CITGO Refined Products

Supply Chain Solution

Combining R/3, IS-Oil, TSW and BW for an end-to-end solution

Kathy Miller and Whitney Macormic, CITGO Petroleum Corporation

SAP AG 2002, Title of Presentation, Speaker Name 2

Agenda

Introduction CITGO’s SAP “Evolution” Operating Supply Chain Solution The Solution with Supporting Details Questions

SAP AG 2002, Title of Presentation, Speaker Name 3

About CITGO Petroleum

Wholly owned by PDVSA Downstream Only $17 Billion in Revenues 3 owned Light Product Refineries 2 owned Asphalt Refineries 3 Joint Venture Refineries 1,025 MB per day Refining Capacity All Business Units on SAP

SAP AG 2002, Title of Presentation, Speaker Name 4

About CITGO’s Refined Product Group

~ 20,000,000 BBL System 50+ Equity Terminals 350 Exchange Locations 100+ Terminalling Locations 15+ Pipelines used 1800+ Marine moves per year

SAP AG 2002, Title of Presentation, Speaker Name 5

About CITGO’s SAP System

4200 named users ~ 500 concurrent Single Instance, 2.5 TB Database 4.6C Oil and Gas All R/3 Modules except QM All Business Units Initial Implementation 1/98 – 11/99

SAP AG 2002, Title of Presentation, Speaker Name 6

“SAP” Evolution: ‘98 – ‘02

Core R/3+

IS-Oil(Jan ’98)

Traders SchedulersWorkbench

(Jun ’99)

CustomDevelopment(Jan ’98-’02)

BusinessWarehouse(Aug ’01)

“SAP”

SAP AG 2002, Title of Presentation, Speaker Name 11

A Blast from Our Past…

SAP AG 2002, Title of Presentation, Speaker Name 12

The TSW World

Pipeline Nomination Rundown with scheduled delivery Scheduler’s “playground”

Immediate updates to rundown Inventory graph from rundown Marine Nomination

Event Log Scheduling and RVP

SAP AG 2002, Title of Presentation, Speaker Name 13

TSW Nomination

SAP AG 2002, Title of Presentation, Speaker Name 14

TSW Nomination on Rundown

SAP AG 2002, Title of Presentation, Speaker Name 15

Scheduler’s “Playground”

SAP AG 2002, Title of Presentation, Speaker Name 16

Scheduler’s “Playground”

SAP AG 2002, Title of Presentation, Speaker Name 17

Inventory Graph From Rundown

SAP AG 2002, Title of Presentation, Speaker Name 18

Marine Nomination

SAP AG 2002, Title of Presentation, Speaker Name 19

Event Log

SAP AG 2002, Title of Presentation, Speaker Name 20

Scheduling and RVP

SAP AG 2002, Title of Presentation, Speaker Name 21

And that’s TSW at CITGO…(the quick version)

We can honestly say that at CITGO:

his

tuff

orks

SAP AG 2002, Title of Presentation, Speaker Name 22

Business Warehouse Example

SAP AG 2002, Title of Presentation, Speaker Name 23

Inventory Projection Improvement

AS OF MORNING OF LAST DAY OF MONTH

Gasoline – Finished & Unfinished

July 926 MB January 45 MB

August 625 MB February 614 MB

September 1024 MB March 477 MB

October 220 MB April 75 MB

November 292 MB

December 168 MB

Improvement in Process

SAP AG 2002, Title of Presentation, Speaker Name 24

Improvement in Process

Inventory Projection Improvement

AS OF MORNING OF LAST DAY OF MONTH

Distillate

October 107 MB

November 582 MB

December 802 MB

January 241 MB

February 227 MB

March 156 MB

April 65 MB

SAP AG 2002, Title of Presentation, Speaker Name 25

Inventory Projection Improvement

AS OF MORNING OF LAST DAY OF MONTH

Turbine

October 79 MB

November 117 MB

December 274 MB

January 145 MB

February 160 MB

March 5 MB

April 515 MB

Improvement in Process

SAP AG 2002, Title of Presentation, Speaker Name 26

Supply and IT analysts always have the latest technology…

SAP AG 2002, Title of Presentation, Speaker Name 27

Demand Planning

Refineries

SAP Supply Chain Solution: ’98–‘02

Core R/3 TSW

Custom Development

BW

Refineries

CITGO” Terminals

Suppliers/Partners

Information Brokers

Suppliers/Partners

Information Brokers

Demand Planning

“CITGO” Terminals

SAP AG 2002, Title of Presentation, Speaker Name 33

For those of you heading to the beach this summer…

SAP AG 2002, Title of Presentation, Speaker Name 34

Key Success Factors

Commitment from IT & Business Change Management

Communication Power-user Development Training

Decision Making Test, Test, Test Timely and Accurate Data “It ain’t over ‘till it’s over”

SAP AG 2002, Title of Presentation, Speaker Name 35

Famous Quote at CITGO…

“We changed SAP from being a barrier to a tool”.