PROJECT REPORT

ON

Study of Logistic and Supply Chain Management at IOCL
Submitted by: Group-2

Abhinav Pathania
Atul Sharma Prince Soni Satnam Singh Dhiman Shanjeet Singh Mavi Vikas Sharma

501104003 501104006 501104017 501104023 501104025 501104027

Under the Guidance of: Er. Gaurav Goyal Assistant Professor LMT School of Management January, 2013 LMT School of Management THAPAR UNIVERSITY, PATIALA

DECLARATION
We, hereby declare that the project work entitled “Study of Logistic and Supply Chain Management at IOCL” is an authentic Record of our own work carried out at LMT School of Management, Patiala as a requirement of the course curriculum for the subject “Logistic and Supply Chain Management” for the award of degree of MBA (Operations Management), Thapar University, Patiala, under the guidance of Er. Gaurav Goyal during Nov 2012 to Jan 2013.

……..………… Abhinav Pathania 501104003

……..………… Atul Sharma 501104006 ……..……………….. Shanjeet Singh Mavi 501104025

……..………… Prince Soni 501104017

.……………….. Satnam Singh Dhiman 501104023

……..……………….. Vikas Sharma 501104027

DATE: January 13, 2013 It is certified that above statement made by the students is correct to the best of my knowledge and belief.

Er. Gaurav Goyal Assistant Professor LMT School of Management Thapar University Patiala

Acknowledgement

We would like to thanks Er. Gaurav Goyal from the core of our heart for giving us the opportunity to work on this project under his guidance. We would also like to thanks him for his constant support, encouragement and very valuable guidance.

Executive Summary
India's oil is progressing fast on its roadmap to emerge as the country's most profitable downstream player, seeking to double volumes and quadruple profits over the next three years. The SCM in IOCL is implemented by an advanced planning & Optimization solution by SAP. The solution is integrated to SAP R/3 (execution system) and BIW (Reporting and analysis system) using SAP standard interfaces. The solution modules include Demand Planning (DP), supply network planning (SNP) and Transport planning and Vehicle Scheduling (TPVS). SCM solution is an end to end solution handling all processes of planning like bulk & packed together, Procurement of products. The project report gives an insight towards the supply chain management in IOCL as a whole. With the help of above projects we compare our theoretical knowledge with allocated projects and held in aid of clear understanding of the Supply Chain Management.

............14 IndianOil bags Supply Chain Excellence Award..................................................13 Logistics & Supply Chain ...........16 Background ..................................................................... 9 Innovation is key: ....................................23 · Greening the Supply Chain...............................................................................................................................................................................................................................................................................................................................................24 Components of Logistics Management ...................................................................................................................................................................................................................................................................................................................................................26 7 .....................................................................................................17 Solution ............................................................................................20 Supply Chain Master Data ............................................................................................................................................................................................................................................................................................................................................16 Benefits ......................23 · Maximizing Operational Efficiency .......................................... 9 Reach and Network ..........................................................................................................................................................................................................16 Challenge ................................................................................................................................................................................................................................11 Venturing into alternative fuels:.............11 Redefining the horizon: .........................................................................19 Supply Chain Management IOCL ...........24 Supply Chain Strategies ............................................................................................................21 Exploration (using VLCC) ................................................................................................................................................17 Honeywell Supply Chain Solution .....................................................................................................................................................................12 Vision with values: ........................................................................................ 9 Corporate Overview: ...........................................................................24 Demand Planning .......21 Supply Chain Link ............................................... 3 Company’s profile ...................................................................................................................................................................................................................................................21 Critical Issues in Managing the Supply Chain ............................................................................................21 Supply chain initiatives .............................................................................................................................................................................................................................Table of Contents Acknowledgement ..........................................................................................................................................................................................................................................23 · Maximize the reach of consumers .......................23 · Enhancing Supplier Diversity..........................................20 Supply Chain Overview .....................................15 Indian Oil Improves Supply Chain with Honeywell’s Supply Chain Management Solution ...........................................................................................................

................................................................................38 Day by Day sequencing of the products .................................................29 Optimizer ..............................................................................................................................................................38 Overall plan ........................................................................................................................................................................................................................................................................26 FUNCTIONING ...............................30 Heuristics .............................................................................................28 Supply Network Planning (Cross Plant Planning)......................................37 Product Sequencing ..........................................................................................................................33 Layouts and functions at Bijwasan terminal ..........................................................................................................................................................................................................................42 8 ............................................................................................................27 Transportation ...................28 Transportation Planning – Inbound Process...................................31 OPERATIONAL ACTIVITIES (PIPELINE DIVISION) .......................................................................................................................................28 Transportation Planning /Vehicle Scheduling ..................................MEANING ....................................................39 The daily plan is shown below .......................................................................................................................................................................................32 Product Handling ...............................40 Conclusion ..............................................................................27 Industry Logistics Plan ............................................................................................................................................................................................................................................................................41 Bibliography .................................................................................................................................................................................................................................................32 STUDY OF THE SCADA SYSTEM ........27 Procurement & Outsourcing Strategies ..............................................................................................................................

Having set up subsidiaries in Sri Lanka.221 crore. Petrochemicals and Natural Gas. With facilities at multiple locations and ever-expanding market opportunities. ranked at the 125th position in the year 2010. 47.000-strong workforce. pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas. Reach and Network Indian Oil and its subsidiaries account for over 48% petroleum products market share. Pipelines. besides globalization of its downstream operations.000 crore in a host of projects for augmentation of refining and pipelines capacities. 271. Indian Oil closed the year 2009-10 with a sales turnover of Rs. marketing of natural gas. expansion of marketing infrastructure and product quality up gradation. and petrochemicals. It is the leading Indian corporate in the Fortune 'Global 500' listing.Refineries. With over 34. With a corporate vision to be the Energy of India. Petrochemicals and Renewable Energy. With a steady aim of maintaining its position as a market leader and providing best quality products and services. At Indian Oil. Mauritius and the United Arab Emirates (UAE). Indian Oil has been helping to meet India‘s energy demands for over half a century. 9 . Indian Oil is currently forging ahead on a well laid-out road map through vertical integration— upstream into oil exploration & production (E&P) and downstream into petrochemicals – and diversification into natural gas marketing and alternative energy.10. Indian Oil is poised to become an integrated energy company with steady forays into Oil Exploration & Production.074 crore and profits of Rs. To achieve the next level of growth. R&D Centre and Business Development – E&P. 34% national refining capacity and 71% downstream sector pipelines capacity in India. Marketing.Company’s profile Corporate Overview: Indian Oil is India‘s flagship national oil company with business interests straddling the entire hydrocarbon value chain – from refining. Indian Oil is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa. the operations are strategically structured along business verticals . Indian Oil is currently investing Rs.

