Find out how BP’s Upstream organization extracted value across the global supply chain by using SAP and implementing it across BP’s regional assets. Focusing on working in SAP to drive value in the business, BP leveraged the tool with deep organizational and process integration to achieve a mindset shift in its end-to-end supply chain processes while driving a standardized approach to global performance management.
BP has witnessed how improving knowledge of the end-to-end supply chain process, using SAP, has led to the elimination of organizational silos via a collaborative, process-aligned team utilizing real-time data and a defined governance structure. Shifting the focus to an exception management process redirected efforts to proactive supplier management versus reactive chasing of late materials. With standard indicators developed across the organization, it achieved consistency in measuring performance across the regional business units with better identification of continuous improvement opportunities.
Key Business Benefits:
- Reviewed and updated MRP settings for 80 percent of materials in the deployed regions
- Reduced past due elements by 50 percent, pushing the adoption of exception management mindset
- Reduced negative days of supply by 15 percent, resulting in better overall business performance
- Reduced process inefficiency (MRP exceptions) by 42 percent, transitioning from manual MRP execution to automated
- Improved budget performance as a result of changes in material demand due to the exception management process
