Client overview

IBS Client is North America's leading integrated energy company. Client's operations include oil sands development and upgrading, offshore oil and gas production, petroleum refining and is the operator of one of the largest petroleum resource basins in the world. Focusing on its core business activities, IBS client wanted to improve its travel program by using industry best practices and cutting-edge cloud-based technology to enhance the overall travel experience for its workforce.

The integrated Fly-In Fly-Out (FIFO) & accommodation management journey

IBS is a leading SaaS solutions provider to the travel industry globally, managing mission-critical operations for customers in the aviation, tour, energy & resources logistics and cruise & hospitality segments. IBS' solutions for the aviation industry cover fleet and crew operations, aircraft maintenance, passenger services, loyalty programs, staff travel and air-cargo management, making it the enterprise with the widest range of offerings for the aviation industry.

IBS Software's investment in iLogistics stems from the need for energy & resource industry, charter airlines, helicopter companies, camp service providers, 3PL and mining companies to integrate logistics demand and capacity planning with travel, ground and accommodation management. iLogistics Cloud — IBS' market standard platform — enables companies to realize business value through end-to-end integrated personnel logistics management by air (fixed wing & rotary wing), sea (crew boats, surfers etc.), land (train, bus, car) and accommodation management (camp, hotel, offshore PoB) enabling safe, reliable and efficient operations.

The platform provides significant cost savings to customers through reduction in logistics spend, lower IT total cost of ownership (TCO) and thus opens opportunities to share assets with other operators. Client selected IBS Software's iLogistics platform to transform air travel logistics, lodge accommodation and land transportation operations. Client went live with the iLogistics platform in December 2019.

The context

In pursuit of client's focus on core business operations, client wanted to improve its travel model to manage operations at multiple regions in North America. Each operation had its unique requirements, business rules and procedures. Adding to it, client had multiple tools to manage its complex end-to-end logistics and lodge operations from demand forecasting, capacity optimization, flight scheduling, lodge planning, reservation management, departure control, lodge actuals, reporting and charge back. Client wanted a one-stop platform that incorporated industry best practices and processes to manage its travel logistics, including lodging, safely and efficiently.

Remasankar, VP & Client Advisor, Energy & Resources Logistics Management, IBS Software: "Partnering with the client was indeed a defining moment for iLogistics on cloud platform. IBS is redefining the energy logistics dynamics by working towards a collaborative eco system between multiple energy & resources companies, Airlines, Camp Service providers and work force logistics companies to standardize the logistics platform which will help in sharing of logistics assets."

Scope and scale of operations

Solution implemented

Utilizing IBS Software's 20+ years of expertise and experience in implementing transformation solutions, a phased approach based on industry best practices was adopted.

1. Analyze as-is (per region) and develop Logistics Maturity Matrix

It was essential to understand and measure each region's process maturity individually, by studying their business processes and measuring process efficiency vs productivity.

• Identify problem areas and pain points
• Identify existing matrix and benchmark the KPI's

IBS studied client's current processes, systems and their impact on the workforce. Multiple regions had different levels of maturity and their own business rules, coupled with multiple disparate systems. This was one of the major challenges that made it difficult for client to achieve its vision.

Following strategic priorities were identified for the project:

• Logistics collaboration between regions
• Improved real-time data to make informed decisions
• Predictable, flexible and scalable operational model
• Logistics cost reduction year-on-year
• Improved planning horizon & reduced demand variance

IBS sketched client's existing levels of maturity and came up with a roadmap plan to achieve the highest possible level of maturity that would match client's vision and strategic priorities. This was derived considering the operational constraints, change management involved and an iterative and achievable approach. The existing centralized logistics model had to be transformed to a shared managed service model. IBS proposed an intermediary maturity level with integrated systems, limited automation and standardized processes across all sites, before moving to optimized and collaborative shared service logistics model.

2. Design a standardized to-be process

The to-be solution proposed iLogistics as a single platform for managing demand, reservations, logistics & lodge management, reporting and cost allocation. Standard Operating Procedures (SOP) were developed for the identified to-be process workflows.

