MANAGING A LIQUID BULK TERMINAL IN 2011
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1 MANAGING A LIQUID BULK TERMINAL IN 2011 PRESENTATION BY Alessandro Runco Falzon Group Martin Keulemans Brainum BV
2 COMPANY INTRODUCTIONS.
3
4 Flexible, quick on our feet and boldly adapting as we go. Independent team who partners as needed. Complete focus on IT solutions for tank terminals Delivering operational and commercial value through fully integrated IT solutions built on deep business understanding. Delivering fully integrated software solutions for the Liquid Bulk Industry
5
6 MALTA AND THE MED Source: F. Laroche,2010
7 DESTINATION MALTA: STRENGTHS AND OPPORTUNITIES A maritime hub in the center of the Med Sound competition, multi-player Range of products and services
8 FALZON BUSINESS ACTIVITIES Trading on international oil markets Physical supply and distribution of IFO and Marine diesels to the international and local bunker market B2B and B2C supply and distribution of fuels on the national territory Recovery of waste oils from the local and shipping market Collection and processing of waste oils Tank cleaning and treatment Falzon Group SBU Bunkering SBU Forecourt Distribution SBU Waste oil collection and disposal
9 TANK TERMINAL AUTOMATION
10 MANAGING A LIQUID BULK TERMINAL IS ALL ABOUT: Increasing profit Translate strategy into tactical and operational improvements Optimize tank utilization through clear visibility of future Supply and Demand Being in optimal control Know exactly what is going on at the terminal(s) Have clear visibility on order status from order to cash Improving operational safety Prevent incidents, optimize work processes, monitor equipment status Comply with regulations and guidelines Achieving commercial advantage over competitors Optimize supply chain, offering real time client (order) status data
11 BUT HOW CAN YOU MANAGE IN SUCH A MESS and satisfy all your stakeholders Customers Employees Shareholders Governments
12 THE LIQUID BULK TRADING & TERMINAL INDUSTRY IS CONFRONTED WITH SOME DISRUPTIVE NEW TRENDS Increased legislation pressure Need for transparency towards governments (SHEQ, license to operate); compliancy Increased product value ( Squeeze the last penny out of the barrel ) Decreased batch sizes, need for lot & inventory control. Blend optimization (Fame, Bio) Supply chain optimization & distribution excellence increased time pressure, cost control, demurrage costs reduction Trading & Storage companies merging Despite these trends, there is still no need to really change. Business remains solid...
13 AND THE PRESSURE TO ADAPT REMAINS LOW Continuing strong market for storage capacity Limited real competition High new entrants barriers Development of new storage locations complicated / cumbersome Operating licenses and permits hard to obtain No imminent need for operational excellence, no need to invest But how will it be in 5 years time?
14 TODAY, MOST TERMINALS HAVE A FRAGMENTED DATA AND APPLICATION LANDSCAPE IT landscape being heterogeneous Most business domains having their own application and database Sales & purchasing Quality Action lists Trading Departments working in information Silo s Personnel Shift planning Applications not connected loss of data Data and process duplication and inconsistency causing ineffective and inaccurate decision-making. Communication & interface problems causing various problems Movement planning Line-up planning Checks Nomination planning Incident Management Document management Volume accounting Supply & Demand planning Maintenance The answer is business process & information integration!
15 AND MOST TERMINAL MANAGEMENT SYSTEM LACK BUSINESS PROCESS & INFORMATION INTEGRATION Information layers 5 KPI - dashboards 4 ERP 3 Order management 2 Process Control 1 Field Information integration in Tank Terminal business is no common practice yet
16 QINO TERMINAL MANAGEMENT SYSTEM PROVIDES FULL BUSINESS PROCESS & INFORMATION INTEGRATION One database, web-based, online & 24-7 real-time access, onshore and offshore Qino fully integrates all information layers Everyone (in, -external) works with the same information Better decision making all relevant information instantly available Workflow based - status driven & control Structured and connected processes Exchange of tasks between employees in predefined workflows KPI - dashboards ERP Order management Process Control All relevant information converges in dashboards 1 Field
17 INTEGRATION BETWEEN ALL LAYERS PROVIDES STAKEHOLDERS DIRECT ON-LINE ACCESS TO REAL-TIME INFORMATION Web based access for client & stakeholders (stocks, order & movement status, financial status) Web bases access for suppliers (transport, surveyor) for planning purposes (ETA, view planned work) Automatic generation of documents (Bill of Lading, Customs, EMCS) Automatic generation of notification s to clients, transport companies, surveyors, personnel, etc True integration between all layers provides seamless Order to Cash functionality
18 TO PREPARE ITSELF FOR THE FUTURE, FALZON HAS CHOSEN QINO TERMINAL MANAGEMENT SOFTWARE
19 QINO AND FALZON
20 BUNKERING OPERATIONS Full ERP stock system and dispatch Automated generation of bunkering forms and other documents to internal and external stakeholders Remote GPRS data immediate online transaction info Cost/Profit calculation available immediately once transaction is complete Lower lead times on delivery Asset optimization
21 IMPLEMENTATION Determination of project priorities and implementations timeline Evaluation of the business processes of the highlighted SBU s Selection of key users for the testing and simulation. Ownership of the revised business processes in order to allocate responsibility and traceability of operations 3.5 months of pre evaluation of company operations, segregating the standard ops from the rare one-offs. Preparation of the test system and installation. 3 week Simulation with key users with real time events in parallel with the live manual system Resolution of final issues and modifications Re-testing of changes Go live with manual backup Relinquish manual operations gradually.
22 SUPPLY INFRASTRUCTURE Track purchase and balance contracts. Full control on supply availability, commitments and uplifts in multi terminal and product modes Enhanced stock performance and customer distribution Immediate stock cost monitoring and automatic price calculations Profitability and credit analysis
23 RELIABLE DISTRIBUTION NETWORK Over 35 road tankers with dedicated storage controlled by ERP. Delivery schedule organization/optimization. Metered equipment connected to ERP for accurate documentation.
24 B2B, B2C DISTRIBUTION Over 45 million liters delivered annually to our local customers Automated process functions of order, delivery and sample management Over 20k annual transactions with more than 670,000 metric tons processed in a year in all SBU s Variety of products including TFO, heating diesel and auto diesel ERP also caters for the provision of other ancillary services
25 STORAGE, BLENDING TERMINALS Direct supplies to terminals monitored online Quality testing module enables management of results Notification system allows effective communication on releases' and potential problems Storage optimization BOM and blending module allows use of simulation for future blending.
26 THE COMPETITIVE EDGE Immediate, upfront information there when needed Full customization of specific business processing, creating that extra competitive advantage Reduction of cost from misinformation, excess resources and optimization Integrated ERP with corporate accounts Compliance Efficiency hence Profitability
27 CUSTOMER ADVANTAGES Visual, up to date management enabling pinpoint information on a right first time approach Reduction of delivery lead times Plant optimization and increased utilization levels Co ordination of intra-company transactions. Safer, faster operability Structured business processes Data platform ready to further strategic growth
28 QINO AND FALZON THE FUTURE Extending further the information stream, customize dashboards according to the information every company employee needs Marketing and CRM on both local and international markets Further logistic improvements by fleet optimization through satellite tracking Automation of metering system and remote invoicing Business intelligence Excise/Fiscal module
29 CONTACTS Martin Keulemans, director (office) (direct) Brainum B.V. Vondellaan GH Utrecht The Netherlands
30
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