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





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





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


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






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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Logistics Breakout – Herman Woltjes, Shell Chemicals: “Logistics Execution”

Technology

Transcript of Logistics Breakout – Herman Woltjes, Shell Chemicals: “Logistics Execution”