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Shell Induction Presentation
Transcript of Shell Induction Presentation
Lubricants Supply Chain
Controlling Pricing Monthly
The Pricing MILO
Shell supplies a wide range of oils and greases
Volume and Margin Performance
Top Customer and Top Product Performance
Competitive Pricing Performance
Recommendations and Action
Lubricants Route to Market
Lubricants Brand and Product Portfolio
Vertical tiering based on increased protection/performance
Use of alpha-numeric tier descriptors
Special applications designated by additional suffix system
it is the price listed in the ERP.
List Less pricing is a concept whereby pricing to all customers is based on the List Price less any applicable discounts, allowances and promotions.
Fixed pricing is simply a fixed price across the term of a contract
should be limited in term as there inherent margin risk
A contractual pricing mechanism that ties customer price to a public base-oil posting.
It should be applied sparingly and only with very large customers where specifically requested.
Building a competent & aligned Distributor network is key to driving Indirect growth, allowing the direct sales teams to focus on their key direct customers and driving costs & complexity out of the system
B2B Direct Sectors have been growing faster than the market
Customer base mainly platinum/gold accounts
global reach of Shell is a strategic differentiator to serve these customers
Shell Lubricants is also building a large database of Demonstrated Value Records (DVRs) – examples where Shell has quantified the value benefits available to lubricants customers in key market Sectors
Dating back to 1989
Honesty, Integrity and Respect for people
Upstream - explore for and extract crude oil and natural gas
Downstream - Collectively these turn crude oil into a range of refined products, which are then moved and marketed