Case Study 
Tesoro Petroleum

Services: eStrategy Planning
  • Pono Group provided strategic assessment and planning of enterprise E-Strategies for Tesoro Petroleum’s North American operations, directed towards optimization of enterprise business models and processes, translation of the enterprise business model into ‘new economy’ strategies, and identification of opportunities and revenue streams that are attuned to enterprise strategies and objectives. Strategic planning initiatives addressed enterprise web architectures, B2B/ B2C, enterprise workflow, knowledge management, information warehousing and enterprise strategies for SAP web enablement.

  • Enterprise assessments outlined measurable return-on-investment through:

    • Identification of Quick Wins and opportunities to drive measurable value to the enterprise.

    • Alignment of enterprise business strategies, and identification of opportunity areas and revenue streams across the enterprise.

    • Assessment of business drivers and strategic initiatives in upstream and downstream sectors.

    • Development of enterprise strategies in five focus areas:

      • Customer Relationship Management

      • Supply Chain Management

      • Material Resource Operations (MRO)

      • Investor Relations

      • Internal Operations Optimization

  • ROI Evaluation, Business impact and risk evaluation for all identified opportunities.

  • Leveraging investments in ERP and infrastructure.

  • Cohesive strategies for enterprise web architectures, intranet/extranet enablement

  • Leveraging web technologies for Customer Relationship Management, investor relations, and enterprise branding

Pono Group engaged Tesoro’s eStrategy and business teams as primary stakeholders in assessing ROI, business impact, risk management, and business transformation. The strategic assessment identified, evaluated, and prioritized over 100 opportunity areas, and delivered a strategic Roadmap and Business Case Analysis to Tesoro’s eStrategy teams and Board of Directors as strategic business opportunities. The Roadmap outlined strategies to leverage Tesoro’s market and operational strengths, align and streamline end-to-end business processes, leverage IT investments in ERP, and identified emerging markets and strategies to capture new revenue streams.

Tesoro Petroleum Corporation is a rapidly growing independent energy company headquartered in San Antonio, Texas, with 1999 revenues of $3 billion. Tesoro is the second largest independent refining and marketing company in the western United States.

Tesoro operates three refineries in the western United States, Alaska and Hawaii. Pono Group partnered with Tesoro for development and implementation of a complete MRO (Maintenance, Repair and Operating Supplies) supply chain solution utilizing SAP R/3.

The supply chain solution encompassed the following:

* Designing, developing and implementing a fully integrated procure-to-pay process for MRO materials.
* Designing, developing and implementing a fully integrated warehousing and inventory control system for MRO materials.
* Developing and implementing an education and training solution to utilize the employee force as part of the supply chain solution.
* Integrating the MRO supply chain solution with the plant maintenance solution

Pono Group played a leading role in both the project management and technical consulting areas on the project. The MRO supply chain solution has been successfully deployed in all three refineries and has been operational for more than a year. Pono Group continues to play a leading role in providing continuous process improvement services to Tesoro for the MRO solution.

Tesoro Petroleum markets motor fuels through retail outlets in Alaska, Hawaii and the Pacific Northwest, in addition to wholesale, bulk, jet and marine fuels to the aviation and shipping industries, fuel for electric power generation, and liquid asphalt. Tesoro Petroleum has the largest network of branded retail gas stations throughout the state of Alaska and is a primary supplier of jet fuel to the major trans-polar and trans-Pacific aircraft traffic route going through Anchorage.

Tesoro owns and operates a complex, high-conversion refinery in Washington and is aggressively expanding retail markets in the Pacific Northwest where they currently leverage more than 40 dealer operated branded retail stations in Washington and Oregon.

Pono Group partnered with Tesoro for the development and implementation of a complete Supply Chain solution for the Marketing and Distribution of petroleum products utilizing SAP R/3.

* Design, develop and implement a fully integrated procure-to-pay process for crude oils, feedstocks and refined products for resale.
* Design, develop and implement a cost management solution for product laid-in costs.
* Design, develop and implement a fully integrated inventory tracking, scheduling, distribution and control system for crude oil, feedstocks and refined products using trucks, pipelines, barges, vessels and other related mode’s of transport.
* Design, develop and implement a fully integrated solution for handling and managing of terminating agreements
* Design, develop and implement a fully integrated executive information system

Pono Group played a leading role in both the project management and technical consulting areas. The Marketing and Distribution supply chain solution has been successfully deployed and operational for more than a year. Pono Group continues to play a leading role in providing continuous process improvement services to Tesoro for the Marketing and Distribution solution.

pono group-logo-web-word.jpg