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COMPLIANCE THROUGH VISIBILITY, BY ADVANCED TRACKING OF OILFIELD SERVICE LOGISTICS Sean Germann – VP Americas, DHL CSI, Energy Sector
Markus Koepsel – Global Head of Energy Overland Transport
2 Global Energy Conference | Houston | 7 October 2014
Visibility, speed, reliability and compliance are key requirements
for logistics
Visibility
• Asset visibility to drive optimal utilization and meet
audit requirements; tools such as dashboards and
in-transit tracking
Cost Effectiveness
• Competitive pricing while maintaining service
delivery
Speed
• Responsiveness of issue resolution and speed and
reliability of delivery is a key requirement to ensure
timely interventions to prevent consequential loss
Innovation
• Innovation and proactivity in solution design and
customized solutions to meet customer needs
Compliance
• Trade and anti-bribery compliance, and HSSE are
key requirements
Logistics requirements of oilfield service companies
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Visibility
Cost
Effectiveness
Speed Innovation
Compliance
3 Global Energy Conference | Houston | 7 October 2014
Supply Chain drivers for the oilfield service industry
Inbound
logistics
Manufacturing
logistics
Linehaul
and hub operations
Distribution local hub
and field locations
Reverse
logistics
Inbound to
Manufacturing
• Vendor Sweeps
• Sequencing
Manufacturing Warehousing (yard)
• Manufacturing facility
management
• Inventory Optimisation
• Warehouse management
• Implants
Hub Management
• Warehousing and yard
• Quality Control
• Consolidation
• Kitting
Rentals control
Temporary Import
control
Repair Centre
• SC Management
Waste Management and Recycling
• Cuttings
• Water and mobile water treatment
• Batteries
Domestic transport management for
unconventionals
Asset Management and MRO for high value tools/rigs
• Optimise Asset utilisation, forward planning
• Tool Crib Management
Centralised coordination – Control tower – 3PL mgmt. – vendor mgmt.
Continuous improvement (unconventionals)
Document management (hybrid solution)
End to End
Compliance – HSS – Visibility and Traceability – Reporting Must Have’s
Closed loop Communication – stakeholder alignment Relationship
Return Source Make Deliver
4 Global Energy Conference | Houston | 7 October 2014
Complication of visibility and transparency
Complication Effect/Impact
Lack of transparency regarding management of
“critical” equipment
Dynamic and variety of involved parties in SCM.
Integration and consolidation of information from
different parties
Time critical logistics process and relevance of on time
data availability
Dynamic variety of
Supply Chain
partners/stakeholders
Access to time critical
Information about
material
Limited or non Visibility
of Equipment 1
2
3
Consequences
Additional direct and/or indirect costs and inefficiency occur through non-compliance
and/or re-active instead of pro-active equipment handling.
5
Missing Technology and/or lack of transparency
Information gap in terms of position, stock, transport data any other related information
critical for the item’s role within the supply chain
Global Energy Conference | Houston | 7 October 2014
Limited or non-visibility of equipment
Complication Effect/Impact
a) No, not really…but I have an idea
where it is roughly located …
b) Yes, because it is equipment with a
positioning technology
I might know what material/equipment it
is but nothing else. That I would need to
find out the details …
a) No we do not use any tracking
technology
b) Yes we use it for critical equipment
but with different suppliers
Do you know the
specifications/information
details about?
Are you already using
information technology for
tracking information of your
material/equipment?
Do You always know the
location of your critical
material/
equipment?
6 Global Energy Conference | Houston | 7 October 2014
Dynamic variety of Supply Chain partners/stakeholders
Complication Effect/Impact
We cannot really oversee the number
of suppliers especially related to the
ones using information technology
(telematics)
How many different partners
are you working with related
to your supply chain
information?
Not really. There are certain information
available from different suppliers in
different formats and details
Do you have an
overview/transparency of all
different parties and its
information in your
Supply Chain?
We have a quite huge supplier base
with different parties and providers
involved
How often do your suppliers
change?
A
B
C
Dynamic and variety of involved parties in Supply Chain Management
Especially when it comes to information including its technology the integration and
consolidation of information from different parties is a challenge
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Compliance Challenge for Temporary Imports
Without appropriate information about the item location and the relevant customs
information the challenge results in respecting temporary import timings. Following
non-compliance penalties can cause unnecessary extra costs.
Global Energy Conference | Houston | 7 October 2014
Access to time critical information about material
Complication Effect/Impact
In case of equipment moving around
the globe at different sites it can be very
time critical
In case of equipment moving around the
globe for different projects information on
time can be crucial e.g. temporary
imports, urgency need at another location
In case we do not know where an item
is or when it needs to leave a country
this can relate into non-compliance
Is it often relevant to receive
certain information on time?
Due to the time sensitivity of
certain equipment do you
see compliance challenges?
How time critical is it
sometimes to get the right
information about an
equipment?
8 Global Energy Conference | Houston | 7 October 2014
How to close the visibility gap? - Solution idea
Solution Part Approach
The solution allows you knowing, what material, is located where, and when it needs
to be moved / used through intelligent technology linking. This provides perfect real
time VISIBILITY
Equip your material with telematics
hardware
Consolidate data of various telematics
devices and systems
Set-up your business rules for
notifications of each material item
Data Consolidation
Notification
Hardware Technology 1
2
3
Solution
9 Global Energy Conference | Houston | 7 October 2014
Hardware technology – Set-up technology
• Material / logistical asset to be equipped
with a specific device (RFID, GPS, etc)
• Best suitable / workable device for
different item groups
Enables to locate material including specific
information
Telematics Hardware
•Supplier
independent
Hardware
•Communication
SIM card
•Hardware
operations
•Scalable IT-platform
•Tracking portal with
geofencing &
notification services
•Reporting services
•Open interface
concept
IT-Platform Services Telematics HW
10 Global Energy Conference | Houston | 7 October 2014
Data consolidation – Create visibility and transparency
Tracking Portal
Reporting
Services
IT consol-Platform
Overall visibility through TSP independent
consolidation of telematics & sensor data
• Consolidate data of different items / material by
different suppliers
• Combining different telematics data systems
into one overall IT platform
• Interface data from consolidation IT platform
with different ERP/TMS
Telematics Data Consolidation
IT-Platform
Services Telematics HW
• Interface
management
• Data quality
management
• Configuration
management
• Data
consolidation
• Data
transformation
• Open data model
• White labelled
User Interface
• Data integration
with customer IT
• Open interface
concept
• Various TMS
licenses (aaS)
Business SW
11 Global Energy Conference | Houston | 7 October 2014
Notification – Manage visibility and transparency
Time critical management of material including
exception management to avoid irregularities
• Provide tracked items with rules for notification
for a special location or timeline e.g.
• Information through telematics in “real” time in
order manage critical material status/process
Notification Rules
12 Global Energy Conference | Houston | 7 October 2014
Higher compliance control
Consolidate various telematics devices
Business Software Interface
Manage your assets Set up customized
business rules
Track your moving
items in real time
Trace back history
Get notified & react early
13 Global Energy Conference | Houston | 7 October 2014
Higher compliance control
• Specific information about
the equipment e.g. when it
needs to be exported or
used at another location
• Notification rules to pro-
actively re-located the item
Knowing when it needs to
be exported
• Exact location of the item via
GPS
• In case of re-location
notification via geo-fencing
Knowing where the
equipment is
• Type of material
• Items for specific use on site
• Value of the items
Knowing the type of
equipment
• Avoid penalties for non-compliance
• Overview of equipment including location and critical information
• Reports and history capturing
• IT connectivity
Compliance control