agricultural and marine sectors. With a countrywide network of 35. XtraMile diesel. Indane has earned the coveted status of ‗Super brand‘ in the year 2009. It has a portfolio of powerful and much-loved energy brands that includes Indane LPGas. 1.e. successfully servicing the demands of domestic and international flag carriers. XtraPremium petrol. including 2. economical and environment-friendly manner.643 petrol and diesel stations. About 7. backed for supplies by 167 bulk storage terminals and depots. SERVO lubricants.2 million metric tons per annum (MMTPA.i. Indian Oil‘s cross-country network of crude oil and product pipelines. Indian Oil services every nook and corner of the country.652 km and the largest in the country.8 million households. Validating the trust of 56. etc. It has 18.2 million barrels per day). private airlines and the Indian Defense Services. meets the vital energy needs of the consumers in an efficient. . 98 aviation fuel stations and 88 LPGas bottling plants.947 Kisan Seva Kendras (KSKs) in the rural markets. 10 .The Indian Oil Group of companies owns and operates 10 of India's 20 refineries with a combined refining capacity of 60. industrial.593 bulk consumer pumps are also in operation for the convenience of large consumers. ensuring products and inventory at their doorstep. Indian Oil has a keen customer focus and a formidable network of customer touch-points dotting the landscape across urban and rural India. spanning 10. Indane is present in almost 2764 markets through a network of 5095 distributors. Indian Oil‘s ISO-9002 certified Aviation Service commands an enviable 63% market share in aviation fuel business. The Corporation also enjoys a 65% share of the bulk consumer.600 sales points.

Indian Oil is investing Rs. Some of the in-house technologies and catalysts developed by Indian Oil are the INDMAX technology (for maximizing LPG as yield). Redefining the horizon: In Petrochemicals. including 109 international patents. Nigeria. The overseas portfolio includes nine blocks spread across Libya. Indian Oil‘s domestic portfolio includes ten oil & gas blocks and two Coal Bed Methane blocks. as part of consortium. Timor-Leste and Yemen. Iran. and adsorbent based deep desulphurization process for gasoline and diesel streams. a special Indicate catalyst for Bharat Stage-IV compliant Diesel. pipeline transportation and alternative fuels. It offers a full slate of products including Linear Alkyl Benzene (LAB). A state-of-the-art 120. 20.000 crore (US$ 4 billion) by the year 2011-12. Indian Oil has been awarded Project -1 in the Carabobo heavy oil region of Venezuela. and is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country. IndVi catalyst for improved distillate yield and FCC throughput. DHDS catalyst. Olivorus–S bio-remediation technology (extended to marine applications too).Innovation is key: Indian Oil has a sprawling world-class R&D Centre that is perhaps Asia's finest. – a special purpose vehicle for acquisition of overseas E&P assets – in consortium 11 . Indian Oil has incorporated Ind-OIL Overseas Ltd. In Exploration & Production. Gabon. To boost E&P activities. Indian Oil holds a significant market share of LAB in India and exports to 19 countries. In addition. The Centre holds 215 active patents. and an extensive range of polymers. Exploration activities are at various stages of progress. The SBR unit will further strengthen Indian Oil‘s presence in the specialty petrochemicals sector. Purified Terephthallic Acid (PTA).000 tons per annum Styrene Butadiene Rubber (SBR) unit is underway at Panipat. It conducts pioneering work in lubricants formulation. refinery processes.

In Uttar Pradesh.000 hectares – for bio-fuel production in India which is underway in Chhattisgarh and Madhya Pradesh.Green Gas Ltd. Indian Oil‘s joint venture with GAIL India Ltd. has been formed to carry out farming.4 lakhs man-days. meeting the energy needs of millions of people everyday across the length and breadth of the country. generating rural employment of over 1. Indian Oil has successfully combined its corporate social responsibility agenda with its business offerings. The Corporation has entered into franchise agreements with several CGD players to market Compressed Natural Gas through its retail outlets. Indian Oil. To straddle the complete bio-fuel value chain. A long term gas supply agreement has been signed with NTPC. The solar power initiative is being spearheaded on a pilot basis in Orissa. traversing a diversity of cultures. Venturing into alternative fuels: Indian Oil has forayed into alternative energy options such as wind. bio-fuels and nuclear power. . Indian Oil is establishing a model value chain for the production of bio-diesel. production and sale of biomass. A 21 MW wind power project is operational in the Kutch district of Gujarat and the cumulative power generation from the 14 wind turbine generators has crossed 6 crore units (KW/Hr) since commissioning in January 2009. A MoU for collaborating on commercial production of bio-diesel from algae has also been signed with PA LLC.with Oil India ltd. Natural Gas marketing is another thrust area for Indian Oil with special focus on City Gas Distribution (CGD) business. bio-fuels and allied products and services in Chhattisgarh. manufacturing. cultivating. Indian Oil has formed a joint venture with the Chhattisgarh Renewable Development Authority. The Energy of India: As a leading public sector enterprise of India. With a view to investing in the nuclear energy sector in the country. Indian Oil has entered into an agreement with the Nuclear Power Corporation of India ltd. Indian Oil has the largest captive plantation – over 1. The Corporation takes pride in its continuous investments in innovative technologies and solutions for sustainable energy flow and 12 . difficult terrains and harsh climatic conditions. solar. Indian Oil CREDA Biofuels Ltd. Solar products such as solar lanterns and torches are being sold through the Retail Outlets in rural and urban areas. – has been authorized to take up city gas distribution at Agra. Karnataka and the Northeast and an all-India phased roll out are underway.

economic growth and in developing techno-economically viable and environment-friendly products & services for the benefit of its consumers. Vision with values: 13 .

260. The global logistics 14 .000 crores and constitutes 13% of the GDP (as compared to an average of 10% in other developing countries).Logistics & Supply Chain The logistics market in India is estimated to be Rs.

