sap oil gas

NameSpeaker Title, SAP AG

mySAP Oil & GasSCM OverviewFocus : TSW

© SAP AG 2002, Title of Presentation, Speaker Name / 2

mySAP SCM for Oil & Gas

Upstream Mid-Stream RefiningPrimary

Distribution Network

Secondary Distribution

Network

Service Station

Retailing

CrudeRefined Products & LPGLubes

Natural GasChemicals

mySAP SCM for the Oil & Gas Industry is a complete and comprehensive solution to cover the movement of bulk volumes throughout the supply chain network. It provides support for activities in all lines of business - crude, refined products & LPG, lubes, natural gas and chemicals, including services.


Oil & Gas Solution Map : SCM Main Focus Areas

Enterprise Management Strategic Enterprise Management Business Analytics

Business Intelligence &

Decision SupportAccounting

Employee Relationship

Management & Workforce Analytics

Joint Venture Management

Upstream Exploration & Appraisal Development Production Marketing Disposal

SupplySupply Chain

Planning & Optimization

Acquire, Trade & Sell

Exchange & Throughput

HandlingScheduling Inventory

Management

Primary Distribution &

Transport

Secondary Distribution & Transportation

Manufacturing Manufacturing Planning & Optimization Manufacturing Process Batch Manufacturing Blending & Packaging Product Quality

Management

Sales, Service & Marketing Marketing Contracts, Sales & Pricing Service Analytics

Service Station & Convenience Retailing Convenience Retailing Fuels Management Site & Headquarter

AccountingBusiness Analysis &

Reporting

Enterprise Asset Management Specify & Design Procure & Build Operate & Maintain Decommission & Dispose

Business Support Employee Life-Cycle & Transaction Management Procurement Financial Supply Chain

ManagementEnvironment, Health and

Safety


Oil & Gas Solution Map : SupplySupply

SAP Component Available

SAP Component Available with Future Releases

Future Focus

Partner Product Available

Partner Product Available with Future Releases

Collaborative Business Map Available

Cxx SAP ComponentPxx Partner ProductFor more information about these products, please see the tablesat the end of this presentation.

Supply Chain Planning &

OptimizationProduction Forecasting (S20, S3)Demand Forecasting(S20, S84, S3)Market Price Forecasting (S20, S3)Supply Network Modeling (Nodes, Constraints etc.)(S84, S3)Simulation (S84, S3, S20)Supply Network Balancing (S84, S3, S20)Exception Handling(S84, S3)Sourcing Optimization(S3, S20)Movement & Transport Optimization (S21, S20, S3)Contract Planning(S84, S3, S1, S5)

Transport Availability Planning(S84, S87, S3, S22)

Acquire, Trade & Sell

Inquiry/Quotation Management (C2, C17, S241)Purchase & Acquisition (S240, C2, S5)Sales (S240, C2, C17)Pricing (S240, C2, C17)Spot Trades (S240, S1, S12, S48, S43)Paper Trading (Hedges, Swaps, Options etc.) (C1, S241, S43, S48)Deal Capture (S241, S48)Risk Assessment & Exposure (S241, S12, S43)Open Position Reporting (S241, S48, S13)Contract History Tracking (S241, C17, S13, S87, S19)

Taxes & Tax Reporting (S240, C1, )

Exchange & Throughput

HandlingExchange Partner Evaluation (Exchange Portfolio)(S3, S13, S84, S87, S85)Exchange Agreements(S240, S87)Terminalling / Throughput Agreements Handling(S240, S87)Processing Agreements(S240, S87)Fee Handling/ Repricing (S240, S87)Exchange Balance Reporting (S240, S241, S87, S85, S13)Exchange Transaction Notification (S240, S87, S85)Settlement/Netting of Exchange Agreements & Reconciliation(S240, S244)Exchange Position Reporting (S87, S84, S13, S12)Exchange Balance Projections (S244, S84, S87, S3, S20)Automatic Exchange Reconciliation (S244)

