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Downstream: Process & Technology: Andeavor: SAP S/4 HANA Implementation

Andeavor (“the Company”), acquired by Marathon Petroleum Corp. in 2018, is an oil refining company headquartered in San Antonio, TX. The Company has an operational footprint spanning 18 states. It owns/operates 10 oil refineries with a combined refining capacity of about 1.2 million barrels per day (MMbbl/d) and owns/operates more than 3,100 fuel retail fuel stations across the U.S. and Mexico.

Opportune LLP worked as a part of the SAP delivery organization to assist Andeavor to deliver “Project One”, the program to implement a full suite of SAP S/4 HANA. The project marked the first oil and gas customer to go live with S/4 HANA with an S/4 oil and gas solution. Opportune played the SAP delivery lead and SAP project scrum master role in the order-to-cash workstream for the duration of the project.

Opportune personnel also played critical roles in the risk, deal capture, scheduling and nominations design and implementation within the hydrocarbon supply chain workstream. The project was the first to utilize SAP’s Activate Methodology and became the first oil and gas client to implement the 1610 suite utilizing the SAP Agile approach. In addition, during the “discover and prepare” phase, Opportune led the business mapping for the hydrocarbon supply chain for the commercial organization, including business strategy, design, blueprinting and value-case development for the program.

Within the order-to-cash workstream, Opportune led the SAP implementation for multiple functional solutions, including:

  • Porting of legacy proprietary pricing solutions for retail, wholesale and dealer tank wagon (DTW) pricing.
  • Implementation of the SAP Commodity Pricing Engine (CPE) tool for invoicing.
  • Implementation of the Financial Supply Chain Management (FSCM) suite within SAP, including credit, receivables management, ACH and EFT processing and cash applications.
  • Implementation of the SAP Sales and Distribution (SD) functionality to process billing for retail, wholesale, and logistics.
  • Automation of the SAP SD document flow and error checking utilizing a custom implementation of the Implico Supply Chain Secondary Distribution (SCSD) software, including a Fiori front-end built with Neptune.
  • Implementation of the Implico Retail Fuel Network Operations (RFNO) software to perform the retail fuel sales accounting, retail merchandise sales accounting and the processing of payment cards functions for all 3,100 retail service stations.
  • Implementation of settlement management to manage franchisee and partner rebates, incentives and discounts.
  • Custom development and delivery of a new customer-facing portal built in the HANA Cloud Platform (HCP) environment.

Project One was delivered in two and one-half years where Opportune was engaged from “Art of the Possible” workshops through final “Hypercare” and hand-off to “Post-Production Support”. Some highlights of the SAP innovations delivered by the team include:

  • The first S/4 oil and gas implementation globally.
  • The first integrated “Trade-to-Profit” implementation for hydrocarbon supply chain.
  • The first user of real-time risk management solution for hydrocarbon supply chain.
  • First payment card processing implemented for S/4 retail fuel network operations.
  • First mass billing implemented for S/4 supply chain secondary distribution.

Technology touches every element of the energy industry. Opportune has deep and broad experience across the energy supply chain — from asset development and production to processing, transportation and markets. We have the necessary depth of expertise in oil and liquids, natural gas, power, coal, and emissions to select, evolve, integrate and manage high-impact technology solutions. We understand the importance of keeping operations running smoothly while concurrently managing portfolio risks and maintaining compliance with company and regulatory requirements. For additional information, CLICK HERE.

Kent Landrum

Managing DirectorOpportune LLP