Route planning and Loading logic of Essar oil

1. Route planning and Loading Logic
By: Saikat Bhowmick
DM14B35
Core-Marketing

2. About Essar Oil
Essar Oil is an India-based company engaged in the exploration and production of
oil and natural gas, refining of crude oil, and marketing of petroleum products
It is a part of the Essar Group based in Mumbai
They operate a major refinery in Vadinar, Gujarat, India, which made it the
second largest non-state refiner in India in 2009
They have a countrywide network of over 1,400 operational retail outlets
Company’s official website

3. Location and Product
Refinery at Vadinar, Gujarat has a fully equipped laboratory to certify the refinery’s range of products
 LPG
 Kerosene
 Aviation turbine- turbine engines
 Jet fuel
 Gasoline
 Diesel
 Furnace oil
 Bitumen- Pitch
 Petcoke
Company’s official website

4. Route planning
 To create the best possible assignment of jobs to vehicles - as well as to find the ideal sequence of
customer sites to be served by each vehicle
 Route planning
 focus on the problems of planning
 managing and controlling transport
 warehouse systems
 Objective is to supply the customers with the goods at minimum cost under consideration of all
restrictions
Class notes

5. Procedure for setting up a routing plan
 Identify current and prospective customer on a territory map
 Classify each customer into high, medium or low sales potential
 Identify the number of orders placed by the customer in a particular period of time
 Build route plan around locations of high potential customers
 Computerize mathematical methods are developed
Class notes

6. Types of routing
 Straight line approach: Sales calls are made in one direction
 Circular approach: Sales calls are made starting from base at the centre to
customers in a circular pattern.
 Clover leaf approach: Trips are decided and in one trip one part of
territory is considered.
Class notes

7. Route for Essar oil Distribution equipment
 Pipeline distribution network
 Tankers
 Railways
 Shipping

8. Packaging and Loading
 Industrial packaging
 Logistic emphasis
 Grouping into barrels
 Directly into tankers
 Focus on handling efficiency
 Transport cost Problems
 Pipeline distribution network- Leakage
 Tankers- Sealing and Accidents
 Railways- Explosion
 Shipping- Spilling
Class notes