SAP and Valero Energy recently signed a five-year global enterprise agreement that will result in the development of enterprise applications that will meet the operational excellence needs of Valero’s 16 oil refineries spread throughout the United States, Canada, and the Caribbean.
The tighter relationship between the two companies, which have had a software partnership since 1997, will focus on solution innovation and development. Valero will contribute its industry expertise to help customize SAP’s product offerings for streamlined core business processes, a lower total cost of ownership across Valero’s IT landscape, and a ‘business self service’ strategy, the companies said.
In addition, Valero will provide input to help SAP in the development of a world-class energy technology solution which SAP will make available to other companies from various industries. The two will also work together to extend Valero’s operational performance and risk management capabilities, they said.
“We see this relationship as highly strategic,” said Hal Zesch, Valero’s senior vice president and CIO, in a statement. “Initiatives that encourage and enable innovation must be incorporated into a company’s operations to stimulate growth.”