PT Baruna Raya Logistics is taking big steps to provide the best services to its customers. One is adapting a top-notch business enabler system.
Transformation! That is the next big thing that PT Baruna Raya Logistics (BRL) wants to achieve. The Indonesian shipping company focusing in Offshore Support Vessel Business (OSV Business) dubs its transformation project as the Big Trans Project, reflecting its importance for the company.
BRL is a company with long history. Founded in 1974 as a foreign investment company, it turned entirely into a local company in 1984. “We started with 30 vessels, with U.S. and Panama flag ships. But now, all our fleets are Indonesian flag ships,” says Bambang Ediyanto, President Director of PT Baruna Raya Logistics.
BRL currently have a total of 50 vessels, each with a specification and function that meets with the needs of oil and gas companies. This is inline with BRL’s business specialization in transportation and logistic for oil and gas companies.
There are three types of ships managed by BRL: Crew Boat, people carrier used for crew exchange and rig-to-rig transportation; Utility/Supply Vessel, to transport drilling equipments and tools & equipments for the rig; AHTS &AHT, used to transport production and exploration equipments and to transport fresh water, fuel, chemical, and mud and also for rig move. The last also serve as fire fighter boat.
Unlike other logistic marine companies that serve port-to-port routes, BRL vessels are workboat that carries equipments and people from port-to-rig, rig-to-rig, or rig-to-port.
As a service company, BRL is fully aware that trust is a crucial factor for the company success. “To be the best company that provides the best vessel, the best system is also important,” says Ediyanto.
BRL applies high standard for its operation with ISO 9001:2008 certified byISOQAR 2008, OHSAS 1801 & ISO 14001, and IMCA certified. These efforts to deliver the best services with the highest standards had resulted so many awards for the company, including the ones given by clients like PHE ONWJ, Chevron Indonesia, Premier Oil, ExxonMobil, Medco E&P, and ConocoPhillips.
Shipping business, Ediyanto says, cannot be managed recklessly. Everything has to be measured and inline with the rules and regulation related with the highest safety standard and working standard, which is not easy to achieve because the complicated elements in a vessel operation. “If there is one requirement that cannot be complied, the consequence is huge. The ship cannot be operated; not considered seaworthy due to safety reason, or given the permit to alongside the rig/station,” says Ediyanto.
Ediyanto explains the company focuses on three main things to assure service quality. First is the crew, there are 10 to 15 crews that operates each of BRL’s vessels and everyone is certified for their skills. “We have to maintain their data, what kind of certification they have, the expiry date of their certificates and so forth. This will make it easier for us in managing our human resources,” says Ediyanto.
Second, it is the vessel certification itself. To obtain seaworthy permit, a vessel has to meet several requirements and certification. The data should be possessed and well acknowledged by the management. It is possible that any ignorance on this matter could create great losses such as the vessel is declared not seaworthy or not allowed to alongside the rig/station.
And third is the Plan Maintenance System. “Each ship carries several equipments, from the main engine,auxiliary engine,pump, and etc. We have to know for sure the entire ship condition and the equipment it carries. We need to have the data on when the vessel and the equipment have to get maintenance. If the ship is docking, what needs to be repaired? We must have clear historical record of maintenance. We don’t want to later found out that there is damage we have to fix after the ship sails, it cannot be done that way. That is why the plan maintenance system is important,” says Ediyanto.
To manage all those important things, BRL relied on their own IT system called BarunaNet, a web based application to file on necessary data. Later, BRL feels that a mature and reliable system is needed for the going concern of the business and to become a business enabler as well.
PT Baruna Raya Logistics then decided to use the SAP Business All in One. “There were many options, but we picked SAP. We saw that the system has a good reputation and proven in various industries like banking and others,” says Faisal Nur, CFO at PT Baruna Raya Logistics. The reputation suits with SAP tagline: The Best-Run Businesses RUN SAP.
This transformation from the company previous system to SAP is what they called the BIG TRANS Project, a huge step to achieve bigger goals.
