COMPLIANCE THROUGH VISIBILITY, BY ADVANCED TRACKING …

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COMPLIANCE THROUGH VISIBILITY, BY ADVANCED TRACKING OF OILFIELD SERVICE LOGISTICS Sean Germann – VP Americas, DHL CSI, Energy Sector

Markus Koepsel – Global Head of Energy Overland Transport

2 Global Energy Conference | Houston | 7 October 2014

Visibility, speed, reliability and compliance are key requirements

for logistics

Visibility

• Asset visibility to drive optimal utilization and meet

audit requirements; tools such as dashboards and

in-transit tracking

Cost Effectiveness

• Competitive pricing while maintaining service

delivery

Speed

• Responsiveness of issue resolution and speed and

reliability of delivery is a key requirement to ensure

timely interventions to prevent consequential loss

Innovation

• Innovation and proactivity in solution design and

customized solutions to meet customer needs

Compliance

• Trade and anti-bribery compliance, and HSSE are

key requirements

Logistics requirements of oilfield service companies

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Visibility

Cost

Effectiveness

Speed Innovation

Compliance


Supply Chain drivers for the oilfield service industry

Inbound

logistics

Manufacturing

logistics

Linehaul

and hub operations

Distribution local hub

and field locations

Reverse

logistics

Inbound to

Manufacturing

• Vendor Sweeps

• Sequencing

Manufacturing Warehousing (yard)

• Manufacturing facility

management

• Inventory Optimisation

• Warehouse management

• Implants

Hub Management

• Warehousing and yard

• Quality Control

• Consolidation

• Kitting

Rentals control

Temporary Import

control

Repair Centre

• SC Management

Waste Management and Recycling

• Cuttings

• Water and mobile water treatment

• Batteries

Domestic transport management for

unconventionals

Asset Management and MRO for high value tools/rigs

• Optimise Asset utilisation, forward planning

• Tool Crib Management

Centralised coordination – Control tower – 3PL mgmt. – vendor mgmt.

Continuous improvement (unconventionals)

Document management (hybrid solution)

End to End

Compliance – HSS – Visibility and Traceability – Reporting Must Have’s

Closed loop Communication – stakeholder alignment Relationship

Return Source Make Deliver


Complication of visibility and transparency

Complication Effect/Impact

Lack of transparency regarding management of

“critical” equipment

Dynamic and variety of involved parties in SCM.

Integration and consolidation of information from

different parties

Time critical logistics process and relevance of on time

data availability

Dynamic variety of

Supply Chain

partners/stakeholders

Access to time critical

Information about

material

Limited or non Visibility

of Equipment 1

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3

Consequences

Additional direct and/or indirect costs and inefficiency occur through non-compliance

and/or re-active instead of pro-active equipment handling.

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Missing Technology and/or lack of transparency

Information gap in terms of position, stock, transport data any other related information

critical for the item’s role within the supply chain

Global Energy Conference | Houston | 7 October 2014

Limited or non-visibility of equipment


a) No, not really…but I have an idea

where it is roughly located …

b) Yes, because it is equipment with a

positioning technology

I might know what material/equipment it

is but nothing else. That I would need to

find out the details …

a) No we do not use any tracking

technology

b) Yes we use it for critical equipment

but with different suppliers

Do you know the

specifications/information

details about?

Are you already using

information technology for

tracking information of your

material/equipment?

Do You always know the

location of your critical

material/

equipment?


Dynamic variety of Supply Chain partners/stakeholders


We cannot really oversee the number

of suppliers especially related to the

ones using information technology

(telematics)

How many different partners

are you working with related

to your supply chain

information?

Not really. There are certain information

available from different suppliers in

different formats and details

Do you have an

overview/transparency of all

different parties and its

information in your

Supply Chain?

We have a quite huge supplier base

with different parties and providers

involved

How often do your suppliers

change?

A

B

C

Dynamic and variety of involved parties in Supply Chain Management

Especially when it comes to information including its technology the integration and

consolidation of information from different parties is a challenge

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Compliance Challenge for Temporary Imports

Without appropriate information about the item location and the relevant customs

information the challenge results in respecting temporary import timings. Following

non-compliance penalties can cause unnecessary extra costs.


Access to time critical information about material


In case of equipment moving around

the globe at different sites it can be very

time critical

In case of equipment moving around the

globe for different projects information on

time can be crucial e.g. temporary

imports, urgency need at another location

In case we do not know where an item

is or when it needs to leave a country

this can relate into non-compliance

Is it often relevant to receive

certain information on time?

Due to the time sensitivity of

certain equipment do you

see compliance challenges?

How time critical is it

sometimes to get the right

information about an

equipment?


How to close the visibility gap? - Solution idea

Solution Part Approach

The solution allows you knowing, what material, is located where, and when it needs

to be moved / used through intelligent technology linking. This provides perfect real

time VISIBILITY

Equip your material with telematics

hardware

Consolidate data of various telematics

devices and systems

Set-up your business rules for

notifications of each material item

Data Consolidation

Notification

Hardware Technology 1

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Solution


Hardware technology – Set-up technology

• Material / logistical asset to be equipped

with a specific device (RFID, GPS, etc)

• Best suitable / workable device for

different item groups

Enables to locate material including specific

information

Telematics Hardware

•Supplier

independent

Hardware

•Communication

SIM card

•Hardware

operations

•Scalable IT-platform

•Tracking portal with

geofencing &

notification services

•Reporting services

•Open interface

concept

IT-Platform Services Telematics HW


Data consolidation – Create visibility and transparency

Tracking Portal

Reporting

Services

IT consol-Platform

Overall visibility through TSP independent

consolidation of telematics & sensor data

• Consolidate data of different items / material by

different suppliers

• Combining different telematics data systems

into one overall IT platform

• Interface data from consolidation IT platform

with different ERP/TMS

Telematics Data Consolidation

IT-Platform

Services Telematics HW

• Interface

management

• Data quality

management

• Configuration

management

• Data

consolidation

• Data

transformation

• Open data model

• White labelled

User Interface

• Data integration

with customer IT

• Open interface

concept

• Various TMS

licenses (aaS)

Business SW


Notification – Manage visibility and transparency

Time critical management of material including

exception management to avoid irregularities

• Provide tracked items with rules for notification

for a special location or timeline e.g.

• Information through telematics in “real” time in

order manage critical material status/process

Notification Rules


Higher compliance control

Consolidate various telematics devices

Business Software Interface

Manage your assets Set up customized

business rules

Track your moving

items in real time

Trace back history

Get notified & react early


Higher compliance control

• Specific information about

the equipment e.g. when it

needs to be exported or

used at another location

• Notification rules to pro-

actively re-located the item

Knowing when it needs to

be exported

• Exact location of the item via

GPS

• In case of re-location

notification via geo-fencing

Knowing where the

equipment is

• Type of material

• Items for specific use on site

• Value of the items

Knowing the type of

equipment

• Avoid penalties for non-compliance

• Overview of equipment including location and critical information

• Reports and history capturing

• IT connectivity

Compliance control

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Q&A


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COMPLIANCE THROUGH VISIBILITY, BY ADVANCED TRACKING …