Supply Chain Management in IOCL

Supply chain management in the oil and gas sector needs to be managed properly to ensure that the
resources are utilized efficiently. This in turn helps to lower the operating costs and the profitability
of the oil and gas sector.

Typically, the supply chain is divided into three segments.

1. The upstream segment finds and produces crude oil and natural gas.
2. The midstream segment handles the processing, storing and transporting of energy commodities.
3. And the downstream segment encompasses oil refineries, retail outlets and natural gas distribution
companies.
Business benefits of the oil and gas supply chain

Supply chain improvements are both necessary and cost effective.

Leveraging the cloud, Internet of Things (IoT), team collaboration and blockchain digital
technologies, among others, enhanced value chains can reduce costs and enhance operations at
every stream of oil and gas production.

Use cases of AI/ML in SCM-

 Demand forecasting- Demand Forecasting will help to make future estimation with respect to
customer demand.
 Forecasting consumption- will help to forecast how fast resources are used on a purchase
order.
 Cost prediction/Optimization- will help in cost reduction and thereby maximizing business
 Inventory management/ Inventory days of supply (Average)- It will help companies to
identify which & how stock to order and at what time
 Improve delivery Performance- Delivery performance will provide an indication of how
successful the supply chain is at providing products and services to the customer
 End to end Cycle time from Procurement to sale

 AI/ML-based Production Planning and Scheduling

 Classifying very odd sales/movement of products- A column showing very ‘odd’ product
movements be very useful as it will help management to focus on those specific movements.
However, this will need labelling to be done for past periods i.e., classifying and labelling movements
as ‘odd’ or ‘ok’.
 AI-based chatbots for the core SCM team -A chatbot can be very useful to various user
departments such as sales, purchase, production others, which will access SCM databases and support
queries using NLP modules.

AI/ML Models that can be used-

 Time Series Analysis
 Natural Language Processing
 Clustering
 Computer Vision
 Reinforcement Learning
Ref links:-
https://www.analyticsvidhya.com/blog/2022/06/ai-ml-use-cases-for-supply-chain-
management-scm/

https://www.n-ix.com/machine-learning-supply-chain-use-cases/

https://www.futurebridge.com/industry/perspectives-energy/artificial-intelligence-
in-supply-chain-management-in-oil-and-gas/