IndianOil bags Supply Chain Excellence Award Supply Chain Management of Indian Oil Corporation Ltd. That changed in April 2002. The sector currently employs over 40 million people globally. marketing.industry is valued at US$ 3. Since 1959. this refining. a government entity that owns just over 90 percent of the firm. there is an impressive growth of container traffic of over 15% per annum over the last five years. In the Indian scenario.January 10th. and international trading company served the Indian state with the important task of reducing India's dependence on foreign oil and thus conserving valuable foreign exchange. however. 2011 The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover and is the only Indian company to rank in the Fortune "Global 500" listing. better than expected performance of the manufacturing sector and an explosive growth in the third party logistics segment has contributed to the phenomenal growth of the Indian Logistics and Supply Chain sector. . increased geographical distribution of incomes and markets. controlling nearly 40 percent of the country's refining capacity. Burgeoning trade. Global Market Analysis firm Datamonitor‘s "India Logistics Outlook 2007" report estimates the Indian logistics industry at over US$ 125 billion. 15 . The firm owns and operates seven of the 17 refineries in India.5 trillion. The oil concern is administratively controlled by India's Ministry of Petroleum and Natural Gas. when the Indian government deregulated its petroleum industry and ended Indian Oil's monopoly on crude oil imports.

IOCL Benefits Indian Oil Corporation Limited (IOCL) has implemented Honeywell‘s Supply Chain Management solution to integrate and optimize the supply chain of five separate refineries. The project has resulted in the following benefits: • Integrated supply chain planning which optimizes the entire supply chain providing higher margins and increased profitability. • Crude selection and allocation which takes into account product demands. taxes and duties and transportation constraints Indian Oil experienced major benefits on account of: • Improved visibility into its supply chain process across the five selected refineries • Investment analysis for refinery units. refinery capabilities and effect of crudes already procured. General Manager. Optimization. • Optimal distribution planning considering transportation costs.Indian Oil Improves Supply Chain with Honeywell’s Supply Chain Management Solution ―With Honeywell‘s help we have set a worldwide benchmark in the area of Supply Chain Planning. • Optimal refinery production planning considering crude assays. etc. unit capacities. imports and exports • Improved response and execution capability Background Indian Oil Corporation (IOCL) is India‘s number one oil company and holds the 189th spot on the famed Fortune 500 list of companies. more effective decision making on exchange strategies. and feedstock availability.‖ -Uttam Kumar Basu. pipelines. • Analysis to formulate strategies to meet future scenarios like change in specifications • Faster. 16 . It is the19th largest petroleum company in the world and has also been recognized as the number one company in petroleum trading among the national oil companies in the Asia-Pacific region. product specifications and demands.

IOCL accounts for 56% petroleum products market share among public companies. ―Our challenge was how to plan for various possible breaks that could occur in the supply chain and how to best optimize each specific point to increase our profitability and link activities of five separate refineries. IBP Co.As India‘s flagship national oil company.. Its subsidiary. 10 refineries and five detailed models. The company has a countrywide sales network of more than 23. As a result. view and make decisions based on 80 crudes sourced from South America to South East Asia. 42% national refining capacity and 69% downstream pipeline throughput capacity. multi-plant planning solution. IOCL evaluated different supply chain management solutions to address this business problem and how best to implement a solution that integrates five separate refineries. Basu. Challenge As a leading oil supplier. Traditionally different departments or divisions within one organization manage their own disparate project of this complex process and don‘t always talk with one another. To put it in perspective IOCL had challenges in the supply chain to integrate. IOCL. Solution After serious consideration and an arduous evaluation process. cost effective implementation. 40 terminals. ‖ said Uttam Kumar Basu. where to process it. IOCL selected Honeywell‘s Supply Chain Management solution. General Manager.62 million metric tons per annum. The company also owns and operates the country‘s largest network of crosscountry crude oil and product pipelines of 7.730 km.‖ continued Mr. integrated energy company with a strong environment conscience and national role in oil security and public distribution. IOCL operates 10 of India's 18 refineries with a combined rated capacity of one million barrels per day (bpd). As the company looked for ways to maximize profits one thing was clear – more visibility into the supply chain and finding ways to optimize this value chain was critical. The resulting decision was to implement an integrated. along with a large network of 200 depots. including more than 10. how much to buy and make. 95 aviation fuel stations and 85 LPG bottling plants. IOCL had the multifaceted challenge of maintaining its leadership position and meeting its vision of being a diversified.000 retail outlets. has another 3. with a combined capacity of 58. Ltd.000 petrol/diesel stations – backed by 165 bulk storage facilities. 17 pipelines and six transportation modes. decisions are sometimes made based on incomplete data or they can‘t be applied across the entire corporation. Optimization. what to make and where and how to transport it. The models developed with Honeywell‘s solution covered the entire supply chain of 17 .000 retail sales outlets. At the heart of this solution is Honeywell‘s Refinery and Petrochemical Modeling System (RPMS) known for its integrated planning features. passion and people commitment and unique investment modeling capabilities. ―A multi-site refining company has various supply chain problems to solve including which crude to buy.

‖ continued Mr. but a true partner to invest in and help undertake such a challenging project – we found that partner in Honeywell. Basu commented.‖ 18 .IOCL from crude purchases at the refinery gate or ports to product distribution at the terminals. The refinery models along with the crude assay data are directly embedded into the Integrated Planning Model and supply and distribution structure is obtained from the supply chain database.‖ In order to implement this challenging project a true partnership was formed between Honeywell and IOCL with teams of people involved at each stage including consultation. ―The scope of this problem was undocumented and we knew we needed not just a vendor. By using IOCL and Honeywell‘s proven experience and resourcing the appropriate subject matter experts for each specific phase we had an incredibly quick implementation – taking only two months to measure its effectiveness. Basu.‖ said Basu. The Supply Chain Management solution provided by Honeywell consisted of the following modules: • Demand planning: for demand forecasting and aggregation of the final demand numbers • Integrated planning: for the complete IOCL refining supply chain • Distribution planning: for generating operational plans for feedstock allocation and product distribution • Refinery production planning: for generating operational plans for production An integrated planning model is actually an aggregation of refinery sub models and distribution models requiring large amounts of data. This provides flexibility to build in more details in distribution models than what is required from the perspective of corporate-wide optimization. The Supply Chain Database was truly a paradigm shift within the company and one that could not be taken lightly and needed support from the executives down to the operator level. ―We were able to shift our supply chain to a demand-driven one. ―We knew we were taking on an almost impossible task and something that was unprecedented in our business – we had to change our usual way of thinking and plan every step of the way using models that were developed years ago but had to be applied to our specific situation. ―With Honeywell‘s help we have set a worldwide benchmark in the area of Supply Chain Planning. Amazingly it took only 10 months to have 5 refineries fully integrated. implementation and support.

