Customers ORTEC

Caltex

Caltex operates the largest oil company retail network in Australia. The company supplies products via a network of pipelines, terminals, depots, and the company-owned and contracted transport fleet. It operates in every state and territory of Australia. Caltex has a broad range of products in petrol, diesel, jet, auto gas, and lubricants. As of 2015, Caltex operates one petroleum refinery in Australia, at Lytton in Brisbane, Queensland. Caltex Petroleum Australia Pty. Ltd. is owned 50 percent by Chevron, and 50 percent by Australian shareholders. It has about 3,500 employees working the country.

Challenges

  • To manage distribution of petrol to their service stations and franchisees throughout Australia. For a selection of customers and service stations, Caltex manages the replenishment of the tanks based on the Vendor Management Inventory (VMI) concept.
  • To find a replacement of their scheduling system with the option to integrate replenishment and scheduling in one solution, and thereby achieve distribution efficiencies to simplify, standardize, and streamline the order to delivery process.
  • To comply with legislative demands in areas such as axle weights, ullage, and driver fatigue. Their fleet consists of many different vehicle types, making scheduling activities a challenge for the scheduler.
Solution

ORTEC Inventory Routing, in which stock replenishment and route scheduling are integrated, improved Caltex’s distribution efficiencies. ORTEC Inventory Routing helps schedulers create an optimal schedule with safe compartment assignments and compliance with tight legislations in the fuels industry. At Caltex, ORTEC Inventory Routing is integrated to SAP.