Scheduling

Nomination Management (S241)Freight Contract Management (S240, C2, S241)Bulk Scheduling(S241, S87)Transport Availability and Compatibility (S241, S87)Compartment Planning (S3, S20, S21, S87, S84)What-If Scheduling Simulations and Proposals (S241)Partner Schedule & Nomination Handling and Tracking (C2, S241, S22)Berth / Dock Scheduling (S241, S22)Contract Scheduling and Allocation (S241, S87)Pipeline Batch Scheduling (S241)

Scheduler Worklist(S241)

Inventory Management

Inventory Valuation & Transfer Pricing(C2, S87)Oil/Gas Quantity Conversions (S240, S87)In-Transit Stock Handling (C2, S87, S84)Consignment Stock(C2, S84, S87)Accounting for Commingled Stock(C2, S87)Accounting for Losses & Gains (C1, S87)Silo/Tank Management (S240, C2, S87)Inventory Planning and Scheduling (C2, S241, S87, S3)

Location Balancing(S241, S87)

Primary Distribution & Transport

Deliveries to Partners (S240, C2, S87, S84)Location Receipts(S240, C2, S87, S84)Terminal Automation Systems (S240, S87, P44)Carrier Performance Tracking (C2, S13, S22, S84, S87)Handling of Transit & Regulatory Documentation (C2, S241, S13)Freight Cost Handling (S240, C2, C1)Export Handling (C2)

Ticket Processing & Forwarding (S241, S240, S87)Ticket Quantity Allocation (S241, S240, S87)Measurement Comparison (S241)Laytime Calculation and Demurrage Assessment (S241, S22)

Transport Performance Tracking (S241, S240, S22, S13)

Secondary Distribution & TransportationTerminal Management (C2, S240)Terminal Automation Systems (S240, P44)Balance Vehicles/ Compartment Allocation (S240)Vehicle/Compart-ment Optimization(S3, S20, S21)Rebranding & Blending (S240, S3)Oil/Gas Quantity Conversions (S240)Gain & Loss Handling(S240, S87)Dispatch & Route Planning & Optimization (S240, S3)Freight Cost Handling(C2, S240)Fleet Management(S87)

Handling of Transit & Regulatory Documentation (C2)

Replenishment Planning (S240, S20, S21, S3)

Export Handling (C2)


Solution Landscape for mySAP SCM for Oil & Gas

IS-OilTSWAPOAPOThe areas of demand/supply planning and forecasting, as well as supply chain balancingand optimization are key functional areas addressed by APO.

TSWThe Trader’s & Scheduler’s Workbench (TSW) covers the whole range of business requirements for Inventory Planning , Supply / Demand Balancing, Movement and Capacity Scheduling (including the Distribution Schedule), NominationProcessing, and Integration into Execution Processing, including Ticketing.

IS-OIL 4.6cThe processes of order entry, contract management, exchanges and terminalling handling, inventory management, transport and movement execution will remain within the ERP(R/3 with IS-Oil Downstream) area.

Usage in specific business lines (e.g. chemicals and lubes)

Financials

Exchanges

Contracts / Orders

Inventory

Movements

Transport

Taxes and Duties

Demand Planning(DP)

Supply NetworkPlanning SNP

Transport Planning & Vehicle

Scheduling

Production Planning – Detailed

Scheduling

Global Availability to Promise (ATP)

CollaborativePlanning

Integration to TSW and IS-Oil

Supply/Demand Balancing

Full nomination process handling

Ticketing, Allocations and

and Events

Inventory planning

Interfaces to partner Systems

(e.g. Trading)

Integration to R/3 4.6c processing

Movement and Capacity

Scheduling


Demand planning

Supply planning

Transport planning

Exchange planning

Sourcing Movement scheduling

Transport scheduling Nomination

Production Scheduling

Inventory planning

System Balancing

Paper Trading

Event Management

Logistical execution

Financial execution

Financial reporting

Market systems

Inspection systems

Processcontrol

systems

External optimizers

Movement optimization

Information agents

Comparison reporting

Trading Operations

Production planning

Facility scheduling

mySAP SCM solution

mySAP SCM solution - part

Third party solution

Partner systems

Carrier systems

Demand forecasting

E-NettingTerminal Automation

mySAP SCM for Oil & Gas embraces SAP and non-SAP third party solutions to cover the requirements of the oil & gas industry

