OPERATIONAL VIEW OF OIL COMPANIES

BPCL AND SHELL

BHARAT PETROLEUM

SUPPLY CHAIN

MANAGEMENT

Various Business of BPCL

Operational Overview of BPCL

SCM of Mak Lubricants

LOCATION AND CAPACITY

Mumbai Refinery : Located near Mumbai, Maharashtra. It has a capacity of

12 million metric tonnes per year.

Kochi Refineries : Located near Kochi, Kerala. It has a capacity of 9.5 million

metric tonnes per year.

Bina Refinery : Located near Bina, Sagar district, Madhya Pradesh. It has a

capacity of 6 million metric tonnes per year. This refinery is operated

by Bharat Oman Refinery Limited, a joint venture between Bharat Petroleum

and Oman Oil Company.

Numaligarh Refinery : Located near Numaligarh, Golaghat district, Assam. It has a

capacity of 3 million metric tonnes per year.

All about Shell

Main Issues in Supply Chain

• Cost Control

• Planning and risk Management

• Suppliers/Owners Relationship Management

Strategies of Shell to overcome these:

• Use Best Mode of Freight,

• Appointment of Competent Staff

• Clear Policies for the evaluation of the Oil & Gas Products

Shell’s Supply chain Management

• “More Upstream, Profitable Downstream”

• Shell Adopts Global Supply Chain Process

• “Enterprise First” – standardized processes and

technology across the organization.

Enterprise First Approach….

STRATEGIES AND COMPARATIVE

ADVANTAGE USED BY COMPANIES

CategoryBharat

PetroleumShell

StrategyIndustrial level

strategyCorporate Level Strategy

Layout Process Layout Process Layout

Organization

Approaches

Top down

perspectiveBottom-up perspective

Lean System

•Trying to

invest in their

R&D by

allocating

funds.Effective and efficient Lean

System•Results are

there but not

what was

expected.

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