Enhancing Supply Chain Management in The Oil and Gas Industry Through Digital Transformation of ERP Systems

Abstract

The oil and gas industry operate within a highly complex and volatile supply chain environment, demanding efficient management practices to ensure operational reliability and cost-effectiveness. Traditional Enterprise Resource Planning (ERP) systems, while foundational, often fall short in addressing modern supply chain challenges such as real-time data integration, process optimization, and regulatory compliance. This study explores how digital transformation technologies—such as the Internet of Things (IoT), Artificial Intelligence (AI), blockchain, and cloud computing—can revolutionize ERP systems to enhance supply chain management (SCM) in the oil and gas sector. By leveraging a mixed-methods approach, including industry surveys, expert interviews, and case studies, the research identifies key benefits of digital ERP systems, including increased operational efficiency, cost reduction, and improved decision-making capabilities. The study also addresses implementation challenges, such as organizational resistance and integration complexities, offering a framework for successful digital ERP transformation. These findings have significant implications for advancing supply chain resilience, sustainability, and competitive advantage in the oil and gas industry.