Streamlining of Lanka bulk depots' stock planning

Abstract

Petroleum has been used since ancient times, and is now important across the society. As the world continues to industrialize rapidly, demand is increasing day by day. At the same time unit cost ofpetroleum products also increasing very frequently. Even though CPSTL has been automated recently using SAP ERP system, stock planning has not been utilized yet. Therefore, delays in product delivery, over/under scheduling, lack of monitoring/ control mechanisms, damage of company prestige, creates windows for various malpractices/congestion, unnecessary costs incurred, improper utilization of resources is experiencing currently. As a result, CPSTL may lose its power offuel storing and distribution. These problems were brought up by many proposals, including the ‘Chief Internal Audit’ report in many occasions. Clearly, the stock planning for island wide LBDs' has to be addressed as a top priority issue, since it affects CPSTL as an organization. To address the above issues, stock planning for the bulk depots can be improved by the utilization of ERP system. That is, the stock planning should be carried out while considering the storage capacities, available space, expected sales for the day and various other factors with respect to the depot. Bulk depots have to be replenished with respective materials while satisfying the demand without over scheduling. I believe that, the stock planning for the bulk depots can be enhanced by the utilization of ERP system concerning the system took over as of now. This will improve operational efficiency, reduce information delays and errors, satisfy the island wide demand, speedup stock transfers, improve customer service and improve overall productivity.