Petrol Group’s Successful Digital Transformation in Logistics
The Petrol Group kicked off the strategic project “Digitising the Oil&Gas Supply Chain” in 2022 with the goal to digitise, automate and integrate logistics processes. This is one of the Petrol Group’s major digitalisation projects and covers the supply to service stations and sales and distribution of various energy commodities. As part of the project, which was developed over a period of two years, Petrol developed a new logistics platform and an innovative mobile app in cooperation with the partners SmartCargo d.o.o. and Špica International d.o.o. These digital solutions are already in use and will help Petrol step up its operational efficiency and reduce emissions up to 10% per year.
The main goal of the project was to elevate the efficiency and competitiveness of the company, and its final outcomes are multilayered. The new digital solutions will enable the Petrol Group to reduce the costs of fuel and LPG supply, improve operational transparency and gradually transfer from the existing ERP system which is currently based on Petrol’s information system (PIS). Given its increasing importance, cybersecurity was of paramount importance in the designing phase of all new solutions.
The project also has an important sustainability aspect as it contributes to the green transition of the economy and co-creates a sustainable society. According to the Petrol Group, the logistics optimisation will contribute to 121 thousand fewer kilometres per year, saving as many as 129 thousand kilograms of CO2 annually, which accounts for roughly 10 percent less emissions in the energy commodity supply logistics.
The company cooperates with the partners SAP and Deloitte in project implementation. The project’s key software solutions – the logistics platform and the unique mobile app – have been developed by SmartCargo d.o.o. and Špica International d.o.o.
“By digitising and automating the Oil&Gas supply chain, we wanted to set up a systematic and integrated approach to process excellence that logistics must provide as one of the key support services for sales channels at Petrol. Cooperation with our business partners and our ambition have enabled us to develop a state-of-the-art software solution which addresses the issue of leading a cost-effective and transparent processes in various areas. In addition to eliminating technical debt, the project also aims to meet the expectations arising from ESG standards,” said Rok Cizej, Petrol’s Executive Director of Logistics.
In the framework of the digital transformation in logistics, SmartCargo has developed a state-of-the-art logistics platform which automates and optimises energy commodity supply processes. Main improvements of the new solution include reduced workload, fewer errors and faster service provision. Another of the main advantages is the automatic creation of timetables for the distribution of energy commodities, improving employee and vehicle efficiency, reducing fuel consumption and emissions, and going paperless.
Špica has developed a mobile app for digitisation and mobile sales of fuel oil and LPG gas tanks. The app connects LPG supply tankers with Petrol’s logistics system, allows monitoring the situation through all distribution channels and enables digital sales and improved traceability of energy commodity distribution throughout Slovenia.
The total value of the project is EUR 7.4 million, for which Petrol has received funding of EUR 1,457,025 in the framework of the call for tenders “Digital Transformation of the Economy” of the Slovenian Ministry of Economic Development and Technology.
After the final implementation of the digital solutions developed in cooperation with external partners, the Petrol Group plans to implement these technologies on its other markets.
Funded by the European Union – NextGenerationEU
