digital sourcing & procurement transformation houston, texas · digital sourcing &...

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 1

SUSAN FIGEAC, AMEESH ARORA, DAVID RICHARDSON

DIGITAL SOURCING & PROCUREMENT TRANSFORMATIONHouston,TexasSeptember18,2017

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 2

AGENDA• Introduction• MurphyOilOverview• ImplementationScope• SupplyChainSystems• SourcetoPayProcess• PostGo-LiveChallenges• EnhancingAribaCapabilityatMurphy• PerformanceImprovements• Lookingforward• ClosingQ&A

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 3

INTRODUCTION

• OFSPortalSessionTheme:SustainingtheaccelerationofeCommerceadoptioninapredictedleanerforlongermarket

Murphystory,2015

• Large,fast-trackSAPandAribaimplementation

• allMurphyregions

• allSAPmodules

• lowoilenvironment

• Continuetoimplement/supportinalongerandleanermarket

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 4

Murphy Oil Overview – 2015 Pre SAP Implementation

Murphyhad:• DifferentsystemsineachRegion

o US– Oracle/JDEandADPo Canada– Qbyte/Excel/Cortexo Malaysia– Sun/InfosysCAMMS/NAVA

• Differentstandardsandtechnologies• Madeitdifficultforthecompanytorunatoptimum

efficiency

• Murphywantedtoadjustitswayofdoingbusinesstobetteraddresscostpressuresstemmingfromoilpricefluctuations

• MurphypartneredwithAccentureastransformationpartner

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 5

IMPLEMENTATION SCOPE

Project DurationJuly2015– January2016- 25weeks

ProjectImplementationScope:• SuiteonHANA– Finance,Procurement,Maintenance,JointVentures,IS-OIL(PRA)• Ariba• SuccessFactors• SparesFinder• ThomsonReutersONESOURCE

MurphyPartners:• Accenture• SAPAriba• SlalomConsulting• PowerAdvocate• Sparesfinder

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 6

IMPLEMENTATION SCOPEResults• AcceleratedthedigitaltransformationofMurphy’soperations• Streamlinedorganizationtobetteraddresstheneedsofthebusiness• Greatervisibilityintosupplierspendandcontracts• Leveragesanintegratedflowofdatathatmakesthefinancialcloseprocessmoreaccurateand

efficient• Moreefficientoperationsfromwellheadtoexecutivereporting

Challenges• MarketConditions,Staffreductions• Tighttimeline• Resources• Coordinationwithdifferentgroups/regions• Datacleansing• Technology

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 7

SUPPLY CHAIN SYSTEMS

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 8

SOURCE TO PAY PROCESS

Purchase Pay

Processes

to

Sourcing&Contracts

OutlineAgreement

Catalog

Acquisition

PurchaseRequisition

WorkOrder

Commitment

PurchaseOrder

Accrual

ServiceEntrySheet

GoodsReceipt

Actuals

Invoices

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 9

POST GO-LIVE CHALLENGES• Wentlivewithlimitedtesting

• LegacyPOcreation

• Staffreductionsfirstquarter/limitedstaff

• Integrationchallenges

• RevisingprocessespostGo-Live

• DataIntegrity

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 10

ENHANCING ARIBA CAPABILITIES AT MURPHY

AdapterupgradesMovefromCI5toCI7

Jan2016 Aug 2017

LivewithAribaSourcetoPaySolution

CategoryTaxonomyUpdateandcleanMaterialandServicegroupsandG/LMapping

Mobility/AnalyticsMobile approvalsforPR,POandSESAnalyticsDashboard

SupplierEnablementPunchoutIntegrationsIntegratedcXML suppliers

FieldTicketSESEnhancementsSESApproveruserInterfaceSESstartandenddatesenhancementsHybridPO

Post CI7EnhancementsAutoSESrejectionsSourcingIntegrationwithSAPAribaLightAccountrollouts

Supplier OnboardingandEnablement

20162017

InvoiceAutomationEnhancementsHibernateandautopostInvoicecommentsvisibilityMultipleTaxissuesInvoicereviewworkflow

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 11

ARIBA - KEY COMMENTS

• 80%ofinvoiceselectronicviaAriba• Focusedonhighvolumetransactions

• Strongcompliancemessage• Goodpartnershipwithsuppliers

• Easedadoption• Training&onboardinghandledbutMurphyratherthanAriba

• MurphyisaleadingE&PcompanywithAribaServiceEntrySheets(SESs)

• PioneeringfirstintegrationprojectoncloudwithPIDXsuppliers

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 12

SPEED – SERVICE TO PAY (ARIBA SERVICE ENTRY SHEET): 66 DAYS

• ServiceToPayisthedurationfromthedateVendorperformedtheirService(ServiceEntrySheetPeriodEndDate)tothedate MurphypaidtheInvoice(PaymentClearingDate).

• AverageServiceToPaydurationof86,966AribaServiceEntrySheetis66Days.ServiceEntrySheetwithServiceToPaydataexceptionshasbeenexcluded.

• 2016,2017SAPProductionDataasof7/25/2017forAribaServiceEntrySheetforCanada,Malaysia,andUSA

Days CountDays CountDays Count

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 13

WHAT IS ON THE HORIZON?

APIDX Supplier IntegrationPIDX Suppliers end to end Integration with Ariba Network

Guided Buying for Indirect spendPromoting Self service procurement within Organization

C

Automated Field tickets using Geo fencing capabilityAutomate process of SES based on Supplier location and assets

D

Ariba Lite accountBringing more suppliers on network and increasing commerce automation

E

B

Supplier Lifecycle and Performance ManagementSupplier Management, Risk analysis, Vendor management in cloud a

Contract based on InvoicesRemoving need for PO for certain categories and redefining buying channels

G

Adapter upgrades to latest versionMove from CI7 to CIG for standard integration

HI

AMSOG functionalities

K

Analytics and ReportingStandard procedure on how to capture, calculate, & present benefits built into the sustainment model

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 14

CLOSING Q&A