Client overview

The company is wholly owned subsidiary of a Fortune 10 integrated oil and gas major engaged in exploration & production operations that span multiple geographies worldwide.

Some key facts regarding this project:

• One of the world's largest natural gas projects and the largest single resource development in the history of Australia.
• Freight movement via all modes of transport, covering large distances of more than 1,500 km from initial delivery location to work site.
• Stringent quarantine regulations, with operations based out of Barrow Island (Class 'A' natural reserve).

The context

The company's excessive reliance on legacy tools (MS Excel/e-mails) and mechanisms that were employed to manage its day-to-day logistics operations started taking a heavy toll on its operational efficiencies. The approval process was primarily manual and mainly handled through e-mail which in turn led to lack of traceability. All these tools required constant manual intervention, and consequently freight tracking ended up becoming a major area of concern for the company.

Some of the other significant challenges faced are given below:

• Lack of visibility of incoming freight.
• Inconsistent processes across multiple vendors & across different departments/locations.
• Numerous excel spreadsheets, access databases in addition to paper based systems were used – and hence no single source of truth.
• Lack of processes and tools to measure KPIs to improve process efficiency/asset utilization.
• Erroneous cost allocation due to missing information (tonnage and deck space).
• Inaccurate and redundant vessel activity logs.

The solution

IBS implemented iLogistics Voyage Management Module and Marine Module, equipping the client with a proven solution for vessel activity tracking and material movement. A multi-modal logistics management system, iLogistics has been designed to manage end-to-end logistics activities pertaining to exploration and production (upstream) operations of oil and gas companies. iLogistics served to centralize and standardize the logistics processes for the client enabling smooth and steady management of their logistics operations that involved planning and managing the movement of personnel and material via air, sea and land.

Features

• Web portal for third party vendors and freight forwarders to submit Advance Shipping Notices.
• Web-based near real-time material request and resource tracking capability.
• Graphical stowage planning and HAZMAT validations.
• Standard interfaces with ERP systems (SAP/JDE etc.)
• Automated process for capturing vessel activities during a voyage.

Key benefits

Developing a sound strategy is crucial, but following it through to execution is what ultimately matters most. With IBS's help, the client made operational changes which, when coupled with new investments in technology, changed the fundamental way the company managed its logistics operations.

Some of the key benefits realized by the client are given below:

• Increased visibility of voyages and material movement schedules as the result of end-to-end and real-time freight tracking capability.
• Improved visibility of incoming freight from 3rd party vendors and company warehouses.
• A single system with standard processes across vendors, departments & locations that facilitates measurement of KPIs & helps in improving efficiencies & utilization.
• Reduced number of vessel movements owing to improved deck utilization at over 70%.
• Increased accuracy and auditability of vessel activity logs.