the new integrated planning approach utilizes the synergies that exist between each functional phase (procurement. Integrated with Honeywell‘s advanced applications and the Experion control platform. which was sequential and decomposed and not responsive to demand.‖ concluded Basu. Its seven own refineries achieved a throughput of 36. These enable the business to monitor the condition of the supply chain and provide immediate feedback and exception notices. With real-time knowledge collaboration and visibility across the enterprise. An integrated framework supports various modules and state-of-the art tools for a broad range of business decisions. ―The investment modeling capabilities of Honeywell‘s RPMS software also provides a unique opportunity for us to look at every investment as a capital expenditure and make decisions based on sophisticated investment analysis.‖ ―We knew we needed a team approach that demanded committed consultants with proven industry background and models but also had the flexibility and maturity to build a partnership and forge new ground. ―During the project it was difficult to identify who was an Indian Oil employee and who was a Honeywell employee – we are a true combined team who look for ways to creatively solve problems and develop a new path.1 million tonnes of petroleum products. cost-effective integrated planning solution and people commitment – not once did I hear them tell me how many ‗man-hours‘ they were spending and now we look forward to the future long-end planning in the next 15-20 years with the help of Honeywell. and the pipeline network transported 43. These benefits are realized through faster reaction to market opportunities. IOCL sold 50.96 million tonnes. The resulting project has set a defacto standard in Supply Chain Planning. Internet-enabled supply chain applications dynamically model the supply chain. substantially improve profitability through measurable inventory and product cost reductions. including exports of 1. 19 . and true collaboration with suppliers and customers.‖ said Basu. ―We chose Honeywell because of the feature/functionality. improved customer relations.For the year 2004-05. planning.63 million tonnes.03 million tonnes of crude oil and petroleum products.‖ Indian Oil has committed to a five-year contract with Honeywell to provide for ongoing support and enhancements as well as a continuous upgrade of skills and induction of new people and training as needed. manufacturing. Replacing the traditional planning model. Basu added. these products offer an integrated suite of advanced forecasting. and scheduling to manage the supply chain. and when combined with advanced execution solutions. sales and distribution) to maximize the corporate profit. Honeywell Supply Chain Solution Honeywell‘s Supply Chain solution effectively helps manage business complexity and optimize the supply chain. decisions are made more quickly and disruptions minimized.

In a supply-chain. it is an integrated package of SAP R3 and BIW. and at the marketing end. the industry offers a classic model for implementing supply-chain management techniques. and the supply chain needs to drive decisions on exports imports versus domestic sales of different products. import/export facilitation and information technology.  Supply Chain Overview 20 .Supply Chain Management IOCL IOCL is involved in a global supply-chain that includes domestic and international transportation. materials handling. and capital flow through the supply-chain. information. Short-term versus long term implications of decisions need to be balanced.  The SCM inherently operates as a matrix organization. Given its objectives. The SCM needs to drive value creation for the entire corporation. ordering and inventory visibility and control. working across different business units that could have conflicting goals or are used to more vertical ways of working. A transparent platform with total visibility. a company is linked to its upstream suppliers and downstream distributors as materials. by creating a sense of passion for the company goal. The crude selection and supply is the international arm of the business. Thus. the SCM has to work through four fundamental sets of complexities which are as follows:  It operates in a global context both at the supply side. from a strategic perspective.

accounting. with a handful of companies citing that the cost was more than $10 million according to recent reports (see Hendricks and Singhal 2005. Such disruptions are a 6-figure to 7-figure expense for companies. al.Supply Chain Master Data Supply Chain Link Exploration → Production → Refining → Marketing → Consumer (Crude oil procurement) Exploration (using VLCC) IOCL entered the upstream sector in 2003 with the aspirations of reasonable supply security of crude. Success is increasingly being dictated by how well a company can control its supply base and mitigate supply bottlenecks and liabilities.) and looking at the tasks that each function performs. to become a vertically integrated oil company and to add to IOCLs bottom line. marketing. hedging of price risks. etc. especially its business processes. Supply chain initiatives Supply chain initiatives have become a critical part of firms operations (Eskioglu et. Rather than organizing a firm into functional specialties (like production. as an example). 2009).. Reengineering (or re-engineering) is the radical redesign of an organization's processes. we 21 .

Many companies began business process improvement with a continuous improvement model. The main proponents of re-engineering were Hammer and Champy (1993). 22 . The firm should be reengineered into a series of processes. we have many others to choose from (hence the competitive issue for businesses). The feedback loop from customers will also be used as shown in Figure 1. do the process. which has subsequently been called business process re-engineering (BPR). as customers. and subsequent improvements. Figure 1: Customer feedback loop Improving business processes is paramount for businesses to stay competitive in today's marketplace. The changes. Then implement process improvements. measure the results. and the customer and associated outputs. The model will be used to define the supplier and process inputs. Reengineering Management. Figure 2 below illustrates the basic steps. your process. The research will begin by documenting what Oil Marketing Companies (OMC‘s) do today. The proposed model will attempt to understand and measure the current process. This loop repeats over and over again. and is called continuous process improvement and the proposed research will be following this line of action. have been clearly identified by Hammer and Champy (1993) who have claimed originality and conveniently packaged the ideas into the concept of ―business re-engineering‖. and The Agenda. In a series of books including Reengineering the Corporation. And if we do not receive what we want from one supplier. Over the last 10 to 15 years companies have been forced to improve their business processes because we. and then identify improvement opportunities based on the data collected. and make performance improvements accordingly. they argue that far too much time is wasted passing-on tasks from one department to another. to production. The Business processes pictured as a set of triangles as shown below. be looking at complete processes from materials acquisition. and measure the performance of the new process. according to the reengineering theory. to marketing and distribution. are demanding better and better products and services.should. establish some way to measure the process based on what their customers want.

