DIGITAL SOURCING & PROCUREMENT TRANSFORMATION Houston, Texas September 18, 2017

Transcription

1 DIGITAL SOURCING & PROCUREMENT TRANSFORMATION Houston, Texas September 18, 2017 SUSAN FIGEAC, AMEESH ARORA, DAVID RICHARDSON MURPHY OIL CORPORATION w w w.m ur phy oi l c or p.c om N YSE: M U R 1

2 AGENDA Introduction Murphy Oil Overview Implementation Scope Supply Chain Systems Source to Pay Process Post Go-Live Challenges Enhancing Ariba Capability at Murphy Performance Improvements Looking forward Closing Q&A MURPHY OIL CORPORATION NYSE: MUR 2

3 INTRODUCTION OFS Portal Session Theme: Sustaining the acceleration of ecommerce adoption in a predicted leaner for longer market Murphy story, 2015 Large, fast-track SAP and Ariba implementation all Murphy regions all SAP modules low oil environment Continue to implement/support in a longer and leaner market MURPHY OIL CORPORATION NYSE: MUR 3

4 Murphy Oil Overview 2015 Pre SAP Implementation Murphy had: Different systems in each Region o US Oracle / JDE and ADP o Canada Qbyte / Excel / Cortex o Malaysia Sun / Infosys CAMMS / NAVA Different standards and technologies Made it difficult for the company to run at optimum efficiency Murphy wanted to adjust its way of doing business to better address cost pressures stemming from oil price fluctuations Murphy partnered with Accenture as transformation partner MURPHY OIL CORPORATION NYSE: MUR 4

5 IMPLEMENTATION SCOPE Project Duration July 2015 January weeks Project Implementation Scope: Suite on HANA Finance, Procurement, Maintenance, Joint Ventures, IS-OIL (PRA) Ariba SuccessFactors SparesFinder Thomson Reuters ONESOURCE Murphy Partners: Accenture SAP Ariba Slalom Consulting PowerAdvocate Sparesfinder MURPHY OIL CORPORATION NYSE: MUR 5

6 IMPLEMENTATION SCOPE Results Accelerated the digital transformation of Murphy s operations Streamlined organization to better address the needs of the business Greater visibility into supplier spend and contracts Leverages an integrated flow of data that makes the financial close process more accurate and efficient More efficient operations from wellhead to executive reporting Challenges Market Conditions, Staff reductions Tight timeline Resources Coordination with different groups / regions Data cleansing Technology MURPHY OIL CORPORATION NYSE: MUR 6

7 SUPPLY CHAIN SYSTEMS MURPHY OIL CORPORATION NYSE: MUR 7

8 SOURCE TO PAY PROCESS Purchase to Pay Sourcing & Contracts Acquisition Commitment Accrual Actuals Outline Agreement Catalog Purchase Requisition Work Order Purchase Order Service Entry Sheet Goods Receipt Invoices Processes MURPHY OIL CORPORATION NYSE: MUR 8

9 POST GO-LIVE CHALLENGES Went live with limited testing Legacy PO creation Staff reductions first quarter / limited staff Integration challenges Revising processes post Go-Live Data Integrity MURPHY OIL CORPORATION NYSE: MUR 9

10 ENHANCING ARIBA CAPABILITIES AT MURPHY Live with Ariba Source to Pay Solution Field Ticket SES Enhancements SES Approver user Interface SES start and end dates enhancements Hybrid PO Category Taxonomy Update and clean Material and Service groups and G/L Mapping Supplier Enablement Punchout Integrations Integrated cxml suppliers Jan 2016 Aug 2017 Supplier Onboarding and Enablement Adapter upgrades Move from CI5 to CI7 Invoice Automation Enhancements Hibernate and auto post Invoice comments visibility Multiple Tax issues Invoice review workflow Mobility/Analytics Mobile approvals for PR, PO and SES Analytics Dashboard PostCI7 Enhancements Auto SES rejections Sourcing Integration with SAP Ariba Light Account rollouts MURPHY OIL CORPORATION NYSE: MUR 10

11 ARIBA - KEY COMMENTS 80% of invoices electronic via Ariba Focused on high volume transactions Strong compliance message Good partnership with suppliers Eased adoption Training & onboarding handled but Murphy rather than Ariba Murphy is a leading E&P company with Ariba Service Entry Sheets (SESs) Pioneering first integration project on cloud with PIDX suppliers MURPHY OIL CORPORATION NYSE: MUR 11

12 SPEED SERVICE TO PAY (ARIBA SERVICE ENTRY SHEET): 66 DAYS Days Count Days Count Days Count Service To Pay is the duration from the date Vendor performed their Service (Service Entry Sheet Period End Date) to the date Murphy paid the Invoice (Payment Clearing Date). Average Service To Pay duration of 86,966 Ariba Service Entry Sheet is 66 Days. Service Entry Sheet with Service To Pay data exceptions has been excluded. 2016, 2017 SAP Production Data as of 7/25/2017 for Ariba Service Entry Sheet for Canada, Malaysia, and USA MURPHY OIL CORPORATION NYSE: MUR 12

13 WHAT IS ON THE HORIZON? Guided Buying for Indirect spend Promoting Self service procurement within Organization B C Automated Field tickets using Geo fencing capability Automate process of SES based on Supplier location and assets D Ariba Lite account Bringing more suppliers on network and increasing commerce automation Supplier Lifecycle and Performance Management Supplier Management, Risk analysis, Vendor management in cloud a E G Adapter upgrades to latest version Move from CI7 to CIG for standard integration Contract based on Invoices Removing need for PO for certain categories and redefining buying channels H AMSOG functionalities I K Analytics and Reporting Standard procedure on how to capture, calculate, & present benefits built into the sustainment model A PIDX Supplier Integration PIDX Suppliers end to end Integration with Ariba Network MURPHY OIL CORPORATION NYSE: MUR 13

14 CLOSING Q&A MURPHY OIL CORPORATION NYSE: MUR 14