Royal Dutch Shell Supply Chain Analysis

1. Introduction:

1.1 Company Profile

Royal Dutch Shell is a very huge multinational oil and energy company base in Netherland that operated since 1907. It became the 2nd largest integrated energy firm for its revenues in Gas & Petroleum industry by merging “Shell Transport and Trading Company” and “Royal Dutch Petroleum Company”. It was operating all over the world in the past 110 years with trading two major products Petroleum and Natural Gas. It now operates in more than 70 countries and has more than 90,000 employees worldwide. Among these 70 countries, the most revenues are generated by Asia Pacific Countries such as China Australia, India, European countries such as Denmark, France, Germany, and the United States of America (Figure 1).

It includes several internal and external parties which are the direct or indirect part of an organization in order to fulfill the requirements of the organization. It aims to optimize the activities occurring along the company's value chain to maximize asset usage, minimize costs and drive maximum revenue. In today’s high competitive business environment, highly-integrated and established Supply Chain Management is considered to be the most competitive advantage.

1.3 Supply Chain Management in Royal Dutch Shell

For Royal Dutch Shell, it has very advanced Supply Chain Management in order to provide best quality hydrocarbon products, gas and oil to facilitate its customers.

It adopted the Integrated Supply Chain Management which is a process-oriented, integrated approach to procuring, producing, and delivering products and services to customers. The highly integrated Supply Chain in Royal Dutch Shell includes six major parts such as upstream supply, midstream supply, refining, primary supply, secondary distribution and convenience retailing (Figure

Therefore, choosing the best mode of freight base on internal and external requirements such as transit time, flexibility, reliability and etc can largely reduce the freight cost. For example, instead focusing on motor carriers, the company can choose more multimodal freight mode such as rail and barge. A well-managed rail or barge move can cost less than one-third the amount of a truck move. By choosing the best mode of freight, large financial benefits and social benefits will be