Phillips 66

Fortune 100 Refinery & Lubricants Manufacturer

A Fortune 100 diversified energy manufacturing and logistics company with a portfolio of businesses: Midstream, Chemicals, Refining, and Specialties including lubricants. Pioneering leaders and ground-breaking product lines have helped them evolve into the fourth-largest finished lubricants supplier in the United States. Reaching across every key lubricant market, including automotive, trucking, agriculture, aviation, power generation, mining, and construction.

CHALLENGES

• Rising raw materials, packaging and finished goods inventory
• Inconsistent customer service levels
• Excessive fire-fighting and order expediting
• No supply chain integration across their processes, key functions and geographies
• Supply and production strategies not aligned with master data
• Very low SAP utilization and knowledge of system best practices
• Planning outside of SAP in multiple disconnected tools
• Frustrated users and excessive manual work being done
• Lack of trust in the system leading to ineffective use of MRP generated production planned orders and purchasing requisitions
• Multiple points of promise and unclear escalation and prioritization processes
• SAP reporting functionality not being utilized to support business and process performance KPI’s

SOLUTIONS

• Supply Chain transformation utilizing Reveal’s oVo® methodology focused on improving service levels, optimizing inventory, capacity and production planning and data visibility
• Established Supply Chain end-to-end planning inside of SAP, integrating core processes across the organization
• Education for buyers, planners, schedulers, shop floor and management on existing SAP tools
• Education, ownership and accountability of master data and aligning MRP strategies
• One-on-one sessions with management and executives to drive management decisions using SAP
• Set KPI’s aligned with strategic business performance objectives

BENEFITS

• $15 MM reduction in average inventory
• 98% reduction in overdue supply and demand elements
• 86% reduction in negative days of supply
• Reduced SAP exception messages by 73%
• An integrated business utilizing one system of record – SAP
• Increased data accuracy, process efficiencies and user confidence leading to better decision making
• Improved capacity and material availability accuracy
• Demand-driven planning via MRP requirements
• Increased analytics capability and visibility across the supply chain
• Educated and empowered users and management team
• Aligned KPI’s to business objectives
• Ability to migrate to S/4 HANA