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Refining is an important step in increasing the value and profits of petroleum enterprises, as well as enhancing their competitiveness. How can enterprises undergo digital transformation
Digital Refining: An Accelerator for the Transformation of the Refining Industry
In recent years, with the rapid development of China's economy, the demand for petroleum has significantly increased. In order to meet the increasing demand for petroleum processing products in China, China has accelerated the construction of refining capacity and structural adjustment. According to data from the National Bureau of Statistics, from the perspective of production capacity, in 2019, China's oil refining overcapacity became increasingly severe and there was a trend of expanding towards the lower end of the downstream integrated refining and chemical industry. With the rise of private enterprises and the entry of foreign investment, domestic refining and ethylene capacity has entered a new round of rapid growth channels. Data shows that in 2019, China's total refining capacity increased to 860 million tons per year, and the excess refining and chemical capacity became increasingly severe. The transformation and upgrading of petroleum enterprises is also urgent.
Refining is an important link in increasing the value and profits of petroleum enterprises, as well as enhancing their competitiveness. At present, the new generation of information technology represented by artificial intelligence, mobile internet, Internet of Things, cloud computing, big data, etc. is accelerating breakthroughs and applications. In response to the new trend, refining enterprises are strengthening the integration of refining and chemical, large-scale and large-scale development, and diversified energy and resources. At the same time, they are also increasingly aware of the importance of digital transformation to improve the efficiency of refinery production experience and work efficiency, More and more enterprises in China's refining industry have also participated in the process of digital transformation and upgrading.
Interpreting the "pain points" in the refining industry
According to industry research and analysis conducted by domestic enterprise digital service provider SiE Information over the years when providing digital transformation services for refining enterprises, the traditional refining industry mainly has the following industry pain points in terms of enterprise production, management, and operation:
Market data and internal supply and demand information mainly rely on manual acquisition, which is inefficient. Communication/collaboration with suppliers lacks platform support, is fragmented and cannot be monitored/accumulated/analyzed, supplier evaluation lacks standards and basis, and procurement predictions are not accurate enough;
The development of production plans across departments is mainly based on personal experience, with a long cycle and significant challenges in terms of plan accuracy and excellent conditions. The production and manufacturing process also lacks effective data sharing and integration, resulting in poor information transmission and affecting the accuracy and efficiency of the plan;
The equipment preventive planning system lacks real-time and accurate equipment status information support, and there is a lack of effective real-time monitoring tools at the source of safety and environmental protection, which cannot provide timely warning and forecasting. There is no comprehensive quality inspection data management and release tool, and the trend analysis of quality issues and reasonable suggestions for process improvement need to be strengthened;
Without a shared and comprehensive information query pathway, financial analysis is difficult, and financial business data is scattered, unable to meet the integrated management of financial business. The construction of risk control is mainly based on manual identification and control, and the construction of a comprehensive risk system needs to be improved;
Sales activities and order promotion lack high-quality data services and tool support, and due to information gaps in various stages of contract delivery, it is difficult to track the product delivery process. The pricing decision-making process is complex and variable, and it is difficult to obtain effective information in a timely manner for pricing in various business processes;
Supply chain management has experienced gaps in the logistics process, lacking data sharing and interaction with supply, marketing, and finance, making it difficult to form collaborative integration, low efficiency, and excessive duplication of labor; The collaboration and management methods of service providers are relatively traditional, with high difficulty in management, ineffective utilization of resources, and difficulty in controlling costs; The logistics process is not transparent and effective logistics information cannot be obtained in a timely manner.
