Supply Chain Management of ENI



ENI- SCM

Introduction

Company Overview

ENI is one of the largest oil and Gas Company of Italy. Present in more than 70 countries, with a market capitalization of € 87.7 billion that makes US$138 billion. The company holds 30% of government gold shares and 20% of the state treasury.

Background History

ENI was originated in 1920s, with the mutual collaboration of Italian government and Azienda Generale Italian Petrolia, commonly known as AGIP. The main aim was to chase the natural gas and petroleum resources in Italy. After the World War 2, there was a dire need of reconstruction of Italian oil Industry. For this reason, AGIP and related oil and gas companies were merged together and was called ENI. Now, AGIP is one of the principal companies of ENI.

Discussion

Supply Chain management of ENI

SCM- Supply Chain Management is comprised of science and arts. That is the reason ENI kept on improving the way to find its raw resources to make a fine product or service, to make it deliverable in the industry of oil and gas (Anderson, 2003). There are five main points that ENI follows:

Plan: SCM's strategic view is known as plan. ENI makes a strategy to manage its resources that paves a way to meet its customers demand and makes it able to deliver a valuable product or service. The main part of the Supply Chain Management is; establishing key set of the matrix to examine the SCM to make the whole process efficient in less cost and high quality deliverable product for its customers.

Source: Like any other company, ENI choose some suppliers for delivering its raw material to create a product. Due to this, it develops a pricing map that includes delivery charges and other payment procedures with suppliers. This makes the monitoring process easy and helps to improve the relationship with clients. After this is crated, ENI' SCM manager combines all processes simultaneously to make an inventory of products and services, along with its inventory and shipments. Later, the SCM manager transfers all the details to manufacturing department for approving the payment of suppliers.

Make: It is the step involved in manufacturing of product from raw material. The SCM department arranges the set of activities that are required for the production of goods, their testing, and their delivery to the next phase. At this level, ENI measures it products quality level, compares the productivity output with the assumed output and measures overall efficiency or work.

Delivery: After the manufacturing and testing phase, the SCM of ENI refers the product and other details to the logistics. At this stage, the company SCM planners develop an efficient and flexible procedure deliver the products to customers and makes invoicing to receive payments.

Return: this is the awkward phase, in which the product is sent back after the customer's review due to any defect. SCM planners build a flexible and responsive system to receive the defected products and access the customers who are facing problems with the delivered ...