The Future of Supply Chain
We believe that the future of supply chain is an intelligent supply chain, where in the not so distant future your supply chain will manage and optimize itself with very little human intervention, a fully automated supply chain!
With the continued development of the industrial IoT (Internet of Things) and the cloud, realizing the dream of a fully automated supply chain is no longer a dream but a tangible reality. We at The Marsden Group realize this potential and have developed an internal skill set from both a technical and operational perspective, which has allowed us to position ourselves as a company to create and implement one of the leading supply chain optimization solutions.
We have been working with one of our close partners to test out the solution by way of proof of concept (POC) in a real offshore working environment. We are pleased to report it was a huge success.
Now that we have proven the concept in a real working environment we are looking to gain further feedback and insight from other leading companies. What follows is an overview of the initial challenges we have had to overcome and some of the benefits we are working to achieve (initially within the offshore drilling sector).
The Current Challenges
As you are well aware, Supply Chain in the offshore drilling industry, has been acknowledged as being one of, if not the most complex, asset intensive supply chains in the world. This is largely based on the geographical footprint, high volume of items and remoteness of their Vessels. Therefore trying to identify opportunities to optimize and increase efficiency can be very challenging to say the least, however this was a challenge we wanted to undertake.
Examples - Key Challenges
- Inaccurate and in some cases lack of Inventory management and global transparency, can and most often than not will result in unplanned ordering of equipment to service the vessels requirement or to mitigate the risk of potential down-time.
- Large volume of Purchase Requisitions (PR's) requiring approval against already tight process timeframes, can prevent effective decisions being made
- Logistics costs are something that at times falls behind the importance of the equipment and its need, be it urgent or not. Where if the cost was known for the item in question, understanding the mode of transport (MOD) and Incoterms, more thought could be place on the decision prior to executing.
- To ensure the part(s) are procured at the right price, from the most logical location to meet the vessels requested on site (ROS) date takes time, which can result in quantity taking priority over quality.
- Duplication and triplications of the same items with separate identification numbers and at times descriptions, prevents the business utilizing what they have due to lack of transparency, resulting in NEW purchase and additional spend.
- Not having access to other vessels inventory levels to identify overstock or obsolete inventory, hampers the requestors opportunity to inter rig transfer (IRT), utilizing already spend funds and most often than not results in new purchase and movement of equipment
The Future Supply Chain
Progress so far
To date we have developed and launched an advanced machine learning (ML) supply chain. This solution has the ability to bolt onto your existing ERP system, analyses data and identifie cost saving opportunities in real time.
Our solution is currently live supporting 12 offshore drilling vessels and it’s supporting team(s) with one of our key partners. They have already seen huge cost and time savings from this initial deployment and plan to roll it out across their entire fleet within the coming months.
Below is a short overview video to help explain our solution more visually
How does it work?
When a new Purchase Requisition (PR) is raised, Supply IQ assess in real time all the available information, historic purchases, weather, overstock, obsolete fleet availability within the company, local/regional and global trends, just to name a few. Supply IQ algorithms use thousands of different data sources to accurately assess the best opportunities in seconds! We utilize cloud computing and machine learning algorithms to make highly accurate recommendations.
Supply IQ utilizes historical information and information direct from you to create very specific machine learning modules. Whenever someone is thinking of ordering an item our solution will give you instant feedback on the best options for you. Supply IQ guides you through every stage of the purchasing process. From helping you identify if you really need the item you are thinking of ordering, to finding the best suited supplier to source the item from.