Phillips 66

End-to-End Planning Inside of SAP to Support Improving Service Levels

Phillips 66

With the education and best practices we have learned, we are no longer fire-fighting and are much more proactive in meeting our customer’s needs.

Plant Production Manager

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

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