How Artificial Intelligence Revolutionizes Supply Chain Management in the Energy Sector

SUPPLY CHAIN MANAGEMENT MOVES CENTER-STAGE

In recent years, we have seen an increasing shift in the economic activities of sales towards supply chain management, which plays an increasingly important role in daily sales business in order to deliver products to customers on time. To what extent these activities protrude outwards, and to what extent artificial intelligence is an essential component in driving these activities forward to save time and money, I would like to explain in more detail.


TIMING BECOMES A REAL PROBLEM FOR ENERGY COMPANIES THAT WANT TO EXPAND GLOBALLY

Artificial intelligence underlies the complex logistics processes of the modern energy world. The increased use of computer systems in logistics allows for significant time and cost savings. In offshore projects, the technical components are often delivered just in time in order to be used as quickly as possible. In certain cases, external companies are also commissioned to control the logistical processes and to take responsibility for the delivery of technical equipment. However, this is not yet the norm in the energy industry. The oil and gas industry in particular is increasingly interested in having the technical components delivered just in time, just as it has been practiced for many years in the aviation industry and in the construction of aircraft. It becomes problematic for energy companies that are smaller and that cannot set up independent logistics processes worldwide simply due to their size. External logistics providers such as DHL are increasingly used to take on that role.


JUST IN TIME DELIVERY WILL BECOME AN IMPORTANT PART OF EVERY ENERGY COMPANY’S OPERATONS

The use of artificial intelligence in logistics allows the company in question to plan  in advance where technical components are needed at that very moment. That happens on a worldwide basis, and is being done in order to use these assets as effectively as possible. This is one of the most important advantages of data-centered logistics, which allows to keep track of technical components to be tracked accurately and sharply. In the case of cross-border energy deliveries or cross-border waste deliveries in the waste industry, the documentation and integration of various stakeholders was previously a major problem, which can now be drastically reduced and is done very efficiently; by notifying to each person involved the respective status of the delivery item.


SUPPLY CHAIN MANAGEMENT WILL LINK UP WITH FINANCE, SALES & MARKETING, CUSTOMER CARE, ASSET MANAGEMENT

As more and more data on transport and logistics becomes available, energy companies will try to integrate that data into their existing operations. This will not just lead to cost reductions, it means supply chain management will become a central pillar of the company itself. Logistics will sit at the heart of company operations, as it connects all dots of the company. Supply chain management links physical assets the company owns with inventory, financial income streams, customer relationships, sales and marketing because energy companies will become energy service providers, in the case of B2B operations with other companies they also work side-by-side with customers, and need a lot of maneuverability to address customer issues in a timely manner, which requires a sophisticated supply chain management.

 

Leave a Reply