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Enbridge Inc.
Chapter 2 Conceptual Framework Of Supply Chain Management
Literature review of the Supply Chain Management Strategy
According to Bozarth et al. (2009) and Pathak et al. (2007), the entire supply chain is a complicated
adaptive structure. This structure is composed of connecting design and architecture, in addition
to external factors and systems relevant internal components as given by (Melnyk et al., 2013).
The supply chain strategy element can be thought of as a research project into how a supply chain
needed to work smoothly to effectively participate. This happens by evaluating the expenses,
advantages, and compromises in the various operational elements that comprise the distribution
network. In addition, supply chain management is the method that transforms supplies into a result.
This provides an ongoing emphasis where verification ought to continue across a long period of
time (Mentzer et al., 2001; Saad et al., 2002). Based on the results of Mckone et al. (2009), there's
proof that businesses often fail to connect the supply chain approach to their competitive strategy.
These results raise concerns about the development of method as an effective supply chain
approach demands an ongoing dedication to long terms relationships with partners: sharing the
same goals, integrated procedures, behavior as well as cooperation, and a reciprocal exchange of:
information, hazards and advantages (Mentzer et al., 2001). On the contrary, the interorganizational and cooperative collaboration among those involved in the supply chain
necessitates a connection that brings together assets, grows capacity, and cooperates. This blend
of views from every individual affects the efficacy of each other (Mentzer et al., 2001), and the
competitive edge of the group depends upon the strategic 'alignment' of tasks (Sakka et al., 2011).
2.1.Supply Chain Management strategy of Enbridge
Enbridge keeps relationships with many different vendors including manufacturers, developers
and independent contractors, retailers, and advisors, who supply it a variety of goods and services.
They are needed for creating pipelines as well as the infrastructure, equipment, parts, and services
necessary for project development, implementation, and management. The achievement of
Enbridge is contingent upon the vendors they work with.
Enbridge's integrated Supply Chain Management (SCM) splitting, which is responsible for of all
logistical activities involving strategy and leadership, operational and strategy buying, handling of
materials, transportation, and handling contracts, defines the way it handles its supply chain.
A centralized staff dedicated entirely to accelerating its sustainability, variety of suppliers, and
Indigenous engagement efforts constitutes another component of its SCM function.
2.2.Legal, regulatory and contractual obligations
Enbridge's Legal Obligations
In addition to 250 legal professionals across the United States and Canada make up of Enbridge's
extensive Legal Services group, and they work diligently in 15 different subject groups. A
significant percentage of these lawyers have come from several various histories, including private
legal companies, public groups, and not-for-profit organizations, amongst others. The company
believes one will be capable of getting all the support one needs to be effective in legal education
as well as throughout the rest of one's career by drawing from the wide range of company's legal
training skills.
Enbridge's dedication to finding creative legal solutions
The United States Department of Justice and EPA accepted claims from the 2010 Marshall,
Michigan, and Romeoville, Illinois, oil catastrophes with Enbridge Energy limited liability
company and many affiliated Enbridge businesses right now. Enbridge is going to spend at least
$110 million to avoid leaks and enhance operation on approximately 2,000 miles of the company's
Great Lakes pipeline system. Enbridge will pay $62 million in civil penalties for Clean Water Act
incidents, $61 million for throwing at least 20,082 gallons of oil in Marshall and $1 million for
dumping at least 6,427 barrels in Romeoville.
The proposed agreement additionally addresses Enbridge's accountability under the Oil Pollution
Act by demanding Enbridge to compensate over $5.4 million in unreimbursed costs incurred by
the government for Marshall spill cleanup and all the future evacuation expenses. Today's
agreement contains multiple particulars designed to prevent accidents and enhance the detection
of leaks in Enbridge's Lakehead pipeline system, which consists of 14 pipelines spanning over
2,000 miles over seven different states.
