
ERP Transformation Pioneer in the Energy Sector: Gains Achieved with Project Earth
Technological advancements are offering significant advantages for businesses today. Companies that integrate the benefits of digital transformation into their processes can make a mark in the future through ERP. ERP is the shortening term of "Enterprise Resource Planning". ERP is a software system that integrates processes such as finance, accounting, human resources, production and supply chain management, providing easy access to these processes. For more information about ERP, see “The Key to Sustainable Growth: What is Enterprise Resource Planning (ERP)?” You can read our article.
At SOCAR Türkiye we aim to manage different processes from a single center with our Project Earth project, which we developed to be the cornerstone of our corporate digital transformation. Let's now explain into the details of the project together.
What is our aim with Project Earth?
With our pioneering position in the sector, we focus on developing our corporate applications and software in line with international standards. Strengthening our collaboration with SAP -a world leader in this field- we launched our Project Earth project in January 2022, marking it not only as the largest SAP project in Türkiye but also in the region's energy sector.
As the largest industrial holding in Türkiye, we strive to enable all our group companies to adapt to digital transformation. With Project Earth, we ensure information sharing and coordination, not only within our internal processes but also among departments and affiliates. Within this scope, we consolidated our affiliates STAR Refinery, SOCAR Distribution, and SOCAR Storage systems onto a single SAP S/4HANA ERP system. We revamped our on-site and dispersed systems with SAP S/4HANA and Analytics Cloud solutions. Furthermore, we prepared our financial, central procurement, commercial operations, maintenance, repair, business analytics and master data management processes for digital transformation.
During the project, with the participation of over 100 SAP consultants, we conducted more than 8,000 test steps. After a 6-week preparation phase, our project was completed in a total duration of 16 months. By creating a current, singular and centralized system instead of outdated and dispersed applications, we facilitated smoother operations.
What are the achievements of the project?
With the implementation of Project Earth, we achieved inter-company integration at every stage from raw material procurement to storage and from production to delivery in our production processes. This enables our employees to manage, report and facilitate data flow among group companies for corporate processes such as accounting transactions and invoice approvals.
Through our customer portal, providing real-time information sharing, our customers can track their products from order placement to delivery. With the project, we can simultaneously plan the operations of our planning and maintenance teams, and monitor field activities in real-time. Moreover, we have realized our goals by establishing a single master data structure and creating a common master data dictionary for all group companies. This has led to significant gains at every point of contact, including our colleagues, suppliers and customers.
What does the Petkim ERP transformation project offer?
We completed Phase 1 of our Project Earth project, preparing SOCAR Türkiye for the future, enabling centralized management of commercial processes in 2022. Petkim became the first to obtain ISCC (International Sustainability Carbon Certification), ensuring transparency throughout the supply chain of sustainable raw materials and products manufactured from these materials.
"Petkim became the first to obtain ISCC, ensuring transparency throughout the supply chain of sustainable raw materials and products manufactured from these materials."
As part of the project, the Central Procurement application addressed the procurement processes of Petkim's Refinery and Petrochemical Business Unit and Corporate Headquarters. Process management, from purchase requisition to invoice recording, was transferred to a single platform. This eliminated confusion and repetitive workloads arising from operations carried out in dispersed systems. Additionally, approval flows for purchasing, previously managed on different platforms and in a dispersed manner, were centralized, resulting in a user-friendly approval flow system and increased user satisfaction.
Through the Master Data Governance (MDG) system implemented under Project Earth, Petkim and other SOCAR Türkiye group companies now speak the same data language and adhere to corporate data standards. Also tracking and reporting of inventory information have been facilitated on a single platform.
Recognized as one of the exemplary projects in Türkiye and the world, Project Earth, with its governance and internal and external participants was acknowledged as the "Biggest Digital Transformation Project in Türkiye" at the "SAP Transformation Awards 2022" event.
At SOCAR Türkiye, we continue to pioneer the industry with innovative steps in digital transformation. We are working today for a brighter tomorrow with the energy of now.