transforming complex services procurement in oil & gas and … · 2018-10-02 · supply...

PUBLIC

Benjamin Beberness, SAP Vice President Oil & GasKlaus Fischer, SAP Vice President Procurement & Business NetworkAlex Lente, Vice President, Product Management, SAP Ariba P&I

Transforming Complex Services Procurement in Oil & Gas and Chemicals

2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ 2© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The information in this presentation is confidential and proprietary to SAP SE or an SAP affiliate company and may not be disclosed without the permission of SAP SE or the respective SAP affiliate company. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP SE or its affiliated companies. SAP SE and its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP SE or an SAP affiliate company’s strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP SE and its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, includingbut not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP SE and its affiliated companies assume no responsibility for errors or omissions in this document, except if such damages were caused by SAP SE or an SAP affiliate company’s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

Legal disclaimer

PUBLIC

SAP Oil & Gas Consortia:Intelligent Enterprise for Oil and Gas


SAP’s Intelligent Enterprise for Oil & Gas Vision

CHEVRON

SAP will enable the Intelligent Enterprise for the Oil & Gas

industry through a portfolio of industrialized, innovative, and intelligent cloud services that are the new market standards

for the energy industry. The cloud services are primed with

upstream (the wells) and utilizing the latest technologies such as artificial intelligence, machine learning and blockchain

providing full transparency to profitable operations and

generate cash flow. This results in immense customer

business value through automation and operational excellence

within Oil & Gas and is the foundation for the Intelligent Enterprise within the Oil & Gas Industry.


Oil & Gas Industry Cloud

• Cloud HR and Payroll• Time and Attendance

Management• Human Capital Analytics

Human Resources

• Collaborative Network• Catalog Management• Spend Analysis

Sourcing and Procurement

• Hydrocarbon RevenueOil & Gas Finance

SAP S/4HANA Cloud

Sales• Order and Contract Management• Revenue Management• Service Management

Finance• Financial Planning and Analysis• Invoice Management• Receivables Management• Accounting and Financial Close• Governance, Risk and Compliance• Joint Venture Accounting

Sourcing and Procurement• Contract Management• Operational Procurement• Invoice Management

Asset Management• Asset Operations and Maintenance• Asset Master Data

Supply Chain/Field Logistics• Response and Supply Management• Logistics, Transport• Warehousing & Silo Management

Production & Manufacturing• Production Planning and Scheduling• Production Orchestration• Quality Management

Research and Development• Enterprise Portfolio and Project Management• Master Data Governance• Product Compliance

• Field Data Capture• LIMS (Laboratory

Information Management System)

Manufacturing

SCP

Asset Management• Environment, Health, and

Safety• Asset Configuration and

Change Management• Asset Insights• Asset Strategy & Perf.

• Supplier Management• Sourcing• Invoice Management

Finance and Budget• Digital Board Room• Travel Management

• Supply Chain Control Tower• Sales & Operation planning• Inventory planning• Response & Supply planning• Demand planning

Integr. Bus. Planning

Global Trade Service• Compliance Management• Customs Management• Risk Management

Customer Defined Baseline Applicable Scope Items

Commerce• Commerce Management• Product Content and Data Management

* CLOUD BASE BOM

6PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Ariba in Oil & Gas


SAP Ariba – Ariba Network


61 O&G Customers

(4% of total SAP Ariba customer

base)

+11K O&G related

supplierstransact over the

SAP Ariba Network

70%of O&G spend is on Services120K/MonSES Transactions on AN (08/2018)

$1.7B/MonSES Spend on AN (08/2018)

6x Growth SES Transactions in the last 18 month (08/2018)

50+ Customers Using SES in AN. The top 12 represent 90% of the spend, of those, 4 are O&G and another 5 are ENR

83 of the top 95 O&G companies in the world

use SAP (10/10), 20 use Ariba. The total O&G

estimated spend is 1T€/yearSources: (1) customers, (2) SAP Marketing, (3) SAP Ariba Athena

SAP Ariba – Ariba Network in O&G/ENR


“Touchless from Field Ticket to Pay”

O&G Customer’s Vision Statement

Customer statement September 26th, 2017

SAP Ariba O&G Design Committee

SAP O&G S/4 in the Cloud Consortium


SAP Ariba O&G Initiatives

DIGITAL FIELD TICKET

WORK ORDER INTEGRATED

PROCESSSERVICE

ESTIMATE

ONE SAP PROCUREMENT

SOLUTION FOR O&G IN THE CLOUD


Complex Services and Field Ticketing Buyer

Supplier

Create Contract Request Estimate

Update Contract

Create Requisition

Source Materials and

ServicesCreate PO Order

confirmationCreate Digital Field Ticket Approve DFT Create SES Reconcile SES Approve SES Create invoice Reconcile

invoiceApprove invoice

Service Estimate Digital Field Ticket

Asset Maintenance Maintenance Schedule

Create Work Order

Create Requisition

Sync Requisition n/a n/a n/a n/a n/a n/a n/a n/a n/a

Work Order Integrated Process


§ 1 Place to Request§ Consumer-grade user§ Policy & price compliance

§ Managed content§ Spot buy marketplace§ Contract Compliance

§ PO created§ Inventory reservation§ Inventory transfer

§ POC, POA, ASN, SES§ Smart invoice§ Payment status

§ Goods receipt§ Invoice receipt

Guided Buying Catalog Supplier Collaboration

Goods Receipt Invoice Receipt

Purchase Order or reservation

SAP Ariba Buying SAP Ariba Catalog Ariba NetworkSAP S4 / ECC

Value Drivers

§ Simplicity/End user adoption§ Contract compliance§ Policy enforcement§ Process efficiency§ Supplier compliance

User-driven Procurement – Indirect, MRO, Equipment and Services

SAP S4 / ECC

Plant Maintenance/Project System


Workorder to Catalog: Material Master + BOM + Inventory + Reservation


§ Sourcing pipeline§ Category management§ Savings tracking

§ Bidding (RFI, RFQ, RFP)§ Auctions§ Category best practices

§ Contract authoring§ Workflow approval§ Contract repository

Catalog

SAP Ariba Sourcing SAP Ariba Sourcing SAP Ariba Contracts

SAP Ariba Catalog

Project/Category Management Sourcing Contract Contract

MonitoringOperational

Contract

SAP S/4, SAP ERP SAP S/4, SAP ERP§ Contract Release

§ Contract Update§ Contract Distribution

§ Contract Consumption

Value Drivers§ Price reduction§ Contract compliance§ Supplier consolidation§ Integration to contract terms & pricing

Strategic Sourcing


Asset-driven procurement

Asset sensor drivenReplenishment Order for

Approval/ ReleaseSupplier Collaboration Core Processing

SAP Cloud Platform

Leonardo / IoT

SAP Ariba Buying

EAM / MRP / IBP

Ariba Network SAP S/4, SAP ERP


Integration matters

200+standard

integrations

30xour nearest

competitors

entireCovers

source-to-settlebusiness process

Integration deliveredSAP ERP, SAP IBP andSAP S/4HANA

IoTandbuyers,Connects allsuppliers, partners

Non-SAP, Asset Management, Planning Systems

.

All spend

Multi-ERP Parent

is key to avoid

broken processes

Direct, indirect,

MRO, servicesContingent labor

and workforce mgmt

Travel and

expense

Lowest TCO integration for single or multi-ERP


No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

http://www.sap.com/corporate-en/legal/copyright/index.epx

transforming complex services procurement in oil & gas and … · 2018-10-02 · supply...

Documents