Abstract:

In this regard, the work on the implementation of ERP in BPCL is discussed in detail.
The focus is on the established IT infrastructure and BPCL IT initiatives prior to ERP
implementation.

Issues:
 How BPCL utilized IT effectively to strengthen its market position.
 The technical aspects of an ERP implementation.

The BPCL-ERP Story

In November 2001, Bharat Petroleum Corporation Limited (BPCL), a leading player in the
Indian oil industry, successfully implemented an enterprise resource planning (ERP) system.
Its implementation began in April 2000 after the company decided to integrate all its
activities through the SAP R / 31 ERP package.

The companies hope to speed up decision-making and respond more quickly to customer
needs with ERP. Its goal is to demonstrate service differentiation, retain customers, and help
expand its business to industrial and commercial customers (I&C) 2. BPCL also wants to
grow its retail business through IT initiatives.
It is noteworthy that this company is one of the few Indian companies that successfully
implement ERP. The successful implementation allowed BPCL customers to access
information and do business online, allowing BPCL to increase its share of I&C customers
from 14.9% in 2000 to 15.8% in 2001. After the introduction of ERP, BPCL revenue
increased by 2.28% in 2000. 01, although revenues of the oil industry fell by 3.4%.
Background Note
BPCL

In 1951, the Indian government entered into agreements with the British Burmah Oil
Company and Shell Petroleum Co. (Burma Shell) to establish an oil refinery in Bombay.
In 1952, this agreement resulted in the merger of Burmah Shell Oil Refineries Ltd.
In January 1955, the refinery began operating in Bombay, and in 1962 the refinery began
processing crude oil from Ankleshwar in Gujarat.
In December 1975, following the passage of The Burmah-Shell (Purchase of Business in
India) bill, the Indian government signed an agreement with Burmah-Shell. Subsequently, the
government took over the company and changed its name to Bharat Refinery. At first, the
company only sold kerosene, but later established gas stations to sell gasoline. The Bharat
Refinery became the first Indian company to introduce LPG for home cooking. In January
1976, the government acquired 100% of the company's shares, and in August 1977 the
company name was changed to Bharat Petroleum Corporation Ltd. (BPCL).
The economic reforms of 1991 paved the way for major changes in BPCL. The company has
signed marketing contracts with Indo-Burmah Petroleum (IBP), Madras Refineries Ltd.
(MRL) and Cochin Refinery Ltd. (CRL). In 1992, the government withdrew its 30% stake in
BPCL in favour of financial institutions and mutual funds. The 3 10-rupee stock broke
records on the exchange when it opened at 1,275 rupees, which is the highest opening rate
among public sector companies. In 1993, BPCL merged with its former partner Shell to form
Bharat Shell Ltd. (BSL), in which the latter owns 51% of the shares. In 1994, BSL started to
produce lubricants under the Shell brand. They are sold by BPCL as well as BSL. By the late
1990s, BPCL had become the second largest oil company in India in terms of market share.
In April 1994, 3.8% of BPCL's capital was transferred to employees.

IT Initiatives at BPCL
BPCL is dividing the initial efforts into a third plan designed to build a network within the
organization; build a data center network for the entire company and process negotiations
with customers across the country.
The strategy was developed after the company split the organization into six SBUs and
conducted a detailed review of the entire company.
Organizations are being redesigned to help focus on specific groups of customers and meet
their individual needs.
For this, BPCL needed a system for speedy and effective communication. The company's
senior management realized that unless the procedures were streamlined and communication
improved, faster decision-making would be very difficult...
Reaping the Benefits of ERP
SAP R / 3 helps BPCL successfully get started in e-business, the first of which allows I&C
customers to check the status of their orders online. This not only allowed the company to
retain existing customers, but also helped attract new ones.
According to the company, BPCL is the most effective means of implementing ERP related
to inventory management. Prior to the introduction of ERP, the company's practice of
planning monthly inspections when placing orders was often postponed.