Shell is a worldwide group of oil, gas and petrochemical companies. It’s one of the largest independent oil and gas enterprises in the world.
We help meet the world’s growing demand for energy in economically, environmentally and socially responsible ways. Innovation helps us do that.
Figures taken from the 2016 Annual Report (published in March 2017), 2016 Sustainability Report (published in April 2017) and Investors’ Handbook (published in April 2017).
Shell is the global market leader in branded lubricants. According to Kline & Company (2015) we have been global lubricant market leader, in terms of volume, for ten consecutive years.
We have leading positions in both mature and emerging markets. We are number one in the USA – the world's largest lubricants market – and we are the top international supplier in China, the world's fastest-growing lubricants market.
One of the ways we push the boundaries of lubricants technology is by working closely with top motor racing teams, such as Scuderia Ferrari, Ducati and BMW motorsport. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.
Our lubricants are marketed in approximately 100 countries. We have leading positions in both mature and emerging markets.
We operate over 40 lubricants blending (and packaging) plants in 32 countries around the world. Our most recent plant opened was in Indonesia in November 2015, while we are also relocating and upgrading our Singapore lubricant and grease manufacturing plants. Our facilities are located in strategic locations to better serve our customers. Our largest plant is in Houston, USA, followed by our plants in Grasbrook, Germany, Zhapu in China and Tianjin, China. Additionally, we operate 15 specialist production plants for greases.
We have a strong heritage in technology for lubricants, stretching back more than 70 years. We have over 200 scientists and engineers working in specialised technical centres for lubricants in China, Japan (JV), USA and Germany. We opened our newest technology centre in Shanghai, China in 2014, dedicated to research and development into lubricants and oils. The centre (Shell (Shanghai) Technology Limited) focuses on lubricant product development and application for China and the wider Asia region covering countries such as India, Indonesia, South Korea, Thailand and Vietnam.
The Lubricants Supply Chain takes base oils and blends with specialised additives to create a wide range of high performance lubricant products.
These are used in significant and diverse range of applications from marine, road transport, power, construction, aviation etc
A supply chain by numbers
This should give a sense of scale and coverage.
Our strategy is focused on brand and value. We have a strong supply chain, a portfolio of world-class brands and products and we invest in technical innovation. As a business we develop genuine alliances, put the customer at the heart of what we do, and respond to industry opportunities and challenges.
Capture demand in growth markets (China, India, Indonesia, Thailand and Russia) and maintain leadership in heartland markets (US, Germany and UK)
[Talk to the bullets]
Highlights of the last decade which describe some very typical aspects commonly found in most supply chains.
Shell takes seriously its position and its strategy for the future of the supply chain.
[talk to bullets]
Graph shows external data with trend for increased complexity
Right side graphic is just screen grab of DDI website who define the principles of DDMRP
[talk to bullets]
Recognised that we don’t have experience within the business yet for DDMRP We partnered with Smartchain to provide the experience and skills we lacked. [permission to use graphic granted] We spent quite a long time testing and validating how well or not DDMRP would perform in a lubricants supply chain
We did 3 simulations in 3 very different areas testing many different types of business.
We are very value focussed in Shell. We do not implement things because they are “good ideas”. Every project has to be fully justified to deliver value for the business.
Top chart shows bullwhip and the effect of DDMRP on the same data set
Middle graphic shows typical simulation setup with buffers in specific places
Final graphic is the brand of software that Shell has selected as partner for this project. [permission to use graphic granted]
In 2017 we launched the design and build phase of the project and ended the year with the launch of our first pilot location in our Mediterranean business.
2018 is an exciting year.
All regions have active deployment teams.
We use the certified DDI training for planner and leader and have 200+ members of planning organisation now completed.
We expect majority of deployment in 2018 and 2019 with full deployment to complete in early 2020.
At a certain level the system architecture is very simple.
SAP is our system of record; we use a suit of interfaces to transfer both master data and live transaction data to Orchestr8 in the IT Cloud.
Planning is done covering all our finished goods and materials with the resulting replenishment orders interfaced back to SAP.
User feedback has so far been very positive, visual, intuitive, and clear around priorities.
Change Management – Top floor to shop floor Early Engagement with regional and local teams Be clear – this is not just an IT project and not just about planning Partnerships Internal – Global, Regional, Business and IT External - SmartChain (expertise) and Orchestr8 (software) Don’t underestimate - mindsets, behaviours and wow’s have to change Training and support Methodology Leverage the single ERP backbone Deployment scope and complexity of cut-overe.g. Big Bang vs cluster vs local vertical Master data, Master data, Master data, Master data, Master data Training and Certification – yes but don’t make it too hard
We are active in more than 70 countries.
On average, in 2016 we employed 92,000 full-time employees worldwide. At December 31, 2016, we employed 89,000 people. (The number of people with Shell employment contracts is higher, because the number includes part-time employees.)
Producing 3 million barrels of oil equivalent on average per day, means more than 2,000 barrels every minute.
For more than 100 years our logo, the name “Shell” and our distinctive yellow and red colours have identified the Shell brand.
We believe that oil and gas will play an important role in meeting the world’s energy needs for many decades to come.
Our role is to ensure that we extract and deliver them in economically, environmentally and socially responsible ways.