Optimization allows organizations to correct issues rather than rely on workarounds.
THE STORY
CITGO Lubricants strived to strengthen its production and supply planning, increase material availability for production throughput, improve On Time In Full performance, and optimize inventory levels. Senior leadership committed to changing the way they worked by embracing the strengths of their existing SAP system to empower their teams. This included increasing data integrity, utilizing analytics for decision-making, and alignment of SAP best practices with business processes. By leveraging SAP to its fullest, CITGO Supply Chain has increased agility and efficiencies while also improving customer and employee satisfaction.
THE CHALLANGE
CITGO Lubricants needed to increase efficiencies and service levels. They recognized as part of the challenge to improving results was a low level of trust in SAP, lack of maturity in managing master data, and excessive use of spreadsheets to manage the business.
THE SOLUTION
CITGO Lubricants Supply Chain leaders engaged Reveal and their ongoing Value optimization® methodology to transform their supply chain. This included improving understanding and utilization of SAP capabilities including exception management, master data alignment with processes, increasing demand management effectiveness, and enhanced supply and production planning. In addition, cross functional teams were established to improve communication flow and decision making.
THE RESULTS
Average Inventory Reduction
A 15% reduction in average inventory unlocked working capital, reducing holding costs, boosting operational efficiency and driving improved financial performance.
Improved Service Levels
70% fewer Red Lights(potential service level breakdowns) addressing root causes of supply shortages and empowering teams to optimize material and production performance improving delivery on promises to both internal and external customers.
Reduced Human Struggle Hours
Team members reported increased use of SAP and adopting new processes reducing manual work, firefighting and less reliance on managing data in spreadsheets.
ABOUT CITGO LUBRICANTS
CITGO Lubricants, a division of refining leader CITGO Petroleum Corporation, operates a vast network of refineries, terminals, pipelines, and blending plants to deliver transportation fuels, lubricants, and more to a network of local retailers.