Changing the Mind-Set
SAP Business All in One implementation in BRL went fast and smooth. It began in June 2014 and go live in November, Ediyanto says there were no big problem during the implementation. Moreover, all of the stakeholders were enthusiastically support the transformation.
The SAP Business All in One implemented by PT Baruna Raya Logistics have five modules, which are Financial Accounting, Cost Management, Purchasing and Inventory, Sales Management, and Plan Maintenance, with 39 users. With SAP Business All in One, the old non-integrated system now becomes the new integrated system that helps management in doing their managerial functions.
“The difficulty that came by during the initial phase of the implementation is with the employee’s mindset. This is understandable due to changed into SAP is not only change the ERP system but also change the business process and as a consequence change the SOP,” Ediyanto says.
However, the problem was easily addressed. The company’s top management never quit to give motivation to their employees and cleared out that SAP will make their job easier for employees and the management.
“We gave them the motivation, day by day. I told them that at the end it will make our job easier and for our own sake. I assured them with real examples, in managing crew and ship to operate; we immediately know which crew is available, with what certification, their expiry date, etc., just by clicking the SAP. Sure it can be done manually, but it would be very impractical,” Ediyanto explains.
As mentioned, one of the modules used by PT Baruna Raya Logistics is the Plan Maintenance System. The system engages all the crew working in the ship as the user. “The crew also changed the mindset because with the Plan Maintenance System, we need them to report when we should change the lubricants, change the equipment, and many more. Before they go on board the vessel, we train them here. We convince them that despite it seems to be a difficult task, but in the future it will make things easier. It is difficult because they already used to with the previous system and unfamiliar with the new one,” says Ediyanto.
For the management, the managerial functions are optimized. The managers could easily finds out budget used & variance, financial report, and operational report with just a click. “Everything is real-time now whereas we got used to being slightly late. This real-time process makes it easier to run the business,” says Ediyanto.
After the SAP Business All in One went live, Ediyanto feels the enthusiasm of each department when using the system. “It may not be perfect and still need more adjustment, but I hope in the next two or three months we’ll be running well with the SAP Business All in One,” Ediyanto says.
With SAP Business All in One, BRL is looking at a brighter prospect. The confidence had increased when facing competition. In the near future, BRL is looking at to expand its business area to a regional level in Southeast Asia.
“Our target in 2020 is to own 45 vessel with an average age of 8 years. Now our ships average age is above 30 years. We will also participate in oil and gas exploration and production in deep water areas by investing in higher value vessels. Until now, our vessels work at shallow water with depth from 100-300 meters, while deep water ranged from 1,000 to 3,000 meters. So the ships, equipments, and SOP is totally different with the shallow water,” Ediyanto explains.
During the implementation from the previous system to SAP Business All in One, BRL partnered with SOLTIUS as implementation partner. The decision did not come from nowhere, instead it went from a long series of pitching and testing.
“There were five to six candidates and we decided to go with SOLTIUS,” says Faisal.
He explains that SOLTIUS offered added value that other didn’t. Ones includes proven track record. SOLTIUS had worked with other company in the same business with BRL, a shipping line focusing in OSV Business. SOLTIUS is also supported with a good reputation holding company Metrodata. SOLTIUS offered a competitive pricing and pay attention to details like the consultants to hire, from their capacity and their job status.
“It would be difficult if the consultant are contract-based. Once the project is complete and the contract is done, it will be difficult to contact them again. And SOLTIUS, I know that theirs are permanent employees. We are sure it would make the project easier,” says Faisal.
The expectation was met. At the implementation, BRL is satisfied working with SOLTIUS. “I saw SOLTIUS was supportive. In this complex business, SOLTIUS is able to help us in providing the right solutions we need,” Ediyanto says.
The guidance that SOLTIUS provide did not stop after the SAP Business All in One went live at PT Baruna Raya Logistics.
“Going ahead the technology will grow faster. So, we hope that the partnership with SOLTIUS doesn’t stop here. When technology improved, we hope to continue to consult with them, the partnership needs to be maintained and we need to stay in touch,” Ediyanto concludes