
and meters
§ Outbound from RFNO: Sales pricing information
ATG interface
§ It is possible to have an interface connected to ATG to send updated
tank level information that are not in POS
Fleet card Management – Synchronization of cards master data created in SAP RFNO
SAP RFNO have an External Mapping layer to create correspondence between External system data and RFNO’s; for example, the ID of the product in POS can be different from RFNO ID
Architecture migration Interface requirements
SAP RFNO uses standard Location and Business Partner Master data
This master data is complemented with additional information required by RFNO
SAP RFNO uses the same Enterprise Structure defined in S/4HANA that is used also by core modules SD, MM, FI, etc
Fleet card Master data must be created inside RFNO
Architecture migration Master Data requirements
Service Station POS
Fleet card Management
The SAP solution
ATG Tank Levels
RFNO External Mapping
SAP S/4HANA RFNO
IS-Oil Location Master data
RFNO additional data
SAP S/4HANA RFNO
SAP Business Partner Master data
RFNO additional data
Fleet card Master data
SAP Enterprise Structure
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Integration with Retail
Objectives
§ Service Station Network has two lines of business – Retail (Shop) and Oil & Gas (Fuels) § Low margin in the fuels business – Higher margin in the shop business
§ Fuels business is the driver for shop business – and conversely
§ Both lines of business are necessary to get a sufficient turnover and profitable stations
.Business Requirements
§ Fuels business should be as efficient as possible – needs automation
§ Shop administration should be flexible and easy to use
§ Shop and Fuels business need to be integrated to perform KPI’s and reporting and support decision making § Costs of running the IT solutions should be less – Standard Solutions
The SAP solution
Combine SAP RFNO and SAP Retail
This combination of expertise and functionality is a unique offer for this industry
All Activities
Shop Sales Activities
SAP Retail
SAP RFNO
...
POS Systems
RFNO – Retail
Daily Dealer Settlement
Daily Settlement
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Integration Layer


Extract of ENGEN landscape
A connected, streamlined world
An extract of the SAP landscape at ENGEN (with the inclusion of SDM and RFNO) tells the tale of a connected, streamlined and capable future environment; with the exception of Retail. Let us help you fill the white space and create a truly end-to-end connected environment with known (and not “ still to be developed”) interfaces.
The SAP solution
SAP Analytics Cloud (SAC)
SAP S/4HANA Model Company for...
Retail Industries Execution
Food Services
CAR
Finance
EWM for Logistics
Connected
R&D, O&G Engineering
SAP Model Company for Supply Chain Planning
IBP
SDM
RFNO
SAP ecosystem
Assets & Sustainability
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Some satisfied SDM and RFNO customers
VIVO Energy, UK / Africa
The SAP solution
Company Profile
§ international Oil and Gas Company
§ distributes and markets Shell-branded fuels and lubricants to retail and commercial customers in Africa
§ Operates a network of over 1,800 service stations
§ vision is to become the most respected energy business in Africa
Business Challenges
§ replace the legacy ERP systems across African subsidiaries
§ prepare for future challenges in the African oil and gas market
§ build end-to end processes for complete integration of VIVO logistics core business (fuels and gas business, gas station management)
Benefits
§ Harmonized and integrated standard system in 16 countries
§ Streamlined and optimized processes
§ Massive reduction of manual inputs and errors
§ access to data and insights
§ Prepared for the future
Focus:
Prepare for the future; “Fueling Africa´s Future”
Solution:
SAP S/4HANA® Oil & Gas for Retail Fuel Network Operations
SAPS/4HANA® Oil&Gas for Secondary Distribution Management
IDM Integrated Dispatch Management
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Some satisfied SDM and RFNO customers
Fernand Dufresne Inc, Canada
The SAP solution
Company Profile
§ Headquartered Quebec, CA
§ Independent Canadian fuel marketer
§ Manages c-store convenience and fuels retailing
Business Challenges
§ Disparate non- integrated legacy landscape
§ Real-time data capture
§ Period close and cash
projection
§ Sales and procurement reconciliation
§ Integrate Convenience retail with Service Station Fuels Management
Benefits
§ Streamline and optimize all order-to-cash and Procurement Processes
§ Reduce overall operation costs
§ Provide supply and customer demand forecasting
§ Transparent integration from company owned and 3rd party facilities
Focus:
Integrated Enterprise Landscape
Solution:
Retail Fuel Network Operations
Secondary Distribution Management
IS Retail
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Some satisfied SDM and RFNO customers
Tesoro / Andeavor, USA
The SAP solution
Company Profile
§ Headquartered in Texas at San Antonio
§ Independent refiner and marketer of petroleum products
§ Approx. 3.000 branded service stations;
§ over 13,000 employees worldwide
Business Challenges
§ Disparate non- integrated legacy landscape
§ Sales and procurement reconciliation
§ Real-time data capture
§ Follow the molecule through the entire value chain
§ Have access to data and insights
§ Prepare for the future – Hypercare Support
Benefits
§ Streamline and optimize all order-to-cash and Procurement Processes with mass billing support
§ Supply and customer demand forecasting
§ Integrated “Trade-to- Profit” Chain
§ Real-time risk management
§ Fully implemented payment card processing for fuels operations
Focus:
Integrated Enterprise Landscape
Solution:
SAP S/4HANA® Oil & Gas for Retail Fuel Network Operations
SAPS/4HANA® Oil&Gas for Secondary Distribution Management
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Business benefits


