2019 Brisbane - Opportunity for Technology Trial with Industry10 Feb - 17 Mar
Pathway to trials in the energy and resources sector
Right Place. Right Time: get critical parts to remote areas
Can you help increase the efficiency of the supply of critical parts and equipment to address the dynamic and often urgent needs of remote sites, while reducing inventory levels? If so, we want to hear from you.
In order to service the critical needs of their upstream gas operations including production, maintenance and service, gas companies hold inventory of parts and equipment in close proximity to their wells. The "hub and spoke" model for supply to the remote sites includes a central distribution centre (DC) with multiple warehouses strategically located around the perimeter.
Demand for parts and supplies is sporadic and not currently easily predicted yet the impact on the business if parts are unavailable or delayed is significant. Because of the cost of the significant cost of downtime of the wells, excess inventory is held in close proximity to the sites. Inventory can be in excess of 20,000 SKUs (different parts) to manage this unpredictable demand. In addition, staff are on-hand ready to service the needs of the teams on-site but their efficiency is low because of the sporadic demand.
The challenge is to maintain or improve the service for supplying critical parts to sites, while reducing the significant capital cost of excessive inventory without risking the chance of downtime.
Solutions may include (but are not limited to):
- Predictive inventory management (leveraging data science)
- Additive manufacturing / 3-D printing of production parts
- Novel part designs to reduce number of SKUs (e.g. modular design)
- Faster parts distribution solutions (e.g. drones)
The right solution has the potential to reduce inventory of critical parts and equipment by A$10-$20 million for one customer in Australia. Extrapolate this for similar customers across the market in Australia means a potential benefit to the market of over A$100 million.