Circle K "do more with less" using JD Edwards.

REDUCING CUSTOMIZATION & ENABLING BUSINESS NEEDS.

When Circle K (formerly known as Statoil Fuel and Retail) chose to change their legacy ERP in 2011 from SAP to Oracle’s JD Edwards, the commercial world sat up and took notice.

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IMPACT

DECREASE IN TOTAL OPEN INCIDENTS YOY AND GROWING icon

DECREASE IN TOTAL OPEN INCIDENTS YOY AND GROWING

OF SUPER USERS CAN NOW SOLVE MOST OR ALL OF INCIDENTS icon

OF SUPER USERS CAN NOW SOLVE MOST OR ALL OF INCIDENTS

SUPPORT TEAM BASED IN EUROPE icon

SUPPORT TEAM BASED IN EUROPE

We chose JD Edwards because we deemed it to be the best solution to automate procure-to-pay, sourcing, order-to-cash, and other essential facets of our operation.

Vegar Bøthun, previous CIO at SFR
12 key terminals

12 key terminals

38+ depots in 9 countries

38+ depots in 9 countries

400 road tankers

400 road tankers

17,500 staff on sites

17,500 staff on sites

8 regional headquarters

8 regional headquarters

+/- 1 million customers every day

+/- 1 million customers every day

CIRCLE K

In 2012, Circle K bought leading Scandinavian fuel retailer Statoil Fuel & Retail (SFR), taking ownership of a broad retail network across 9 European countries, which serves around 1 million customers every day.

In total, Circle K’s European operation has more than 2,300 stores, the majority of which offer road transportation fuel and convenience products, in addition to unmanned automated commercial road transportation fuel service-stations.

CIRCLE K & JD EDWARDS

When Circle K (formerly known as Statoil Fuel and Retail) chose to change their legacy ERP in 2011 from SAP to Oracle’s JD Edwards, the commercial world sat up and took notice.

It was a headline-making migration encompassing multiple countries, sites and thousands of employees, and highlighted the trust senior management put in the JD Edwards platform.

The business comprised of more than 2,300 service stations selling retail fuel and groceries, as well as commercial distribution of chemicals, lubricants, and marine fuel from regional terminals and depots. With over 17,500 employees spread across Europe, a flexible, reliable and powerful ERP solution was an absolute necessity to successfully perform business operations to high standards.

Customer Challenge

'Reverting to standard'

During the original implementation, the system had been heavily customized and since go-live, further customizations were added to resolve incidents or respond to evolving business requirements. At times customizations had been made without a wholly integrated approach, or by analyzing the root cause of open incidents.

The high number of customizations, and high volume of recurring incidents, rendered the system unstable. In addition, the system Total Cost of Ownership (TCO) rose to unacceptable levels due to additional maintenance costs and the added expense of keeping the install and its many customizations code current.

Circle K

Management knew that to reduce ongoing costs and revert to standard, they would need a new way of working to avoid ad hoc updates and involve a more strategic and holistic approach to fixing issues.

WHY CIRCLE K CHOSE REDFAIRE INTERNATIONAL

Minimize disruption. Commitment to standard.

Considering the vital role JD Edwards held in Circle K’s business operations, management wanted a partner with the technical capabilities and capacity, to minimize disruption and enable business process needs to become operational from day one.

Committing to a more standardized version of JD Edwards was key. Any potential partner would need to prove excellent JD Edwards competence and demonstrate sufficient available resources to not only stabilize, extend and improve the JD Edwards install on an ongoing basis, but concurrently untangle the web of existing customizations.

Management wanted lower support costs, better system knowledge internally and increased efficiencies in incident resolution. To reduce TCO, it was important that a new partner could solve any issues which may arise, communicate the root causes back to Circle K Change Managers, I.T. and Super Users, and train them to fix and avoid repeat incidents.

After a formal RFP process and evaluation, Circle K decided to move their support from India to Europe. Redfaire International offered a support model that was competitive in terms of quality, service level and cost and demonstrated experience and expertise in ERP for the Oil and Gas Industry.

 

Partner requirements.

  • Wide range of Oracle technical & application skills.
  • Capable of removing as much customization as possible.
  • Train Circle K Super Users to avoid recurring incidents.
  • Proven process and governance for support and projects.
  • Transparency of head count, cost and margin.
  • Experienced, professional support consultants.
  • Single point of contact.
  • Fixed price contract, not based on time or incident volume.

After a formal RFP process and evaluation, we decided to move our support from India to Europe. Redfaire International offered a support model that is competitive in terms of quality, service level and cost.

Marcel Merz, Redfaire International Co-Founder

Solution

Robust process, methodology and governance.

Redfaire International proposed an innovative Managed Services and Operations solution which would provide a dedicated 24x7x365 Support Team based in Europe, to work in tandem with Circle K Super Users. The program would provide a mixture of proactive and reactive support activities and gradually wind Circle K’s installation back to a standardized version of JD Edwards.

The proposed solution was designed to “do more with less” by splitting the support team into First and Second lines of response, only calling on the more experienced professional support consultants when necessary.

By delivering against a ‘Credit Guaranteed’ SLA, the team would be incentivized to solve issues as quickly as possible and being fixed price, put solutions in place which would avoid recurrences, leading to more stable long-term fixes.

Outcomes

When surveyed, Circle K’s JD Edwards Super Users reported that they "appreciate the knowledge and experience of the Redfaire International support team members”.

They also believe that the Redfaire International team "seek to provide permanent solutions to recurring incidents”.

System is more stable

System is more stable

Volume of incidents reducing

Volume of incidents reducing

Improved delivery of enhancements

Improved delivery of enhancements

14%
DECREASE IN TOTAL OPEN INCIDENTS YOY AND GROWING

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Contact our team for industry specific advice and guidance.

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info@redfaireinternational.com