Implementation of Erp

ERP Implementation at BPCL: The BPCL-ERP Story

In November 2001, Bharat Petroleum Corporation Limited (BPCL), a leading player in the Indian petroleum industry, successfully implemented an Enterprise Resource Planning (ERP). Implementation began in April 2000 after the company decided to integrate all its activities through the ERP package SAP R/31.

The company hoped to speed up its decision-making and respond faster to customer needs through ERP. The intention was to show the differentiation in service, retain customers and help increase the business of its Industrial & Commercial (I&C) customers2. BPCL also wanted to increase its retail thrust by exploiting IT initiatives to the maximum. The noteworthy aspect was that the company was one of the very few Indian companies to have successfully implemented ERP. With the successful implementation, BPCL customers could access information and do business online, which enabled BPCL to increase its share of I&C customers from 14.9% in 2000 to 15.8% in 2001. After the ERP implementation, BPCL's revenues grew by 2.28% in 2000-01, even as the revenues of the petroleum industry declined by 3.4%.

Background Note

BPCL In 1951, the Government of India entered into an agreement with UK-based Burmah Oil Company and Shell Petroleum Co. (Burmah-Shell) for establishing an oil refinery in Bombay. In 1952, this agreement led to the incorporation of Burmah Shell Oil Refineries Ltd. In January 1955, the refinery at Bombay went on stream, and in 1962, the refinery started processing crude oil from Ankleshwar in Gujarat.

In December 1975, following the passing of 'The Burmah-Shell (Acquisition of Undertaking in India) Bill,' the Government of India signed an agreement with Burmah-Shell. Subsequently, the government took over the operations of the company and changed its name to Bharat Refineries. Initially, the company sold only kerosene, but later it set up service stations to sell petrol as well. Bharat Refineries became... [continues]

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