Assignment on Shell Logistics

ASSIGNMENT ON LOGISTICS AND SUPPLY CHAIN MANAGEMENT LOGISTICS OPERATIONS OF SHELL SUBMITTED ON: 13/09/2011 SUBMITTED BY: ARAVIND S. NO: 07 III SEM Logistics refers to the responsibility to design and administer systems to control movement and geo-graphical positioning of raw materials, work in progress, and finished inventories at the lowest total cost Logistics involves the management of order processing, inventory, transportation, and the combination of warehousing, materials handling, an
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  ASSIGNMENT ONLOGISTICS AND SUPPLY CHAIN MANAGEMENT LOGISTICS OPERATIONSOF SHELL SUBMITTED ON: 13/09/2011 SUBMITTED BY: ARAVIND S.NO: 07III SEM   Logistics refers to the responsibility to design and administer systems to controlmovement and geo-graphical positioning of raw materials, work in progress,and finished inventories at the lowest total cost Logistics involves the management of order processing, inventory, transportation,and the combination of warehousing, materials handling, and packaging, allintegrated throughout a network of facilities. The goal of logistics is to supportprocurement, manufacturing, and customer accommodation operationalrequirements. Royal Dutch Shell plc ,commonly known as Shell , is a globaloilandgascompany headquartered inThe Hague,Netherlands and with its registered office at theShell Centrein London, United Kingdom. It is the second-largest energy company andthe fifth-largest company   in the world according to Forbes Magazine list for2011.It isvertically integratedand is active in every area of the oil and gasindustry, includingexplorationandproduction,refining,distribution and marketing,petrochemicals,power generationandtrading.It also has major energy activities, including inbiofuels,hydrogen,solarandwind power . OPERATIONS Shell has five core businesses: exploration and production (the upstream ), gas   and power, refining and marketing(the downstream ), chemicals, and trading and   shipping. Shell has operations in over 140 countries.Shell is a signatory participant of theVoluntary Principles on Security and HumanRights.  Oil and gas related activities Shell's primary business is the management of avertically integratedoil company.The development of technical and commercial expertise in all stages of thisvertical integration, from the initial search for oil (exploration) through itsharvesting (production), transportation, refining and finally trading and marketingestablished the core competencies on which the company was founded. Similarcompetencies were required for natural gas, which has become one of the mostimportant businesses in which Shell is involved, and which contributes asignificant proportion of the company's profits. While the vertically integrated  business model provided significanteconomies of scaleandbarriers to entry,each business now seeks to be a self-supporting unit without subsidies from other partsof the company.Traditionally, Shell was a heavily decentralised business worldwide (especially inthe downstream) with companies in over 100 countries, each of which operatedwith a high degree of independence. The upstream tended to be far morecentralised with much of the technical and financial direction coming from thecentral offices inThe Hague.Nevertheless. there were very large exploration andproduction companies in a small number of major oil and gas production centressuch as the United Kingdom (Shell Expro, a Joint Venture withExxon), Nigeria,Brunei, and Oman.Downstream operations, which now also includes the chemicals business,generates a third of Shell's profits worldwide and is known its global network of more than 40,000petrol stationsand its 47oil refineries.The downstream business, which in some countries also includedoil refining,generally included aretailpetrol stationnetwork, lubricants manufacture and marketing, industrial fueland lubricants sales and a host of other product/market sectors suchasLPGandbitumen.The practice in Shell was that these businesses were essentially local and that they were best managed by local operating companies  –   often with middle and senior management reinforced byexpatriates.In the 1990s,this paradigm began to change, and the independence of operating companies around the world was gradually reduced. Today, virtually all of Shell’s operations in various businesses are much more directly managed from London and The Hague. The autonomy of “operating companies” has been largely removed, as more global businesses have been created. Africa Shell began drilling for oil in Africa during the 1950s. Shell began oil productioninNigeriain 1958. Shell operates in theupstream oil sectorin Algeria, Cameroon, Egypt, Gabon where is the giant Rabi-Kounga oil field, Ghana, Libya, Morocco,Nigeria, South Africa and Tunisia; and in thedownstream sectorin 16 othercountries.InNigeria,Shell told US diplomats that it had placed staff in all the mainministries of the government.  In April 2010, Shell announced its intention todivestfrom downstream business of all African countries except South Africa toVitoland Helios . In severalcountries such as Tunisia, protests and strikes broke out. Shell denied rumors of thesellout. Shell continues however upstream activities/extracting crude oil in the oil-richNiger Deltaas well as downstream/commercial activities in South Africa. Australia In Australia, retailerColes Group(now part of Wesfarmers) purchased the rights to the retail business from the existingShell Australiamulti-site franchisees in 2003for an amount less thanA$100 million. The purchase was made in response to a   popular discount fuel offer by rivalWoolworths Limitedlaunched some yearsearlier.Coles Express'only affiliation with Shell is that Shell is the exclusive supplier of fuel and lubricant products, leases the service station property to Coles, andmaintains the presence of the pecten and other Shell branding on the price boardand other signage. Coles Express sets fuel and shop prices and runs the business,provides convenience and grocery merchandise through its supply chain anddistribution network, and directly employs the service station staff.Royal Dutch Shell is currently developing the firstfloating liquefied naturalgasfacility, which will be situated 200 km off the coast of Western Australia and isdue for completion in around 2017. When it is finished, it will measure around488m long and 74m wide, and when fully ballasted will weigh 600,000 tonnes. [27]   Ireland Shell first started trading in Ireland in 1902. Shell E&P Ireland (SEPIL)(previously Enterprise Energy Ireland) is an Irish exploration and productionsubsidiary of Royal Dutch Shell. Its headquarters are onLeeson StreetinDublin.It was acquired in May 2002. Its main project is theCorrib gas project,a large gasfield off the northwest coast, for which Shell has encounteredcontroversy andprotestsin relation to the onshore pipeline and licence terms.In 2005 Shell disposed of its entire retail and commercial fuels business in Irelandto Topaz Energy Group. This included depots, company-owned petrol stations andsupply agreements stations throughout the island of Ireland. The retail outlets werere-branded as Topaz in 2008/9. New Zealand


Apr 21, 2018
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