demand translation, and demand orchestration. Changing an organization paradigm to move from a
supply-centric mindset to accept a demand-driven vision is a significant change management issue.
To our knowledge, Shell is the only company globally to have used both demand sensing and
DDMRP capabilities.
Figure 15. Components of a Demand-Driven Journey
Shell is the sixth largest company in the world and the market share leader in lubricants. While the
lubricants business is a small sector within the vertically integrated conglomerate of Shell, it is crucial
for growth and margin. There are 92,000 employees within Shell with 3,000 working in the lubricants
business. The lubricant business supply chain acts similarly to a mix-and-pack consumer products
supply chain.
The lubricants are oils and greases to reduce friction and prevent moving machine parts from
grinding. Ubiquitous, motor engines, machines in a factory, or a turbine on a wind farm run easily
based on lubrication from companies like Shell.
Shell’s g oal is to provide a variety of products to enable usage in multiple applications. The company
sells product globally through both B2B and B2C channels. The Company also has franchised
aftermarket services in automotive repair shops, retail outlets, and ev erything in between. Shell’s
current shift to the global supply chain is impacting North America, Latin America, Europe, Middle
East, Asia, Russia, and China. The variety of products coupled with channel proliferation results in
complexity in the global supply chain.
Shell operates as a single-instance of SAP Enterprise Resource Planning (ERP). Completed in 2012,
Page 31
Made with FlippingBook Digital Proposal Creator