SmartOil

Delivery tracking for cost optimization

and churn prevention

In the wholesale Oil&Gas field, freight movement is a topic of paramount importance from the perspective of optimising labor and costs, as well as the commitment to sustainability, increasingly demanded. A not-for-profit consortium aimed at fostering collaboration between industry and academia launched a service to support a group of companies in the field and their customers.

Our Solution

Challenge

 The Smart-Oil project is focused on two objectives:

  • Digitize key activities in the production process, to enhance the optimization of labor and costs

  • Provide support to business activities, through advanced use of industry and customer-specific data, to manage the customer relationship lifecycle and activate wake-up and churn prevention actions, with the ultimate goal of improving volumes and margins.

Delivery performance: TSP

The software developed by our team to improve delivery performance, approached the TSP (Travelling Salesman Problem) solution from two common aspects:

  • First, the problem of identification of optimal delivery routes (TSP) was handled by developing operational research models, preparatory to optimizing freight movement management including, for example, distances and duration of routes based on structural constraints.

  • Then, the optimization of the number and order of deliveries was carried out based on the constraints identified: from the physical constraints of the customers (such as the need of particular vehicle) to time constraints.

Customer Analysis

The framework includes a structured customer base analysis system, employing a systematic approach to tracking and analyzing data across various customer lifecycle stages.


This enables the identification of optimal pricing and margin positioning strategies for each customer, along with the opportunities for customer development and the selection of the most suitable actions within the business relationship.

Supply/Demand Matching

This system provides a prediction of quantities and expected period of repurchase for:

  • Evaluating product quantities to be purchased for storage, in addition to optimal stock levels (in relation to expected product purchase price trends)

  • Alerting salespersons, suggesting “commercial stimulus” actions (each day the system identifies customers in need of commercial action, preferring those in the most profitable clusters)

  • Identifying short promotion recipient customers in case of need for optimization of tanker trips

Results

The project enabled the creation of an automated and optimized load and delivery management framework that is integrated with a system of precise analysis and periodic reporting.

This includes the analysis of key industry indicators, as well as their evolution over time for specific customer clusters, business sectors, and status indicators.

Additionally, predictive business and production indicators were considered, which allowed for a significant reduction in raw material and labor waste.

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