Cosmo Oil Co Ltd. Turns to SAP for Strategic Procurement Management

Cosmo Oil Co Ltd., the procurement and supply division within Cosmo Energy Holdings, has decided to invest in intelligent software solutions with SAP Ariba, as part of its strategic procurement management—a logical step towards the Japanese petroleum company’s vision of evolving further into a comprehensive energy supplier.

The announcement comes after the release of Cosmo Energy’s report on the overview of its business results for the third quarter of its fiscal year ending in March 2020. According to the report, the consolidated operating profit of the company was down by ¥29.7 billion from the same period of the fiscal year 2018 due to unprecedented low petrochemical and oil prices. In integrating SAP Ariba’s intelligent software solutions into their procurement & supply management, Cosmo Oil aims to gain a better insight into their spend data and strengthen its competitive advantage.

With  SAP Ariba solutions, Cosmo Oil has implemented a standardized procurement process to streamline and simplify operations, develop resources more efficiently, and be equipped to promote remote working in the time of the COVID-19 pandemic.  By automating processes, the company aims to better forecast how to respond efficiently to problems that may arise with the emerging global recession and the current climate of low oil prices.

Further, Cosmo Oil Co Ltd is looking to optimize its capital spend to improve profitability. The company expects to achieve this with guidance from SAP’s road map. This road map details the ERP software company’s current solutions, upcoming innovations, and future plans for the oil and gas industry.

Current Solutions

• Support for project roles with SAP’s project management suite
• Well-level profitability controls with integrated accounting and production operations
• Real-time visibility into the supply chain with mobile interface
• Digital twin technology for intelligent asset management

Upcoming Innovations

• Cloud-based project management solution that features a role-based user interface
• Integrated upstream hydrocarbon accounting and management
• Interactive visual user interface for supply chain management
• Granular data-based asset monitoring from sensors and maintenance history

Future Plans

• Utilize smart algorithms for project status assessment and evaluation of contractor reliability
• Flexible frameworks in identifying contract and revenue requirements
• Intelligent platform to enable collaboration and transparency in hydrocarbon activities
• Deliver comprehensive features to support end-to-end processes

This article was posted by April Marjes,author at Inside SAP Asia,in Featured,In Depth,Market Insights.