FlexDelivery – Integrated Logistics in the Offshore Sector

Abstract This case study aims to showcase how integrated logistics in the offshore sector streamline the supply chain process, reduce costs, and improves efficiency. The scope of integrated logistics includes planning, transportation, warehousing, inventory management, and information management, focusing on collaboration and transparency between all stakeholders in the offshore supply chain. The process of integrated logistics in the offshore sector begins with the cargo booking. A detailed logistics plan and schedule are then developed, outlining the supply chain network, transportation modes, and inventory management strategies. The process is managed by an AI-based platform that automatically creates short and long-term schedules using various cargo and telemetric data. During the execution phase, real-time tracking and monitoring of the supply chain process are crucial to managing disruptions. Continuous improvement is key to optimising the integrated logistics process with a machine learning element to the logistics tool, resulting in increased efficiency, reduced costs, and improved safety and reliability. Implementing integrated logistics in the offshore sector has yielded several positive results. Firstly, it has improved efficiency in the supply chain process, reducing the time and cost required to move goods and equipment from the point of origin to the point of consumption. Delivery time has been reduced by 23%, achieved by using an AI planning system, real-time tracking, and optimised transportation modes. Secondly, integrated logistics has helped to maintain high levels of safety by reducing the number of entries into the 500M zone by consolidating cargo and increasing back deck utilisation. Standardised procedures for logistics operations have been established, minimising the risk of errors and improving overall safety. Thirdly, the implementation of integrated logistics has led to increased collaboration and communication between stakeholders involved in offshore operations, resulting in improved decision-making and reduced delays, as well as better transparency between all elements of the supply chain. Real-time tracking and monitoring of the supply chain process have been crucial for effectively managing disruptions and addressing issues, which is made possible by automating the process using AI, which is more efficient than manual processes. The use of integrated logistics in the offshore sector has resulted in an overall cost reduction of 23% on the shipment of goods and a reduction of CO2 emissions by 32%, enabling effective management of the movement of goods and equipment while promoting sustainability. This approach to integrated offshore logistics will enable effective management of the movement of goods and equipment from the point of origin to the point of consumption and reduce costs for the oil and gas sector while ensuring compliance with regulatory requirements.