Petrolimex: The first Vietnamese Group that successfully applies ERP in oil business

Hanoi April 16, 2013 This afternoon at Keang Nam Landmark Tower Hanoi, Vietnam National Petroleum Group (PG), FPT Group and SAP firm held the “Review meeting of ERP deployment in PG”.

PG is the first group of Vietnam that successfully applied the ERP, a solution for management of enterprise resources aiming at materializing the development strategy in the new phase, compatible to the form of a public company and the process of restructuring after equitization.

FPT Information System (FPT IS, a FPT group member) was selected as the general entrepreneur and consultant for the deployment of ERP package for Petrolimex, with hardware of HP and solution of SAP, a world top ranking supplier of management solution for various global oil groups like ExxonMobil, BP, Total, Gazprom, Chevron.

ERP system was officially put into use in Petrolimex on a nation wide scale since January 1st 2013.

This is an important event marking the advancement of a Vietnamese enterprise in the successful supply and application of ERP on a large scale, wide coverage and with complicated technology.

The project was completed in 3 years (2010-2012) testifying to the determination of the leadership, tireless efforts of workers on the parts of Petrolimex and FPT.

The review of ERP application enjoyed keen attention of the Party, Government, related ministries and branches and the press media.

ERP comprises various sub programs: procurement and sale of goods, tankaging, financial accounting, management accounting…being applied in the holding company, the PG, down to 42 companies, 21 branches, 11 enterprises, 44 storages and depots, 118 sites, and integrated with the management system of more than 2,200 retail stations nation wide .

Prior to the application of ERP, Petrolimex introduced IT in the management and control of business in the early 90s of the last century. However faced with complicated fluctuation of world oil market and the demand for state control of domestic oil market in recent years, the management of oil business called for a transparent, timely and precise information while the management system was scattered, incoherent data that hindered the improvement for development for new requirement , the application of ERP became internally urgent for Petrolimex.

At the shifting point to ERP application, Petrolimex and FPT closely coordinated and carefully prepared for the move, ensuring the supply of oil to the market was made without interruption

Initial results of ERP application are as follows:

First: to respond to the demand of exploitation and analysis of information data source stored at the holding company; to meet the requirements for complete, precise, timely, quickly and accurate information for decision. This overcame the situation where the holding company spent lots of time to compile reports from member units, resulting in late and backward information as compared with actual facts.

Second: to control data on a real time basis relating to goods, accounting and financing; therefore shortening the time to make financial accounting reports, meeting the requirement for standard accounting system and time required for announcement according to the Law on Enterprises with regards to a public company.

Third: to timely detect mistakes and quickly rectify them, ensuring the compatibility of individuals in the system; when necessary, track every original document for detailed information for search targets.

Fourth: to ensure high reliability of data like revenues, inventories, costs…for the management of the enterprise, report to related authorities, fulfilling major purposes and macro balances.

With the development of IT these days, once ERP is in application, Petrolimex leaders can have access to information at any time and anywhere to manage and control the activities of the enterprise.

Speaking at the ceremony, Chairman of Board of Management of Petrolimex Group Bui Ngoc Bao revealed that: “ Since the year 2000, we took the initiative to study and hired international consultants to make an overall plan of IT application for the phase 2000-2010. ERP as an important project of this plan was highly focused for implementation.”

Mr. Truong Gia Binh, Chairman of FPT Group proudly said: “ Successful ERP project of Petrolimex is very significant to us. This is the first time that a Vietnamese company is a general entrepreneur of such a big scaled project. This fact changed the former concept that only foreign partners could be capable to be entrepreneur of big projects.”

“SAP is proud to be selected by Vietnam National Petroleum Group to supply ERP solution in the management of oil business” Mr. Pham The Truong, Director General of SAP Vietnam confirmed. “ With experiences gained we will give best support for the ERP run by SAP to operate stably and toward perfection”.

Present at the ceremony, Mr. Bui Van Cuong, Member of Party Central Committee and Secretary of the Party Committee of the Central Enterprises Group took note of the progress and highly valued the efforts by Petrolimex and FPT in materializing the policy of the Party and the government with regards to equitization, restructuring and the change of management of a major group; thus positively contributing to national economic and social development. He also held that this is a prototype for other enterprises to study and apply in the time to come.

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