Sasol Oil, part of petrochemicals group Sasol, in June started the implementation of supply chain solutions provider WAM Systems’ Picaso integrated planning solution (IPS) to support its supply chain planning and optimisation initiative.

The business has achieved successful results with the solution so far, says IPS project manager Lenushka Naidoo.

This solution is helping Sasol Oil direct its decision-making processes by providing optimal solutions that integrate the requirement for different crude oils, refinery operation and supply to depots and customers.

“It is, therefore, helping us to consider the economic impact of operational trade-offs from an integrated perspective,” she explains.

She adds that the IPS project was implemented only for Sasol Oil’s supply chain and, while there are currently no firm plans to implement it across the other Sasol business units, the possibility for this exists in future as the Sasol group is striving towards ‘One Sasol Way’.

“Sasol Oil decided to implement the solution because it wanted to enhance its business processes and embed an integrated planning philosophy, with one department looking across all value chains and functional areas to do end-to-end operational planning,” Naidoo notes.

Before the implementation of the solution, Sasol Oil had independent planning and optimisation models for production, demand and distribution planning, she says.

The Picaso solution, which is accessible from a Web-based enterprise platform, is an end-to-end planning and optimisation tool that integrates the volume planning of crude, imports, demand, production, distribution and inventory in consideration of economics to generate an optimal sales and operations plan for execution, she says.

“At the outset of developing the solution, we recognised that it was a world-first in terms of the level of integration in the field of supply chain planning technology, as the degree of integration is something that has not been attempted and done successfully before,” Naidoo notes.

WAM Systems

WAM Systems announced in January 2009 that it had entered into a definitive agreement to implement its Picaso supply chain planning solution, in support of Sasol Oil’s integrated supply chain.

Sasol Oil’s operations include the manufacturing, marketing and trading of liquid fuels produced at Sasol’s Secunda facility, and at the Natref refinery in Sasolburg, which it jointly owns with petroleum and oil company, Total South Africa. Sasol Oil’s supply chain also includes its wholly owned retail petrol station network and product storage depots across South Africa.
“We selected WAM Systems’ supply chain solution to support a sweeping business-process excellence programme at Sasol Oil, which is designed to yield superior customer responsiveness and enhance our competitiveness,” says Pieter Basson, who was Sasol Oil supply chain manager at the time the project started.

“Picaso is the cornerstone of an integrated planning framework for demand planning, global supply planning and asset optimisation. We expect our efforts to improve refining margins, lower distribution costs, increase operating responsiveness and enhance our decision-making capabilities.”

WAM Systems CEO Jack Weiss notes that the company is proud to have been entrusted with the task of providing support for Sasol Oil’s programme to establish world-class operations in all facets of the company’s oil supply chain. “We look forward to a long and fruitful relationship with our colleagues at Sasol.”

The project, which is centred in Johannesburg, is supported by WAM Systems’ South African partner, Rifle-Shot Performance Holdings, a provider of operational intelligence consulting and software offerings.

“Whenever projects, such as the Picaso IPS, are undertaken, the aim is to enhance existing operations to meet the needs of customers efficiently and profitably, as they are ever demanding. “This is the general approach across all Sasol’s businesses,” Naidoo concludes, adding that Rifle-Shot will provide continuous support of the solution.