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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:


Project Example

Stock Management Review


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

  • 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.


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.

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