• Process-flow based on process improvements & best practices
• Standard Operating Procedures (SOP): i. Regular Flows, ii. Irregular Flows (Exceptions)

The to-be solution implemented iLogistics as the single platform for managing demand, reservations, logistics & lodge management, and reporting. IBS proposed industry best practices based on its rich industry consulting experience in the four key business processes areas.

Demand planning & capacity automation

The objective was to advance the planning cycle and improve the demand forecasting accuracies by up to 2 years ahead. This was achieved through demand based logistics/lodge management processes. iLogistics demand forecasting tools allow client and its contractors to forecast their logistics and lodge demand for each project, operation and activity.

Demand was mandated from all contractors well before the reservations were booked. This was achieved by having a 14-day demand lock out and measuring real-time demand variance by stakeholders. 14-30-60-90-day demand variance (demand vs reservations & demand vs actuals) was published and 95% accuracy was set as target for all regions. This resulted in improved discipline and more predictability of logistics/lodge forecast.

This coupled with iLogistics capacity optimization engine, allowed client to manage its capacity of logistics resources and beds more efficiently. This helped in more accurate procurement of beds from its lodge vendors.

Key results:

• 2 years increased demand horizon with integrated logistics & accommodation
• 14-30-60-90 real-time demand variance
• 95% demand accuracy 14 days ahead
• 2000+ automated demand for FIFO travellers

Travel service management

iLogistics mobile based traveler portal allowed all travelers to track their bookings and print their flight/lodge confirmations.

Reservations were managed in three ways — fully automated bookings for FIFO travelers, travel coordinator booking for contractors, and self-booking for occasional business travelers. The objective was to limit the engagement between travelers and travel services team by moving into fully self-sustained mode of operations.

A cut-off time (one day prior 5:00 a.m.) for flight booking was enforced and a standard operating procedure for last minute bookings were implemented. This improved the demand forecasting accuracy and discipline in getting reservations over systems.

Ensuring Health, Safety and Environment (HSE) & courses/certificates compliance was another focus area of travel services management. For example, self-compliant certificates like lodge affirmations for Alcohol & Drug policy were automated through iLogistics. Banned passengers / no-fly list were also automated.

Key results:

• Travel alerts and latest trip info from mobile devices (traveler portal)
• Faster booking service completion by Travel Services Team
• 100% automated FIFO bookings
• Improved productivity from working in single tool

Logistics management

One of the key objectives to ensure enhanced traveler experience was met by integrating charter service provider with the new platform. Reservations made via iLogistics were transferred to charter service provider, allowing travelers to receive 24 hour check-in notification, mobile check-in, seat selection and e-boarding pass, similar to commercial travel world. This improved the travelers' experience, reduced queues at airports for check-in and better management of seat preference.

iLogistics platform allowed client to manage logistics from scheduling, executing, managing irregular operations (IROP) and airport shuttles from a single source. Having an end-to-end visibility enabled quick decision making by optimizing the capacity, improving the load factor and predictable ground transport shuttles.

Key results:

• Significant reduction in check-in times
• Increased mobile based boarding
• Better load factor and reduced no-shows
• Improved staff productivity

Lodge management

Similar to logistics management, integrating lodge vendors to a single platform enhanced Client's objectives multi-fold. This was achieved either by lodge vendors using iLogistics for lodge management or interfacing lodge vendor systems with iLogistics. iLogistics API's use industry standard Open Travel Alliance (OTA) specifications, which are commonly used for commercial hotel bookings.

Key results:

• Integrated logistics & accommodation operations
• Near real-time tracking
• Improved productivity from automations & streamlined process

iLogistics is hosted in North America using the Amazon Web Services (AWS) infrastructure ensuring high availability and reliable disaster recovery.

Manu John, Program Manager, IBS Software: "Guided by the vision set by client, the greatest emphasis throughout the program was to design a single, standardized logistics process for all regions. With a path to achieving higher level of logistics maturity through adoption of industry best practices and successful on-time iLogistics cloud implementation, once again IBS proved commitment in delivering value beyond software."

Key benefits summarized