Description
Supply chain optimization is the application of processes and tools to ensure the optimal operation of a manufacturing and distribution supply chain.
Supply Chain Optimization
Technology Leadership in Supply Chain Optimization
BK Datta Executive Director Bharat Petroleum Co. Ltd
Supply Chain Optimization
An Overview of BPCL Group
• • • • • • 15% of India’s Refining Capacity Market Share of 22.5% 11 Major Joint Ventures Capacity of 600,000 B/D at 4 Refineries Marketing 30 MMT/A Products 14,000+ Employees
Retail outlets LPG Distributors Installations Depots Tankage (Million KL) Aviation LPG Plants Pipelines (kms)
8747 2204 12 129 5.0 30 49 1676
Supply Chain Optimization
BPCL Group – A Supply Chain Overview
Must Consider End to End Supply Chain
Crude/ Feedstock Supply Refinery Production Management Pipeline/Barge/ Rail/Road Distribution Depot Management Secondary Freight Core Focus Area
Customer Management
• Crude
Purchasing • Crude Freight Cost Reduction
• Integrated
Optimization of all the Refineries • Buying of Products from Competitors • Reduction in Quality Giveaways
• Primary
Freight – Retail – LPG – I&C – Aviation
• Depot
Rationalization • Inventory Management
• Secondary
Freight Cost Reduction – LPG – I&C – Aviation
• • • • •
Retail LPG I&C Aviation Lubes
Supply Chain Optimization
Better Planning of Movement
Mapping of Logistics Costs from Various Sources using DPO Aids in Better Planning of Movement
Panipat Rajasthan Mathura Uttar Pradesh Barauni Bihar Jharkhand Indore Madhya Pradesh West Bengal HALDIA
Banthra
NRL
KANDLA Gujarat
Jamnagar
Koyali
MUMBAI
Maharashtra
Kochi
Supply Chain Optimization
Objectives of the Supply Chain Optimization Project
• • Become more Competitive in world Petroleum markets To maximize “Net Corporate Realization” (NCR)
•
• •
To support the internal Supply Chain processes so that the Business Units work smoothly
Support the Integration issues between Planning and Execution Joint agreement on all Plans to ensure Feasible Schedules
Supply Chain Optimization
Challenges in Meeting Our Objectives
Improve 6 Business Processes
Improve Collaboration among Groups with Conflicting Goals
Supply Chain Optimization
Four Pronged Strategy to Drive Successful Transformation
Simple Integrated Business Process Clearly Documented and Communicated
Use of Industry Proven Solution/Tools
Linkage of Modules across Units
Line of Sight
Selection for a Matrix Capability Development (technical and behavioral) Reliable, Consistent, Integrated and Timely Information through Supporting Processes
• • • IT Platform MIS/Information Flows Meetings & Forums
Supply Chain Optimization
Solution Architecture
PIMS
M A
S
Manual Entry
ORION
T E R D A T A
Advisor
MS WCF
Service
Data Mart
Architected using:
• • SQL Server for data repositories SharePoint and Internet Explorer for Intranet services, user visibility and document management Exchange for messaging Office Communication Server for collaboration Visual Studio for developing web applications Rights Management for managing access to sensitive documents System Center Operations Manager for monitoring of critical servers
AtOMS
M O D E L
IP.21
• • • •
LIMS SAP
Reports
•
Supply Chain Optimization
Dashboard at BPCL-KR
Supply Chain Optimization
Benefits Realized
More accurate crude price predictions from 89 to 94% More accurate product price predictions from 80/90% to approximately mid-90s percent Allowed for relaxation of crude slate constraints, unlocking a value of $4.5 million per month, on average Allowed for relaxation of demand constraints for a better production plan, for a savings of $5.5 million per month, on average
Supply Chain Optimization
Thank-You!
