Supply Chain Management for Shell in Gas Market: Challenges and Opportunities

Running head: OIL AND GAS MANAGEMENT
OIL AND GAS MANAGEMENT
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1OIL AND GAS MANAGEMENT
Executive summary
The aim of this report is to discuss about the potentiality of supply chain management for Shell
in entering in the gas market. This report discussed different elements of supply chain and
logistics management. In addition, the target market for marketing the gas products is also being
identified in this report. In accordance to the target market identification, the most effective gas
products are also being identified for Shell. On the other hand, the suitable modes of
transportation along with the challenges that may be faced by the employees in the gas sector are
also identified. This report concludes with a few recommended steps that will help them to
overcome the identified challenges.

2OIL AND GAS MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
Logistics and operations management challenges:..........................................................................3
Identification of the target market...................................................................................................5
Identification of the gas products................................................................................................6
Configuration of the new supply chain............................................................................................7
Identification of the first tier suppliers............................................................................................7
Suitable transportation modes..........................................................................................................8
Coordination in activities.................................................................................................................8
Similarities and differences of service and product supply chain...................................................8
Identification of hazards..................................................................................................................9
Conclusion and Recommendation:..................................................................................................9
References:....................................................................................................................................11

3OIL AND GAS MANAGEMENT
Introduction:
Royal Dutch Shell also known as Shell is a multinational oil company that is incorporated
n UK with its headquarters in Netherlands. The industry is highly active in the area of oil
industry and includes refining, transportation, marketing and distribution of petrochemicals,
trading and power generation. Shell operational activities are carried in more than 90 countries
that generates 3.7 million barrel of oil per day. Shell also had a primary listing on London Stock
Exchange and is one of the leading countries in the world (Beske and Seuring 2014). Shell has
the highest financial growth with latest technology and is one of the biggest names known in the
field of energy.
Vision: they make difference through their employees, who are a combined team of
highly skilled and dedicated workforce. They deliver its services and value their customers and
further contribute towards sustainable development.
Mission: the company’s mission is to safely distribute and market petrochemical and
energy products by offering value added services.
The ‘energy ‘market is evolving and ever booming throughout the world. The report will
outline the challenges faced by the Shell Company while expanding its business to the Gas
refining, storage, transportation and its marketing and retailing business (Govindan et al. 2014).
The company’s major competitors are Total, Chevron Corporation, Exxon Mobil, BP and
Conoco Philips. The oil and gas industry in the recent times are focusing on the latest digital
technology as well as data analytics to transform their industry.
Logistics and operations management challenges: