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The Petro-Chemical Supply Chain and Product Quantity Values

Shortly after I first joined SAP in 2005, I started working with Markus Seng on several transportation initiatives.  Markus was a former developer from the IBU Oil & Gas before joining the Chemicals team.  Markus and I had to position Bulk Commodity Management and Logistics for Petro Chemical companies.  Given his background, he taught me a great deal about exchanges, swaps, and the concept of product quantity conversions. 

Unfortunately, Markus left SAP to join a ’boutique’ shop called QuantityWare.  However, he still leverages the core SAP interfaces in the bulk Petro Chem world with a very unique value proposition.

To put it simply, whenever product changes ownership, which could be in a pipeline, on a barge, in a railcar or even on a truck, the characteristics of the product must be determined because the value is based on those characteristics.  Density, volume and energy content are constantly changing, thus these transfers must be determined based upon accepted standards.  QuantityWare automates these manual processes directly into the Quantity Conversion Interface.  Remember, tariffs, duties and taxes are also based on these product values, and most companies pay based on estimates.

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