Streamlining Supply Network Planning for Enhanced Efficiency

The Challenge

A leading energy company faced a complex challenge within their supply network planning. With multiple options to supply their demand terminals, including their own supply from various terminals, net purchases, or exchanges, the company needed to navigate an intricate web of choices. Additionally, they had to consider various modes of transportation (MOT), each with its own set of costs and constraints, to fulfill the demand. The complexity of the decision-making process was significant, and the company sought a way to streamline their operations to ensure cost-effective and efficient delivery.

How ORTEC Creates Value

ORTEC stepped in to deliver a comprehensive solution with the development of a logistics network optimization tool specifically designed for the fuels value chain. This powerful tool provided the company with a lowest cost-to-serve supply plan, enabling them to make informed decisions by evaluating supply and logistics alternatives. The optimization tool took into account the multifaceted nature of the company's supply network, delivering tailored results that aligned with the company's strategic goals.

Impact & Benefits

The implementation of ORTEC's optimization tool had a transformative effect on the energy company's supply network planning, yielding impactful benefits:

• Integrated Scenario Analysis: The tool allowed for the examination of various scenarios, giving the company the ability to forecast and plan for different market conditions and operational variables.
• Flexible Configuration: The system was designed with flexibility in mind, enabling the company to easily add or remove products, demand and supply locations, MOT connections, exchanges, and net purchases as needed.
• Cost-Efficiency: By optimizing the supply network, the company could identify the most cost-effective strategies, reducing unnecessary expenditures and improving the bottom line.
• Operational Efficiency: The streamlined decision-making process led to more efficient operations, as the tool provided clear guidance on the best supply and transportation options.
• Strategic Decision-Making: Empowered with data and insights, the company could make strategic decisions that improved service levels and customer satisfaction.

The partnership with ORTEC enabled the energy company to overcome the complexities of supply network planning, positioning them for continued success in an ever-evolving industry. With the ability to analyze, adapt, and optimize their supply chain, the company is now equipped to navigate the challenges of the energy market with confidence and precision.