A review of the logistics network conducted by ILOS for a large oil and gas company predicts an 11% reduction in distribution costs and an increase in next-day deliveries.
ILOS provided logistics network optimization consulting services to a large company in the oil and gas sector.
The company's logistics network was configured to serve customers with very fragmented orders and significant logistical differences between regions of the country.
The consulting firm ILOS reviewed the company's network of facilities, optimizing the use of existing warehouses and transfer and distribution flows. In addition, scenarios with potential future new facilities were tested.
The network recommended by ILOS projected distribution costs 11% lower compared to the baseline, with reduced lead times and increased capacity to meet growing demand.
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project type
- Optimization of the logistics network
Segment
- Oil and gas
Optimized network projects 11% lower costs and greater service capacity.
Challenge
A large oil and gas company wanted to determine the ideal configuration of its network of facilities to support its growing demand. It was necessary to optimize the distribution network, minimize costs, and meet the desired service levels.
ILOS solution
ILOS reviewed the company's entire network of facilities, optimizing warehouse utilization and transfer and distribution flows, minimizing costs and achieving desired delivery times. Scenario tests were conducted considering current facilities and potential future locations.
Results
- Cost reduction: the improvements proposed by ILOS projected an 11% reduction in distribution costs.
- Reduced lead time: ILOS's recommendations would allow for a significant increase in D+1 deliveries.
- Implementation plan: ILOS delivered a roadmap for the implementation of future facilities, detailing the best time to open each new location.
