ERP Software

Oil and Gas ERP Software

The definition of Enterprise Resource Planning is hardware and software that can organize and support the complete set of a company’s operational procedures. Almost always, the software of the ERP system is made up of modules. There are modules for marketing, sales, production, inventory control, procurement, distribution, delivery, human resources, and financial specific applications.

Because ERP software systems are industry specific as well business specific, their makeup is often complex. Nowhere is this more so than in the energy, utilities, oil, and gas industries. Oil and Gas companies are distinctive because they are involved in complicated procedures and diverse requirements. For example, these companies require fixed asset management, work management, field service management, geographical information systems, and trouble-shooting -in addition to most other, more typical, business functionalities.  It is not practical, and often not even possible, to mold a general ERP software solution into one that can integrate and handle these diverse needs. Consequently, the oil and gas companies have run into a real challenge when trying to find an ERP Software System capable of effectively managing all of these spheres. Complicating matters further still is the fact that most of the larger oil and gas industry businesses picked an ERP software solution prior to 1999. And, at that time, erp software for the specific needs of the oil and gas industry was not yet on the market. Running old, outdated, and impractical systems means these companies are not as efficient as they could be. But what is the answer?  Are these companies all to embark upon another ERP software project?

The most likely answer is that the majority would if they could find a system specifically tailored for the oil and gas industry at a reasonable price, which would promise not to disrupt the already existing operation for long periods of time while it was being implemented. After all, the ability to automate the business, streamline all chief operating processes such as inventory management, sales, logistics, transportation costs, safety regulation compliance, as well as financials is quite tempting.

One vendor promising to do just that is SAP, with SAP Oil and Gas. SAP’s Oil and Gas ERP Software is specifically geared to processes for the most part basic to the industry.  This, along with the guarantee that the solution will be in-house and running by the date specified and within the constraints of the budget agreed upon, has made SAP the ERP vendor most oil and gas companies turn to.

Written by :

Amy Cruz