mySAP SCM for Oil & Gas – Business Process Coverage


Supply planning

Transport planning

Exchange planning

Sourcing Movement scheduling

Transport scheduling Nomination

Production Scheduling

Inventory planning

System Balancing

Paper Trading

Event Management

Logistical execution

Financial execution

Financial reporting

Market systems

Inspection systems

Process control

systems

External optimizers

Movement optimization

Information agents

Comparison reporting

Trading Operations

Production planning

Facility scheduling

SP2 enhanced area

SP2 enhanced partial area

Third party solution

Partner systems

Carrier systems

Demand forecasting

E-NettingTerminal Automation

mySAP SCM for Oil & Gas embraces SAP and non-SAP third party solutions to cover the requirements of the oil & gas industry

Demand planning

mySAP SCM for O&G : TSW SP2 Enhancement Areas


Brief History of TSW

TSW on 3.1h : FOUNDATION Supply Chain, Nomination, Rundown, Planning Engine, Ticket, Worklist

TSW on 4.0b : TECH. UPGRADE Supply Chain, Nomination, Rundown, Planning Engine, Ticket, Worklist

TSW on 4.6b : FUNC. UPGRADE Supply Chain, Nomination, Rundown, Planning Engine, Ticket, Worklist

TSW on 4.6c(1) : FN. EXPANSION Supply Chain, Nomination, Rundown, Planning Engine, Ticket, Worklist, Trading Interface, APO Integration

TSW on 4.6c(2) : FN. EXPANSION Supply Chain, Nomination, SPW(Rundown), Planning Engine, Ticket, Worklist, Trading Interface, APO Integration, Location Balancing, 3-Way Pegging, Distribution Schedule, Berth Scheduling, Fleet Management, Freight Contracts, What-If Pop-Up & Clipboard, Forecasting…


TSW : Functional EnvironmentLaytime / Demurrage Freight ContractsTicketingTicketing

Berth SchedulingBerth SchedulingWhat-IfWhat-IfBalancingBalancing Worklist

Trading & System

s InterfacePa

rtne

r int

erfa

ce

R/3 interface APO interface

TSW Master Data

Location Transport System

Partner role

NominationStock Projection Worksheet

SchedulingScheduling

Fleet MgmtTanks


TSW : One view of the daily process ...

Postings

GoodsmovementOrder Bulk

ShipmentDelivery/Shipping

Notification

NominationNomination

TicketTicket

Stock Projection

LIS InfoStructures

ReplenishmentPlanning/APO

Worklist

scheduleschedule

Partner

Fax/ Print/Idoc

Contract

Scheduling


SCM : Simplified functional component landscape

Stock Projection Worksheet

Location Balancing

Distribution Schedule

3-Way Pegging

Nomination

Ticket Processing

Contract Planning

Demand Planning

What-If Simulation

TradingInterface

Logistics Execution

Operational Back Office

Partner Nomination Transfer

Generation

Berth Scheduling

Financial Execution

Optimized Network

Balancing Freight Contracts

LegendTSW Component

Other Component (e.g. APO, IS-Oil, BW)


Solution News

Release Strategy

Customer Update

Value Proposition

Proposed Strategy

APO 3.0 : First robust APO release ; APO 3.1 : First APO release with Oil & Gas content (master data, enhancements to TPVS, CIF for TD and nominations, O & G planning books in DP and SNP ; DP is recognized as having general applicability for process ; SNP has potential in chemicals, lubes and gas cases ; PP/DS in lubes and gas ; TP/VS we cannot recommend at this stage for bulk primary or secondary)

APO 3.1 : Available as GA since end 2001APO 4.0 : Tentative availability in mid 2003 – there is no additional Oil & Gas specific content in APO 4.0 (e.g. missing: contracts and in-transit in SNP)

APO is (for O&G) a developing solutionIts strong points currently would be DP and its increasing integration with an oil-based execution system (IS-Oil)

Live : Pennzoil (US) with DP & SNP for lubricants and consumer businessOn the way : Saudi Aramco (SA) for their In Kingdom business DP, BHP Billiton (NL) using both DP and SNP with IS-Oil and TSW, ExxonMobil Chemicals (Singapore, US) with all main modules across the board

Good potential/fit for lubes / chemicals / gas casesFor petroleum position together with TSWUse ExxonMobil and Pennzoil as process-industry cases

