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.