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Shell rolls out 'demand sensing' technology

The company plans to use the software to optimise its supply planning capability

Shell is to deploy new "demand sensing" technology across its worldwide lubricants business.

The oil and gas company has bought a global license for Terra Technology's Demand Sensing and Multi-Enterprise Inventory Optimisation software to use in its lubricants business for short-term forecasting and inventory tracking.

Shell purchased the software after a successful pilot in Western Europe and South East Asia "delivered significantly positive results", said Shell.

The company now plans to use the software to optimise its supply planning capability in order to better predict demand, with the aim of reducing supply costs.

The demand sensing software is designed to dynamically adapt to changes in consumer behaviour and market influences to predict future demand. The Multi-Enterprise Inventory Optimisation software promises to generate "superior inventory targets which reflect real-world market conditions, even in volatile markets", Shell said.

"This combination will provide Shell the ability to improve supply chain planning to increase product availability with lower costs and capture growth, by ensuring product availability without the risk of excess inventory which otherwise erodes profits," said Shell.

Companies that use similar software from Terra include Procter & Gamble, Unilever, Kraft Foods, and Kimberly-Clark.

At the end of last year Shell completed a move to outsource all of its SAP-based HR and payroll application management services to Accenture. Shell signed the multi-year deal in July 2011, to cover the areas of employee administration, employee HR self-service, environmental health and payroll.


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