Consol Energy: Customer Reference Video

Consol Energy Inc. is the largest producer of bituminous coal in the United States. Learn how the organization is using SAP solutions to establish a single data repository and transform procurement procedures.

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    • Consol Energy is a coal mining company. It also does gas. We've been in business for 146 years. We have roughly 17 mine sites. We have 60 total remote sites within the United States. Most of the mining is the eastern part of the United States. We have roughly 7,000 employees in the company. What led us to SAP, with our legacy system, the way we operated was each of the departments within Consol operated in what we called a silo. Everybody kind of had their own little system. We thought that if we went with the SAP solution that we could take all the individual systems and integrate them all into one main system. We've been very successful with that type of layout. The first benefit of implementing SAP was, like I mentioned before, was to take all of the systems we had together and integrate them all into one system. So when you put, put something – we run a pay, for example, pay would go all the way through to the FICO module and out through AP, for example, if we have garnishments. So to be able to have all that data in one repository was a big benefit for us. Another big benefit that we had using SAP, was we went from a 100% customized legacy system. , And what I mean by that is we programmed any type of business need we had, we programmed it in our legacy system. With SAP we have very little customization. The majority of what we pull out of the box in SAP is delivered. The next piece that we have for Consol is to go live with our SRM solution. Just to tell you a little bit about SRM, in the past the way we would do procurement, we have like I said, 60 remote sites that we have. We had no control over how much different supplies would cost. Putting in SRM allows us to basically build catalogs with all of our suppliers. We take those catalogues. The prices are all predetermined. We put them into the system. When a buyer goes out to look for a product, just like the Amazon.com look and feel, they select a product. The product goes through the system. The product arrives. If it's late, if it has a delivery date that's going to be late, it shows up. And then the end result is that the last piece is we have an electronic invoice that goes out through the FICO piece of the business. So the whole process of buying a product is really been streamlined using SAP's SRM solution. The biggest benefit that we see looking at KPIs, we want to be able to monitor how much we spend with each of the particular vendors. That way we could leverage our whole buying power for the whole company in general. So once we get SRM completed and then we're able to produce these reports, its going to help our company immensely.
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