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Saturday, July 25, 1998

HPCL to shell out Rs 100 crore on ERP package 

Rajita Bansal  
Mumbai, July 24: Hindustan Petroleum Corporation Ltd (HPCL) is planning to spend over Rs 100 crore to implement an enterprise resource planning (ERP) package as part of its restructuring excercise. The amount, which is to be used over a span of three years, will enable HPCL to integrate information technology as a strategic tool in its business lines.

The ERP package will also be supported with a few other information technology (IT) related projects in the areas of marketing, human resources and refineries. According to HPCL officials, the corporation has already issued requisitions for pre-qualification bids. The commercial bids are expected to open by the end of August. HPCL has set up an IT committee which includes the directors of the four newly formed strategic business units, the executive director, finance and marketing and the general manager, corporate planning & projects. The committe could also opt for seperate vendors for different DBUs as log as there is compatibility and integratibility ofall packagaes to each SBU. HPCL, which is being advised by the world's number one consulting firm, Andersen Consulting, has decided to use a best practice-led-implementation approach while choosing the right ERP package. The focus of the new ERP package will be to enable HPCL to integrate information across the supply chain. The corporation also plans to use the package to do proactive management in terms of human resource development. The ERP package is expected to have a seperate human resource management solution built in to undertake appraisals, track organisational structures and maintain a skill inventory of employees.

The new package will also modify the IT systems to record stock loss in a single entry by establishing stand-alone packages like Primavera, Maximo and CAD. As part of the IT initiative, HPCL has recruited nearly 100 fresh engineering graduates from various campuses.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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