December 5, 2016 | Written by: Sarosh Khan
Categorized: Thought Leadership
This is an introduction to an IBM solution for asset intensive industries such as Oil and Gas, EPC (Engineering, Procurement and Construction, Utilities, Industrial Manufacturing, etc. designed to help “Accelerate” their Journey to Oracle Cloud and digital transformation. Many asset intensive companies struggle with integration of ERP systems (Procurement, AP, Projects and G/L) into their enterprise asset/work management systems. IBM’s ‘ERP Cloud to Maximo integration’ helps address this challenge and promotes business process integration, financial controls, faster return on investment, and an entry point into Oracle ERP Cloud with lower risk.
Start with a process optimization vision and roadmap. Here are some examples of overall business goals and objectives that we have helped companies attain:
- Increase Asset utilization while decreasing business risk
- Reduce Capital cost by 20-30%
- Decrease the Inventory carrying costs by 10% and on-hand inventory by 20-30%
- Reduce distribution center and facilities costs by 15-25%
Asset lifecycle management involves a significant investment of resources to design and procure the ‘services’ and ‘equipment’ needed to build and maintain physical assets. An integrated ERP and asset/work management solution helps to control cost, complete projects both on time and within budget, accelerate commissioning of new assets, and deliver the intended benefits throughout the asset lifecycle.
Financial management of MRO activities during the operational lifecycle of an asset is critical in attaining the return on investment during the productive life of an asset. An integrated solution increases the operational efficiency by maintaining optimal assets and facilities.
Are you experiencing any of these challenges?
- Lack of governance and controls around capital spend for procuring, sourcing, and buying negotiations
- No master data for suppliers, items, products, or pricing resulting in erroneous purchasing and financial transactions
- Inability to track and report work order related procurement spend against approved projects/AFE (Authority for Expenditures)
- Operational inefficiencies with manual intensive processes
Ask yourself the following questions:
- Is procurement spent, related to Capital projects and MRO work orders, integrated with the ERP financial and procurement systems?
- Do you have visibility for financial controls, budgeting, forecasting, and actuals for capital and maintenance projects?
- Is critical work order information available across the enterprise for making business decisions?
- Do the users work on multiple disconnected systems and use manual processes to get their work done?
The IBM solution can help:
- Control internal spend
- Improve overall financial controls
- Improve receiving, invoice matching, and payment processes
- Enable projects and work order (WO) driven standard procurement
- Improve data quality, accessibility, and analytics
What are the Key Solution Features?
- Seamless End-to-End Integration for managing and optimizing Capital Projects and MRO spend: With Oracle Cloud Integration with Maximo, Enterprise Asset Management personnel will have an integrated and easy way to create, update, maintain, and view purchase orders in a timely manner with seamless integration to the ERP applications.
Additionally, it provides better financial and operational controls regarding automation, approval workflows, and accurate supplier invoicing with work order driven procurement. Information is entered once, propagated through the enterprise, and is consistent enterprise-wide for more efficient business processes.
The solution leverages a standard based integration using Oracle iPaaS (Integration Platform as a Service) with 21 configurable interface points. Users only have to interact with one application to get their job done. Overall, it helps protect your existing investment in Maximo.
- Standardized Item/Product Pricing and Supplier Data: This provides a synchronized single source of items/products and pricing, supplier, negotiated contracts, and associated master data. Procurement organization would control internal operational spend by standardizing the Purchase Order (PO) and Requisition approval processes and Projects driven budgeting and forecasting.
- Improved Analytics and Cognitive: The IBM solution improves financial controls and project budget forecasting and visibility via mobile analytics and cognitive features.
Oracle Cloud Procurement integration with Watson puts aggregated meaningful insights from procurement contractual agreements, external market data, and internal procurement data into user-friendly views. The analytics is where the physical meets the digital. This is achieved by linking physical assets, resources, and infrastructure with the digital world of event processing, business analytics, mobile, and, IoT, providing a comprehensive view to enable cognitive decision making.
If you have questions about the solution, please email us.