Exolum steps on the gas of its transformation

In a context marked by energy transition, regulatory pressure, and the need to operate with increasing efficiency on a global scale, digital transformation has become a strategic pillar for industrial and logistics companies like Exolum. Now present in 11 countries, with an annual turnover of over $1 billion, the company faces tough decisions on how to remain competitive.

Focusing on transporting gasoline and diesel, storing liquids like hydrocarbons and other chemicals, and supplying aviation fuel, the company is at a crucial juncture as the global push to cleaner sources of fuel gathers steam. “We have to learn to repurpose our infrastructure for the new energy sources that will emerge,” says Alfonso Álvarez, Exolum’s IT director.

Digitization that’s been a long time coming

Despite the substantial challenge, digitalization isn’t a new process for the company. Exolum began relying heavily on tech in the early 2000s, with implementation of operational systems in plants and pipelines. Since then, various strategic plans have been renewing platforms and modernizing systems. “It’s a process that’s been carried out throughout since the turn of the century,” Álvarez adds.

Today, much of the company’s daily operations are managed centrally and automatically. The product network and truck loading terminals operate with very small teams thanks to advanced technological systems. Truck access, for example, is managed through automatic license plate recognition, and the systems tell the driver which hose to use and when loading is complete, without direct human intervention. “Technology has a fundamental role at Exolum, especially in business execution,” says Álvarez.

According to Álvarez, the next big challenge for technology is growth since Exolum is an expanding company. “Technology must not only accompany that growth but support it from the beginning,” he says. “So we’re making decisions and executing projects that will allow us to do that.”

Global IT for a growing company

The most recent turning point came after the pandemic in 2020. Exolum’s international growth, driven by acquisitions in the UK, US, and other markets, led the company to create a global IT division. “It was understood that the approach had to be global, to provide coverage for all businesses across all geographies,” says Álvarez, who joined the company nearly four years ago with that objective.

The current model relies on a dual structure with a global layer and a local one. Corporate systems such as finance, control, HR, and asset maintenance are concentrated at the global level, while systems more closely tied to physical operations are maintained locally to preserve flexibility. According to Álvarez, this architecture allows the company to be viewed as a single entity, rather than as a series of small, local businesses.

The tech department itself currently has around 70 people, including global and local teams, and is supported on an ongoing basis by up to 150 external professionals. The focus isn’t on developing proprietary software in Spain, but rather on project management, and ensuring that tech partners meet quality and functionality requirements.

AI and data at the service of business

In recent years, Exolum has intensified its use of advanced technologies, especially AI, and already employs tools like Copilot in corporate environments and within SAP to improve team productivity. “The goal is to free up time so people can dedicate themselves to higher value-added tasks,” Álvarez says.

AI is also being applied directly to critical business processes, such as planning movement of products within the pipeline network, a highly complex system requiring advanced mathematical analysis. Plus, Exolum is developing its own AI governance framework, AIOps solutions, and specialized copilots.

Despite operating in a traditional sector, the company doesn’t perceive significant resistance to technological change. The strong presence of engineering professionals and the drive for initiatives from within the business have facilitated adoption. In addition, a dedicated digitalization area, separate from traditional IT, explores new use cases and promotes innovation through hackathons and internal training programs.

Modernizing financial management

As part of this global strategy, Exolum has taken a big step to update its financial management by implementing the Kyriba treasury platform, supported by consulting firm All CMS. The project is part of the migration from SAP R/3 to S/4HANA, and addresses the need for a comprehensive and centralized view of treasury operations in an increasingly international environment.

After implementing S/4HANA, Álvarez and his team still identified limitations that prevented them from working with the level of control they needed, which led to seek a specific solution. So adopting Kyriba has improved treasury position control, automated processes, and reduced reliance on manual tasks.

The finance department emphasizes that the tool also offers greater visibility into cash flows, strengthens security, and supports the group’s future growth. “The improvement for the department is so clear that we want to continue evolving the solution and incorporating more processes,” says Álvarez.

Looking ahead still, one of the most important projects is the gradual phase-out of its own data centers. The goal is for Exolum to operate with a multicloud model for all its IT by the end of 2026.

“We need scalable and easily deployable systems that can support multinational growth,” Álvarez says. This change represents another key step to sustain the group’s future development.