Logistics Breakout – Herman Woltjes, Shell Chemicals: “Logistics Execution”
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Transcript of Logistics Breakout – Herman Woltjes, Shell Chemicals: “Logistics Execution”
Herman Woltjes e-tools specialist SCE
Elemica Conference
16 Oct 2014
Elemica Logistic Tools in Shell Chemicals
Agenda
Background of Shell Chemicals
Shell Chemical’s Use of Elemica’s Logistics Solutions
Solution Implementation Approach
Lessons Learned & Recommendations
92.000 Employees
70+ Countries where we operate
30+ Refineries & Chemical plants we run
3.2 Million Barrels of Oil we produce every day
Shell at a Glance
DownstreamUpstream Projects & Technology
Upstream and Downstream activities Shell
UPSTREAM
OFFSHORE PLATFORM
OIL SANDS
Bitumen
DOWNSTREAM
Feedstock
Synthetic crude oil
Fuels, lubricants and speciality products including Bitumen and liquefied petroleum gas
UPGRADER PLANT
Oil
REFINERY
Gas
LNG LIQUEFICATION PLANT
GAS TOLIQUIDS PLANT
BIOFUELS PLANTBIOFUELS PLANT
WIND TURBINES
Energy for industrial and domestic use
LNG REGASIFICATION TERMINAL
POWER STATION
ONSHORE PRODUCTION FACILITY
Gas
Oil
CHEMICAL PLANT
Petrochemicals used for plastics, Coatings and detergents
Projects & Technology
How Chemicals fit into Shell
DownstreamAromatics
HoDer
Lower Olefins
EOG
PoDer
Solvents
SM
B2B
Retail
Chemicals
Lubricants
Manufacturing
Supply & Distribution
Downstream Businesses
Chemicals
Product Lines:
Oil Sands
CO2
Upstream
Projects & Technology
Where we operate (Principal locations 100% Shell )
World-scale manufacturing plants strategically located in the Americas, Asia Pacific and Europe. Key sites located close to refineries, strengthening supply security and reducing costs.
Principal manufacturing location
Research centre
Pernis/Moerdijk, Netherlands
Wesseling, Germany
Seraya, Singapore
Geismar, Louisiana
Norco, Louisiana
Deer Park, Texas
Westhollow, Texas
Amsterdam, Netherlands
e-Tools @ Shell Chemicals
Customer Lounge™ — Secure business-to-business website exclusively for customers to use 24
hours per day. — Place, track and manage orders; view copy invoices and other
company-specific documents. — Access certificates of analysis, material safety data sheets.
Elemica* — Co-founded by Shell Chemicals and other leading industry players. — Enables exchange of transaction-related messages between buyers and
sellers of products and logistic service providers — Simplifies, standardises and automates key business functions reducing
costs, manual errors, paperwork and delays in response time. * …a once only connection to a central “hub” that allows ERP to ERP connectivity between Shell chemical companies and multiple customers or suppliers using industry-standard
ChemXML messages.
Agenda
Background of Shell Chemicals
Shell Chemical’s Use of Elemica’s Logistics Solutions
Solution Implementation Approach
Lessons Learned & Recommendations
Elemica Logistic Tools in Shell Chemicals
Implementation of Elemica’s Road Logistics Solution Tools: — In 2005: Load Tender Motor (LTM) Transport Management system:
—“Connect once, Connect to all” approach
—Standardized process
—Data integrity
—Extra tools functionality (ECTA, Extra cost process)
— In 2009: Slot Booking Tool (Pernis) :
—Optimize business processes
—Decrease the average on-site time of trucks
— In 2013: Time Slot Optimization Tool (Pernis)
— reduce the amount of hours spent at the Traffic Office on slot
bookings
Connect and collaborate with all of your land-based transportation providers for shipment booking, execution, and visibility
Elemica Logistics Management Solutions
Road Transport Execution
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Connect and collaborate with all of your ocean transportation providers for shipment booking, execution, and visibility
Ocean Transport Execution
Schedule and manage carrier appointments to optimize site and carrier resources
Time Slot Management
Address post-audits of freight invoices & accrual discrepancies thru carrier collaboration on freight costs & invoices.
Freight Cost Management
Speed order-to-cash cycle and reduce admin costs by synchronizing fulfillment data across your 3PL network.
Terminal & Warehouse Visibility
Connect all service provider data across all modes in all regions to triangulate, validate and alert for total supply chain visibility.
Global Logistics Visibility
Collaborative Solutions throughout the Road Logistics Lifecycle
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Load Tender Motors (LTM) Process TRUCK CARRIERS:
SmartLink
QuickLink
Connectivity via Elemica’s Network Hub
SmartLink
QuickLink
Extra tools Functionality: Additional Costs Process
Background.
Land Logistic dep.:“The current process includes many manual steps gathering the details of extra costs, approvals and recording details before it can be uploaded to GSAP.”
Elemica offers an additional functionality (tool) for automating the additional cost process
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New Additional Cost Process:
SmartLink
QuickLink
Process Steps new additional cost process
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- Haulier has additional cost and reports this to the Shipment doc. in SmartLink
- CRC / TC Receive an e-mail with additional Cost from Haulier
- Login to SmartLink via link in e-mail
- Accept or Reject add. Cost on shipment
- Haulier receives notification e-mail
- End of the month; TC down loads Add Costs Report from Elemica and upload this in GSAP. All cost will be assigned to shipments.