Enbridge must also considerably boost accident
preparation and emergency response. After obtaining all authorizations, Enbridge has to substitute
almost 300 miles of a pipeline within the terms of the agreement. Enbridge's Lakehead System
supplies 1.7 million metric tonnes of oil every day to the United States of America.
“This agreement will make the transportation of our country's fossil fuels safer and more
ecologically responsible,” said the Justice Department's Natural Resources and Environment
Division Associate Assistant Attorney General John C. Cruden. Enbridge will improve the upkeep
and surveillance of its Lakehead pipeline system to prevent damage to waterways, agricultural
land, and villages all throughout the upper Midwest and paid a massive fine.
Enbridge agrees to to the these steps under the agreement, which it thinks will amount to at least
$110 million:

Improved pipeline monitoring and spill prevention programmes should be developed;

Improve the detection of leaks and manage room operations through the adoption of new
procedures;

A subsection of Enbridge's Line 5 in Michigan that traverses the Straits of Mackinac has
to conform to extra detection of leaks and spill control standards;

For its Lakehead Pipeline System, develop and oversee an integrated data;

Four emergency spill action drills to evaluate and refine Enbridge's reaction to a major
inshore oil leak as a component of its emergency spill reaction preparedness initiatives;

By requiring incident management system training for employees, providing training to
those who are taking part in area response planning, and organizing reaction drills, you can
enhance foster education and coordination with state and local disaster services;

Engage a third party who is neutral who will assist with the evaluation of the petition of
the settlement agreement's terms.
Regulatory and contractual obligations related to health and safety at Enbridge
All of Enbridge's approaches to leadership are strictly regulated by contracts. As we observe from
a brief overview of Enbridge's health plan, security remains the main concern when creating any
sort of strategies.
The six safety principles emphasise the fundamental principles that the company upholds as they
seek towards an atmosphere with no accidents and zero injuries. These six guidelines also specify
that each of these options must adhere to standards of safety and health.
• It can be accomplished to prevent all accidents, happenings, and illnesses associated with work.
• Every functioning exposure is regulated.
• Safety outcomes is the duty of management.
• Safety is a duty of all staff members, especially service providers.
• Assessment and growth are important.
• Company constantly encourage their employees for taking care of their safety and good health.
Sustainability is integral to our ability to safely and reliably deliver the energy people need and
want. How well we perform as a steward of our environment, a safe operator of essential energy
infrastructure, a good neighbor and a diverse employer is inextricably linked to our business
success and our ability to create long-term value for all stakeholders.
Our environmental, social and governance (ESG) goals represent the next stage of our evolution
as an ESG leader to ensure we’re positioned to grow sustainably for decades to come.
Environmental protection at Enbridge
Enbridge’s ESG goals include:
Net zero greenhouse gas (GHG) emissions by 2050; with an interim target to reduce GHG
emissions intensity 35% by 2030
Increased representation* of diverse groups within our workforce by 2025 including a goal of 28%
from underrepresented ethnic and racial groups, along with new initiatives to enhance supplier
diversity
Strengthening diversity on our Board with a goal of 40% representation of women and 20% from
underrepresented ethnic and racial groups by 2025
Annual safety and reliability targets that drive continuous improvement towards our goal of zero
incidents, injuries and occupational injuries, and implementation of robust cyber defense programs
Accountability at Enbridge
Enbridge maintains a set of fundamental beliefs that help explain what the company represents as
it deliver energy that fuels the lives of others. Enbridge employees assist our towns and cities, the
natural world, and each other by engaging with security, honesty, kindness, and
inclusion.Accountability at Enbridge, n.d.
2.3.PESTLE analysis of the company
Political factors
Non-governmental businesses, opposition and pressure groups, and activist movements impact the
policies of the United States. To better meet public and business purposes, Enbridge ought to
collaborate together with such organisations.
