Digital transformation of oil and gas trade and logistics processes

The daily challenges faced by oil & gas companies are greater than ever before. Successful companies are constantly working towards the following goals to secure their long-term future:

  • Process automation – reducing manual work, concentrating on core competencies
  • Customer loyalty – being flexible, enhancing service
  • Increase in efficiency – remaining cost-efficient

SAP S/4HANA Oil & Gas for Secondary Distribution Management (SAP S/4HANA SDM) is a programm package for oil and gas downstream companies of all sizes. This industry-specific software package offers functionalities for the efficient management and automation of the entire process chain for trading hydrocarbon products. In this field, SAP S/4HANA SDM supports all fuels, lubricants and gas-related business processes: wholesale, resale, industrial, consumer and service station.

SAP S/4HANA SDM integrates all processes in the SAP system – from demand forecasting and replenishment through sales and scheduling to automatic confirmation and posting of data. The solution’s focus lies on high-performance communication with transport firms, tank farms and refineries as well as the company’s own fleet.


SAP S/4HANA SDM key capabilities:

  • Logistics Automation
    Automate end–to-end processes for supplying from tank farm to the end consumer
  • Demand Forecasting and Replenishment
    Manage the auto-replenishment of tanks using consumption forecast
  • Order Management
    Fully integrated order management and central working basis for sales
  • Truck Scheduling and Dispatch
    Improve the usage of your truck fleet with easy-to-use graphical dispatch and route optimization

SAP S/4HANA SDM: One package – all functionalities

Based on the SAP industry Solution Oil and Gas (SAP IS-Oil), the package provides additional functionalities for order placement, an easy to use graphical planning and disposition board for truck scheduling and logistics, and applications for delivery fulfillment. Configurable interfaces ensure easy integration of external systems and partners. The process automation tool reduces manual activities and ensures a consistent integration from logistics to finance.

The automation tool Process Orchestration utilizes SDM’s Process Automation Tool. It enables to post and manage an infinite number of differently designed processes in the SAP system – fully automated and in one step. With a series of well-designed and user-friendly Fiori apps, operators can perform their tasks quickly, efficiently and comprehensibly.

Order management with SAP S/4HANA SDM

SAP S/4HANA SDM improves the order management and provides a central basis for the sales activities. Orders, inquiries, quotes and contracts can be entered quickly and efficiently. The sales manager always has an overview of all important customer data and other details. The solution guides him through the process smooth and easy. The list of supporting functionalities for the sales department includes phone integration, credit control, CRM activities and notes, the connection with purchase contracts and stock levels, and much more.


The SDM functionality "Integrated Dispatch Management" enables efficient dispatching and transport planning. Due to the special advantages it offers, SAP has included the UI5 app in its selection of "SAP Fiori Lighthouse Scenarios in SAP S/4HANA Cloud and SAP S/4HANA". 



SAP Secondary Distribution Management for Oil & Gas (SAP SDM) is available as S/4HANA or Business Suite version.

In 2019, SAP and Implico added the business processes for SAP S/4HANA SDM to the official SAP Model Company for Oil & Gas. This SAP Model Company offers a ready-to-run, comprehensive reference solution that supports industry and core line-of-business processes across the value chain. 

SAP S/4HANA SDM consists of:

CPR – Continuous Product Replenishment
IDM – Integrated Dispatch Management
DC – Data Collation

Business Benefits of SAP S/4HANA SDM

  • Simplified and optimized automated processes
  • Improved customer service, higher customer satisfaction and loyalty
  • Transparent and accurate dispatching
  • Improved utilization of assets
  • Flexibility and fast response times
  • Reduced logistics costs and optimized inventory levels
  • Improved overall cost-efficiency based on better decision-making aids and resource utilization
  • Less effort required to handle the order to cash process

"Our order processing efficiency and accuracy for Authorized Dealer business has improved over 50 percent, since the portal was introduced. We've been able to speed up the order management processes, improve order accuracy, while making a marked reduction in administrative costs. As a result, we've achieved exactly what we set out to do.”

Tom Rossiter
Head of IT, Topaz Group

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Learn more about digital transformation with SAP S/4HANA Secondary Distribution Management for Oil & Gas!

We would be delighted to answer your questions about SAP S/4HANA SDM and its innovative functionalities.

Questions?  Contact us.

 Success Story Supergasbras
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