Extra tools Functionality: Implementation Additional Costs Process
Benefits of the Elemica’s additional cost tool:
— Shell:
— Less manual work for the Transport Coordinator to prepare and upload
additional cost into GSAP (saving up to 4 days a month)
— Always the correct data and order
— Less admin; Reporting overview per Haulier, Ship-from and Ship-To
— No more “open” items
—Haulier:
— Less admin; It takes less time for the haulier to enter the additional costs
— Clear and structured process
— Reporting facilities on approved cost
— No more custom made additional cost notification file
Herman Woltjes
Time Slot Booking Project (2009)
Implementation Time Slot Booking Tool (TSB)
Background
The on-site logistic costs and processes at Pernis were perceived not to be cost
competitive anymore. A project was initiated to lowering the costs of road site
logistics by:
—Optimize business processes:
—Optimize the use of loading facilities and available loading crew by
spreading the workload.
—Better insight in load restrictions in advance (maintenance outage, high
demand)
—Decrease the average on-site time of trucks:
— Large number of trucks arrive in the same timeframe (‘preferred time of
arrival’).
Number of trucks on site during loading day
0
10
20
30
40
50
60
70
80
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
mo
tuewed
thuFri
Trucks waiting at the loading site Pernis
What is Time Slot Booking Tool ?
“Time slot booking” is a monitoring tool which enables the loading site to evenly spread the arrival of trucks. With this process carriers/customers are required to book in advance a time slot for loading, preferably by electronic means.
Why did we introduce time slot booking?
Truck loading Process
Order placed
Order info to carrier
Carrier selects
equipment
Driver arrives at gate on
loading day
At gate order and equipment checked by
TO
Site entrance and go to loading facility
Wait for available load bridge
Load product
Receive paperwork and leave site
Benefits:
Optimize the use of loading facilities and available loading crew / TO by spreading the workload, saving 1 Fte
Reduction of demurrage costs saving 75K€/Y
Carriers can make more reliable scheduling plans for their trucks
Better insight in load restrictions in advance (maintenance outage, high demand)
& book slot
with Time Slot booking tool:
Agenda
Background of Shell Chemicals
Shell Chemical’s Use of Elemica’s Logistics Solutions
Solution Implementation Approach
Lessons Learned & Recommendations
Herman Woltjes
Time Slot Optimisation Project (2013)
Project information
Background
The introduction of Elemica’s Slotbooking tool at the Traffic Office of Pernis in 2009 lead to a significant reduction of workload, now after 3 years of experience on working with the Slot Booking tool a further improvement of the loading facilities can be made.
Scope
Improvement of the efficiency and effectiveness of the loading facilities (N- and D terrain)
at Pernis through the implementation of Elemica’s Time Slot Optimization tool (TSO)
Benefits
— Significant reduce the amount of working hours spent at the Traffic Office on slot
bookings
— Significant increase of available loading hours on the loading facilities
Shell’s enhancement requirements
Carriers will be able to book slots themselves: — For stock transfer shipments
— For combination loads
Increase the availability of loading slots by: — Preventing that two slots for one product are booked at the same time
— The ability to block slots on product level and on loading bay.
— The possibility to book load slots for night loading
— Preventing hauliers leaving a gap 30 minutes open between two slot bookings
— More flexibility in scheduling loading time depended on amount of loading
— the tool should come up with a proposal for the best loading opportunity
Increased calendar functionality: — Showing the status of a truck, i.e. “on-site”, “loaded” or “departed”.
— The ability to block certain hours (e.g. lunch hours) in the agenda over a longer period instead of per day.
Timing
Timing
— Phase 1: Orientation phase (March 2012)
— Phase 2: Sponsor Sign off phase (April 2012)
— Phase 3: Detail development / configuration inventory (May 2012)
— Phase 4: Development phase (June – December 2012)
— Phase 5: Testing & Implementation phase (March 2013 – April 2013)
— Phase 6: Go live May 2013
Solution Implementation Approach
Preparing Implantation TSO:
— Workshop (Elemica, Traffic Office and SCE) —Risk analysis & Mitigation:
— Definition major risks TSO implementation:
— Risk Matrix
— Corrective actions
—Define (Test) scenarios: — Gap analysis between SB and TSO
— Scripts
— Rules for Go / no Go decision implementation
—Training
— Documentation
— Communication
— Detail planning Migration process
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Planning
Agenda
Background of Shell Chemicals
Shell Chemical’s Use of Elemica’s Logistics Solutions
Solution Implementation Approach
Lessons Learned & Recommendations
Lessons Learned & Recommendations
Be (very) clear in the Scope of your project for all stakeholders
Participation of end-user during the whole project
Manage expectations of users (it’s not Turn key)
For a smooth transfer (SB > TSO), be sure to have:
— Inventory of the risk and likelihood
— a Roll-back scenario in place
— enough resources in place
Making sure Elemica’s understands the end-to-end situation
Having enough time for testing
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