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Achieving a single source of truth for materials data globally
Technology Category
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Oil & Gas
Applicable Functions
- Procurement
Use Cases
- Inventory Management
- Supply Chain Visibility
Services
- Data Science Services
- System Integration
The Challenge
Apache Corporation, one of the world's top independent Oil & Gas Exploration & Production companies, faced significant challenges in managing its materials data. The company's rapid expansion through a series of acquisitions between 1992 and 2012 resulted in operations spread across multiple regions. This led to excessive back-and-forth communication between the centralized catalog team and the regional business units to clarify local material requirements. The situation was further complicated by a lack of 24/7 availability and time zone issues that impacted service levels. In 2008, Apache deployed a single SAP instance with a focus on master data. However, data cleansing was ineffective due to a lack of standards and data governance. By 2010, poor data quality had created significant inventory management, reporting, and sourcing issues, leading to user dissatisfaction.
About The Customer
Apache Corporation is a leading independent Oil & Gas Exploration & Production company. Founded in 1954, the company has grown rapidly through a series of acquisitions between 1992 and 2012. This expansion has resulted in operations spread across the United States, Canada, the North Sea, Egypt, Australia, and Argentina. Apache has accumulated $61 Billion in assets and realized $17 Billion in revenue from the production of 779,000 BOE per day. The company's success can be attributed to its focus on high-margin product mix, centralized management, decentralized decision-making, cost control, and technology application.
The Solution
To address the challenges with materials data management, Apache contracted PwC to assess the situation. The management consultant recommended Apache establish a global governance program, cleanse and optimize material master data to a global standard, and implement a Master Data Management (MDM) solution. After a thorough evaluation, Apache selected Sphera’s Master Data Management solutions to optimize and govern material data. The solution was expected to consolidate and standardize Apache’s data to represent a ‘single source of truth’ across the enterprise. This would allow Apache to create and modify material data through a clear process while ensuring seamless integration with SAP.
Operational Impact
Quantitative Benefit
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