Client overview

The client is an integrated oil and gas major engaged in exploration & production operations that span multiple geographies across the globe. The company in case is a wholly owned subsidiary of the client, located in Malaysia.

Some key facts regarding their operations in South China Sea:

• Nearly 60 assets & 40 sharing assets
• Approx. 350 flights per month
• More than 5,000 passenger movements per month
• 500 plus cargo movement in a month
• Around 125 active users

The context

One of the primary challenges that weighed down our client in terms of reduced operational efficiencies was its excessive reliance on disparate, outmoded and manual systems to accomplish day-to-day logistics management tasks. Lack of visibility to logistics requirements led to lack of planning, resulting in underutilization of aviation resources, occasioning more than the required number of trips. Inadequate visibility to platform assets further lowered operational efficiency generating increased operational cost. In order to optimize flight utilization the client commenced flight seat sharing with two other companies operating in the same region.

This, instead of abating the challenge led to further complications as listed below:

• Tedious manual processing of booking requests (emails, faxes) often resulting in errors
• Invoice reconciliation for flight sharing between three companies was time consuming and delayed
• Disparate systems to manage accommodation and people movement ranging from spreadsheets, in-house software and complex ERP systems resulted in lack of coordination among departments
• Difficulty in retrieval of information on demand and utilization of resources and assets

The solution

IBS implemented iLogistics Aviation and PoB modules, providing the client a proven practical solution that integrates logistics and accommodation management activities. It served to reduce costs and boost profitability for the company by eliminating disconnects in end-to-end journey management, from the point of demand through reservations, processing, generating optimal schedules, validating certificates and documents, dispatch and real-time tracking; at the same time minimizing costs of transportation and optimizing resource utilization, thereby driving faster response management.

Features

• Captures information that can be used at any point of time for subsequent trip planning & tracking of compliance during check-in & manifest processes
• Helicopter sharing feature ensured the resources fly fully-filled to offshore locations and thereby improving resource utilization and thus reducing the resource count in use
• Improved traceability of appropriate costs following sharing of assets between divisions and companies
• Comprehensive reporting capabilities across all aviation operations, increasing visibility to variances and KPIs for analytical/auditing purposes

Key benefits

IBS's strong domain competency, industry knowledge and IT consulting skills focused on identifying and solving problems for the client, thus helping them attain measurable and long-term value added benefits. iLogistics offered centralized role based information access which improved the operational visibility.

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

• Better visibility to flight capacity and resource-sharing that enabled advance planning, reduced no shows & flight consolidations, improving flight seat utilization by 15%
• Drastic cut down in invoice reconciliation timeline; from 6-8 weeks to 1-2 weeks i.e. over 300% reduction
• Near zero booking requests through emails & faxes in addition to significant cost savings on paper & printing
• Integrated operations between multiple systems and third party providers, reducing error and processing time and enabling smooth and seamless operations