Supply Chain of

BPCL- LPG

Group- 05
Ananthapadmanabhan B (18PGP021)
Azhagarasan T (18PGP041)
Bala Bharathy (18PGP042)
Spandana Reddy (18PGP044)
Poojitha Saranya (18PGP046)
Santha Kumar (18PGP068)
 BPCL
• Started their journey in India with Burmah Oil Company in 1928
• Started introduction of LPG as cooking fuel to domestic households in mid 1950’s
• Known for their vast distribution network spreading across cities, towns and remote villages
• 49 LPG bottling plants across India
• Supply chain includes the Refineries, Bottling Plants, Distributors and the End Customers. The
process follows the sequence:
Exploration  Production Refining  Marketing Customer

Indian Institute of Management Raipur

Supply Chain
Overview

Indian Institute of Management Raipur

 • LPG fuel is transported from the refineries to the bottling plants through fuel
carriers

• The fuel received is unloaded from the fuel carriers through pipes and stored in
Production massive bullets

• The fuel carriers are well equipped with Pressure Gauges, Temperature Gauges,
Error Flow Check Valves and Fire extinguishers for safety

Indian Institute of Management Raipur

 • Based on the demand, LPG is transported either through Road, Rail or
Pipelines

Transportation • Strict safety measures are followed as it is highly inflammable

• The fuel carriers are owned by BPCL and transport the fuel from the
refinery plants to the 49 Bottling Plants for further processing

Indian Institute of Management Raipur

 • The LPG fuel stored at the bottling plant is transferred into the cylinders
through a sequence of operations

Supply • Then the cylinders are sorted and supplied to the distributors through
delivery vehicles from the bottling plant

• Each distributor dumps the load of empty cylinders at the plant and
collects their orders from the plant

Indian Institute of Management Raipur

 • After the cylinders are transported from the bottling plant, they are
stored in the warehouse

• Cylinders are sorted based on the orders and sent to appropriate

Distribution customers in the distributor’s location

Indian Institute of Management Raipur

 Activities Involved

Refineries LPG Bottling Distributors Customers

Plants
• Bulk Unloading Gantry • Warehousing
• Pump House • Stock Investigation
• Bottling unit • Order Sorting
-Unloading • Collection of orders
-Manual Inspection
-De-capping
-Weight Check
-Carousel
-Dynamic Check Scale
-Weight Correction Unit
-Valve Leak Detector
-Statistical Quality Check-
weight, valve leakage, O Ring, Test
Bath, Hot air sealing

Indian Institute of Management Raipur

 The various types of demands for LPG :

• Refill demand of existing customers

• New connections for Domestic and Commercial Establishments
• Additional requirement like Double Bottle Connection and increased
requirements for Commercial customers
• Mass new connections through various government schemes
• Seasonal variations, Festive Demands
Demand Planning of Order deliveries:
Planning • Demands from distributors collected by the Sales Officers
• Analysed and fed into Integrated Planning Module
• IPM contains representation of supply, production and distribution
facilities by 22nd of every month, which would form the basis for the
next month
• Bulk customers demand and Auto LPG demand is also uploaded
• Demand uploading done on a daily basis using PDP( Planned Delivery
Program )

Indian Institute of Management Raipur

 • Distributors visit the territory bottling plant once in 2 days for
unloading empty cylinders and taking new filled cylinders

• The delivery vehicles can be owned by the distributor or can be

Transportation hired by them on a contract basis from BPCL

Planning • Purchase Orders / Stock Transport orders are provided to

Transportation Planning and Vehicle Scheduling (TPVS)

• TPVS creates the Delivery and Shipment document data

Indian Institute of Management Raipur

 • Implemented SAP Supply Chain
Management Application to reduce
Logistics costs

Indian Institute of Management Raipur

 • Sales activity monitored by the Sales Officers
• Detailed stock and sales Inspections once in three months
• Setting sales targets to the distributors
• Monitoring new domestic and commercial accounts opened
Controlling • Conducting monthly meetings to the distributors at the Territory
Bottling Plant
Distributors • Uninformed inspections by the Territory Manager
• Visiting the customer households to gain feedback about delivery
time, Safety instructions, Safety clinics done by the distributor
• Motivating the distributors through Recognitions

Indian Institute of Management Raipur

 Thank you 
Indian Institute of Management Raipur