Shell Adopts Global Supply Chain Process to Increase Profitability and Drive an “Enterprise First” Strategy
Company Size
1,000+
Region
- Europe
Country
- Netherlands
Product
- aspenONE Planning & Scheduling
- aspenONE Supply & Distribution
- Aspen PIMS
- Aspen Petroleum Scheduler
- Aspen Collaborative Demand Manager
- Aspen Petroleum Supply Chain Planner
Tech Stack
- Supply Chain Management
- Demand Management
- Inventory Optimization
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Innovation Output
- Productivity Improvements
Technology Category
- Platform as a Service (PaaS) - Connectivity Platforms
- Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
- Oil & Gas
Applicable Functions
- Discrete Manufacturing
- Procurement
Use Cases
- Demand Planning & Forecasting
- Predictive Maintenance
- Supply Chain Visibility
Services
- Software Design & Engineering Services
- System Integration
About The Customer
Shell is a global group of energy and petrochemical companies headquartered in The Hague, Netherlands. Its corporate strategy is 'More Upstream, Profitable Downstream,' utilizing technology and innovation for sustainable development that delivers growth for shareholders. As part of Shell’s Global Supply Excellence Program, the company focuses on three key management objectives: operational excellence, flexibility to respond to market opportunities, and margin optimization across the supply chain.
The Challenge
Shell, a global group of energy and petrochemical companies, was facing inefficiencies and limited flexibility due to the independent operation of its many refineries. The actions of one refinery could adversely affect another in the same region, leading to higher costs and lower overall profits. Each refinery conducted business in its unique way to increase profit margin, but such 'siloed' operations often resulted in inefficiencies and lower margins. Shell identified uncommon operating procedures at each of its refineries, which led to these inefficiencies and lower margins.
The Solution
To address these challenges, Shell’s management team created the Enterprise First initiative, which focused on standardizing and simplifying business processes across all of Shell, standardizing technology solutions that support the standardized business processes, and optimizing profit margins across the supply chain. Shell reviewed its business processes and discovered that many refineries had developed their own supply chain planning and operational processes. By standardizing these practices, Shell could improve efficiency. Shell also discovered a large number of home-grown spreadsheets and obsolete one-off applications supporting the refineries, resulting in high support, maintenance, and training costs. By standardizing IT applications across its refineries, Shell could reduce operational costs and respond faster to changing market activities. The key enabler of the Enterprise First initiative is aspenONE for refining and marketing.
Operational Impact
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