Case Studies Shell Adopts Global Supply Chain Process to Increase Profitability and Drive an “Enterprise First” Strategy

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	Shell Adopts Global Supply Chain Process to Increase Profitability and Drive an “Enterprise First” Strategy

Shell Adopts Global Supply Chain Process to Increase Profitability and Drive an “Enterprise First” Strategy

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	Supply Chain Visibility Demand Planning & Forecasting Predictive Maintenance
Services	Software Design & Engineering Services System Integration
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. Read More
About 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. Read More
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. Read More Log in to view content
Contents

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

Supply Chain Visibility

Demand Planning & Forecasting

Predictive Maintenance

Services

Software Design & Engineering Services

System Integration

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.

About 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.

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.

Impact #1	Improved operational performance
Impact #2	Faster response to market opportunities
Impact #3	Increased profit margins throughout the value chain

Impact #1

Improved operational performance

Impact #2

Faster response to market opportunities

Impact #3

Increased profit margins throughout the value chain

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Overview

Shell Adopts Global Supply Chain Process to Increase Profitability and Drive an “Enterprise First” Strategy

Operational Impact