Shell chemical company had found a new database that would keep them in the market by redesigning their supply chain of process manufacturing to better inventory. These database was called Simon (Supplier Inventory Management Order Network) developed by SCC and SSI (Shell Service International) and has been a value added service for customers and suppliers.
Simon helps suppliers to better manage inventory statistics for their customers by generating demand forecast, re-supply plan for its customers, more accurate calculations of safety stock, and to track the shipping of goods.
The operations of both the supplier and customer had changed by having the suppliers know and do better forecasting based on previous demand from the customers. They were able to know how much of their product was needed without any call to order type of service and these made them to have a better management of inventory and reduction in on-site inventory.
Simon had shifted the burden on customers to suppliers by customers being able to work on a low working capital cost. These also resulted in low transportation and administrative cost by this, customers didn't have to pay high spot market prices to suppliers and also by reducing some of the work for the administrative staff.
Suppliers were able to change their billing process from a pre-order billing to a more regular type of billing process. Instead of having a bill being sent to a customer every time they order, customers were billed on a monthly basis. These services made the separate themselves from their major competitors by their new value added services that made a better supply chain process.
Customers were able to make better decisions through more enhanced technology and more efficient supply operations. SCC enables the customers to benefit when having their weekly plant operation supply meetings. In...