The Future of Supply Chain
We believe that the future of supply chain is an intelligent supply chain. Imagine a supply chain that will manage and optimize itself with minimal human intervention to deliver 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 now a tangible reality. We at The Marsden Group have seen this potential and when paired with our technical and operational skill set, allowed us to create and implement one of the leading supply chain optimization solutions.
We have worked with our partners to test this solution in a real offshore working environment. We are pleased to report it was a huge success.
With a proven 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 overcome and the benefits we are working to achieve (initially within the oil and gas sector).
The Current Challenges
The offshore drilling industry supply chain has been acknowledged as being one of 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 Vessels. Therefore trying to identify opportunities to optimize and increase efficiency was a challenge we wanted to undertake.
Key Challenges - Examples
- Lack of accurate inventory management and global transparency can result in unplanned ordering of equipment to service the vessel requirements or mitigate potential down-time.
- Large volume of Purchase Requisitions (PR's) requiring approval against tight process timeframes can prevent effective decisions being made.
- Logistics costs are variable and often not factored into overall PO cost, where further insight to mode of transport (MOT) and Incoterms can provide more accurate decision making.
- Duplication of identical items with different IDs and descriptions prevents accurate information
- No exposure to the inventory of other vessels prevents efficient use of stock through inter rig transfers (IRT), resulting in unnecessary purchases and stock movements.
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 identifies 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 clients. Where our client has already observed huge cost and time savings from this initial deployment, an Executive decision had been made to roll out Supply IQ™ across their entire fleet by the end of Oct 17, where Supply IQ™ will support 40+ Active drilling units and their onshore framework.
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 or if you want to enquire about a specific item, Supply IQ™ will assess in real time all the available information, historic purchases, weather, overstock, obsolete fleet availability and local/regional/global trends. Supply IQ™ algorithms use thousands of different data sources to accurately assess the best opportunities in seconds, utilizing 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 models. 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.