Sphera Case Studies Achieving a single source of truth for materials data globally

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	Achieving a single source of truth for materials data globally Sphera

Achieving a single source of truth for materials data globally

Sphera

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
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. Read More
About 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. Read More
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. Read More Log in to view content
Contents

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

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 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.

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.

Impact #1	Maintained the integrity of their data with pre-programed item descriptions and a workflow that routes new material requirements to the right people for data completion and approvals
Impact #2	Reduced overall backlog in Item Master maintenance
Impact #3	Reduced time spent on data entry

Impact #1

Maintained the integrity of their data with pre-programed item descriptions and a workflow that routes new material requirements to the right people for data completion and approvals

Impact #2

Reduced overall backlog in Item Master maintenance

Impact #3

Reduced time spent on data entry

Benefit #1	Cleansed over 10,000 lines of data to include missing part numbers
Benefit #2	Identified and consolidated duplicate entries for 5.6% of inventory
Benefit #3	Optimized inventory and reduced onetime purchases

Benefit #1

Cleansed over 10,000 lines of data to include missing part numbers

Benefit #2

Identified and consolidated duplicate entries for 5.6% of inventory

Benefit #3

Optimized inventory and reduced onetime purchases

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Overview

Achieving a single source of truth for materials data globally

Operational Impact

Quantitative Benefit