If Value Lost = $ Lost, how are you fixing the leaks along your supply chain?
Credit to Author: Livia Wiley| Date: Sun, 05 Nov 2017 15:09:57 +0000
If you have a leaky faucet, you have many options when fixing it.
You can:
- DIY (do it yourself): Guess, Google, or YouTube the steps
- Call a relative or friend with more expertise than you
- Call a plumber
But no matter who or how you do it, the goal is the same: fix the leak.
Challenges in Oil & Gas – Where Do Leaks Occur?
On a grander scale, value leaks occur along the entire hydrocarbon value chain, from upstream production to processing and distribution. They must be fixed, for value lost means dollars lost. The goal is to fix the bleeding margins that negatively impact the refinery’s bottom line. Many opportunities for growth exist as business goals differ:
- In Production, you can want to maximize production and reduce production cost
- In Refining, optimize feedstock cost, maximize throughput yields, reduce operating costs, improve uptime & reliability, and minimize blend giveaway
- In Distribution, the goals are to optimize allocations and minimize distribution costs
While traditional supply chain management solutions “integrate” planning, scheduling, and trading, to look for “leaks” along the supply chain, a Unified Supply Chain and Operations Management is a full-functional, bi-directional unified interface between supply chain management and operations.
Planning, Scheduling, Operations – Why Do Leaks Occur?
Since no one person/role/function owns the entire process, a Unified Supply Chain and Operations Management solution that can effectively address these leaks delivers improved efficiency with limited investment. Goals differ:
- In Planning, you aim to define operational targets for a period of time in order to maximize the refinery economics. Planning sets the overall direction in an aggregated manner.
- In Scheduling, you must convert this plan into a sequence of instructions. The scheduler must focus on two major things: feasibility of the refinery plan and matching the plan to gain economic value.
- In Operations, you must ensure safety within the operational envelope while matching the refinery schedule to make as much money from the refinery as possible.
The Unified Solution – How to Fix the Leaks?
A Unified Supply Chain and Operations Execution Management brings all these roles and functions together to:
- Ensure that supply chain decisions are being made to properly utilize the refinery efforts in the most economical way.
- Seamlessly integrate refinery scheduling and refinery operations.
- Enhance collaboration for supply chain decision making.
- Enrich scheduling and operation directions and communication.
- Have one interface up and running at all times, independent of upgrades or version changes of different environments.
Join us to Fix Your Leaks
To learn more about unified supply chain and operations management, please join us on November 14, 2017 for Empower Better Business Decision Making with Improved Unified Supply Chain Management Solutions webinar. Register Now.
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