SAP implementation services: 14% revenue boost for an oil & gas corporation through SAP S/4HANA integration

Using SAP S/4HANA, Innowise has overhauled the customer’s operational workflows, automating procurement, supplies, logistics, accounting, HR, reporting, etc.

Customer

Industry

Oil & Gas, Enterprise

Region

Client since

2020

Our customer is a multi-faceted industrial corporation specializing in oil & gas exploration, extraction, processing, and transportation. Furthermore, they have an extensive network of gas stations and roadside services throughout Europe.

Detailed information about the client cannot be disclosed under the provisions of the NDA.

Challenge

Facing the issues with legacy enterprise management systems that lack data integrity and supply chain value traceability

Having operated in the complex and resource-intensive oil & gas industry for several decades, our customer had well-established business processes and competent management, resulting in sustainable growth and profitability. However, after a couple of years, the client experienced more problems maintaining their diversified inner workflows, lacking data integrity, supply chain value traceability, and controllability over fundamental business activities. With the customer’s business quickly expanding, their proprietary enterprise management systems rapidly became obsolete, unable to meet the growing demands for more accurate and current materials management, supplies, sales, distributions, accounting, etc.

Client’s stakeholders acknowledged issues that hindered their progress and approached Innowise to rethink their legacy software and replace it with a modern, cost-effective alternative, fostering greater visibility and control over their entire value chain.

Solution

SAP S/4HANA full life cycle implementation for automating logistics, finance, human resource management, reporting, and more

Considering the client’s requirements, our project team suggested implementing an SAP business suite to automate logistics, finance, human resource management, reporting, and more. Through SAP Activate, we managed SAP full life cycle implementation seamlessly, combining best practices, methodologies, and guided references to ensure seamless S/4HANA adoption.
Initially, our specialists gathered and evaluated business goals, requirements, tools, and assets, serving as a baseline for SAP HANA implementation, including the customer’s business process structure, graphical representation, project accelerators, migration documents, pre-defined test scripts, and testing automation processes.

Then, we set up a detailed SAP ERP implementation roadmap, indicating milestones to build a mature SAP landscape and consolidate multiple business units into a single SAP S/4HANA instance. Our developers leveraged classic ABAP and HANA tools to move gradually towards SAP S/4HANA without data loss, harmonizing business processes and sharing precise and up-to-date data through consolidation. The project comprised four phases, starting with requirements gathering and defining project deliverables, then exploring the solution through preassembling, prototyping, and validation workshops, followed by implementing the scope and end-to-end integration testing, and finally deploying the solution.

Through SAP implementation services that automate procurement, supplies, logistics, accounting, HR, reporting, etc., our seasoned specialists transformed our customer’s manufacturing operations into an interconnected value chain that yielded predictable and transparent outcomes.

Financial accounting (FI)

Our project team implemented a financial module to handle all financial transactions within the customer’s enterprises, including general ledger and asset accounting, accounts payable and receivable, financial statements, and bank accounting. This module reflects all financial transactions, revenues, and expenses for reporting purposes, keeping them unchanged and compliant with local legal requirements or international reporting standards.

Funds management (FM)

Using this module, the customer can control revenue and expenditures, monitor funds based on financial limitations, and prevent budget overruns, while simultaneously allowing managers to change releases, supplements, returns, and transfers. FM ensures that budget resources are utilized efficiently and meet organizational goals, allowing the client to maintain sustainable development and financial stability.

Controlling (CO)

The controlling module provides stakeholders with information for effective decision-making, facilitating coordination, monitoring, and optimization of all business processes within the organization. Besides documenting actual events, the CO functionality determines variances by comparing actual data with plan data, helping management monitor costs, plan budgets, and make long-term business decisions.

Project systems (PS)

Our client operates in a multi-dimensional business environment with dozens of projects running at any given time, so they needed a unified source of truth to ensure each project was completed efficiently, on time, and within budget. Project Systems (PS) functionality is designed to manage and control projects from initiation to completion, supporting project planning, scheduling, budgeting, resource management, and progress tracking. This module smoothly integrates with other SAP modules, enabling project managers to monitor costs, analyze project profitability, allocate resources effectively, and facilitate collaboration among project team members and stakeholders.