Environmental responsive companies take proactive posture in requiring a significant level of environmental responsibility in core business practices of their suppliers and vendors (Business and Environment 1993. Greening the ―Supply Chain‖ refers to firms integrating environmental issues which include predevelopment activities. · Enhancing Supplier Diversity Expanding the supplier base enables firms to include more diverse suppliers hence encouraging competition. and support services for each customer segments. · Maximize the reach of consumers It is critical to work with supply chain partners to prospect and generate quality customers. Sarkis. and lowering costs for all parties concerned. and hence more attuned and sensitive to environmental issues. Carbone 2005). sales. and a successfully implementation of a web based Business-to-Business exchange system. enhancing transparency. 23 .Figure 2: Basic steps in continuous improvement Critical Issues in Managing the Supply Chain Based on a literature review. but also to the developmental process. Companies are increasingly giving attention not only to the environmental characteristics of their products. Oil Corporations are considered to be in the high environmental impact sector. supplier‘s business practices. mutually and simultaneously beneficial to many stakeholders. paying particular attention to the supply chain activities. It also helps to build loyalty by relying on a variety of programs in giving our customers an outstanding use experience. the following are the critical factors in managing the supply chain of an oil company: · Greening the Supply Chain How the LPG division can take a proactive posture in requiring a significant level of environmental responsibility in core business practices of their suppliers and vendors. A sustainable business value can be created by offering a tiered approach with distinct marketing. It is imperative to educate customers by enabling them to complete routine self-service tasks by themselves (Ashcraft 1992). It is critical to implement enhanced quality training. Accelerating sales cycles by innovating internet based selling and hence allowing customers to access us 24/7 via web touch settings. employment and networking services for the under-represented suppliers. Increase participation of local and national divisions in seeking out diverse and under-represented categories when seeking out new sources for suppliers and services (Caminiti 2005. training. educational. 2002). product design and development.

Using predictive analytics to transform static supplier scorecards into forward-looking risk management instruments. production and distribution facilities by 22nd of every month. measurement. including: 1. 2. processing of monthly demand is being done. Companies are serious about maintaining cost competitiveness or customer service differentiation must re-examine their process. if any. which would form the basis for the next month. major bulk 24 . Resolving last-minute supply disruptions based on cross-functional business goals. The demand from each distributor is collected by the sales officers. 3. In addition. it is fed into the integrated planning module that contains representation of supply. The same is analyzed and then with corrections. Inserting control points at suppliers to minimize errors.· Maximizing Operational Efficiency How we can maintain cost competitiveness through the restructuring of the supply chain systems for LPG cylinders of the oil marketing companies. Supply Chain Strategies Demand Planning Through the Supply Chain Management package which is based on SAP R/3. and technology approaches and seek new areas of supplier performance improvement (Rudberg and Thulin 2009).

01 37.88 25 MS-IV SKO ATF HSD-IV PNCP PXPT TOTAL PROD. This corporate plan is communicated to the distribution module and the production planning modules to generate the operational plans. which tracks previous sales data MDP TMTs 40.customers‘ demand and Industry demand is also uploaded. The production and the Supply & Distribution(S&D) structure form the basis on which the optimized plan for the entire organization is generated.29 15.00 20.80 88. The demand is uploaded on a daily basis called PDP. this result is obtained in optimization department.00 256.78 55. The demand of various products are shown below in the following figure. . (planned delivery programme).

it is a network of related activities with the purpose of managing the orderly flow of material and personnel within the logistics channel.Components of Logistics Management MEANING The simplest way to describe logistics is to say that it is all about ways and means of meeting the demand for materials i. where he wants etc. a system. Logistics is. The logistics concentrate on dynamic processes. It includes outbound. implements and controls the efficient. inbound.e. satisfying the customer with what he wants. internal and external movements and returns of material for environmental purposes. whenhe wants. effective flow and storage of goods. in itself. The most wide spread definition from council of Logistics Management says that ―Logistics is the part of the supply chain process and plans. services and related information from the point of origin to the point of consumption in order to meet customers requirements.‖ 26 . related to the flow of materials and the relationship between the materials and their use at different facilities.

ships. The logistics network required to supply petroleum products from the refineries to the end-users is a complex system of pipelines.  Supply sources  Indigenous availability of Products  Import plan – port wise  Total availability at each supply source  Linkage to bottling plants & customers – qty & mode  Rail loading slate  Plan of supplies through pipelines 27 . A model is generated in mathematical terms which depict the following ILP gives the overall supply demand position for the country for all the oil industries. through the ―process of purchase‖ and ―supply of material from the vendor‖ right through to ―final acceptance‖ and ―payments to the supplier‖ and ―issue to the indenter‖ and has to be considered as a ―one whole activity‖ with each stage having an impact on price/cost of material supply. The long 8 distances and variety of transportation modes used can pose challenges for the refiners who must maintain strict product specifications. Procurement & Outsourcing Strategies Industry Logistics Plan The ILP forms a major component of the downstream oil industry. Typical logistics framework mainly consists of Physical Supply. logistics encompasses all of these. ILP originates at the refineries and terminates the final delivery point – the customer‘s. the material supply logistics starts from the base level of ―generation of the demand. This is increasingly important as environmental regulations result in cleaner and more stringent product characteristics. Often several methods of transportation are utilized to move petroleum products from the refineries. ports and large terminals to tremendously disperse markets all across the globe. Internal Operations and Physical Distribution of Goods and Services. To put it more simply. railways and trucks.FUNCTIONING Logistics is responsible for all the movement that takes place within the organization whether it is inbound logistics of incoming. raw materials or movement within the company or the physical distribution of finished goods. Degradation or contamination of product in transit can result in costly reprocessing at the delivery point if the integrity of the distribution system is not carefully monitored.

The cheapest mode is by rail for long distances. The target of the transportation planning process is to optimize the inbound or outbound transportation demand between a Plant and different other locations such suppliers and customers. business share and or priority. TPVS will create the inbound delivery and inbound shipment document data for the R/3 system. 28 . The freight charges for rail movements are decided by Indian railways and that for pipeline are decided by GAIL Transportation Planning /Vehicle Scheduling Transport plans & vehicle scheduling of SCM helps in planning loads in line with the demand plan/PDP as well as ensures equal earning to the transporters. Sales orders. This is to take care of creation of shipments based on the availability of vehicles and users run vehicle scheduling optimizers once in every 3-4 hours. Stock Transport orders.Transportation There are three types of movement namely transportation through rail. Transportation Planning – Inbound Process Purchase orders. Transportation demands from Supply Network Planning can also be created in TPVS for planning. Inbound Deliveries and Shipment documents can be used to plan inbound transportation demand. road and pipeline. TPVS Planning process using sales order data will create planned delivery and shipment documents in the R/3 System TPVS Planning process does not make any changes to the sales documents that are in the R/3 system. When Purchase orders / Stock Transport Orders are provided to TPVS for planning. The Optimization covers the own fleet as well as transportation service provider based on least cost. Outbound Deliveries and Shipments can be used to create transportation demand in TPVS.

for example. It is based. 29 . on the requirements you have determined in Demand Planning for distribution centers and determines how these requirements are met by distribution centers. production plants and suppliers in your network. planned orders and purchase requisitions.Supply Network Planning (Cross Plant Planning) Cross-Plant Production ensures that medium to long-term planned independent requirements and sales orders are covered by means of receipt elements such as stock transfers. Cross-Plant Planning is carried out using the component APO-SNP.

