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