ASCI Secures ConocoPhillips Global Inventory Optimization Contract

September 28, 2009 at 10:51 pm Leave a comment

Alaska-based Asset Management Services (AMS), a subsidiary of Advanced Supply Chain International (ASCI), announced the finalization of ConocoPhillips’ purchase of the Oniqua Analytics Suite (OAS) – Inventory software solution. The software has performed above expectations, providing rapid ROI exceeding 400% in ConocoPhillips’ trials at three of their largest upstream sites: Alaska, Indonesia and the North Sea.

            OAS – Inventory, developed by Australia-based Oniqua Enterprise Analytics, is specifically designed for asset-intensive industries such as oil and gas. ASCI will install OAS – Inventory at 25 ConocoPhillips production and refining facilities worldwide. As the Master Distributor for Oniqua products within the North American oil and gas industry, ASCI will customize the software for use at each ConocoPhillips site.

            This application delivers a tremendous return on investment by right-sizing inventory based on maintenance, inventory and procurement data and applying leading techniques for inventory optimization. The optimization algorithm has demonstrated proven inventory reduction results of 15-25%.

            “The challenge for asset-intensive corporations is to maximize their return on heavy [plant and ongoing operation] investments,” said Mike Schwarz, VP of Business Development at ASCI. “To accomplish that, companies must overcome difficulties of operating and maintaining complex and diverse equipment in difficult climates. This software suite increases service levels, thus reducing downtime, with decreased inventory investment.”

            Schwartz told PetroComputing that the algorithms in OAS – Inventory serve to “right-size” even very large, global inventories by balancing the risks of overstock with understock. Using connectors to the company’s ERP system, the software captures more than 200 fields of data per month for each SKU, or stock keeping unit. Statistical analysis is then carried out with a focus on equipment criticality and workaround options using sophisticated lead-time analysis based on past experience. The software can be “tuned” for each location to capture local costs and lead-times, and business rules can be implemented to set parameters for approvals, enabling staff to manage by exception.

            Each month, the OAS – Inventory software takes about 11 hours to upload all of the data and makes recommendations for balancing the inventory. Then a ConocoPhillips supply chain professional can model various what-if scenarios and do a reality check on the software’s suggestions. ASCI is providing three segments of training to ConocoPhillips employees:

  • One week of introduction plus one week of using the system with actual corporate data;
  • A month later, a second round (two weeks) of intermediate training after users have been able to play with it a while; and
  • Two more weeks of advanced training 6-12 months later.

            “Customers are able to deliver significant savings after the first round of training,” Schwartz told PetroComputing on the sidelines of the E&P Technology Summit 2009 in The Woodlands, TX.

Entry filed under: Financial and Back Office Solutions. Tags: , , , , , .

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