BK Datta Executive Director Bharat Petroleum Co. Ltd
doc_893745674.pdf
Supply chain optimization is the application of processes and tools to ensure the optimal operation of a manufacturing and distribution supply chain.
Supply Chain Optimization
Technology Leadership in Supply Chain Optimization
BK Datta Executive Director Bharat Petroleum Co. Ltd
Supply Chain Optimization
An Overview of BPCL Group
• • • • • • 15% of India’s Refining Capacity Market Share of 22.5% 11 Major Joint Ventures Capacity of 600,000 B/D at 4 Refineries Marketing 30 MMT/A Products 14,000+ Employees
Retail outlets LPG Distributors Installations Depots Tankage (Million KL) Aviation LPG Plants Pipelines (kms)
8747 2204 12 129 5.0 30 49 1676
Supply Chain Optimization
BPCL Group – A Supply Chain Overview
Must Consider End to End Supply Chain
Crude/ Feedstock Supply Refinery Production Management Pipeline/Barge/ Rail/Road Distribution Depot Management Secondary Freight Core Focus Area
Customer Management
• Crude
Purchasing • Crude Freight Cost Reduction
• Integrated
Optimization of all the Refineries • Buying of Products from Competitors • Reduction in Quality Giveaways
• Primary
Freight – Retail – LPG – I&C – Aviation
• Depot
Rationalization • Inventory Management
• Secondary
Freight Cost Reduction – LPG – I&C – Aviation
• • • • •
Retail LPG I&C Aviation Lubes
Supply Chain Optimization
Better Planning of Movement
Mapping of Logistics Costs from Various Sources using DPO Aids in Better Planning of Movement
Panipat Rajasthan Mathura Uttar Pradesh Barauni Bihar Jharkhand Indore Madhya Pradesh West Bengal HALDIA
Banthra
NRL
KANDLA Gujarat
Jamnagar
Koyali
MUMBAI
Maharashtra
Kochi
Supply Chain Optimization
Objectives of the Supply Chain Optimization Project
• • Become more Competitive in world Petroleum markets To maximize “Net Corporate Realization” (NCR)
•
• •
To support the internal Supply Chain processes so that the Business Units work smoothly
Support the Integration issues between Planning and Execution Joint agreement on all Plans to ensure Feasible Schedules
Supply Chain Optimization
Challenges in Meeting Our Objectives
Improve 6 Business Processes
Improve Collaboration among Groups with Conflicting Goals
Supply Chain Optimization
Four Pronged Strategy to Drive Successful Transformation
Simple Integrated Business Process Clearly Documented and Communicated
Use of Industry Proven Solution/Tools
Linkage of Modules across Units
Line of Sight
Selection for a Matrix Capability Development (technical and behavioral) Reliable, Consistent, Integrated and Timely Information through Supporting Processes
• • • IT Platform MIS/Information Flows Meetings & Forums
Supply Chain Optimization
Solution Architecture
PIMS
M A
S
Manual Entry
ORION
T E R D A T A
Advisor
MS WCF
Service
Data Mart
Architected using:
• • SQL Server for data repositories SharePoint and Internet Explorer for Intranet services, user visibility and document management Exchange for messaging Office Communication Server for collaboration Visual Studio for developing web applications Rights Management for managing access to sensitive documents System Center Operations Manager for monitoring of critical servers
AtOMS
M O D E L
IP.21
• • • •
LIMS SAP
Reports
•
Supply Chain Optimization
Dashboard at BPCL-KR
Supply Chain Optimization
Benefits Realized
More accurate crude price predictions from 89 to 94% More accurate product price predictions from 80/90% to approximately mid-90s percent Allowed for relaxation of crude slate constraints, unlocking a value of $4.5 million per month, on average Allowed for relaxation of demand constraints for a better production plan, for a savings of $5.5 million per month, on average
Supply Chain Optimization
Thank-You!
BK Datta Executive Director Bharat Petroleum Co. Ltd
doc_893745674.pdf