Nile Oil Marketing Company (Petroneel) is the third national entity in the realm of marketing oil products in Egypt, headquartered in Asyut City. It works actively to cater its needs of petroleum materials and products, producing and marketing mineral oils in the local and international markets. Petroneel needed to implement a comprehensive ERP solution to manage multiple operational areas in its business, with the aim of achieving efficiency and having all its data integrated and secured. Therefore a public tender was issued with this main purpose.
Enterprise resource planning projects are notoriously challenging, especially on this scale. Being a public tender, Intercom’s main challenge was to highlight its solution against other competitors, presenting its collaborative benefits and ROI. The solution had to link between Petroneel’s two main centers in Cairo and Asyut City along with other 7 branches country-wide. Upon winning the tender, Intercom had to develop a project implementation plan to cover all the project scope and the customer requirements within a period of only 6-8 months.
Intercom presented an SAP ERP solution integrating 6 main modules:
The SAP Financial and Controlling (FICO) Module which manages the financial position of the company in real time and controls the flow of cost and revenue.
SAP Material Management (MM) which handles Procurement and Inventory Management.
SAP Sales and Distribution (SD) which manages quotations, sales order and all the way towards billing the customer.
SAP Supplier Relationship Management (SRM) which optimizes the procurement strategy, to work more effectively with the supplier pool, and to gain long-term benefits from supplier relationships.
SAP Human Capital Management (HCM) which enables effective management of information about the people in the organization, and to integrate that information with the other SAP modules and external systems.
SAP Production Planning (PP) which manages the master data needed like Bill of Materials, Routings and Work Centers and stores it in one separate component.
Petroneel’s SAP ERP implementation project was remarkable not only for its immense scope but also for its tight schedule and execution timeframe. A key to a successful implementation was that Intercom had all the needed resources and team structure in place. Petroneel has now gained a better understanding and clearer insights about how its business is performing, with an improved financial, production, human resources, material, sales and distribution management and increased margins. The company has also achieved more control over its pricing and gained more visibility into where improvements can be made. The reports generated that takes in multiple operational data have vastly optimized the company staff understanding their impact on various business areas, and have enabled a crystal-clear & prompt decision-making process.
Industry: Oil and Gas Sector
Solution: Enterprise Resource Planning, Human Capital Managemennt