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Business EconomyPosted at: Jul 29 2020 5:40PM


Reimagining oil and gas supply chain, Indian Oil and BCG collaborate to bring out a report - Building capabilities for an uncertain world

Kolkata, Jul 29 (UNI) Indian Oil and BCG have collaborated to bring out a publication that
underlines that urgent need for oil and gas companies to rethink their supply chain priorities to
build resilience and agility to mitigate impact from increasing risks and uncertainties.
The
article/publication titled ‘EFFICIENCY TO RESILIENCE: BUILDING CAPABILITIES IN OIL
AND GAS SUPPLY CHAIN FOR AN UNCERTAIN WORLD’ outlined elements that oil and
gas companies need to consider in order to build a resilient supply chain for the ‘new normal’.
The publication was unveiled by Chairman, Indian Oil, Shrikant Madhav Vaidya, on the
sidelines of In Tandem, a virtual conference organised by Indian Oil, that focussed on resilient,
agile, digital and customer-centric supply chain.
The publication reflected on the major trends impacting oil and gas ecosystem in India ranging
from COVID induced pricing volatility and demand depression to the emergence of new-age,
service-oriented business models in logistics and fuel delivery.
The report highlighted the fixed
nature of assets and the high costs of disruptions as key structural complexities in oil and gas
supply chains.
The report cited that the benefits of building resilience manifest in higher
financial returns in times of crisis, as evidenced 2-3% TSR outperformance of resilient
companies during the 2008 Global Financial Crisis as well as in a first mover advantage to new
business opportunities.
The report also proposed a framework for how companies can build
resilient supply chains by distilling learnings from companies such as Indian Oil, Cisco,
PepsiCo, Walmart etc. that have demonstrated flexibility and adaptability in supply chains in
times of crisis.
BCG and Indian Oil believe that the journey from efficiency to resilience involves designing
redundancies in the asset base, trading off systematically between competing priorities of
efficiency and resilience and leveraging analytics for identifying risks and vulnerabilities.
Companies also need to foster a culture of cross-functional collaboration backed by an agile
organization to respond quickly in times of crisis.
Gurmeet Singh, Director (Marketing), Indian Oil, said, “ Indian Oil has a supply chain that
is resilient, customer-centric and ever-evolving. Our team is ever-prepared to adapt to change
and challenges. Due to our focus on digitization and agility in supply chain, we were able to
ensure uninterrupted fuel supply across the country, including delivering 2.6 million LPG cylinders everyday, providing ATF for the Vande Bharat Mission, smooth in-time roll-out of BS-
VI grade autofuels & Advance Winter Stocking at J&K Mission during the COVID-19 crisis. We
are taking vital steps to strengthen our capabilities in the future which will help elevate supply
chain management to our strategic priority. "
Speaking about the report’s insights, Rakesh Sehgal, Executive Director (Supplies),
Indian Oil, said, “ Supply chains have traditionally focused on cost-efficiency - leading to
complex, globally interconnected networks. However, recent developments on crude sourcing,
demand fluctuation etc. have challenged the supply chain priorities. We, at Indian Oil, are
proud to have overcome all these shocks resiliently. This publication provides an in-depth view
of our joint perspective on the priorities that oil and gas supply chains should focus on going
forward through multiple examples that demonstrate the strength of Indian Oil's supply chain
through. ”
“The COVID-19 crisis has brought into sharp focus the increasingly uncertain world that we live
in and the disruptive environment that supply chains currently operate. Oil and gas companies
with winning aspirations should take a proactive approach and invest in supply chain resiliency
today so that they are better prepared to manage inevitable future disruptions. This joint
publication brings forth BCG and Indian Oil’s collective thinking on this topic with well
researched case studies and learnings and implications for Indian oil and gas companies, "
said Anirban Mukherjee, Managing Director and Partner; BCG’s Energy Practice.
“ The interplay of global trends and a changing domestic ecosystem exacerbated by the
COVID-19 crisis has created a burning platform for oil and gas companies for rethinking supply
chain priorities. We have found that there are tangible benefits that companies with a resilience
focus can reap in terms of reduced impact and faster recovery in times of disruption.
Companies such as Cisco, PepsiCo, Walmart etc. have successfully embedded resilience in
their supply chains by designing asset redundancies, early warning systems and working
closely with the suppliers and vendors among other measures. These are measures that oil
and gas companies should also invest in, " said Dr Rahool S Pai Panandiker, Managing
Director and Partner; BCG’s Energy Practice.
UNI SJC AKM
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Tags: #Reimagining oil and gas supply chain# Indian Oil and BCG collaborate to bring out a report - Building capabilities for an uncertain world
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