Violation of soft constraints also incurs costs. you cannot meet the demand for this product. 30 . You can determine the procurement costs from the SAP R/3 system using purchasing information records.Optimizer The optimizer uses linear programming to consider all relevant factors simultaneously. and contracts. Due dates and safety stocks are considered to be soft constraints. if no other cost-effective solution was available. The optimizer compares alternative solutions using costs that would be incurred. and handling. you set high penalty costs. production. Control costs are used to select procurement alternatives. storage. The result of the optimization run might be that due dates are violated or that safety stocks are not replenished. Penalty costs are used to prioritize demands. If a product has no penalty costs. taking into account constraints for transportation. If a product brings high sales revenues. It determines the most cost-effective solution based on the constraints and objective function defined in the system. The optimization run results in an optimal solution for the objective function (minimum costs or maximum profit). which means that the optimizer only determines a solution that would violate these constraints. scheduling agreements.

To create a feasible plan. this plan is not necessarily feasible. The demands are then passed through the supply chain to calculate a plan. The Heuristic run then uses the lot-sizing procedure and quota arrangements for each source to determine the valid sources of supply and the quantities to be procured. production.Heuristics Heuristic processing groups all existing demands for a given product at a location into a total demand for the period. the planner uses capacity leveling. However. and distribution in one consistent model Model the entire supply network Synchronize activities and plan the flow of material through the entire supply chain 31 . The Heuristic performs the following functions:     Plan supply to meet demand Integrate purchasing.

If the available quantities are not sufficient to fulfill the demand or supply exceeds demand.  Deployment and TLB executed for daily products. 4 months for raw material planning and within 30 days horizon with daily buckets for FG/SFG planning. Master data is made available in the SCM system.The deployment Heuristic calculates a replenishment plan for a product at a delivery location.  To fulfill the requirements. Planning is done in monthly buckets annually. The deployment optimization run calculates a replenishment plan for a product in all locations within the network. If the available quantities are not sufficient to meet the demand. PIPELINE DIVISION. PRODUCT HANDLING 2. the system determines the distribution plan based on fair-share rules. Deployment optimization has an integrated view over the receipt situation of all delivery locations and the demand situation of the receiving locations. the system uses minimum cost flow optimization to determine an optimum distribution plan for the entire network at once. PLANNING Product Handling Product handling is obtained with the help of SCADA system 32 . NOTE: Reports are generated and then sent to every department for execution of the operations in the REFINERY. Beginning every month. Fair-share rules and push rules are defined in the deployment profile.  To propagate requirements to bottling plants. the system uses push rules to determine the distribution plan. DATABASE MANAGEMENT 3. OPERATIONAL ACTIVITIES (PIPELINE DIVISION) 1. R&D DIVISION AND MARKETING DIVISION. A location heuristics is run  To propagate customer demands to a staging godown. forecast reorganization is done to delete the existing forecasts and to generate the new ones. If supply exceeds demand. monthly products and BMCG to create VMI Sales orders and these orders are sent to SAP ECC system for execution.

flexible. control There is. fabrication. the difference between SCADA and DCS will fade. repetitive. As communication infrastructures with higher capacity become available. in several industries. considerable confusion over the differences between SCADA systems and Distributed control systems (DCS). A SCADA System usually consists of the following subsystems:      A Human-Machine Interface or HMI is the apparatus which presents process data to a human operator. and through this. They monitor and control HVAC. gathering (acquiring) data on the process and sending commands (control) to the process. including buildings. and refining. a SCADA system usually refers to a system that coordinates. Remote Terminal Units (RTUs) connecting to sensors in the process. and may run in continuous. access. batch. Communication infrastructure connecting the supervisory system to the Remote Terminal Units Supervision vs. 33 . civil defense siren systems. low latency. The process can be industrial. and include water treatment and distribution. airports. the human operator monitors and controls the process. and energy consumption. It generally refers to an industrial control system: a computer system monitoring and controlling a process. Most differences between SCADA and DCS are culturally determined and can usually be ignored. oil and gas pipelines. Infrastructure processes may be public or private.STUDY OF THE SCADA SYSTEM SCADA stands for Supervisory Control and Data Acquisition. high speed communications over wide areas. enabling reliable. power generation. and large communication systems. infrastructure or facility based as described below: Industrial processes include those of manufacturing. versatile. Facility processes occur both in public facilities and private ones. production. The discussion on real-time control is muddied somewhat by newer telecommunications technology. converting sensor signals to digital data and sending digital data to the supervisory system. but does not control processes in real time. Programmable Logic Controller (PLCs) used as field devices because they are more economical. or discrete modes. and space stations. ships. electrical power transmission and distribution. wastewater collection and treatment. Generally speaking. and configurable than special-purpose RTUs. A supervisory (computer) system.

Most control actions are performed automatically by remote terminal units ("RTUs") or by programmable logic controllers ("PLCs"). to allow trending and other analytical auditing. but the SCADA system may allow operators to change the set points for the flow. while the SCADA system monitors the overall performance of the loop. 34 . The feedback control loop passes through the RTU or PLC. Data may also be fed to a Historian. a PLC may control the flow of cooling water through part of an industrial process. and enable alarm conditions. to be displayed and recorded. For example.System concepts The term SCADA usually refers to centralized systems which monitor and control entire sites. Data is then compiled and formatted in such a way that a control room operator using the HMI can make supervisory decisions to adjust or override normal RTU (PLC) controls. often built on a commodity Database Management System. Host control functions are usually restricted to basic overriding or supervisory level intervention. Data acquisition begins at the RTU or PLC level and includes meter readings and equipment status reports that are communicated to SCADA as required. such as loss of flow and high temperature. or complexes of systems spread out over large areas (anything between an industrial plant and a country).

