PETRONAS Selects Manugistics

Malaysia's national petroleum corporation embarks on strategic supply chain initiative

Rockville, MD — June 5, 2003 — Petroliam Nasional Bhd (PETRONAS), Malaysia's national petroleum corporation, has tapped a solution from Manugistics to power a strategic supply chain initiative across the company's oil business.

Since its incorporation in 1974, PETRONAS has grown to be an integrated international oil and gas company with business interests in more than 30 countries. The PETRONAS Group comprises over 100 subsidiaries and 45 associated companies.

Manugistics said its solutions would be deployed to help improve inventory and capacity visibility, reduce shipping costs and reduce inventory levels at PETRONAS' depots across Malaysia, while also improving customer service levels.

"PETRONAS has embarked upon this strategic initiative to create a collaborative, Internet-based state-of-the-art supply chain planning and execution platform," said Peter Dent, general manager for the planning and manufacturing group of PETRONAS' oil business. "This initiative will create a nerve center for our complex supply chain, allowing us to help ensure top operational performance in a complex business environment."

The solutions will be deployed to help enable PETRONAS' supply chain planning, trading and field sales groups to collaborate virtually, creating optimized, consensus-built demand forecasts for refined products by depot. These dynamic forecasts will help PETRONAS to pinpoint accurate expectations for marketplace demand and then streamline inventory and pipeline capacity requirements accordingly, according to Manugistics.

In addition, Manugistics said its global logistics management solutions could enable PETRONAS to create and execute an optimized shipping plan across a complex multi-modal environment of trucks, vessels and pipelines. Exception management, real-time reporting and strategic decision-support tools can help PETRONAS evaluate multiple "what-if" scenarios, adjust forecasts, and update production and distribution plans as changes occur in the marketplace, helping proactively resolve unforeseen delays and other challenges.