Point of View

When it comes to digitization, the energy industry has traditionally been slow on the uptake. However, things are changing. More companies are realizing that there are incredible benefits associated with digital transformation and are slowly embracing it. In this blog, we are in conversation with Tarek Muradi, Director of Sales at IBS Software. 

What is the relevance of logistics digitalization and enterprise applications like iLogistics in the future of energy supply chain markets?

As oil and gas companies strive to gain greater operational efficiencies and drive productivity throughout the value chain, the cost savings that digital transformation technology can deliver is crucial for oil and gas logistics operations. However, in order to capture the full value of these investments, oil and gas companies need the skills to harness and use the logistic technology to optimize workforce logistics, material logistics, FIFO logistics, POB, and camp management.

iLogistics continues to support the energy sector to reduce its logistics cost per barrel and to employ long-term sustainable logistics cost optimization strategies using deep learning algorithms and mathematical network models.

How does digitalization make the supply chain more efficient?

Digital transformation will drive resilience, agility, and predictability in planning and processes. This will essentially reduce operational silos, enabling businesses to respond efficiently to market disruptions, mitigate risk, and maintain business continuity. Digitization will also help with enabling intelligent, end-to-end supply chain visibility and actionable recommendations to reduce disruption mitigation time from days to hours.

How can we manage the rapid increase in scale demanded by the Net-Zero Transition?

I see two primary areas where logistics technology and innovation could support the energy industry achieve the logistic capability it requires while minimizing costs. These are: 

• Improvements in visibility and demand prediction, enabled by digital technologies and smart analytics capabilities, will assist the sector in planning and operating an increasingly complex and distributed logistics network
• Second, in order to achieve its aim of reducing and ultimately eliminating the carbon emissions created by its own supply chain, the energy sector will need to incorporate new technology and methodologies for net-zero logistics management. Companies will need to devise strategies to enhance the logistics network, encourage supplier collaboration to assess logistics emissions, minimize the number of trips, utilize route optimization technology, and employ alternate forms of workforce and material transportation to reduce fuel consumption.

What advice do you have for logistics managers who are looking to transform their logistics & supply chain?

Work end-to-end

Logistics for energy development offers enterprises several unique and difficult challenges. However, addressing these challenges separately will result in insufficient solutions. Energy and resources companies must embrace an end-to-end strategy for their logistics systems, especially when planning their entry into new technological fields, markets, and geographies. Consideration must be given to the entire lifecycle of energy infrastructure, including logistical needs for the workforce and assets.

Focus on supply chain visibility and digitization

To better manage logistics execution and enhance their supply chain, energy companies must invest in leading-edge digital platforms, skills, and technologies. These expenditures will support them in logistics management, as visibility throughout the supply chain is a crucial enabler for many of the strategies with the greatest potential to affect end-to-end costs.

Pursue sustainable logistics solutions

Energy firms may collaborate with logistics service providers to create critical new technologies that will enable the energy industry to decrease costs and supply chain emissions by implementing operational improvements such as route optimization, reduced fuel consumption, and better usage of transportation assets like helicopters, aircraft, crew boats, supply vessels, trucks, buses, and pool cars.