Improving Demand Management Performance using Knowledge Management Approach in an Oil and Gas Company

Abstract

The oil and gas industry has become one of the most important sectors of the global economy, providing energy for transportation, industry and power generation. Indonesia is one of the world’s largest producers of oil and gas and the oil and gas industries have been operating in Indonesia for several decades, contributing to the country’s economic growth and development. PT. COPI, one of the entity in the oil and gas industry which focuses on downstream segment, plays an important role in this industry. However, to anticipate industrial competition, it requires the company to adapt and meet the minimum standards in order to remain competitive, through Continuous Improvement method which is implemented in departments, including Supply Chain Management (SCM) where, through the “Supply Chain Optimization (SCO)” approach, several obstacles are found, including Demand Management Process. This research uses the Knowledge Management (KM) approach to address the obstacles by conducting KM maturity analysis in PT. COPI’s Supply Chain division and perform analysis and evaluation of the current KM practices in order to provide recommendations for improvement. This research uses qualitative methodology to perform data collection, obtained through an interview with the head of Supply Chain Management division of PT. COPI, using Asian Productivity Organization (APO) KM assessment tool which comprises seven APO audit elements: Leadership, Process, People Technology, Knowledge Processes, Learning and Innovation, and KM Outcomes as the baseline for the interview questions. The research shows that KM maturity level of PT. COPI’s Supply Chain division sits at the fourth quadrant of the APO KM Maturity Model, which is refinement. Obstacles are identified from several audit elements of the APO KM assessment tool and marked as an area of improvement. This research provides recommendations for the identified area of improvements using the relevant KM method, which can be implemented by the company to increase their KM Maturity level, increase demand management performance and optimize Supply Chain Management process in the company.