Petroleum Use Case
Problem: The client was experiencing the following business issues:
- Unable to monitor the efficiency of suppliers, staff and assets within their fuel and lubricants supply chain
- Inability to monitor real-time customer activities, product consumption in order to accurately forecast customer demand expectations
- No mechanism to resolve disputes without intervention from suppliers in the field
- No full value supply chain monitoring from tank to tank e.g. from depo tank to ISP tank
- Legacy systems manage by suppliers
- Manual reading of fuel tank levels
- No asset tracking
IoT.nxt solution: The solution included real-time accurate monitoring and reporting of all critical components, including real-time delivery notifications, gain and loss discrepancies, fuel tank fuel levels, real-time product leakage, hardware failure and product discrepancy reports. We also implemented integration with existing FMS and other systems, automated lubricant and asset tracking, and mass balancing of fuel leaving and entering tanks.
Result: The project is projected to yield a very fast and high return on investment. Based on an average level of fuel consumption for 20,000,000 litres over 2 months, with a wastage of 0.6% of fuel, the 2 month ROI is expected to be 216%. If the same concept is expanded over 13 sites at the same level of consumption and wastage per site, the ROI after a year is expected to be over 1,113 %. This illustrates the benefits of our solution and commercial model as the costs of ownership decreases with scale Furthermore, the client was left with an interconnected system across different parts of their value chain.
Added benefits were that implementing an interconnected system meant that there was reduced spillages and waste, which, naturally, has a positive impact on the environment. They also gained visibility of end-to-end process which was backed by data. This enables a JIT supply process whereby fuel stockpiling is reduced significantly.
Implementation time: 10 weeks
Disruption to productivity: Very minimal – all solutions were specced so that they were non-invasive to existing machinery and devices, thereby reducing disruption during implementation.
Summary: The client was able to achieve their initial objective as well as a significant return on investment by identifying their losses and improving processes – something they were unable to do prior to implementing an IoT.nxt solution – which translates into clear financial gains.