Flexible scheduling At Shell Retail

"It's important for us to understand our global costs," said Mark Williams, Global Enablement Manager Retail at Shell. "It helps shape our strategic decisions, such as where we want to operate and what growth market we want to invest in."

Shell Retail serves 30 million customers daily at 44,000 locations in more than 75 countries. The global company has four retail models - each selected to optimize delivery within a specific geographic area. These retail models range from retailers and dealers to wholesalers and licensees. Flexible planning at Shell Retail is therefore important.

"Our goal was to eliminate spreadsheets and get everything into one tool. In addition, we also wanted to be able to benchmark internally."

Improve modeling and planning process with Oracle PBC

To facilitate understanding of costs, the organization decided to improve the modeling and planning process. "We were using a lot of manual Excel models with formulas and macros, without really understanding how these macros worked. Often the spreadsheets were filled and the result taken without validation. This led to errors and misallocations to our dealers. We found that we were wasting money and couldn't get it back," Mark continued. "Our goal was to eliminate the spreadsheets and get everything into one tool. We also wanted to be able to benchmark internally. Our modeling and planning tool will be used in more than 20 markets, giving us a good sample size to identify an appropriate cost structure model."

Flexible scheduling at Shell

After considering several options, Oracle PBC (Planning and Budgeting Cloud) is chosen. Oracle PBC's modeling and planning processes will allow for flexible planning at Shell. "During a round of RFIs (Request for Information), Oracle came out on top for us. We were looking for a tool that could manage detailed allocation to our retailers and give us analytical capabilities," says Mark. "Cost was also an important consideration for us; Oracle met our budget requirements."

The ability to reschedule

Another key requirement was the ability to reschedule. With so many locations around the world, it is crucial for Shell Retail to be able to reschedule as market conditions change. "We wanted a solution that would allow us to easily reschedule in real time, at any time in any week or month," says Mark.

"The flexibility and robustness of Oracle PBC allow for quick re-planning if market conditions put pressure on the original plans," says Stephan de Wit. As a Performance Management consultant at Finext, Stephan was closely involved in modeling the new planning processes.

From the beginning, it was clear that the model needed major modifications to meet Shell Retail's requirements. "Part of our problem is our complexity. There is no planning solution on the market that manages our hybrid business model; not fully franchised, but also not fully managed by us. We use 4 core business models, with a variation within each. After all, operating in Pakistan and China requires a different approach than operating in the UK or the Netherlands," stated Mark. "This variation requires additional flexibility in our models." "Modeling a global integrated planning solution - with 24/7 rescheduling functionalities for different time zones, cultures and legal output - required serious capabilities. We succeeded by using our experience and being flexible," Stephan says.

Reduce costs and broaden portfolio

As with many companies, energy transition plays a role for Shell Retail. "Our main challenge is to keep ourselves relevant during the energy transition. We want to broaden our portfolio and introduce new fuel options in a way that consistently resonates with our customers," said Mark.

The new modeling and planning processes support this goal. "We want to be thought leaders in new energy and change our fuel mix with biofuels, electricity and hydrogen. To that end, we want to reduce costs and look at our operational processes. Really understanding our business models is essential for continued growth."

Global rollout of Oracle PBC

Implementing Oracle PBCin so many countries around the world requires careful project planning and the ability to adapt quickly to change. Mark: "We had to make a lot of design choices: how to create the data, how to keep the information locked from market to market, how to design the models. Together with Finext, we made these choices as a team."

Mark is enthusiastic about Finext as a modeling and implementation partner for the global rollout: "As a niche player, Finext is fast and agile. I like that Finext is not tied to a vendor, which means they can provide independent advice. They guided us and steered us in the right direction."

"Tools and processes are important, but it's all about having the right team of people to support you in that."

Initial results have been very positive. "We have now implemented 17 markets and are seeing a reduction in the turnaround time of business plan rescheduling. The solution is nice and simple, giving our retailers control over their own business. For example, due to changing market conditions, 1 market had to reschedule 14 times in 3 weeks. It's great that the tool can support this, as rapid re-planning helps our retailers correct costs, identify opportunities for cost savings and generally stay on plan."

Key to growth

Asked for advice for similar companies starting a global rollout, Mark says, "Think about where you want the project to go over time. The project itself is good, but integrating it with all the other systems is the key to growth. And finally, tools and processes are important, but it's all about having the right team of people to support you in doing so."