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Oil Gas and Chemicals

Network and Territory Design

Description ORTEC supports Oil Companies with supply chain optimization. In the past businesses optimized parts of their supply chain independently. ORTEC has developed tools and techniques that enable you to optimize the entire supply chain. By optimising over the entire supply chain you can gain much more, not only because you can see the dependencies between the several chains but also because one can make more profitable decisions for the entire chain.

The level on which the supply chain optimization takes place is mainly:

  • Tactical (monthly level)
  • Strategic (yearly level)

Challenges Examples of challenges that ORTEC helped to answer with supply chain optimization:

Manufacturing:

  • Which products are the most profitable to make for a refinery?
  • Which feed should the refinery use?
  • Which recipes or process lines should be used?
  • In which units of the manufacturing site should the refinery invest?
Distribution:
  • Cost savings: which depots can be closed while maintaining the service?
  • Which vehicle type should be used for the distribution?
  • Which depots should deliver a certain customer in order to minimise the delivery costs?
  • Is it optimal to swap products with a third party?
  • Where should we build a new depot?
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Solutions ORTEC has more then 25 years of consulting experience in the Oil, Gas and Chemicals industry.

ORTEC’s BOSS is a strategic planning tool used to design and optimize logistics networks. The key decision variables are the number and locations of production facilities, warehouses, consolidation points, distribution centers, depots and optimal flows between these facilities. Costs in a logistics network can be divided into several categories: production cost, distribution cost, handling cost and transportation cost. BOSS was developed to design and evaluate different logistics networks with a focus on cost minimization. Users can easily adjust data, optimize different scenario's and evaluate the impact based on various KPI's (key performance indicators) and detailed reports.

The BOSS network design solution takes into account the following aspects:

  • Determines optimal number and location of network facilities
  • Ability to focus on both supply and distribution operations
  • Review of optimal territory alignments
  • Evaluates consolidation & cross docking opportunities
  • Incorporates product availability and product cost at different locations
  • Deals with location capacity and handling constraints
  • Flexible cost structures on different levels (source, depot, vehicles etc.)
  • Digitized road maps to visualize and calculate travel times & distances
  • Display of up-to-date key performance indicators
  • Ability to run and compare "What-If" Scenarios
  • Extensive reporting capabilities
  • Single / multi-product optimization
  • Single / multi-location optimization
  • Single / multi-day optimization
BOSS Benefits
SHORTREC BOSS can generate extensive reports for any scenario showing key performance indicators (per location and product) like:
  • Total volume
  • Miles & hours driven
  • Average speed
  • Loading/unloading times
  • Number of routes
  • Number of stops
  • Total cost (fixed and variable components for both supply as well as distribution part of the operation)
  • Volume per route, volume per stop, number of stops per route, total time per route, etc.
  • Unit cost
  • Location from which customers are serviced
  • Distance, drive time, loading and unloading time required to service each customer
  • Supply & distribution costs related to each customer