Value Chain Analysis of Shell

Shell is an oil and gas British multinational company. The energy and petroleum company started its business in 1907 as the Royal Dutch Shell. Today, we’ll discuss the value chain analysis of Shell supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Brands of Shell

• Shell V-Power
• Shell Rotella
• Rimula Shell
• Nautilus Shell
• Helix Shell
• Broadband Shell
• Advance Shell
• Quaker State
• Pennzoil
• Jiffy Lube

Oil Rigs Locations of Shell

• UK
• Singapore
• Russia
• Phillippines
• North America
• Nordic Countries
• North America
• Nigeria
• Malaysia
• Italy
• Ireland
• Indonesia
• India
• Hong Kong
• China
• Brunei
• Australia
• Arctics

The Value chain analysis of Shell supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of Shell value chain analysis company example as follows;

Value Chain Analysis of Shell

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Shell supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Shell

The primary activities are directly involved in the production of products and goods and adding value to the oil and gas company. Some of the five main primary activities in the value chain analysis of Shell supply chain analysis are as follows;

Inbound Logistics of Shell

I-Suppliers Network

Shell has a very large suppliers network comprising approximately over 24000 suppliers and vendors in 110 countries across the globe. The oil and gas company spends roundabout 41.5 billion USD on the supplier’s collaboration. The company has developed a very good and effective and relationship with its suppliers to ensure the smooth availability of raw supplies.

• Integrated supplier’s relationship management platform
• Supporting supplier’s relationship lifecycle
• Real-time collaboration with procuring suppliers

II-Suppliers Code of Conduct

Shell has set up a strict code of conduct for suppliers to regulate their social and ethical compliance with the laws and standards. It allows the oil and gas company to keep up with the industry requirements and standards. The supplier’s code of conduct comprises of following areas;

• Labor management rights
• Social performance standards
• Fair wages and working hours
• Health, safety, security, and environmental regulations
• Ethical practices of the business integrity

Outbound Logistics of Shell

I-Transportation and Logistics

Shell partners up and collaborates with various 3rdparty logistics service providers and transporters for the distribution of oil and gas to authorized petrol stations in various countries across the globe. The oil and gas brand has a dedicated network of truck containers, ships, and trucking fleets that work day and night in shifts to timely deliver the oil and gas to the end consumers.

II-Decarbonizing Road Freight

Shell has made a strong commitment to environmental sustainability. According to an estimate, the company is taking steps to decrease the carbon emission rate to 60% by 2050 in order to comply with the Paris Agreement. The objective is to reduce the carbon footprint and make the company sustainable to society and the environment.

Operations of Shell

I-Multiple Operations

Shell engages in multiple operations ranging from oil and gas exploration to the retail sale of the final product. It allows the company to have complete control of its entire supply chain network and distribution channels across the globe. However, some of the main operations of the company are as follows;

• Oil and gas exploration
• Installation of rig plant for the production and drilling of oil
• Refining the crude oil
• Transporting and distributing of oil to the petrol and gas stations
• Retail of petrochemicals
• Generating power
• Trading

Marketing & Sales of Shell

I-Marketing & Sponsorships

Shell runs various types of marketing and advertisement campaigns for the promotion of its products and brand name. The oil and gas brand has been sponsoring motorsport events for a very long time. It gives significant brand exposure to the company in the new areas of the market.

II-Petrol Stations

Shell has established a network of over 40000 petrol stations in over 110 countries across the globe. The network of chain petrol stations helps the company to directly sell its petroleum products to the end consumers and promote brand loyalty.

Services of Shell

Shell offers a wide range of products and services to the end consumers. The additional services help the company to increase the customer satisfaction level and promote brand loyalty; they’re as follows;

• Lubrication services
• Renewable energy
• Service advice

Supporting Activities of Shell

Supporting activities are indirectly involved in the production of products and goods and adding value to the oil and gas company. Some of the main supporting activities in the value chain analysis of Shell supply chain analysis are as follows;

Infrastructure of Shell

Shell has established a very large infrastructure of production and refining factories, oil rigs, a network of petrol stations, logistics and distribution channels and network, and timing. The worldwide infrastructure helps the company to smoothly perform its various production, drilling, and refining operations, and timely deliver the finished goods to the end consumers.

HRM of Shell

Shell has employed approximately 90,000 employees to manage its global operations. The human resource management department of the oil and gas company plays a key role in creating a safe working environment, conducting professional training programs, and offering equal employment opportunities to all regardless of any differences.

Technological Development of Shell

Shell invests a significant amount of capital resources in research and technological development. It allows the company to employ advanced automation tools and equipment, AI technology, data analytics, and machine learning. It allows the company to achieve efficiency with its advanced production and manufacturing tools and equipment.

Procurement of Shell

Shell is highly careful and cautious about ethical sourcing procurement of raw materials, supplies, and components for production and operations. The company has set up strict rules and regulations for suppliers and partners to ensure their compliance with human rights standards and environmental sustainability regulations.

Conclusion: Shell Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Shell; we have realized that Shell is the world’s leading oil and gas company. If you are learning about the Shell value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.