Political stability in up to date markets—Enbridge operates in multiple nations and has to adapt
its strategies to each country's Natural Gas Facilities companies. The present rise in populism all
through the world could give rise to greater volatile markets in the United States of America.
The US government faces increasing globally pressure for compliance with WTO greenhouse gas
utilities regulations.
Enbridge benefits from reduced west quarter taxation for a period of two decades. Profits and
expenditures on research and development have risen. Wealth in the US could impact the tax code.
Second, municipalities are looking into Natural Gas Utilities pricing methods for lowering the
industry's greenhouse gas emissions.
Enbridge have to manage differing rules in its marketplaces. Lately, the US and other developing
nations have amended market doorway and local market operational standards for Natural Gas
Infrastructure firms.
Economic factors
Inflation rate - The inexpensive liquidity in the markets following the devastating recession of
2018 will lead to prices to accelerate in the US gdp.
Increasing trade liberalisation by the US could motivate Enbridge to increase its ventures in
previously neglected markets.
- Exchange rates - Enbridge's investment strategies could be affected by the unpredictable
exchange rate for the US currency throughout an extended period as well as the short-term
volatility of the currency.
Social factors
- Behaviour towards safety and well-being - As deregulation advances, views on safety have
become less restrictive. The cost of failing in the United States is too excellent for Enbridge to
follow these points of view.
- Gender positions - In the United States, gender norms are shifting. Enbridge could look at an
array of concepts in order to promote a shift in gender roles in American culture.
- Social hierarchy and norms contrary among American culture and Enbridge's native
marketplace. To provide better service to customers in the United States, it ought to attempt to
create an indigenous staff that is mindful of cultural rules and views.
- Easy access to all the required amenities - In general, throughout the past ten years and a half,
much of the population in the United States has been granted possession of the services that are
required. Increased spending on public services is partially responsible for such.
Technological factors
Enbridge licencing and transfer of technology worries - There is not an established tradition of
innovation transfer in the energy business, and companies often reluctant to share or licence
developments for worry about converting their partners into competitors.
The chain of supply has been quickly impacted by advances in technology as it gives bigger
participants in the utility company the ability to obtain data along with to supply chain partnerships.
- The most recent technological advancements developed by Enbridge's competitors; this could
provide us an accurate grasp of what competitors might be thinking as well as where the prospects
of the Natural Gas Services company model rests.
- Technology has reduced an item's life span and made it accessible to suppliers to generate fresh
goods more quickly. The result has strengthened supply chain partners. This has positioned
pressure on Enbridge's marketing department to advertise a variety of items in order that will
satisfy the vendors. It enhanced the Enbridge's expenses for operation.
Legal factors
American requirements for safety and health, the measures that Enbridge has to take in order to
meet them in their final days and the costs related to doing so.
Business Regulations: The US's legal framework for the business system are those regulations in
line with global organisations like the World Trade Organisation, the European Union, etc.
Laws and regulations relating to the surroundings, as well as what Enbridge must do in accordance
with themselves, are addressed.
Environmental factors
In the economy of the United States, recycling has quickly grown into a norm rather than a
beneficial activity. Enbridge has created strategies that adhere to rules and standards in the energy
market.
- Renewable energy technology is possibly a further intriguing field for Enbridge. It could profit
from its tendencies. The United States provides rewards to promote the development of the
renewable energy sector.
Bad weather additionally raises the price of operation for Enbridge as it must invest in improving
the adaptability of the supply of the network.
The management of waste, especially in installations right next to big center's, is growing
becoming increasingly important for enterprises like Enbridge. For trash the leadership team urban
areas, the US governance has implemented rigors rules.
3.1.Inventory Management Strategy
By tracking operations in the entire supply chain, Enbridge Inc. can cut lower on delays, resulting
in a positive effect on inventory management. An organization might be able to discover and
capitalize on novel opportunities and decrease external dangers with improved information flow.
