case   /   global energy company

Global energy company focused on geological exploration, production, transportation, storage, processing and sale of natural gas, gas condensate and oil. Its mission is to ensure a reliable, efficient and balanced supply of natural gas, other energy resources and their derivatives to consumers.

challenge

Our scope included development of long-term supply chain strategy until 2030, encompassing 3500 refilling stations with 180 oil depots. We were presented with two tasks – optimisation modelling of supply chain network with potential locations of new oil depots and shutting down some of the existing ones; and optimisation of cost for both capital investments and operational expenses, through strengthened logistics structure to process higher volume of product.

solution

The complexity of existing supply chain required full scope approach, so our team created a “duplicate” digital network structure for future modelling and scenario planning. Following that we developed strategic models for each of product distribution pipelines. This allowed us to test assumptions on several levels: market sensitivity analysis, Greenfield analysis, locations feasibility study on closing existing & opening new oil depots.

results

Complete digitalised supply chain structure mapped against various levers of influencing factors produced clear long-term strategy until 2030. By assigning supply chain growth metrics to new capital investments we were able to show potential saving of 8.2% for the entire logistical structure, including reducing storage costs by 62%. Our teams input guided company’s management to review their existing oil depot network, as well as transportation system as a whole.