Petrolsoft Corporation Chosen to Manage Amoco's Supply Chain.
Amoco turns to industry-specific solution to reduce inventory levels and secondary transportation costs
Petrolsoft Corporation, the world's leading provider of integrated supply chain management systems for the retail petroleum industry, today announced that Amoco Corporation (NYSE:AN) has selected the Petrolsoft technology to manage its U.S. supply chain. The implementation of Supply, Petrolsoft's automated inventory management and scheduling software, gives Amoco the power to forecast customer demand, optimally schedule the distribution of product, and comply with "Year 2000" (Y2K) information technology standards.
Petrolsoft Supply gives Amoco, and the independent network of Amoco dealers, the power to predict the public's demand for its fuel products on a daily basis. Resolving the Y2K problem in the short term, it is expected that the switch to Petrolsoft will also result in a significant reduction in inventory and secondary transportation costs for Amoco in the long term.
"We are thrilled to be working with such a high-quality organization like Amoco," said David Gamboa, president of Petrolsoft Corporation. "Petrolsoft's core competency is in making business easier and more productive for retail petroleum companies, and we are pleased Amoco has chosen Supply to streamline its distribution process."
After contacting several vendors to discuss their products' functionality, Petrolsoft, along with Manugistics, developers of Amoco's previous supply chain system, were selected to participate in a pilot test at an Amoco distribution terminal. When the results of these tests were compared, Petrolsoft was selected as the best fit for Amoco's current and future supply chain requirements. Testing of Supply demonstrated the greatest potential for reduction of inventory levels and secondary transportation costs.
Supporting Amoco's motor fuel supply logistics process, Supply combines state-of-the art technology with an easy to use interface. The system Amoco is replacing is a proprietary dispatching system and is heavily dependent upon a mainframe environment and did not offer the use of current Graphical User Interface (GUI) technology. Supply's client-server architecture includes a Windows-based GUI, resulting in an easy-to-use environment for bulk petroleum distribution. A de-centralized system, Amoco's dispatchers are located throughout the U.S. This allows dispatchers to be very familiar with the site and location-specific events that may impact the product forecast. Supply will be implemented as part of Amoco's standard computing environment and will be accessed by the dispatchers through the existing Wide Area Network (WAN).
Supply allows a supplier to provide better customer service and ensure product availability for consumers. Consisting of two related algorithms that work independently or together, Supply forms the most advanced automatic stock replenishment and truck scheduling system for bulk, surface petroleum supply and distribution. Every day, Supply gathers sales and inventory data from station sites and automatically generates future orders with balanced quantities and suggested time of delivery.
Supply's Automated Stock Replenishment (ASR) module transitions the traditional supply chain from a "take order" environment to a "make order" environment. Collecting daily sales and inventory information from each franchisee, Supply automatically forecasts future replenishment requirements.
Amoco Corporation (NYSE:AN, www.amoco.com) is a global producer of oil, natural gas, refined products and chemicals, with annual revenues of more than $36 billion in 1997. Amoco is a leading marketer of quality gasolines, supplying some 9,300 retail outlets in 38 states and Washington, D.C.
Headquartered in San Diego, Petrolsoft Corporation is the leading provider of integrated supply chain management systems for the retail petroleum industry. Founded in 1989 at Stanford University, Petrolsoft has grown into the most successful and profitable private software and consulting firm for retail motor fuel distribution. Focusing exclusively on the supply and distribution of bulk refined fuel products including motor gasoline, distillates, kerosene and jet fuel, there are four basic types of customers for Petrolsoft technology: integrated oil companies, oil refiners, oil marketers and oil carriers. Current customers include Mobil, Ashland/Marathon, Amoco Products Company, Sun Refining & Marketing (Sunoco), Chevron Canada Limited, Ultramar Diamond Shamrock, Getty Petroleum Corp., YPF SA (Argentina) and AMPOL/Caltex (Australia). For more information on Petrolsoft and its technology, visit www.petrolsoft.com.
CONTACT: The Townsend Agency Michelle Balconi, 619/457-4888
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|Date:||Aug 10, 1998|
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