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OIL & GAS

Improved Operations With Warehouse Automation and Integration


The Challenge

Despite implementing several SAP modules, a major Saudi Arabia-based Petro-chemical company still suffered from disconnected systems and manual processes that prevented it from being fully productive using the applications it had in place. In addition, the petrochemical producer was bogged down by poor process synchronization, complex manual operations and dynamic user requirements especially with its supply chain operations. Cognizant's oil & gas technology experts stepped in to help. We demonstrated our capabilities in the form of a proof of concept (PoC), and the company was happy to engage us.


Our Approach

The company set an aggressive timeline of less than a year for a project that would typically take two years. Cognizant recommended a state-of-the-art warehouse management system to integrate the components-based on SAP Extended Warehouse Management (EWM) and radio frequency identification (RFID) solutions, which is capable of tracking products from the conveyor line to the container with 100 percent visibility and provides all the required functions for the company’s warehousing and distribution operations. We did a feasibility study to confirm the suitability of the offered solution as well as the expected business benefits, outlining the implementation challenges and preparing a PoC based on this information. We also prepared blueprints for the supply chain management, EWM from SAP and RFID solutions from other suppliers.

We’re implementing the project in two phases, with both focusing on smooth operations and functioning of the company’s extended warehouse facility. After successfully completing a PoC on the SAP EWM module with limited use cases, we executed our solution in three of the company’s polymer warehouses as part of the project’s first phase. Phase two is an ongoing expansion of the existing business processes and functionalities from phase one, focusing on five additional warehouses.

Greater Operations and Higher Savings Through Successful Integration of SAP Modules

Integrating various SAP modules, coupled with Cognizant’s complete warehouse automation solution, helped reduce the company’s headcount from approximately 50 down to 25. It also enabled faster decision-making capabilities through improved reporting, doubled the operational efficiency, and helped generate a one-time cost savings of $150,000 as well as an expected annual cost savings of $5.6 million. Merging an RFID system with the SAP Fiori user interface helped the client achieve 99 percent visibility into the tracking and tracing of products, while implementing the SAP finance modules reduced the general ledger consolidation period from approximately three months to two weeks. Integrating the human capital management solution from SAP improved the company’s employee benefits system.

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200%

increase in plant efficiency after plant automation

99%

visibility into tracking and tracing of products with a consolidated platform

30%

increase in operational efficiency


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