The 'Digitalization Path' in the Refining and Chemical Industry
Digital refineries are the use of new generation information technology to establish a smart supply chain and logistics management system from crude oil procurement, transportation, refining production, warehousing and logistics to sales, achieving global optimization of refineries, reducing production management costs, and achieving collaborative and efficient operation. SiE Information has been immersed in the refining industry for many years and provided corresponding digital services. The digital construction of the refinery mainly revolves around four points:
Full process risk control to reduce operational risks
Innovate business models and increase profitability assurance
Refined system, precise decision support
Consolidate intelligent manufacturing and improve core competitiveness
By developing implementation solutions for the supply chain, planned operation, financial management, human resources management, logistics storage and transportation, smart marketing, and other aspects of refining enterprises, SiE Information has created a "comprehensive solution for digital transformation of petrochemical enterprises", empowering refining enterprises to achieve full process optimization, rational utilization of resources, and optimization of value, comprehensively improving efficiency, reducing costs and increasing efficiency.
The "Digital Pioneer" in the Refining and Chemical Industry
Fuhai Group: Enterprise digitalization and digital operation and maintenance teams advancing together
The cooperation between Fuhai and SiE Information has been piloted as an ERP project by the Fuhai Chain Project since 2015, and comprehensive strategic cooperation began in 2016. Fuhai Group plans to comprehensively and effectively integrate enterprise resources through the implementation of informatization, so as to effectively unify the internal logistics, information flow, and capital flow of the enterprise. Establish an information system management platform that covers the entire company's business management, in order to standardize the business processing process and establish a reasonable organizational position system in the production and operation process; Solve the processing and analysis of data and information in business aspects such as production and operation management, high integration of production planning and processing solutions, heavy asset management and maintenance, material supply, sales, quality, cost control and accounting of single equipment, and business decision analysis, to achieve the requirements of information integration and sharing.
After nearly 5 years of long-term cooperation, the digital construction of Fuhai Group has achieved significant results:
·Unified planning and distributed implementation, with a focus on data sharing and process integration, greatly improving business processing efficiency, and establishing a cross checking relationship between business data and financial data, making the data more authentic and trustworthy;
·By leveraging information technology capabilities, we assist Fuhai in improving supply chain efficiency for supply chain business integration, continuously building data collaboration between customers at both ends, and ensuring supply and demand balance;
·Promote a new marketing model, integrate various systems in the marketing hall, improve customer service quality, and accelerate the settlement speed of the marketing hall;
·Effectively implementing risk control systems into the system and strengthening business process control;
·Tailored for the most suitable implementation methodology, with a focus on talent selection and cultivation. Accompanying the implementation of intensive projects, Fuhai has cultivated a management innovation team that can provide effective support for subsequent Fuhai management innovation.
Jingbo Holdings Group: Digital Economy Driving Financial Business Integration
In 2010, Jingbo Holdings Group was in a period of rapid business development, and the existing financial system could no longer meet the requirements of the group's business control. Therefore, it was decided to pilot the implementation of Oracle EBS in Jingbo Holdings and Petrochemical companies. After a year of implementation and stable operation, it was successfully put online. Realize financial business integration, financial decision support, standardize business management, and achieve control requirements.
Since 2012, with the rapid development of new information technology, Jingbo has attempted to use informatization to promote business model innovation, achieving centralized procurement of spare parts and materials, and intelligent logistics; Extend the development of the supply chain by building e-commerce and e-procurement platforms on both wings; Strengthen business execution control by implementing MES, real-time data, and device management.
Since 2014, Jingbo has been integrating data and processes between various business systems, improving and optimizing system applications; On the other hand, with the emergence of mobile, big data, and cloud application technologies, the in-depth application of business intelligence has led to innovation in business management and business models, achieving deep integration between business systems, tapping into information potential, and providing comprehensive decision support.
Through strategic cooperation with SiE Information, we have established a multi organizational system architecture that meets the management model and accounting requirements of Jingbo Holdings, as well as a multi-level management structure for financial and business data consolidation.
The refining industry is one of the pillar industries of our economic and social development and an important cornerstone of the real economy. With China's economic development entering the new normal, the refining industry is facing many problems and challenges. The insufficient digital construction has become a major obstacle to the development of China's refining industry. How to accelerate the digitization process of the refining industry through the new generation of information technology has become an industry consensus.