) Points are normally stored as value-timestamp pairs: a value. such as the path to a field device or PLC register. and management information such as scheduled maintenance procedures. A hard point represents an actual input or output within the system. which contains data elements called tags or points. A series of value-timestamp pairs gives the history of that point. and alarm information. in the simplest case. 35 . Points can be either "hard" or "soft". An HMI is usually linked to the SCADA system's databases and software programs. A point represents a single input or output value monitored or controlled by the system. commonly referred to as a tag database. design time comments. (Most implementations conceptually remove the distinction by making every property a "soft" point expression. which may. and expert-system troubleshooting guides. detailed schematics for a particular sensor or machine. while a soft point results from logic and math operations applied to other points. logistic information. equal a single hard point. It's also common to store additional metadata with tags. Typical Basic SCADA Animations Human Machine Interface A Human-Machine Interface or HMI is the apparatus which presents process data to a human operator.SCADA systems typically implement a distributed database. to provide trending. and through which the human operator controls the process. diagnostic data. and the timestamp when it was recorded or calculated.

These representations can be as simple as an on-screen traffic light. a picture of a pump connected to a pipe can show the operator that the pump is running and how much fluid it is pumping through the pipe at the moment.The HMI system usually presents the information to the operating personnel graphically. 36 . Bijwasan is also the central hub of Telecommunication of the pipeline. An alarm is a digital status point that has either the value NORMAL or ALARM. The HMI software will show the flow rate of the fluid in the pipe decrease in real time. or may consist of digital photographs of the process equipment overlain with animated symbols. This means that the operator can see a schematic representation of the plant being controlled. The HMI package for the SCADA system typically includes a drawing program that the operators or system maintenance personnel use to change the way these points are represented in the interface. or as complex as a multi-projector display representing the position of all of the elevators in a skyscraper or all of the trains on a railway. For example. The operator can then switch the pump off. Emails and text messages are often sent along with an alarm activation alerting managers along with the SCADA operator. they are activated. in the form of a mimic diagram. An important part of most SCADA implementations are alarms. Alarms can be created in such a way that when their requirements are met. The SCADA operator's attention is drawn to the part of the system requiring attention by the alarm. which represents the state of an actual traffic light in the field. An example of an alarm is the "fuel tank empty" light in a car. Mimic diagrams may consist of line graphics and schematic symbols to represent process elements. It also functions as the central control station which has the ability to monitor as well as control the operation of each and every valve present on the pipeline through the use of SCADA (supervisory control and data acquisition system).

So if there is a product which is not used at Bijwasan terminal storage (Not sent to Marketing division). The second pipeline is used for pumping of the products if the pressure is low at the receiving end then these pumps can be used to provide necessary pressure. Then it is further sent to Panipat refinery. The third pipeline which further splits into two pipelines are used to extract the products and then again send them to marketing Division. Such that it could be empted when the ATF is being received from Mathura as the outlet pipeline is free at that time.Layouts and functions at Bijwasan terminal The flow diagram shows basic inlet and outlet Products enter Bijwasan station from Mathura refinery and exits to Panipat refinery. so that they could be carried further to retail outlets or industry and the other part is Naptha tank which stores Naptha and this is further sent to Panipat Division. The inlet pipeline is further divided into three pipelines The first one is an outlet to Panipat refinery. 37 .

Therefore we will discuss about change in demand. but it may also fluctuate due to different requirement from Industries and Retail Outlets Fluctuation in demand can cause a bottleneck for the operation.. Multi product pipe line is totally pressurized with product to reduce the corrosion inside the pipe. This is very important aspect for operation manager as demand may not be constant obtained from marketing.there is a minimum amount of a product which is transported in TKls. 38 .Product Sequencing When IOCL-Bijwasan receive the products from Mathura refinery transported product through Multi product pipeline. Day by Day sequencing of the products After discussing the procedure of sequencing the most important job of Operation Manager is to check out the daily demand for the outlet of the products into Marketing division. While receiving the ATF (Aviation turbine fuel) at Bijwasan . which act as a interface in between the two different products.There is a proper procedure to maintain the order of various products through single pipeline which is given below:- This sequence is strictly followed because if we send HSD after ATF due to pressure they get mix with each other to solve that problem a SKO is sandwiched in between them. We take a topic how Branding can enhance sales of the organization by taking case on Xtramile Diesel performance. It is received in a sequence which is called a batch sequencing. The monthly demand obtained from the optimization department of Head Office as discussed in supply chain management. SKO is called superfine kerosene oil.they stored in a tank for the Supply department on the other hand the sending pipe line is free to use at that time to optimize the operation they send Naptha to the Panipat refinery.

00 88.76 31.46 54. This monthly demand is further divided into daily plans.00 0.57 26.00 PNCP 20.00 0.00 0.69 8. MS-IV SKO ATF HSD-IV PNCP PXPT TOTAL This is monthly demand (June-2012) obtained from optimization department of Head Office.00 49.93 333.00 19.00 6.34 41.00 0.00 0.01 SKO 37.00 0. This demand is then further divided into Delhi – Meerut.00 44.00 0. Overall plan MDP TMTs PROD.00 40.00 0.00 36.00 19.00 44.68 So the demand from Matura and Optimized demand is almost same. 39 .00 63.00 0.00 0.43 0.00 0.09 0.00 40.00 PXPT 0.01 37.00 0.32 0.80 ATF 88.32 32.00 234.00 0.01 15.00 143.01 55.00 19.10 26.86 247.86 12.38 0.00 0.76 26.80 88.50 20.00 63.00 19.00 0.00 42.00 304.10 78.11 54.00 319.28 MEERUT BPPL PMC/PB TKTS TMTS TKTS TMTS TKTS TMTS 7. 40.54 32.50 TMTS 34.78 HSD-IV 55.00 88.88 PROD.MDP TMTs 40.00 5.00 42. Although.00 26.76 0.00 0.00 0.40 DELHI TKTS 48.10 26.50 25.00 0.00 HSD-III TOTAL MATHURA TKTS TMTS 55.00 46.66 106.29 MS-IV 15.52 89.00 20.86 RWR PAJ KRN TOPS TKTS TMTS TKTS TMTS TKTS TMTS 0.78 55.00 26.00 0.00 0.92 0.50 112.45 63.00 6.00 0.00 8.29 15.00 256. and other stations.41 63.00 0. this is optimized quantity may differ from actual quantity.00 44.32 TOTAL MDP TKTS TMTS TMTS 55.00 0.00 0.00 24.40 106.66 47.85 106.69 0.00 0.

