The announcement comes after the release of Cosmo Energy’s report on the overview of its business results for the third quarter of its fiscal year ending in March 2020. According to the report, the consolidated operating profit of the company was down by ¥29.7 billion from the same period of the fiscal year 2018 due to unprecedented low petrochemical and oil prices. In integrating SAP Ariba’s intelligent software solutions into their procurement & supply management, Cosmo Oil aims to gain a better insight into their spend data and strengthen its competitive advantage.

With  SAP Ariba solutions, Cosmo Oil has implemented a standardized procurement process to streamline and simplify operations, develop resources more efficiently, and be equipped to promote remote working in the time of the COVID-19 pandemic.  By automating processes, the company aims to better forecast how to respond efficiently to problems that may arise with the emerging global recession and the current climate of low oil prices.

Further, Cosmo Oil Co Ltd is looking to optimize its capital spend to improve profitability. The company expects to achieve this with guidance from SAP’s road map. This road map details the ERP software company’s current solutions, upcoming innovations, and future plans for the oil and gas industry.

Current Solutions

• Support for project roles with SAP’s project management suite
• Well-level profitability controls with integrated accounting and production operations
• Real-time visibility into the supply chain with mobile interface
• Digital twin technology for intelligent asset management

Upcoming Innovations

• Cloud-based project management solution that features a role-based user interface
• Integrated upstream hydrocarbon accounting and management
• Interactive visual user interface for supply chain management
• Granular data-based asset monitoring from sensors and maintenance history

Future Plans

• Utilize smart algorithms for project status assessment and evaluation of contractor reliability
• Flexible frameworks in identifying contract and revenue requirements
• Intelligent platform to enable collaboration and transparency in hydrocarbon activities
• Deliver comprehensive features to support end-to-end processes

The post Cosmo Oil Co Ltd. Turns to SAP for Strategic Procurement Management appeared first on InsideSAP Asia.

“This expanded innovation program will deliver two key digital capabilities our customers are demanding; a real-time view of all their product inventories, and the ability to predict asset failures and prescribe their best sequence of repair,” said Ken Evans, global vice president, oil and gas industry, SAP.

“Our digital readiness survey confirms that while over 80 per cent of the industry sees these capabilities as important, less than five per cent have either of them today. Our collaboration with Accenture expands the portfolio of solutions delivering such digital transformations to the oil and gas industry.”

The Connected Hydrocarbons Logistics solution (CHL) will provide real-time total inventory of oil and gas companies’ hydrocarbon supply chain, using cloud networking to connect companies with suppliers and partners, optimising hydrocarbon supply chain movements, visibility into secondary costs, and reducing working capital. According to SAP, CHL will complement the capabilities of other SAP for Oil and Gas industry solutions through end-to-end visibility with real-time analytics and improved supply and demand planning.

Accenture and SAP also plan to expand their Upstream Production Operations collaboration which provides solutions supporting the upstream operations value chain including SAP Upstream Operations Management and Accenture’s rapid deployment upstream S/4HANA template, Accenture Upstream Direct. The SAP Predictive Maintenance and Service solution will also be extended to provide early identification of potential asset performance issues, enabling operators to enhance production volumes while reducing maintenance costs and planning.

“The hydrocarbon value chain is at the heart of the downstream business, and today’s fragmented and often outdated IT landscape prevents oil and gas companies from unlocking all of the available value,” said Andrew Smart, managing director and leader of Accenture’s energy practice.

“We look forward to working with SAP and our clients to use Connected Hydrocarbons Logistics to unlock this value by better managing changes in supply, demand and commodity prices. Similarly, the new predictive maintenance tool from SAP can help operators further enhance upstream operations, in an environment of sustained oil price volatility.”

Accenture and SAP last October announced a collaboration on predictive analytics solutions for asset management in the utilities industry to enable condition-based maintenance.

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