The Challenge
Limited insights and visibility made supply chain planning difficult.
The existing toolset was not adequate to analyze and optimize costs.
How we create value
Benefits
Energy
Oil and gas supply chains are highly complex. They also see constant volatility due to shifting market dynamics and changing regulations. Ineffective supply chain management can result in lower worker productivity, decreasing production and ultimately, evaporating profits. Running a well-oiled operation is key to guarantee the long-term health of the business.
A leading European Oil & Gas supplier wanted to optimize their entire chain, but they were finding it difficult to simultaneously analyze the impact of long-term strategic decisions and short-term operational changes. In short, they lacked the insights needed to make sound decisions on how to structure their business.
They needed an easy-to-use solution to analyze and optimize primary transport and handling costs, fixed location costs and secondary distribution costs. The company decided to replace their existing tool with a solution built by ORTEC.
ORTEC’s supply chain solution lets the customer evaluate their end-to-end business in a single model. Different scenarios can be calculated and analyzed. Now, they are able to quickly visualize the impact of increasing capacity at different depots, varying supply prices and contracts, and using different locations to reduce total cost.
The Oil and Gas leader uses ORTEC’s solution on a daily basis to analyze a myriad of supply chain puzzles - from moving to new contracts and signing off on investments, to the number of trucks needed per depot and the revenue implications of letting competitors load at certain depots.
Customers using our Supply Chain optimization technology save nearly 7% on average in annual operational costs. Improved user-friendliness results in higher worker productivity and planning efficiency. Our track record with Oil & Gas customers makes us a preferred partner to drive profitability in today’s changing industry landscape.