Executives at Petrobras knew that their maintenance repair and operations (MRO) and investment materials supply chain could be more efficient. The Brazil-based oil and gas company, one of the largest in the world, has a highly complex MRO supply chain with hundreds of thousands of SKUs, thousands of suppliers, and hundreds of business units. In order to evaluate its MRO and investment materials inventory management, Petrobras joined ASCM in 2019 to develop a pilot project for the Enterprise Certification for Sustainability Standards. This culminated not only in the certification of its MRO and investment materials supply chain, but a list of improvement opportunities that could be resolved through a Transformation and Learning Program (TLP).
With success in the short-term, the team is now ready to face some of the long-term gaps and issues to continuously improve their processes over the next three years using the concepts from SCOR and additional individual certifications from ASCM.
First, the team has started to implement the Sales, Inventory & Operations Planning (SIOP) methodology applied to MRO demand planning into business units. In addition, they are working to change the culture in Petrobras from one of ordering on demand to one of analysis and planning, basing decisions on data.
Overall, supply chain managers at Petrobras are optimistic about having achieved many of their objectives so far and are looking forward to making further changes.
“ASCM was fundamental in Petrobras’ transformation because they were able to bring an outside opinion about our business,” added Furtado. “Their expertise and experience helped Petrobras realize that its inventory management, procurement and logistics departments should have an active role in defining, controlling, and improving the whole planning process.”