Valero Achieves Forecasting and Budgeting Success with SAP BPC on HANA

Valero Achieves Forecasting and Budgeting Success with SAP BPC on HANA

See how Valero partners with TekLink to develop and deliver a robust and value added solution…

About Valero: Valero Energy Corporation, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, petrochemical products and power.

More than 7,500 outlets carry the Valero, Diamond Shamrock, Shamrock and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland.

  • Fortune 50 Company
  • Approx. 10,000 Employees
  • 15 Petroleum refineries with throughput capacity of ~3 million barrels per day.
  • 11 Ethanol Plants with production capacity of 1.4 billion gallons per year.
  • 50 Megawatt wind farm

Business Challenge:

Valero was running SAP SEM which was a 10 year old solution which had been modified over time. But the current version of SEM was not compatible with Microsoft 2013 or with the next release of SAP Business Warehouse.

Valero took a forward looking approach to the compatibility issues and used this as an opportunity seek options to streamline and simplify the forecasting and budgeting process. They also wanted to have a more flexible solution that would cater to the needs of diverse business units.

The Approach:

Working with TekLink, Valero took an in-depth look at the scope of the project and implications. This was more than just a technical upgrade and Valero sought to make decisions that result in maximum value for their business. Instead of completely re-engineering all processes, the decision was made to focus on:

  • Addressing pain points identified in design sessions
  • Taking advantage of new tools and holistic view to make existing processes more automated
  • Utilizing BPC as a repository for financial plan / forecast rather than a replacement for all detailed planning processes

The strategy was to go live with forecast first (smaller number, power users) before the all company budget. This paid off!

TekLink’s Solution:

The new solution was developed to address key pain points identified during the analysis phase of the project.

 

Project Details:

TekLink and Valero partnered with great synergy.

A Target Operating Model (TOM) was used to establish core driving principles for People, Process and Technology to follow throughout the project. Having a TOM to reference helped frame and guide design and build decision making.

By utilizing the TekLink BPC landscape, Valero was able to build POCs in both the standard and embedded models to analyze what was best for Valero.

“Showcase” sessions were planned with the business users to demonstrate the functionality as it was built. This allowed for iteration to ensure the end solution matched the users needs and expectations.

Valero followed a right-shoring model with TekLink that provided the desirable balance of best quality, flexibility and cost of project execution.

Project Success:

Valero’s goal to have a robust forecasting and budgeting solution utilizing BPC is successfully realized with TekLink’s solution and project execution. And their users love it!

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