Saudi Aramco's Hydrocarbon Supply Chain Management - Shipping & Logistics Aspect

Essay by babtaa0aUniversity, Master'sA-, March 2007

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Table of Contents

Introduction

Objective of Assignment.............................................................2

Overview of Supply Chain Management..........................................2-3

Importance of Supply Chain Management........................................3

Roles of Different Departments ....................................................4

Pillars of Supply Chain Management..............................................5

Movements & Operations Scope

Overview of Oil Movement from Well to Terminal (Ship or Pipeline) ......6

Overview of Oil Movement from Terminal to Customer........................7

Saudi Aramco Implementation of SAP to Manage Oil Supply Chain

Limitations of Old Systems .........................................................8

Expectations of SAP System.......................................................8-9

Objectives for Saudi Aramco Hydrocarbon Management .....................9

Enhanced Business Processes for Hydrocarbon Chain Management.........9

3 Way Pegging.......................................................................10

Movements & Operation Scope Applied by Saudi Aramco SAP System

(Full Details of Implementation)..........................................................................10-16

Conclusion .................................................................................17-18

References ....................................................................................19

Introduction

Objective of Assignment

Oil supply to the world is of such importance that many economies can not cope with major shortages of the black gold. Saudi Aramco, Saudi Arabia's only state run oil company, is the main supplier of oil to the world, supplying more than 25% of the world's daily requirement of crude oil .

Saudi Aramco created Vela International Marine Ltd. to manage shipment of crude oil and products to Saudi Aramco's customers.

Saudi Aramco uses SAP software to manage the oil supply chain ranging from forecasting, demand, production, store, and shipment. SAP software implemented in Saudi Aramco has enabled the oil supply to be monitored and controlled in a complete and seamless fashion.

This assignment will provide an insight on Supply Chain Management in general, an insight on oil supply chains, roles of different organizational groups in the supply chain, and pillars of supply chains in general. This assignment will then will explain the SAP system used by Saudi Aramco with an emphasis on shipping aspects of the SAP system that is used to manage demand and supply of oil

Overview of Supply Chain Management

What is Supply...