Data Management Across Your End-to-End Supply Chain – A

1

DATA MANAGEMENT ACROSS YOUR END-TO-END SUPPLY CHAIN – A FRESH & INNOVATIVE APPROACH Jonathan Shortis - VP Energy – EMEA

Ash Nelson - Co-Founder, Biarri

Global Energy Conference | Houston | 7 October 2014

DATA MANAGEMENT ACROSS YOUR END-TO-END SUPPLY CHAIN – A FRESH & INNOVATIVE APPROACH

3 Global Energy Conference | Houston | 7 October 2014

Agenda

• Supply Chain Challenges / Barriers

• Effects of Poor Data Management

• Benefits

• Where Are We Now ?

• Integrated Supply Chain Approach

• Case Study – On-Shore CSG Australia

– Strategic Planning

– Operational Management

• Conclusions

1 Integrated

Supply Chain

2 Discussion Panel

& Q&A

4

Supply chain challenges

• Scale & Complexity Multiple site locations / Material diversity

• Lack of Coordination Fragmented supply chains / Multiple providers

Data interchange / Traceability / Accountabilities unclear

• Dynamic Environment Plans change – impacting on supply chain requirements

• Materials Control Visibility of on-site usage & expenditure

• Multiple Stakeholders IOC, NOC, Service Cos, Drilling Cos, JVs, SOEs

• Site Logistics Logistics volumetrics, congestion, vehicle utilisation

• Procurement Compliance Sub-Optimal / Aggregation opportunity

Challenges


5

Barriers

• Historic Custom & Precedence We’ve always done it this way…

• Fire-Fighting A perception of delivering value

• Procurement Fragmentation = optimisation

• Loss of Control Concerns over risk transfer

• Multiple Stakeholders Coherent data strategy missing

Dest Country Org Country

Org & Dest

Country

Shanghai

Veg

hel Detroit

Sao Paulo

AP-EU / AP-SA / AP-MX

NA-AP / NA-EU / NA-SA

NA

SA

EU

AP

Barriers to a Data-Driven Approach


6

Data management

• Visibility & Traceability

Lack of visibility across the E2E supply

chain / Interfaces / Data interchange loss

Stakeholder frustration

• Supply Chain Cost Escalation

Emergency shipments

• Procurement Cost

Lack of framework compliance

Lost aggregation opportunity

• Project Delivery

Increased risk

Project overruns / Cost escalation

• Productivity & Production

Labour productivity loss

Production down

• Visibility & Traceability

Materials

• Cost Transparency

• Improved Communications

• Supply Chain Optimisation (E2E)

Cost / Inventory Reduced

• Service Enhancement

• Improved Planning Horizon

• Standardisation

• Holistic Approach

Asset Constraints

• Risk Reduction

Mitigation Planning

Scenario Planning

Responsiveness

Increased Production Loss of Control

Effects of Poor Data Management Benefits of a Data-Driven Strategy



Current state – Where are we now?

• Concept – under active discussion

• Differences in pace of adoption / levels of focus

• Leading practices in major projects, globally

Importance of data management understood & actively promoted

Move towards single service providers / single data platform / unbundling

Focus - developing geographies/technology

• Lagging – traditional approach

Procurement driving fragmentation / fire fighting proliferates

• Issue – perception of risk

• Wide variation

• Leading practices

Integrated approach - developing geographies/unconventionals

• Lagging – entrenched

Traditional procurement-driven strategy / in-house delivery / fire fighting

International oil companies

Service companies

8

What is Integrated Supply Chain Management?

International

Suppliers

Consolidation

Hubs Customs

Clearance

Worksite Site

Store

Consolidation

Centre or

X-Dock Domestic

Suppliers

Integrated Supply Chain Control Tower

Supply Chain

Planning

Domestic

In-bound On-Site

Materials

Management

Warehousing

&

Consolidation International

Supply

Chain

Procurement,

Expediting &

Supplier

Management

Distribution

Reverse

Logistics

Functional

Physical

Project Lifecycle

Start-Up

Operations

(MRO &

Turnarounds)

Hand-Over Commissioning Planning Construction



Data management approach –

Case Study – On-Shore CSG, Queensland, Australia

Tactical data management

• Supports day to day operations

• Risk mitigation

• Contingency planning

• Capital Project Freight Portal

– Tracking, sequencing, co-ordination,

visibility (physical and financial)

Operations Pre FEED/FEED

Strategic data management

• Investment decisions

• Supply Chain design

• Drilling & completions SC design

– Defining demand

– Optimized facility locations

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Strategic data management –

Drilling and completions supply chain design

Objectives

• Improve and optimize drilling & completions Supply Chain

• Safety, on time rig move scheduling, transport utilization

• Supply lead times & stock turns, administrative excellence

Challenges

• Complexity – 4 concurrent projects, community, assets, cost

• Different requirements for development and operations

• Data poor environment

• Business focus on immediate challenges not long term planning

Method

• Define demand – projected forecast – activity/materials

• Transport network modeling – collection, wait, load, return by asset

• Flood mapping

• Scenario analysis – distance, time, productivity

2015 2025 2035


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Strategic data management - Real demand determination

Focus on substantial ramp-up in drilling programme

Dwarfed by the long term programme beyond 6 months

• Changed the logistics strategy

• Step change in transportation requirements


12

Strategic data management – Optimised facility locations

Transport cost & CO2 reduction

Supply chain reliability HSE –

congestion/community

Scenario 1

Single site

Roma

Baseline

Scenario

3

2 sites

Km down

67%

Scenario

2

Single site

Close to

CoG

Km down

40%

Scenario

4

2 sites

+ 1 x temp

laydown

Km down

75%




Single source of truth

• Complete accountability for each item

• Track, sequence & co-ordinate material

movements and transportation assets

• Web based data always available to stakeholders

Real time feedback on performance +

rapid rescheduling

• Rapidly consider status, productivity,

geo-spatial context, temporal sequencing by skill

type and contractor

• Web based data always available

Common accessible logistics data Data driven project operations – Real time



Benefits

Optimised

plan

Rapid intelligent

Re-planning

Real time data

on performance

One common

view

Better utilisation of costly

assets and people Compliance – tracking,

authorisation, permitting

Volumetrics

communication

Ahead of time delivery

performance

Simplified dynamic

sequencing

Cost visibility/

projections

15

Conclusion

Integrated Supply Chain control tower

Team

Productivity

Up

Asset

Utilisation

Up

Production

Up

Supply

Chain

Cost

Down


Documents

Data Management Across Your End-to-End Supply Chain – A