The ongoing examination of the value chain may lead towards the prompt resolution of important
gaps that may influence the efficiency of a business.
Enbridge Inc.'s effective value chain analysis deployment could boost material and product flow
owing to better customer demand and revenue predictions Baldwin & Evenett, 2014.The procedure
of governing the inventory of a business in an efficient and organized manner, including the
acquisition of items, the preservation and sale, and the replenishing, is commonly referred to as
inventory management.
For a business to be profitable, inventory management must include the management of materials
that are raw, which are necessary to produce items and finished goods that could be marketed.
Chang et al., 2016
In the framework of the value chain, "procurement" pertains to the procedures that take place in
acquiring the inputs into the process, which could encompass any from machines and other
machinery to supply chains, raw materials, and other supplies that must be obtained for the
manufacturing process of a final product. Enbridge Inc. should carefully analyze its procurement
operations to maximize efficiency throughout the incoming, functional, and outgoing value chains
due to its recognition that it is connected to many different operations in the overall value chain.
Enbridge uses a variety of methods for inventory management.By recording and assessing images
as they occur in the natural world, the NPS inventory is intended to document viewers' opinions.
The leadership team evaluate called Net Promoter Score (NPS) may be utilized to evaluate how
well-maintained a company's relationships with customers are. NPS is gaining popularity as an
essential metric often associated with the revenue prospective for the products or services offered
by a business. The statistic is established by consumer responds to the following questionnaire:
"How inclined are you, on a scale of 0 to 10, for recommending this piece of equipment to a
friend?"
People who give a score of 9 to 10 are considered to be Promoters and frequently associated with
activities that add value, such as strongly urging others to utilize the good or service at question.
Passive responses are those who provide an answer with a score of 7 or 8, and they have been
considered to be less likely to demonstrate the producing value traits associated with. Promoters
having a fundamentally neutral influence over other customers. Detractors typically individuals
who rate the product between 0 and 6, are often unsatisfied customers and occasionally openly
recommend avoiding adopting it.
As Enbridge NPS is given
3.2.Application of Six Sigma
Six Sigma is an approach to management which was developed by Motorola in 1986. It involves
establishing high targets, collecting information, and analysing outcomes with the goal to reduce
the overall number of problems that are found in products and services. It is being used in an
extensive range of applications in industry. A systematic method for enhancing the quality of
process outcomes along with variability reduction in business and manufacturing procedures is a
different name for this idea ( Jirasukprasert P, 2014).
. The implementation of DMAIC Six Sigma in computer systems has increased the flexibility in
supplier chain-related challenges. Pepper, M. P., and Spedding, T. A (2010). With an abundance
of accurate data and relevant details, it has been demonstrated that the incorporation of DMAIC
Six Sigma to the supply chain management system has improved the effectiveness of delivering
completed goods. Manuj, I., and Sahin, F.(2011). Through the sharing of knowledge derived from
accurate and required data, DMAIC Six Sigma has also benefited from supply chain targets in
terms of delivery of goods, response time, and prevention measures as stated by Liu, R., & Kumar,
A. (2011).Just before the start of DMAIC Six Sigma, logistics expenses had an important impact
on many businesses' yearly financial information, especially for transportation Goldsby, T. J., &
Martichenko, R. (2005). despite this DMAIC Six Sigma for petroleum spill authentication,
especially for the analysis of problems, has been impressive, it serves more purposes than that, as
can be seen in the advancement of the procedures when dealing with a complex mixture of
petroleum products with a high level of unpredictability. It is apparent that constant improvement
continues to be searched by many investigators for accurate analysis procedures and methods of
statistical analysis.
Enbridge utilises just-in-time manufacturing to simplify operations while reducing expenses and
lead times. The value of customers is given highest priority in the implementation of lean
manufacturing all through all divisions, including manufacturing, advertising, and transportation.
