The African continent is blessed with a vast amount of natural resources. One of them is the liquid gold known as crude oil.

The downstream industry is one of the major drivers of the economic growth in most African countries; it creates job opportunities, contributes immensely to the gross domestic product (GDP) and brings in the most revenue when it comes to export. The downstream oil and gas industry is not only an important part of the African economy, but it is also a source of energy resources, which is used for generating electricity, heating and transportation.

However, the industry is rife with numerous operational challenges that hamper its development and growth. These challenges can be tackled with ERP solutions, but not just any ERP solution.

In this article, you will discover how ERP solutions can maximise operational efficiency in the African downstream sector and which ERP solutions are the best fit for the task.

Read on to find out.

The major oil-producing African nations – Nigeria, Algeria and Angola – get a larger portion of their export revenue from the downstream industry. Thus, many African nations are heavily dependent on crude oil and natural gas as a source of income. The downstream sector of the oil and gas industry is concerned with what happens after the exploration and production of natural gas. Its focal point is refining, storing, marketing and distributing petroleum products such as gasoline, diesel, kerosene, etc.

Although the industry contributes immensely to the economic growth of African countries, there are some deficits and challenges that have made it difficult for businesses to grow to their optimum potentials.

Some of the problems that have hampered the development of the industry are poor and inadequate infrastructure, pipeline vandalism, fluctuating commodity price, and insecurity amongst others. To stay ahead of competitors and experience operational ease and efficiency, businesses in the downstream industry need to adopt ERP solutions in their business operations.

Enterprise Resource Planning (ERP) solutions for downstream maximises operational efficiency, thereby reducing costs and streamlining processes.

But first, let’s take a closer look at the challenges facing the industry.

Challenges Facing the Downstream Industry

Top on the list of the challenges of running a successful downstream business in Africa is the absence of high-capacity refineries in most African countries. Without the crude or raw oil being refined into finished products such as gasoline, diesel, and other petrochemical products, it cannot be used in its raw form.

Unfortunately, only a handful of African countries such as Algeria, Egypt, Libya, and a few other African nations own a functional refinery with a large capacity.

In 2021, it was recorded that Egypt had the largest oil refinery capacity among the African nations. Algeria and Libya also had a refinery capacity of 677,000 and 634,000 barrels per day respectively. Due to the lack of adequate functioning refineries, most African countries refine their crude oil overseas and purchase the finished product at foreign rates and as a result of this, there are no fixed prices for petroleum products in Africa.

Another major problem the African downstream industry is battling is irregular power supply which disrupts the activities in the refineries. This has had an adverse effect on the quality and quantity of petroleum products that are being produced. Even more, pipeline vandalism has led to significant economic loss for businesses and some deaths and accidents have been recorded because of this. This has not only hindered the growth of the industry but it has made it difficult for the growing demand for petroleum products to be met. Besides, most of the infrastructure in the downstream industry are outdated, and working with these poor infrastructures inhibits workflow and descends to inefficiency.

Furthermore, the high rate of insecurity in the remote places where most of the downstream sites are located have discouraged foreign investors from financing downstream projects. Those who were bold enough to set foot on the shores of Africa have experienced hostility from community and youth leaders, rebels and militant groups.

Other crucial challenges facing the downstream industry are ineffective regulatory policies, irregular power supply, poor technological infrastructure and a terrible network of roads.

All of these challenges have contributed to operational inefficiency in the downstream industry. Undoubtedly, the downstream oil and gas industry plays a vital role in shaping the African economy. As mentioned above, to enhance efficiency, businesses in the downstream industry need to adopt ERP solutions for their business operations.

How to Maximise Operational Efficiency with ERP Solutions

There are several complex operational processes in the downstream industry, such as sourcing crude oil, refining it, storing the product and retail distribution. All of these interdependent processes come with their unique challenges which can be time-consuming and costly.

As an African business in the downstream oil and gas sector, you are likely facing the aforementioned challenges, and in need of a customised world-class solution to help maximize your operational efficiency.

We have developed an ERP suite, custom-built for African businesses to overcome operational challenges. RockEye ERP is an in-built centralised solution suite that enables businesses to automate operational processes, thereby improving efficiency.

The best support any business can have is RockEye’s ERP which has been designed to meet the needs of businesses and provide customized solutions to optimize their business growth.

Here are some of the ways businesses can enhance their operational efficiency with RockEye’s future-oriented ERP solutions:

Harnessing the Power of Automation

The power of automation is mind-blowing. Imagine being able to automate all operations in your business, from the sales department to finance, customer service, inventory and other important functions which your business’s survival depends on. That’s the power of automation, it enables tasks to be performed without human intervention. Automation reduces time spent on projects, reduces errors and improves productivity.

Having Access to Real-time Data

Business owners need to be on top of everything that goes on in their chains of businesses to enable them to make informed decisions that will sustain the company’s growth. With RockEye’s ERP solutions, businesses can have access to analytical tools that will provide them with live data from different sources.

For example, you don’t have to travel to remote areas where your plants are located to have information about your production line and neither do you need to visit other departments in the organization to get the information you need.

Our ERP software provides you with the luxury to just look at the system and you will have myriads of data-driven information at your disposal. Backed by such powerful data, you can make decisions that will help you stay ahead of your competitors and improve your revenue.

Effectively Managing the Supply Chain

Procurement and goods delivery is a crucial aspect of the downstream business as the competition is tough, so businesses need to stay on top of their game. Our ERP suite has inventory solutions that can identify products that are in high demand and need to be restocked.  Specifically, our ERP solutions can be used for production and demand planning and this will help the manufacturing department determine when to increase their production capacity.

Inventory Management

Running out of stock and poor warehouse management will be a thing of the past when businesses leverage RockEye ERP solutions. The systems provide accurate inventory data which helps organizations to have better control over the procurement, logistics, and financial aspect of their business. By keeping track of inventory levels, businesses can improve the services provided to customers and reduce production delays.

 Accurate Bookkeeping and Less Paperwork

This is a significant function that simplifies all the financial processes, including cash inflow and outflow, auditing, purchases, sales, debts, tax payment and payroll management. With this information in one place, there would be no need for paperwork. It also improves transparency and exposes discrepancies in the financial records.

Conclusion

Maximising operational efficiency in the downstream oil and gas industry is important for businesses that desire to optimise growth and overcome the challenges in the industry. Therefore, businesses need to leverage the power of automation and ERP solutions. That is the only effective way to achieve operational efficiency.

RockEye has proffered a solution for the pain points of downstream businesses in Africa and is enabling them to have real-time views of their business, improve efficiency and achieve their business goals.

RockEye’s ERP for downstream oil and gas is built to enhance multi-business operations; customer management, maintenance management, automated retail management, asset management, etc. Our solutions are easy to implement, affordable and flexible. We also offer offline support so your workflow is never disrupted.

You can join the list of high-achieving downstream companies in Africa who have partnered with RockEye.

Visit our website today: https://RockEye.africa/