A case study of supply chain management in oil industry

The paper deals with business renovation, the effective utilisation of information technology and the role of business process modelling in supply chain integration project in oil industry. The main idea is to show how the performance of the supply chain can be improved with the integration of various tiers in the chain. Integration is a prerequisite for the effective sharing and utilisation of information between different companies in the chain. Simulation-based methodology for measuring the benefits combines the simulation of business processes with the simulation of supply and demand. A case study of the procurement process in a petrol company is shown with old and renewed business process models and changes in lead-times, process execution costs, quality of the process and inventory costs are estimated.