00 0.30 6.00 2. IN HRS 1.20 2.20 2.7 0.30 0S PCK PCK NS 10.7 16-Jun-12 18.00 10.00 0.9 16-Jun-12 12.00 22.000 0.1 16-Jun-12 12.00 0.00 0.00 0.00 7.80 0.9 25-Jun-12 20.80 0.1 14-Jun-12 3.00 0.150 0.5 29-Jun-12 2.150 0.4 26-Jun-12 5.000 0.20 2.00 NS PCK 2.6 21-Jun-12 20.8 30-Jun-12 5.300 0.00 28.700 15.8 DELHI 11.500 4.00 13.400 2.4 16-Jun-12 12.300 0.50 8.The daily plan is shown below MONTHLY PUMPING AND DELIVERY SCHEDULE FOR JJUNE 2012(EX-MATHURA) MATHURA-JALANDHAR PIPELINE START DATE START TIME 1-Jun-12 7.00 0.00 6.2 22.000 2.2 24-Jun-12 2.00 0.000 7.8 27-Jun-12 9.00 0.400 22.1 5-Jun-12 11.00 5.6 14-Jun-12 3.150 0.2 5-Jun-12 12.3 11-Jun-12 6.000 6.700 9.000 0.200 2.7 51.700 9.0 30-Jun-12 5.150 7.30 0.9 0.50 7.000 0.00 7.2 10-Jun-12 8.50 14.00 6.000 0.5 26-Jun-12 14.8 1-Jul-12 9.300 0.00 0.70 9.00 7.400 0.00 8.70 9.8 29-Jun-12 15.150 0.30 0.5 21-Jun-12 20.00 28.8 8.400 0.50 MRT BPPL PMC/PB RWR PAJ KRN TOTAL 1.00 0.8 27-Jun-12 8.00 1.3 21-Jun-12 20.000 7.00 5.50 8.5 18-Jun-12 21.00 0.00 40 .5 24-Jun-12 5.20 2.650 2.70 9.70 9.5 6-Jun-12 8.50 1.500 9.0 1-Jun-12 11.00 1.70 9.00 6.2 1-Jun-12 22.9 5-Jun-12 12.30 0.650 2.000 0.00 7.400 28.700 9.00 0.150 2.50 6.00 11.400 28.150 11.00 6.00 11.4 2.00 0.1 27-Jun-12 8.00 11.00 2.150 11.00 0.4 14.3 23-Jun-12 6.862 1.00 0S PCK PCK NS NS PCK 2.3 3-Jun-12 8.50 11.6 11-Jun-12 12.00 1.30 PCK 0S 2.00 0.000 0.0 19-Jun-12 15.3 11-Jun-12 13.50 5.70 9.50 1.00 1.3 18-Jun-12 12.000 1.50 13.150 0.5 7-Jun-12 20.150 19.6 31.00 0.150 2.8 25-Jun-12 19.00 0.00 6.00 0.3 0.00 NS PCK 10.8 3-Jun-12 6.000 6.7 10-Jun-12 13.300 0.400 0.9 6-Jun-12 21.000 7.000 1.00 2.300 0.150 2.7 7-Jun-12 21.4 PROD.3 20.000 5.400 28.70 9.30 PCK 0S 2.800 0.300 0.00 6.000 0.000 0.00 6.00 0.150 2.3 14-Jun-12 3.00 1.9 22-Jun-12 17.150 0.2 15-Jun-12 13.3 21-Jun-12 20.8 18-Jun-12 3.4 10-Jun-12 8.50 PCK 0S 9.1 7-Jun-12 21.8 1.00 2.00 0.000 1.30 0.1 24-Jun-12 5.8 30-Jun-12 1.50 PCK NS 11.7 19-Jun-12 16.70 9.30 0.00 0.8 24-Jun-12 11.6 3-Jun-12 7.30 6.00 2.700 9.00 6.00 0.00 6.00 7.000 6.00 2.150 11.1 30-Jun-12 4.80 0S PCK PCK NS 13.3 29-Jun-12 2.2 16-Jun-12 9.150 2.00 11.7 18-Jun-12 2.9 24-Jun-12 5.6 29-Jun-12 2.4 14.2 22.50 FLOW 425 425 8.00 NS PCK 2.00 1.000 0.3 1-Jul-12 0.300 2.30 0S PCK 13.70 23.150 0.00 9.150 0.00 0.00 7.00 15.00 0.200 2.500 14.00 2.00 7.400 0.4 1-Jun-12 14.8 15-Jun-12 0.4 COMP TIME 11.3 21-Jun-12 20.000 0.4 11-Jun-12 11.70 9.50 2.000 0.00 0.8 0. SKO ATF ATF ATF SKO SKO HSD-IV SKO SKO PNCP PXPT PNCP PNCP SKO SKO MS-IV MS-IV SKO SKO ATF ATF SKO SKO HSD-IV SKO SKO PNCP PXPT PNCP PNCP SKO SKO MS-IV MS-IV SKO SKO ATF ATF SKO SKO HSD-IV HSD-IV HSD-IV HSD-IV HSD-IV SKO SKO PNCP PXPT PNCP PNCP SKO SKO MS-IV MS-IV SKO SKO ATF ATF SKO SKO HSD-IV SKO SKO PNCP PXPT PNCP SKO SKO MS-IV MS-IV BATCH 0S QTY IN TKL DUR.3 21-Jun-12 20.8 7-Jun-12 18.3 21-Jun-12 20.00 8.4 8-Jun-12 3.8 19-Jun-12 15.

An information system model for integrated refinery supply chain management was presented. Separate planning models for inbound logistic.Conclusion Supply chain factors are most critical in the success of any firm. A mathematical model was developed to improve the accuracy of forecasting. internal logistic. 41 . Information technology being the backbone of supply chain management. Planning started with the forecast of demand for products. The whole system was divided into small operational sub modules and information system for each sub module was developed. Finally all the sub modules were joined together to get the integrated information model for SCM. Planning was divided in to four time periods for improving the efficiency of planning. tools available for use in SCM as well as the suitability of each tool was discussed. Bringing crude oil to the port of unloading is the next major bottleneck. Product demand has bearing on selection of crude oil and crude oil selection is based on many factors. and external logistics are also developed.

com 42 .).com/node/996 IOCL. January 19). Retrieved Dec-Jan 2012-13. Retrieved Dec-Jan 2012-13.Bibliography (2006. from http://www.d.iocl.businessgyan. from http://www. (n.

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