Tuesday, September 7, 2021

More Efficiency Introduced to Supply Logistics to Offshore Installations

Freight Model Aims to Reduce Costs and Cut Delivery Times
Shipping News Feature

NIGERIA – With one eye focused on reducing environmental footprint (and the other probably casting around for hijack gangs) P&O Maritime Logistics has been studying ways of making the supply of essential cargoes to the many offshore installations lying off the country's coast more efficient.

Working together with Nigerian firm IO Materials Services (IOMS) the pair have jointly announced the launch of their new ‘FlexDELIVERY™’ model to provide integrated last-mile delivery services to the offshore energy industry in the country. The aim is to resolve problems in an area which has been seen as a bottleneck for some time.

Harnessing BigData and AI technology, it aims to provide predictability with a real time view on cargo movement and delivery dates all controlled through an online booking platform. The platform reinforces the integrity of the energy supply chain, providing energy producers with peace of mind to focus on their core business being extraction of energy.

The new offering, which began service on the 4th of September 2021, is an expansion of P&O Maritime Logistics’ disruptive innovation ‘Supply on Demand’ to integrate shore base and quayside operations to deliver a comprehensive logistics solution. Nigeria being a microcosm of the energy sector, P&O Maritime Logistics and IO Materials Services saw a huge potential in the country to offer a disruptive and tech-driven offshore supply solution like FlexDELIVERY™ due to the current expensive energy logistics supply chain.

Currently, most platforms offshore of Nigeria rely on antiquated manual paper-based operations, that duplicate manpower, facilities and equipment, and cost approximately 2-4 times more than the global average for running an offshore supply operation. On average the partners claim FlexDELIVERY™ reduces costs by 20-30% per cargo transported, has 20-30% lower fuel consumption and 40 -50% less distance travelled compared to traditional time-charter supply contracts. Martin Helweg, CEO at P&O Maritime Logistics said:

“Following the success of our Supply on Demand service, we saw a gap in the Nigerian market, spotting that the country’s offshore supply market was ripe for the revolutionary FlexDELIVERY™ system that brings efficiency and value to our customers.”

“With the continued expansion of our innovative service in partnership with IOMS, we’re bringing a step change to the offshore supply industry and aligning our service to be in sync with our customers’ needs: reduced delivery times, visibility and predictability.”

The system aims at disrupting the traditional model of high shore base start-up costs, rentals and vessel time-chartered contracts by focusing on the service that is required by the energy industry, cargo delivery. FlexDELIVERY™ has marked new grounds with a freight rate model targeted at the Offshore Energy Industry which traditionally worked on an asset and facility model. Shore bases will be operated by IOMS from its current locations, providing wide coverage for oilfields across the Nigerian offshore energy industry. Matteo Volpi, CEO at IOMS commented how pleased his company were to be working with P&O and enabling cuts in supply chain costs.

This service is claimed to reduce delivery times, enhance visibility and predictability intended to cause the reinvention of procurement strategies, inventory management tactics and the energy supply chain as a whole. This model, claimed to be an industry first , be it exploration, drilling, production or maintenance targets looks at driving down operating costs and capital expenditures for the energy producers by excluding structural oversupply in the industry. Christian Arndt, VP Logistics at P&O Maritime Logistics said:

“By launching in Nigeria, P&O Maritime Logistics is showing the industry that smart solutions can generate efficiency gain and lower production costs. Customers will see reduced equipment, inventory carrying, and supply chain costs, while boosting productivity. With ‘FlexDELIVERY™’ offshore operators will gain back time to focus on core business activities.”