Consulting carried out by ILOS allows avoiding revenue losses of up to USD 95 million per month in a company in the energy sector
ILOS provided consultancy services to a large energy company in Brazil.
The company suffered from uncertainties in the supply of inputs, which were frequently delayed. This delay in supply caused the stock levels of inputs to fall to such low levels that it forced the company to reduce its production. This, in turn, generated a loss in revenue generation.
The ILOS team of experts recalculated the optimal inventory levels of inputs to protect the company from supply delays. ILOS also identified the need for additional storage capacity. It was estimated that the suggested actions would prevent revenue losses of up to USD 95 million per month.
The ILOS team is specialized in resizing and adapting inventory policies, allowing cost reduction and increased revenue generation.
project type
- Structuring of inventory policies
Segment
- Oil and gas
Inventory resizing calculated by ILOS allows avoiding revenue losses of up to USD 95 million per month in an energy sector company
Challenge
An energy company operating in Brazil faced uncertainty in the supply of inputs, causing a decrease in production and a reduction in revenue.
ILOS solution
ILOS reviewed the inventory levels of inputs needed to protect the company from supply uncertainties, in addition to providing recommendations for new storage needs.
Results
- Resizing the ideal inventory levels calculated by ILOS, and indicating new storage needs, would lead the company to avoid lost revenue generation of up to USD 95 million per month.
