MANAGING A LIQUID BULK TERMINAL IN 2011

PRESENTATION BY

Alessandro Runco | Falzon Group

Martin Keulemans | Brainum BV

COMPANY INTRODUCTIONS.

Delivering fully integrated software solutions for the Liquid Bulk Industry

Flexible, quick on our

feet and boldly

adapting as we go.

Independent team

who partners as

needed.

Complete focus on

IT solutions for tank

terminals

Delivering operational

and commercial value

through fully integrated

IT solutions built on

deep business

understanding.

MALTA AND THE MED

Source: F. Laroche,2010

DESTINATION MALTA: STRENGTHS AND OPPORTUNITIES

A maritime hub in the center of the Med

Sound competition, multi-player

Range of products and services

FALZON BUSINESS ACTIVITIES

Trading on international oil markets

Physical supply and distribution of IFO and Marine diesels to the international and local bunker market

B2B and B2C supply and distribution of fuels on the national territory

Recovery of waste oils from the local and shipping market

Collection and processing of waste oils

Tank cleaning and treatment Falzon Group

SBU

Bunkering

SBU

Forecourt Distribution

SBU

Waste oil collection and disposal

TANK TERMINAL AUTOMATION

MANAGING A LIQUID BULK TERMINAL IS ALL ABOUT:

Increasing profit

Translate strategy into tactical and operational improvements

Optimize tank utilization through clear visibility of future Supply and Demand

Being in optimal control

Know exactly what is going on at the terminal(s)

Have clear visibility on order status – from order to cash

Improving operational safety

Prevent incidents, optimize work processes, monitor equipment status

Comply with regulations and guidelines

Achieving commercial advantage over competitors

Optimize supply chain, offering real time client (order) status data

BUT HOW CAN YOU MANAGE IN SUCH A MESS

and satisfy all your stakeholders …

Customers

Employees

Shareholders

Governments

THE LIQUID BULK TRADING & TERMINAL INDUSTRY IS

CONFRONTED WITH SOME DISRUPTIVE NEW TRENDS

Increased legislation pressure

Need for transparency towards governments (SHEQ, license to operate); compliancy

Increased product value (“Squeeze the last penny out of the barrel”)

Decreased batch sizes, need for lot & inventory control. Blend optimization (Fame, Bio)

Supply chain optimization & distribution excellence – increased time pressure, cost control, demurrage costs reduction

Trading & Storage companies merging

Despite these trends, there is still no need to really change.

Business remains solid...

AND THE PRESSURE TO ADAPT REMAINS LOW…

Continuing strong market for storage capacity

Limited real competition

High new entrants barriers

Development of new storage locations complicated / cumbersome

Operating licenses and permits hard to obtain

No imminent need for operational excellence, no need to invest

But how will it be in 5 years time?

TODAY, MOST TERMINALS HAVE A FRAGMENTED DATA AND

APPLICATION LANDSCAPE

IT landscape being heterogeneous

Most business “domains” having their own application and database

Departments working in information “Silo’s”

Applications not connected – loss of data

Data and process duplication and inconsistency causing ineffective and inaccurate decision-making.

Communication & interface problems causing various problems

Incident

Management

Shift planning

Maintenance

Sales &

purchasing Trading

Line-up

planning

Volume

accounting

Document

management

Supply & Demand

planning

Action lists

Movement

planning

Nomination

planning

Personnel

Checks

Quality

The answer is business process & information integration!

