Shell – Logistics/Material Management optimisation Initiatives
Aims
To provide a summary of some of the initiatives Shell has been involved either as a participant or leading with other O&G operators and our key suppliers.
Initative overview
In the last 5 years, the Logistics Fit for Future (FFF) journey to date has involved a re-thinking of the way in which we work internally and how we collaborate externally with the rest of the supply chain.The total Shell Logistics cost has decreased by a factor 2 thanks to the following initiatives:
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- Internal: review fit for purpose specification for vessels, aggregate demand into integrated planning for Projects, Wells and Production helping to improve Logistics asset utilization
- External: sharing agreements in place for Marine (ERRVs and PSVs), Aviation fixed wing and Warehousing with other O&G operators.
- Contracting: develop further output based contracting with fair risk allocation and performance incentive scheme.
The challenge is to bring collaboration across the industry to the next level under the banner of ETF Logistics. The following initiatives will be pursued among others:
UKCS PSV marine pooling
Program to reduce Logistics GHG emissions including LNG bunkering
Technology – Digital supply chain – now starting to replicate best practices from other Shell operating units and implement in UK. It will include Track and Trace and End to End Supply Chain Visibility.
Systematic value/waste mapping to instil a culture of continuous improvement and holistic thinking across the supply chain
Total savings achieved
50 mln USD
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