Digital Transformation and the Future of Energy and Resources Industry
The energy and resources industry is undergoing tremendous digital transformation. Technological solutions have proven beyond doubt that it has been instrumental in improving operational efficiency, reducing operational cost, and strategizing ESG activities including net zero goals. In this blog, Remasankar S, Vice President - Energy & Resources Logistics, IBS Software talks about how technology solutions are revolutionizing the way the industry functions and what the future holds.
What are some of the business models that could transform logistics operations in the global energy & resources industry?
Many energy and resources logistics companies currently manage their operations using their own technology solutions in silos. As a result, they are juggling multiple unintegrated systems, which is inefficient and needs to change. Logistics and technology management should be the responsibility of the relevant service providers. These focussed models help in establishing an integrated and efficient operational chain.
Another model gaining traction is the consortium business model, wherein different industry players collaborate to share resources and work. This model will become increasingly popular as it leads to better utilization of logistics resources available to the companies that are part of the consortium. Technological solutions like smart scheduling and smart route planning will only contribute to the accelerated adoption of the consortium business model.
Data-based business models are also predicted to spearhead a change in the way the industry works. However, data must be cleaned and processed to gain insights, so it can be expected to be monetized. Finally, the logistics-as-a-service business model is also expected to transform how energy and resource businesses operate significantly.
What are the key factors for a successful logistics digital transformation in the energy & resources industry?
Upfront demand planning and forecasting are key success criteria for any business, especially in the supply chain. You need to accurately forecast demand, supply, and other variables to establish a 360-day plan to bring complete control over your knowns and unknowns.
The next step is maintaining capital discipline and reducing expenditure. Forecasting and planning must be based on deep learning to make inventory management more efficient and informed. Adopting the right tools that are agile and flexible, and can respond to the real-time changing demand patterns is key to the transformation process. It is also critical to eliminate the disconnect between various systems. Finally, enabling the workforce to handle change management with a futuristic perspective is a critical factor in the digital transformation of companies.
How do you see the role of AI and Robotics in the future of logistics automation in the energy & resources industry?
AI is not just a buzzword in the energy and resources industry. The technology actively helps companies be more dynamic and efficient with planning and execution. The four most easily visible applications of AI technology are:
- Data science and predictive analytics to identify trends and make predictions. The demand for the ability to accurately predict future industry trends is a big driver of digital transformation in the industry today. AI-enabled applications are already helping companies overcome uncertainty and devise informed optimal logistics plans that meet this demand.
- Demand planning is another area that is becoming more intelligent with AI-based systems. Since almost all of a business' execution and planning is tied to it, it has the potential to have a significant impact.
Field planning is set to become more efficient with the incredible amounts of data that can be collected and processed by AI algorithms. Intelligent use of data will enable impactful optimization decisions.
Finally, AI is also improving the overall operational efficiency within energy and resource companies by enabling automation. Machine learning algorithms complete time-consuming and mundane tasks quickly, accurately, and efficiently. Additionally, the companies will be able to focus on their core businesses while lowering their overall operating costs.
What value benefits do technology platforms like iLogistics bring to global customers?
iLogistics is an integrated, end-to-end, cloud-based logistics management system to manage people and material logistics. iLogistics helps energy companies to improve logistics efficiency, reduce operational cost, help in decarbonization, and achieve ESG & net zero goals
iLogistics platform also helps in a significant reduction in operational costs achieved through optimizing logistics assets like charter flights, helicopters, and vessels. This optimization involves smarter route planning and automation of effort-intensive and important, but monotonous manual processes and tasks. A value-driven benefit of using iLogistics is that it lowers the cost of ownership of tools. Finally, it also improves efficiency by consolidating monitoring and decision-making processes to a single command centre – The Control Tower.
What are some of the steps undertaken by IBS to promote collaboration & logistics sharing among the stakeholders in energy logistics & supply chain?
At IBS Software, we are strong proponents of collaboration. We believe it leads to sharing of best practices, improvements in safety, efficiency, and an overall reduction in the cost of operations by asset sharing. As a product company, we ensure to bring our customers together to discuss their current challenges and, futuristic vision and collaborate for the direction of the product roadmap as well. Such coming together also acts as a conduit for industry professionals to network, learn from one another, and establish collaborations.
iLogistics Customer Form – Apr 2022 took place in Calgary, where customers and partners came together to share value drivers, optimization strategies, best practices, and logistics initiatives to foster a collaborative environment.
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