Supply Chain Management : APO


Solution News

Release Strategy

Customer Update

Value Proposition

Proposed Strategy

Position TSW as key operation handling planning to execution linkUse breadth of customers to show flexibility and solution strengthAbsolute strength in bulk operation is key to making later optimization and planning systems really work

Unique solution in this market sectorStrong integration to both R/3 solutions incl. APO as well as external, such as trading and refinery process systemsBuilt to wide-scope industry defined requirements

TSW 4.6c SP1 : GA available since April 2002TSW 4.6c SP2 : GA available December 2002TSW will be integrated in the O&G R/3 Enterprise Add-On with Extension Set 2.0, end 2003

4.6c SP1 :Included extensive updates to SPW and Nomination4.6c SP2 : Significant updates, revisions and new functionality in all areasAt SP2 level, TSW covers crude and products business for both pipelines and marine.

Live : CITGO (US) Refined Products business (with SAP-BW as well) ; TFE (France) Crude Pipeline Scheduling Pilot; STUSCO (US) Refined Products and TradingOn the way : ChevronTexaco (US) Refined Products Business Nomination & Execution ; TFE (France) Refined Products Nominaton & Execution ; Saudi Aramco(SA) Out of Kingdom Export Sales – mostly marine ; STUSCO (US) Domestic Crude Pipelines and Marine ; Transpetro (Brasil) Terminal and Pipeline Handling ; BHP Billiton (NL) Mining Operations

Supply Chain Management : TSW


Solution News

Release Strategy

Customer Update

Value Proposition

Proposed Strategy

On the way : Lean Transport Management – Shell (Europe) ; Productive: Terminalling – STUSCO (US) since Aug. 1st, 2002

IS-Oil : Already strong breadth of industry standard solution components4.6c SP2 :Lean Transport Management – simplifying and adding strength to the TAS and TPI interfaces ; Terminalling solution – handling the terminalling business for providers (fee handling etc)

4.6c SP2 : GA available end 2002As part of IS-Oil fits in with the overall strategy to integrate solutions into R/3 Enterprise Extension Set 2.0 at end 2003

Follow up on Shell and STUSCO successes stories to promote solutionIncrease penetration with usage of SCM interfaces TPI, TASPush customer terminalling business to use new SAP solution

LTM interface enables up to the minute information to be provided from TAS systems (inventory positions, rack liftings) for planning and schedulingThis interface is also unique in its level of coverage and integration with R/3Terminalling is as important as exchanges, and SAP can make this as much a standard as with EXG in all respects

Supply Chain Management : IS-Oil


Key SAP Oil & Gas SCM Takeaways

For most players in the Downstream market sector, the management and operation of the bulk supply network is the key to achieving bottom line returns across the company. The requirement is to turn optimum plans into accountable revenues through excellence in scheduling and execution.

In 2002 SAP has therefore developed, with input from major O&G sector partners, a uniquely comprehensive solution to meet these requirements TSW.

With ever increasing pressure on revenues, TCO is a major factor for CEO’s and CIO’s in these companies. For COO’s having a system that really performsacross boundaries is the key.

Both of these requirements are best met by a system that is as fully integrated as possible. SAP already has the deserved industry reputation as being theintegrated solution provider, this naturally applies to our SCM solutions too.

Investing in new systems can be a significant risk, both in terms of costs as well as in terms of business effectiveness. Having a software partner with a track record of delivery and support is now a key factor in making solution selection decisions.

SAP now has a presence in around 80% of all oil companies Worldwide. With nearly 20 years of experience in the oil and gas sector, and an unparalleled record on solution delivery, this is a strong factor in solution decisions.


Key SAP Oil &Gas SCM References

With our ever expanding portfolio of integrated SCM solutions, including those in the key areas of turning plans into revenue-generating reality, SAP is able to state the following major market players as examplereferences :

STUSCO (Shell Trading U.S., formerly Equiva Trading Co.)World’s largest Oil Trading Company

Saudi AramcoWorld’s largest oil producer

These are quoted as examples of both the strength of our solutions, that such major players are committing their key business streams to SAP, as well as the comprehensiveness to cover such diverse business models.

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