Auditing the Supply Chain Intro

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Presentation of the activity ExxonMobil Group

Part 1

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  ExxonMobil is one of the biggest oil company in the world. Known under its brands Esso, Mobil, Imperial Oil, Tonen Général et Exxon.

  Profits in 2002 were 11 milliards de $.

  EM produces 4,5 millions oil drums per day. Sales in 2002: 2831 millions of drums

Technology Chemicals Downstream- Refining and

Marketing

Upstream- Exploration and

production

20000 engineers and

scientists

Marketed in more than 150 countries

ExxonMobil has Upstream activities in nearly 40

countries and is a leading producer both onshore and

offshore.

ExxonMobil has refining operations in 26 countries, 42,000

retail sites in more than 100 countries, and lubricants

marketing in almost 200 countries and territories.

  The Three brands sold in Africa by MASI

Presentation of the activity Mobil Africa Sales Inc. : A Customer service

Part 1

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  Exclusive ExxonMobil department to sell lubricants to Africa zone

  All core lubricants are sold: knitting oils, racing oils, aviation lubricants, marine lubricants…

  92 million $ Revenue

  65 714 tons sold a year

  950 orders a year

  5 supply centers (USA, Asia, Europe, Africa)

Houston USA

Singapore

EM Egypt

Mobil Africa Sales Business

Port Jérôme France

Money flow

Lubes flow

MASI

Pernis -Netherland

Presentation of the activity Some Lubes sold by Mobil Africa Sales Inc.

Part 1

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All these products are mentionned in a core product line

  Lubes sold under the brand:

  Lubes sold under the brand:

Presentation of the activity The structure of the customer service

Part 1

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  Separation of accounting department and customer supply service

  A DHL integrator is available for logistics

  Geographical repartition of customers portfolios

Dominique F.

Sales Manager

Arnaud B.

DHL Integrator

CS Responsible

West Africa

CS Responsible

South Africa

CS Responsible

East Africa

CS Responsible

Egypt

Jean L. D.

CS supply manager Denis S.

Accountant Manager

Accountant Accountant CS Assistant

Organigramme of MASI Customer Service

Description of the process MASI: The Contributors of an Order

Part 2

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1. An affiliate or a TP customer places an order (TP customers pay cash in advance)

2. MASI ask the plant ot produce or asks DHL to do a collection

3. Lubes are available to be transported

4. Freight forwarders do their job

5. Import duties agency deals with customs

6. MASI is paid (affiliates)

Third party customer

3

Affiliate

4 Ship outfitter

DHL

Import duties agency

Freight forwarder

EM production site

MASI 3

2

1

5

6

5

  First type of contributor: the suppliers

  CS Responsibles fulfills different templates regarding the production center

  CS Manager controls lead times of all production centers monthly

  Accounting Manager informs of statisitics (n° of orders passed, credit assessment…)

 Second type of contributor: the customers

  CS Responsibles registers the orders with an accounting software named ACCPAC. All data are furnished by Access

  The evolution of the order is made by mail or by postmailing specific documents (bill of lading, certificate of importation…) All is consigned in paper files

  Most of the CRM is made by mail or by phone

  A claim client report is fulfilled during the year. Process must repect intern manual CIMS

Description of the process Focus on the tools used. MASI’s french members activity

Part 2

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Description of the process Main problems of MASI in its business

Part 2

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  First: Problem in the client satisfaction: the delay

  Bottleneck: MASI has difficulty to absorb all the orders : specificity of orders, several possible sourcings…

  MASI doesn’t have priority on production sites (Revenue less important)

  Errors of freight forwarder in documents are frequent: specific rules of COMESA in Africa, specific legislation of each country: inspection…

  Second: Problem in MASi Organisation

  The software used doesn’t perform.time is lost by CS Responsibles

  Nothing is done to educate freight forwarders to this specific business

  Most of time, with african conception of business, procedures are not respected

Freight forwarder

Ship outfitter

EM production site

Affiliate

MASI

Import duties agency

Possible Improvements A necessary harmonization

Part 3

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  Harmonization of production centers product codes.

  Harmonization of all ExxonMobil Orders templates

  Harmonization of ways of working of the CS responsibles so as to obtain reliable statistics.

ExxonMobil Lubes production centers

Possible Improvements Best results apart from suppliers

Part 3

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  A better education of all freight forwarders to the repetitive specificity of MASI orders = solution to the problems of documents

 Obtain priority in production in several EM production centers.

 Developp an organisation able to produce in Egypt when delivering is in Cyprus, to produce in Singapore when delivering is in Tanzania…

  Better patnerships with ship outfitters for rare destinations = solution to the problem of employing several times an expensive DHL

Freight forwarder

Possible Improvements Mastering the tools and the management

Part 3

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Dominique F.

Sales Manager

Jean L. D.

CS supply manager Denis S.

Accountant Manager

Accountant Accountant CS Responsible

  Necessary to find solutions to reduce the administrative weight of the job. - using scaned docs - using web archive files

  Substitution of Accpac with SAP r3: the same way of working for all.

  Supply process and Accounting process are too separated: Necessary to increase communication and exchange of information in order to: - best results, - respect of process, - no overdues…

Auditing the supply Chain Conclusion

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