Energy Magazine August 2019 | Page 23

TECHNOLOGICAL DRIVE
business data to look at how things ran during this period of time . With this data , Shell was able to simulate what would happen with a demand-driven methodology , with exceptional results . Noting that SmartChain LLP has been vital in transforming Shell ’ s supply chain capabilities , the firm has also been instrumental in delivering essential expertise across its entire design , build and implementation .
“ I reached out to SmartChain back in 2014 to take a first look and educate myself on this topic ,” acknowledges Lynch . “ I introduced demand-driven planning to the Shell business with SmartChain in April 2015 , which is essentially when we formally started , and they have been , effectively , our consulting partner on this for the duration .
“ It ’ s a small team of very high-calibre , specialised individuals who have implemented demand driven planning before in various businesses , who could give us the benefit of a proven methodology of how to design , build and implement this . This was critical , because the size of the prize at Shell could be anything between 20 % to 30 % reduction in working capital , garnered from what

“ WE HAD TO BE ABSOLUTELY CLEAR ON THE BUSINESS CASE AND RAN SIMULATIONS AROUND HOW DEMAND-DRIVEN PLANNING WOULD WORK IN A LUBRICANT SUPPLY CHAIN . THERE ARE VERY FEW INDUSTRIES DOING THIS ”

we simulated . With a lubricant business of 5bn litres , this is huge but we must also get it right .
“ SmartChain brings a wealth of experience and is actively supporting our global rollout . We ’ re live in Egypt , Spain , Italy , Turkey and our European Material Scheduling centre in Krakow . We ’ re currently working with Russia , North America , Malaysia and the Philippines .”
TECHNOLOGICAL DRIVE
Nonetheless , although the results from
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