SAP Platform
50%
Less maintenance
rework time
for organization that improve/
automate asset performance data collection
40%
Lower supply chain planning cost
where “what if” scenarios are used extensively to evaluate different problem resolution approaches
30%
Higher annual savings
for oil and gas companies,
where software aggregates purchases across business units for accurate global analysis of supplier spend data
Source: SAP performance benchmarking


SDM and RFNO
Business Benefits
Run Secondary Distribution and Fuel Retailing
operations in one integrated end to end solution
Automate and streamline business processes
and reduce manual work, errors and effort
Shift all rule-based tasks into the background and
concentrate on core competencies, business and customer care
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Value potential of a digital Oil and Gas initiative
Do not wait
Every day we don’t do things better, faster, smarter and more focused; we grow costs, reduce margins, dissatisfy our customers and lose the competitive edge. SAP is in a position to support ENGEN to migrate onto a connected suite of capabilities and become more focused and successful than ever before. We need to fill in the missing pieces of downstream fuel operations (i.e.: SDM and RFNO) and Retail. Let’s start today!
Simplification and Efficiency Gains:
• 3 – 20% reduction of MRO inventory
• 10 – 15% reduction Fixed Asset Mnt Cost
• 5 – 10% reduction in Unplanned Downtime
• 3 – 7% reduction in Production Days Lost
• 3 – 10% increase of gross refining margin
• 5 – 15% reduction in Reduce Demurrage
• 5 – 15% reduction in days to close books
• 10 – 15% Capital projects on time/budget
• 5 – 10% Improvement in shared service center
productivity
New way doing work (Business & IT):
• 20 – 50% Reduction in number of systems
• 2 – 8% Reduce IT Admin/Support Costs
• 2 – 8% Reduce Application Lifecycle
Management Costs
• 3 – 13% Increase Business User Productivity
• 5 – 12% Reduce Data Quality Cost
• 10 – 30% Reduction in custom code
Business Benefits
TCO Management
Strategy Enablement
Risk Management
New Digital Capabilities:
• Enable Digital Transformation / Industrie 4.0
• Real-time insights for all levels in the
enterprise
• Accelerate new business models
• Accelerate M&A synergy
• Run simple and reduce re-work
Risk Mitigation:
• Out-of-support / Business continuity
• Finance compliance and tax optimization
• Real-time risk and fraud management
• Detection of outliers in process flow for audit
using process mining
The SAP solution
*Benefits are based on results from individual SAP customers or are conservative outside-in estimates of the benefits. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
The value
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Why SAP?


Why SAP?
SAP helps the world run better and improve people’s lives by offering solutions to the toughest business challenges – this is what we bring to Oil and Gas companies .
We are the market leader in enterprise application software, with more than 365,000 customers across 180 countries. With SAP’s solutions and
services, our customers stay ahead of trends, make better decisions faster, and innovate through simplification.
Our oil and gas solution portfolio provides:
• A comprehensive, end-to-end solution on a modern architecture
• Deep industry experience and customer base
• Excellent customer references with tangible results
• Platform for the 21st century: Innovations to support their business model – on premise, in the cloud, or through a hybrid model
Our inspiration:
“We remain focused on the success of our customers – they are at the heart of our ambitions. The passion of SAP employees has brought amazing momentum ... our best-ever financial results ... are testament to our strategic direction, our customer orientation, and our world-class employees.”
SAP SE
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