ERP Implementation at BPCL

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Case Details:

Case Code : ITSY005
Case Length : 09 Pages
Period : 1991-2001
Pub Date : 2002
Teaching Note : Available
Organization : BPCL
Industry : Petroleum
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"It's true that 9 out of 10 ERP implementations in India failed."

- Girish Menon, Vice-President, Global Marketing and Planning, Ramco Systems, in October 2001.

The BPCL-ERP Story

In November 2001, Bharat Petroleum Corporation Limited (BPCL), a leading player in the Indian petroleum industry, successfully implemented an Enterprise Resource Planning (ERP). Implementation began in April 2000 after the company decided to integrate all its activities through the ERP package SAP R/3¹.

The company hoped to speed up its decision-making and respond faster to customer needs through ERP. The intention was to show the differentiation in service, retain customers and help increase the business of its Industrial & Commercial (I&C) customers². BPCL also wanted to increase its retail thrust by exploiting IT initiatives to the maximum.

The noteworthy aspect was that the company was one of the very few Indian companies to have successfully implemented ERP.

Background Note

BPCL

In 1951, the Government of India entered into an agreement with UK-based Burmah Oil Company and Shell Petroleum Co. (Burmah-Shell) for establishing an oil refinery in Bombay.

In 1952, this agreement led to the incorporation of Burmah Shell Oil Refineries Ltd.

In January 1955, the refinery at Bombay went on stream, and in 1962, the refinery started processing crude oil from Ankleshwar in Gujarat.

Excerpts>>

1] SAP R/3 is a popular ERP software from the Germany based company Systems Applications & Products in data processing (SAP).

2] Industrial & Commercial customers consist of major industries and other commercial players who buy industrial fuels like Naphtha and furnace oil. Huge quantities are involved in this segment and it is very price sensitive.