… AND MOST TERMINAL MANAGEMENT SYSTEM LACK BUSINESS

PROCESS & INFORMATION INTEGRATION

Field

Process Control

Order management

ERP

KPI - dashboards

4

3

2

1

5

Information layers

Information integration in Tank Terminal business is no common practice yet

QINO TERMINAL MANAGEMENT SYSTEM PROVIDES FULL

BUSINESS PROCESS & INFORMATION INTEGRATION

One database, web-based, online & 24-7 real-time access, onshore and offshore

Everyone (in, -external) works with the same information

Better decision making – all relevant information instantly available

Workflow based - status driven & control

Structured and connected processes

Exchange of tasks between employees in predefined workflows

All relevant information converges in dashboards

Order management

ERP

KPI - dashboards

Qino fully integrates all

information layers

Field

Process Control

4

3

2

1

5

INTEGRATION BETWEEN ALL LAYERS PROVIDES STAKEHOLDERS

DIRECT ON-LINE ACCESS TO REAL-TIME INFORMATION

Web based access for client & stakeholders (stocks, order & movement status, financial status)

Web bases access for suppliers (transport, surveyor) for planning purposes (ETA, view planned work)

Automatic generation of documents (Bill of Lading, Customs, EMCS)

Automatic generation of notification emails to clients, transport companies, surveyors, personnel, etc

True integration between all layers provides seamless Order to Cash functionality

TO PREPARE ITSELF FOR THE FUTURE, FALZON HAS

CHOSEN QINO TERMINAL MANAGEMENT SOFTWARE

QINO AND FALZON

BUNKERING OPERATIONS

Full ERP stock system and dispatch

Automated generation of bunkering forms and other documents to internal and external stakeholders

Remote GPRS data immediate online transaction info

Cost/Profit calculation available immediately once transaction is complete

Lower lead times on delivery

Asset optimization

IMPLEMENTATION

Determination of project priorities and implementations timeline

Evaluation of the business processes of the highlighted SBU’s

Selection of key users for the testing and simulation. Ownership of the revised business processes in order to allocate responsibility and traceability of operations

3.5 months of pre evaluation of company operations, segregating the standard ops from the rare one-offs.

Preparation of the test system and installation. 3 week Simulation with key users with real time events in parallel with the live manual system

Resolution of final issues and modifications

Re-testing of changes

Go live with manual backup

Relinquish manual operations gradually.

SUPPLY INFRASTRUCTURE

Track purchase and balance contracts. Full control on supply availability, commitments and uplifts in multi terminal and product modes

Enhanced stock performance and customer distribution

Immediate stock cost monitoring and automatic price calculations

Profitability and

credit analysis

RELIABLE DISTRIBUTION NETWORK

Over 35 road tankers with dedicated storage controlled by ERP.

Delivery schedule organization/optimization.

Metered equipment connected to ERP for accurate documentation.

B2B, B2C DISTRIBUTION

Over 45 million liters delivered annually to our local customers

Automated process functions of order, delivery and sample management

Over 20k annual transactions with more than

670,000 metric tons processed in a year

in all SBU’s

Variety of products including TFO, heating diesel

and auto diesel

ERP also caters for the provision of

other ancillary services

STORAGE, BLENDING TERMINALS

Direct supplies to terminals monitored online

Quality testing module enables management of results

Notification system allows effective communication on releases' and potential problems

Storage optimization

BOM and blending module allows use of simulation for future blending.

THE COMPETITIVE EDGE

Immediate, upfront information there when needed

Full customization of specific business processing, creating that extra competitive advantage

Reduction of cost from misinformation, excess resources and optimization

Integrated ERP with corporate accounts

Compliance

Efficiency hence Profitability

CUSTOMER ADVANTAGES

Visual, up to date management enabling pinpoint information on a right first time approach

Reduction of delivery lead times

Plant optimization and increased utilization levels

Co ordination of intra-company transactions.

Safer, faster operability

Structured business processes

Data platform ready to further strategic growth

QINO AND FALZON – THE FUTURE

Extending further the information stream, customize dashboards according to the information every company employee needs

Marketing and CRM on both local and international markets

Further logistic improvements by fleet optimization through satellite tracking

Automation of metering system

and remote invoicing

Business intelligence

Excise/Fiscal module

CONTACTS

Martin Keulemans, director m.keulemans@brainum.nl

+31 302671030 (office)

+31 655150191 (direct)

www.brainum.eu

Brainum B.V.

Vondellaan 68

3521 GH Utrecht

The Netherlands