An untapped tool in this quest is SAP Field Logistics, introduced by SAP in 2019, replacing the existing Remote and Logistics Management (RLM) module whilst offering enhanced capabilities tailored to the diverse business requirements of offshore logistics. 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. These decisions boil down to a choice between adopting an on premise system with limited innovation pathways, or transitioning to SAPs S4/HANA solution, available on premise or in a private or public cloud.
Opting for a ‘brown field’ approach, gives customers the option of a ‘lift and shift’ approach, albeit at a higher cost than public cloud. This transition represents a substantial shift for many Oil and Gas operators, many of whom have undergone acquisitions and adaptations of inherited processes from larger organisations. This adaptation typically comes with changes in management overseeing upgrades or migrations, often leaving the old SAP system unsupported. Therefore, there is an inherent risk that legacy systems can become inadequate for accommodating growth or change, which in turn undermines the adoption of new processes and technologies.
The alternative lies in implementing a ‘green field’ approach to field logistics, leaving behind customers’ legacy data and reference systems. This approach requires a ‘cloud mindset’ assessment of the organisation’s readiness, to a service offered by savvy SAP resellers to enable and guide clients to make more informed decisions before committing.
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.
With the country facing higher costs due to inflation, the oil and gas industry is no exception as it faces the dual challenge of implementing green energy initiatives, and at the same time making significant investment decisions regarding their processes. SAP's S/4HANA, combined with embedded analytics, allows customers to pinpoint major expenses within the supply chain. Adding complementary products like SAP Analytics Cloud further enhances supply chain visibility with real-time data.
Part and parcel of the move to S/4 HANA is SAP's Field Logistics solution, enabling oil and gas customers to seamlessly manage their logistics activities with ease by handling stock, non-stock, service, and rental inventories with full control and accurate reporting.
Improved tracking capabilities for rentals, supplier items whilst including a detailed history of each element to increase the efficiency of supply chain tracking.
Incorporating machine learning OCR technologies to read container ID without additional labels to improve operational efficiency.
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.
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This post was submitted by Absoft Limited. View all of their news posts here
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