New management systems offer sustainable improvements.
Program yields seven times ROI.
Strategic Intent
Identify root causes for alarming increase in demurrage charges. Restore profits commensurate with company growth rate.
Situation
- Fortune 100 independent oil refiner
- Operates 18 refineries – production capacity of 3.1 million barrels per day
- Recent growth fueled by large strategic acquisitions
- Majority of crude oil delivered by tankers
- Growth leads to more complex supply chain logistics, resulting in disproportionate rise in demurrage (penalty) expenses and costly inventory issues
- Several internal initiatives fail to resolve issues
Issues and Barriers
- Inaccurate data collection (ship schedules, crude oil needs, other)
- Poor alignment of management goals
- Process gaps in base business models
- Poor internal communications
- Lack of effective transportation process controls
Key Implementations
- Align primary departments with management’s goals
- Develop new ship management process across four critical departments
- New management reporting system, assures accurate and actionable information
- Provide expert models with position-specific roles and responsibilities
- New management system that integrates forecasting, planning, work provisioning, supervisory control and performance improvement activities
- Growth and sustainability processes
Results
Key Strategic Results
Client satisfaction leads to new Brooks International leadership engagements.
- Demurrage charges reduced by 16%, saving $10 million
- Tanker arrival accuracy improves to 95%
- Reduced inventories results in released capital
- Yields annualized ROI of 7.2 to 1
Client Perspective
It is clear to me that we would not have been able to make the operational and behavioral changes required to achieve our objectives, in the accelerated time frame provided, without the help of Brooks.
— Senior Vice President, Transportation Services
