TOTAL South Africa manufactures and sells a full range of petroleum products to the retail, commercial and industrial markets. With a network of 530 service stations throughout South Africa, it is a key player in the petrochemicals market with products ranging from jet fuel and liquid petroleum gas to lubricants, greases, and kerosene.
TOTAL is renowned for producing some of the best high-quality lubricants available on the market today. Consistent collaboration with major engine makers in Europe, Japan, and America along with specialist research and development has helped put their products in a pre-eminent position in the market.
CHALLENGES
- Distribution planning was being executed outside of the system.
- Planning information was not distrusted.
- Lack of integration across the supply chain.
- Blame game occurring across the supply chain.
- Poorly managed transactional housekeeping.
- Distribution network was flooded with inventory as a result of planning disjoint between sales distribution and production.
SOLUTIONS
- Education on specific subject areas along the supply chain, with a focus on information maturity within the system.
- Establishing data groups and priorities on which to focus accountability in the supply chain.
- Activation of SAP MRP and updating of dynamic master data rules.
- Established PAT’s (process aligned teams) to meet every morning and deal with exception messages along the supply chain.
- Assistance in setting KPI’s and aligning with strategic business performance measures.
- Certification of Knowledge Centre to sustain and extend the benefit from the oVo initiative.
BENEFITS
- SAP MRP was activated for the distribution network removing a third party tool from the system landscape, time-saving and support of the system and related interfaces.
- 60% reduction in exceptions even with the MRP activation.
- Integrated supply chain management through the PAT process. Everyone is working toward the same goal.
- Improved Sales order management with measurement of lost sales opportunities.
- Inventory reduction of 25%.
- Reduction of dead stock in the production facility of 20%.
- 26% reduction in the value of vendor liability.