Just in time strategy
According to its definition, JIT is "a managerial management structure, used for the scheduling
and oversight of activities that must be carried out with the goal of the purpose of manufacturing
and delivering the requested goods and services at the right time that are required at the correct
location, and at the exact required quantities." R. A. Hokoma
Eliminating wastage of all kinds is the characteristic of a JIT system, which can be done by
scheduling all of the actions across the chain of production. In addition, JIT systems constantly try
to enhance the Enbridge's complete supply chain underlying processes. A significant distinction
between JIT and a system that uses JIT is that JIT is focused on the whole removal of waste. This
is something that doesn't enhance the services and products in any manner
Kanban system and Lean production
Kanban is an approach of work/process timing with the goal at boosting manufacture by reducing
down on wastage and time wasted. The expression "Kanban" denotes a means of buying and the
actual payment card that is utilised to permit an upstream procedure or working location (or vendor
or supplier) to re-supply a particular amount of components or elements, frequently exactly what
was required in the next step or work their centre. Although numerous individuals who utilise
Kanban purchasing processes make this oversight, Kanban isn't related to the container or what is
contained within.
Lean Production is a process which seeks to substantially decrease or eliminate unnecessary
operations or wastage with the goal to lower unit costs and increase both quality and production
efficiency. Kanban systems are an essential aspect of lean production environments. For the
purpose for Lean Manufacturing environments to be productive and effective, Kanban
organization procurement processes are essential.
A crucial component of Just-in-Time and Organized Manufacturing settings are Kanban
management systems for purchasing. Lean Manufacturing means minimizing waste during
manufacturing. The production of equipment's uses standard and shared procedures for
capitalizing on the commonalities between items. Since production layouts are the most efficient
when employing JIT for initial supplies and component purchase, just-in-time and lean
manufacturing are closely connected ideas. Work in progress (WIP) levels of inventory may be
significantly decreased with JIT by employing new manufacturing framework.
If these
modifications are successfully implemented, companies will be able to "Build-to-Order" and
create the items that customers want, when they're looking for them, in the quantities that are
needed. This will inevitably end up in a significant decrease in the amount of inventory, together
with savings and improved cash flow.
3.3.Information system at Enbridge
It is now possible to store thousands of gigabyte of records from every aspect of the energy industry
because to advances in technology, especially in information technology. R. K. Perrons, J. W.
Jensen, and others (2015).
The integration of these upstream company information, if recently obtained or obtained from
files, once implied a laborious, everyday life, and ineffective task; similar to the control of Excel
spreadsheets, even if there was bodily data, data disappeared due to human error when putting
them into the application. Tools for managing data innovations in the petroleum and energy
industry have been proposed by Hassani and Sirimal (2018):
Enbridge constantly searches for methods to enhance the company's pipeline and complex security
programmes via the application of technologies. Company made an investment in Syscor's
technology in 2011, conducted a two-year trial programme in northern Alberta to assist in the
research and development of FR-Tracker 2.0, successfully and currently have the device installed
on five tank in the Fort McMurray region—with an additional installation planned shortly.
The tank terminals team guarantees the dependability and safety of our network via periodic
examinations and sound judgement. Based on Dr. Chris O'Neill, a technical manager with
Enbridge's Research, Growth and Development, and Creative thinking (RDI) category, "boosting
the programme with a 'always-on' tracking system helps ourselves identify tiny shifts and trends
that occur in a roof's movement—developments that may offer a warning sign of an upkeep need
and lead to greater reliability in operation.
"Syscor's software can spot these initial indications and notify management there's something
amiss worthwhile investigating—typically sooner than we would have other known—and that
allows us act when the problem gets expensive to address," says O'Neill. Giving oneself the
information you need to make prompt decisions is truly what it's intended for.
The contemporary wireless surveillance system by Syscor takes advantage of a cutting-edge
Internet of Things (IoT) infrastructure to combine data analysis, enhance reliability and
performance, and significantly decrease consumption and total cost.