Real estate (RE-FX)

Having a network of enterprises, pipelines, gas stations, roadside services, and more, our customer owns fixed assets or rents them from third-party organizations. RE-FX provides tools to track occupancy, manage rental agreements, analyze property performance, and handle property-related financial transactions, including lease management, rental contracts, and space management, to gain more profitability and transparency in governing real estate objects.

Sales and distribution (SD)

As the core element of SAP ERP, the SD module holds the customer- and sales-related data, covering all aspects of the sales process, including order processing, pricing, billing, and shipping. SD integrates with Materials Management (MM) and Financial Accounting (FI)modules to ensure the smooth execution of sales transactions, enabling the customer to manage orders, determine pricing strategies, and analyze sales performance.

Materials management (MM)

Our project team implemented the MM module for managing procurement, inventory, and warehouse functions within the supply value chain. With this module, materials are available when needed, inventory levels are optimized, and procurement processes are streamlined to reduce operational costs and improve supply chain visibility.

Business intelligence (BI)

The Business Intelligence module (BI) provides tools and functionalities for data analysis, reporting, and decision support, enabling the client to extract data from various SAP and non-SAP systems, transform it into meaningful information, and generate reports and visualizations for strategic planning. BI includes data warehousing, data modeling, dashboards, key performance indicators (KPIs), and ad-hoc reporting capabilities to aid in insightful decision-making.

Human resources (HCM)

Finally, we implemented HCM to manage and support the customer’s workforce, including personnel administration, organizational management, time management, payroll, benefits, and employee self-service.

Technologies

Back-end

SAP S/4HANA

Front-end

SAP GUI

Database

SAP HANA

Process

During the onboarding stage, our project team studied the customer’s business processes to delve deeper into the project objectives and challenges. Further, based on SAP Best Practices (a standardized content library with ready-to-run business processes), we suggested options for automating each operational workflow.

Essentially, our specialists ensured seamless SAP S/4HANA implementation, unifying enterprise management processes into one database. To meet business and technical requirements and ensure hassle-free performance, we set up all the needed modules’ configurations and conducted comprehensive testing during the development stage. Following SAP suite deployment, our team provided user support (Hypercare) for six months, with on-demand consultations and minor bug fixes.

As the project progressed, we conducted daily meetings to evaluate interim results, discuss changes in the scope, and distribute new tasks. Also, our specialists stayed tuned to the client’s expectations and vision, communicating regularly via Google Chat and Google Meet.

The project is currently in the support phase, with our team customizing SAP modules to suit the client’s needs.

Team

SAP Consultants

Project Manager

Project Architect

ABAP Developers

Results: 11% reduction in production cost and increased revenues after SAP consulting and implementation services

Innowise has revamped the customer operational workflows by implementing the SAP S/4HANA business suite that spans financial accounting, budget planning, project management, materials, sales and distribution, and more. We automated the customer’s business processes, enabling seamless data flow and communication between different departments and improving coordination and collaboration across the organization.

In particular, the client has the ability to optimize supply chains, reduce inventory costs, enhance collaboration with contractors, improve delivery timelines, and ultimately provide better customer service by leveraging Sales and Distribution (SD) and Materials Management (MM) modules. With Financial Accounting (FI) and Funds Management (FM), the customer boasts streamlined cash flow management, accurate forecasting, and compliance with regulatory requirements.

By managing employee data, workforce planning, talent management, and payroll processing through HCM, the client acknowledges that human resources are utilized to their full potential.

Additionally, advanced controlling and business intelligence capabilities enable managers to monitor daily business activities and foster operational efficiency at multiple levels of management.

Overall, Innowise has automated procurement, supplies, logistics, accounting, HR, reporting, etc., to reduce operational costs, boost profits, and embrace flexibility in a rapidly evolving business environment.

Project duration

September 2020 - June 2023

14%

increase in total revenue

11%

reduction in production cost

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