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The oil and gas industry today is focused primarily on efficiency and cost reduction. At the same time, the industry is at the center of the global effort to limit carbon emissions and curb climate change.
To stay ahead of the curve, companies need to optimize production cycles and improve business processes throughout their operations. An increased focus on automation and digital solutions to reduce operational costs is an important part of the answer for many. Related benefits of new oil and gas platforms include better decision-making, greater utilization of assets, and a strong foundation to invest in new business models.
How to Embrace the Post-Pandemic, Digital-Driven Future of Work
Digital will separate the winners from the laggards in the hypercompetitive, post-pandemic business landscape. We undertook a global, multi-industry study to know how businesses are preparing for this future and here’s what we found.
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.
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.
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.
increase in plant efficiency after plant automation
visibility into tracking and tracing of products with a consolidated platform
increase in operational efficiency
Cognizant helps oil and gas companies succeed by leveraging our deep industry knowledge and experience with new industry platforms. Our services span finance and accounting solutions, enterprise asset management, and process automation capabilities based on the latest oil and gas digital solutions.
With recent advancements in data and connectivity, aftermarket services are creating exciting new business opportunities for oil and gas providers. Cognizant's expertise in areas such as analytics and business metrics can help create new operating models and turn cost centers into profit centers.
Combining digital platforms with the right people, process and strategy transforms aftermarket services. Key areas for improvement include request management, field services, spare parts order management, warranty, reverse logistics and asset monitoring.LEARN MORE
Our Digital Finance and Accounting suite provides oil and gas companies with a digital playbook for future integration and automation. It helps optimize existing investments and integrates key processes, expertise, systems and analytics. From streamlining your transactional workflows to making financial intelligence available on demand, we digitally transform finance and accounting into a value generator for your organization.
Let us help in cost reduction and optimization by restructuring and remodeling core industry services like procure to pay, order to cash, record to report accounting and financial planning and analysis.
With increased competitive pressure and growing customer demand for alternative energy sources, fulfilling orders across multiple customer engagement channels has become complex. Cognizant’s Digital Order Management helps manage the complexity by delivering customer-centered designs and processes in a cost-effective way.
By coordinating global product and service fulfillment across the extended enterprise, supply chain efficiencies and business responsiveness are notably improved. Leverage our digital innovations in platforms, analytics and intelligent automation to transform your order management process into a revenue-producing powerhouse.
How to manage an aging workforce and infrastructure while keeping a close eye on reliability requires new thinking when it comes to your asset management strategy. For the oil and gas industry, Enterprise Asset Management can reduce equipment downtown, increase energy production, and lower costs through improved asset utilization.
Cognizant combines experience in conventional EAM with digital capabilities in mobility, smart grid, asset/pipeline integrity management, asset analytics, dashboards and GIS. The result is what we call intelligent EAM.
With the right strategy, tools and know-how, intelligent process automation can help utilities accelerate performance and enable real value and ROI. Cognizant’s IPA solutions make your oil and gas processes smarter. We help elevate workforce productivity by automating not only mundane tasks, but also end-to-end business operations.
Leverage Cognizant’s domain and digital platform capabilities to drive aggressive automation.LEARN MORE
Smart packaged solutions to help oil and gas companies transform for the digital age.
Cognizant’s Digital Workforce Mobility™ reduces operating costs and simplifies construction work. It helps oil and gas companies transform their field operations by optimizing digital communication and workflows. Using our solution, you create a seamless digital workplace where supervisors and workers alike can execute daily tasks, eliminate waste and collaborate with minimal effort.VIEW SOLUTION
Cognizant’s Operations Intelligence Platform (OIP) dives deep into data—and provides oil operators with insights needed to optimize production, reduce costs and improve decision-making. It helps operators improve financial performance, optimize reserves recovery and reduce risk with offshore manning.VIEW SOLUTION
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Serving customers by looking forward as well as back is a big promise, but the power of today’s new digital capabilities is vast and growing.
Let’s talk about how digital can work for your business.