It's also makes use of Wireless HART, a measurement technology that is more secure and reliable
and is currently gaining industrial use.
According to Tzonev, "Enbridge's RDI group truly rendered version 2.0 possible." "This is a real
facility surveillance system, with applications beyond hovering roofs," he continues.
Enbridge believe that this new approach is going to lead to a fundamental change in safety while
still being exceptionally affordable.
4.1.Findings
The data that we collected through this shows that the supply chain as a whole is a complex
operation as a whole its own. For us to ensure that the supply chain operates successfully, we will
need to create several different strategies. In this text, we will analyse the logistics network of
Enbridge as well as the Supply Chain Management approach that Enbridge employs, which
demonstrates that the firm retains strong connections with its wholesalers, retailers, and suppliers.
The company is additionally spending an enormous sum of money in the process of preventing oil
leaks so that it can safeguard itself from any possible legal issues.We additionally carried out a
PESTLE analysis, and our results showed that the company main goal is to promote political
stability to the nations by paying all applicable taxes. In addition, the company is aiming to
improve its economic structure in order to produce goods that are simple to purchase despite the
nation's high inflation rate. The company is striving to address its legal challenges while also
focusing on environmental considerations to generate garbage that is biodegradable. A corporation
checks the views of its customers using a system called Net Promoter Scores as part of its inventory
management policy. Using Six Sigma or DMAIC is another way in which a corporation may
improve its ability to concentrate on the procurement process and examine the manner in which
products are distributed to various individuals all over the world. In addition, the JIT, Kanban, and
Lean technologies assist the organisation in working on strategies to lower value-added pricing
and locating issues that are related to supply chain. Additionally, the business makes use of a
variety of tools and software, such as Syncor's wireless system. This system makes use of Internet
of thing technology, which increases reliability and lowers costs, ultimately leading to an
improvement to the distribution network as a whole.
4.2.Suggestions
 I proposed that the corporation should concentrate on problems such as upstream green
house emission and handle the dispute about the oil leaks that have occurred in the past.
 Enbridge has to make further investments in technology so that it can preserve and improve
its safety, trustworthiness, and effectiveness while additionally safeguarding itself from
physical risks associated with the effects of climate change.
 Both the construction of new pipelines and maintaining of existing oil pipelines need to be
the primary focuses of the company.
 In order to make sure that spills across Line 5 and Line 6B are unlikely to happen in the
future, the business has to adhere with the United States Environmental Protection
Agency's (EPA) requirements.
 A business undoubtedly has to use IoT technology in the near future in order to save costs,
enhance operational efficiency, raise productivity, and boost profitability.
4.3. Conclusion
Enbridge's efficient SCM is due to its strong connections to manufacturers and retailers. Enbridge
employs a wide range of strategies to maintain its market position. For this business, investments
are being made in the resolution of legal and environmental issues. Additionally, the business
employs the JIT, Kanban, and Six Sigma systems for procurement. Although Lean Six Sigma is
methodically implemented to a problem, irrespective of its nature-operational, supervisory,
monetary logistical, or other it can be demonstrated that it has several rewards. If every
requirement have been fulfilled initially before moving further with the process, then favorable
results are guaranteed. The oil and gas industry has been using many of the Lean manufacturing
Sigma methods and ideas. The legal dispute stories also demonstrate that the Lean framework, if
applied systematically with an objective and commitment for change, may provide favorable
results through choosing the data that is accessible and the proper statistical instruments.
Employing Lean Six Sigma ensures ongoing enhancement and problem suppression, which are
essential for any firm to be successful, especially one that is as competitive as the oil and gas
industry. Applying forecasting software assists the business as well. The DMAIC Six Sigma
process is a trustworthy, affordable way to improve research and development and broadening
improvement in quality, which allows a successful and efficient grouping of oil spills. Future
business expansion may result from more innovation and the application of cutting-edge
technology by the company at large.
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