Third-largest LPG Retailer in Brazil Implements SAP - Case study

Supergasbras uses SAP SDM throughout the country for forecasting, distribution and process automation

Supergasbras has done it: the Brazilian LPG retailer migrated its logistics IT from obsolete insular solutions to a modern SAP landscape with automated processes throughout the country. The roll-out was successfully conducted with no interruption or impairment of day-to-day operations. With SAP SDM (Secondary Distribution Management), the downstream company has optimised its logistics processes and now receives precise forecasts on future consumption.

Supergasbras has done it: the Brazilian LPG retailer migrated its logistics IT from obsolete insular solutions to a modern SAP landscape with automated processes throughout the country. The roll-out was successfully conducted with no interruption or impairment of day-to-day operations. With SAP SDM (Secondary Distribution Management), the downstream company has optimised its logistics processes and now receives precise forecasts on future consumption.Supergasbras sells 1.5 million tonnes of LPG per year, making it one of the leaders on its home market in Brazil. The company delivers gas cylinders of various sizes to over ten million households in the country and fills the stationary tanks of over 40,000 commercial and industrial customers. Supergasbras uses its own fleet of 680 gas trucks for deliveries to the tanks and dealers, while distributors deliver to households using more than 2,500 vehicles.

The company`s business volume has doubled in size since Supergasbras introduced its first ERP solution in the late 1990s, not least thanks to the takeover of its competitor Minasgas and the establishment of a central logistics department. This pushed the software components of the time, connected via interfaces, to their limits. By the end, they covered just 50 per cent of the processes, with the other half being conducted manually or only semi-automatically. “We decided to look for a new, homogeneous solution in order to create a stable foundation for future developments,” explained Marcus Falcão, CIO at Supergasbras. Among other features, the solution needed to offer comprehensive analysis tools, full process automation and the option of mobile use. The technology also needed to be accessible via the cloud.

SAP: standard solution with minimal need for customisation

Marcus Falcão and his project team considered various solutions. Their aim was to introduce an established standard software with a wide range of process solutions and only little need for individual developments. The system also needed to be able to cope with the particular features of the Brazilian tax system, such as the Nota Fiscal. They finally opted for the SAP full solution, consisting of SAP ERP and the downstream logistics solution SAP SDM.

SAP SDM provides efficient administration and automation of the entire process chain, from order entry to transport planning and invoicing, including automatic handling of all processes in the SAP system based on the feedback data from the trucks. For example, the system books all material movements fully automatically, creates new orders and modifies existing ones. The forecasting process CPR (Continuous Product Replenishment) ensures reliable deliveries to customers. Depending on the requirements, the customers` consumption is calculated and predicted based on the previous delivery history, parameters such as the weather or any other method, and the relevant orders are generated. A number of options are possible, including delivery at fixed intervals and automatic generation of mailshots for all customers or specific customer groups.

The big SAP project at Supergasbras began in 2014 with the analysis of all business processes. Supergasbras then commissioned a Brazilian IT company to conduct the introduction of SAP, while the experts from the Implico Group supported the implementation of SAP SDM.