How SAP Field Logistics is Transforming the Oil and Gas Industry

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As the clock ticks towards the impending end of SAP ERP Central Component (ECC) maintenance in 2027, SAP’s Oil and Gas customers must now chart their next steps. While the scheduled end of ECC support in four years may seem distant to IT departments, making the transition effectively will require a significant amount of preliminary work. This encompasses creating a business case and allocating funds, collaborating with SAP to agree a licensing agreement, selecting an implementation partner, implementing the solution itself, putting the solution into action, and ultimately encouraging the integration of the solution to realise the intended business benefits.

The complexity of the industry, the scale of operations, and the high production costs may require precise control of logistics and equipment management in order to achieve sustainable growth. As such, these decisions boil down to a choice between adopting an on premise system with limited innovation pathways, or transitioning to SAPs S/4HANA solution, available on premise or in a private or public cloud. Adopting the new tool from SAP presents an ideal answer to that conundrum.

SAP Field Logistics, introduced by SAP in 2019, is replacing the existing Remote Logistics Management (RLM) module in SAP ECC and offers enhanced capabilities tailored to the diverse business requirements of offshore logistics. Mixed with an existing SAP S/4HANA implementation, combined with embedded analytics, the new module allows customers to pinpoint major expenses within their supply chain. Oil and gas customers will be enabled to seamlessly manage their logistics activities with ease by handling stock, non-stock, service, and rental inventories with full control and accurate reporting. Adding complementary products like SAP Analytics Cloud further enhances supply chain visibility with real-time data.

Field Logistics supports SAP customers through a variety of complex elements such as:

Managing logistics offshore

With its intuitive system-guided processes, this feature enhances user experience, making it easier to navigate and use the solution effectively. Designed for use on tablets and handheld devices, this feature is optimised for seamless operation on offshore platforms and rigs

Enhanced tracking

Improved tracking capabilities for rentals, supplier items whilst including a detailed history of each element to increase the efficiency of supply chain tracking

Continuous improvement

The solution is continuously improved by SAP with functionality being added to the Field Logistics roadmap

Automation

By generating follow-on documents automatically, the returns process is streamlined, effectively eliminating repetitive tasks and maximising operational efficiency

Scanning Container IDs

Incorporating machine learning OCR technologies to read container ID without additional labels to improve operational efficiency

Improved Container Management

The module creates automatic updates of the container status triggered by the expiration of associated certificates and prevents usage thereof.

To embark on this journey, current SAP customers should act promptly to develop a business case, estimate implementation timelines and find and lock in their implementation partners before resources become scarce and potentially more expensive due to rising demand in the near future.

SAP Field Logistics emerges as a smart enabler for the oil and gas industry’s transformation, offering a springboard with enhanced capabilities to meet the evolving demands of the sector. As the industry marches towards a sustainable future, making the transition to modern SAP solutions becomes not just a choice, but a necessity.