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Supply Chain Optimisation - Stock Management

An integrated Spanish refiner sought to reduce working capital in storage and blending facilities.

Area of Expertise:

Technical

Project Example

Stock Management Review


Context

DAI consultants were engaged to conduct the review and provide recommendations.


Approach
  • DAI consultants worked in collaboration with client employees addressing new storage and blending constraints specific to crude oil, heavy fuel oil, petrochemicals.

  • The team challenged what working inventories could be reduced due to excess operational cushion.

  • The team evaluated supply and dispatch parcel sizes, unit charge and production rates, delivery days, and potential emergency situations.


Analysis – Days of Storage Histogram

Probability distributions were developed considering daily data over a three-year period.


Outcome

The engagement led to a reduction of 1.4 million barrels in feed and product inventories as well as savings of storage and maintenance costs with no loss in flexibility or impact on safety stocks.


KEEP IN TOUCH

DOWNSTREAM ADVISORS, INC.

HEAD OFFICE

REACH US

EUROPE

5151 Belt Line Road, Suite 375

Dallas, Texas, 75254

T : +1 972.980.7215

136 Avenue Orban

1150 Brussels, Belgium

M : +32 473.34.34.97

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