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E2E Value Chain progression strategy project in the Lubricants Business Unit of an Oil & Gas client

Client situation & approach

The client was the Finnish & Russian Packed Lubricants division of the world's largest publicly traded integrated petroleum and natural gas company, whose logistics & distribution operations were outsourced.

The client needed to identify the best logistics & distribution model and evaluate potential service providers.

The issues the client faced were:

  • High logistics costs
  • The current suppliers’ contract expiration
  • A non- optimized logistics and distribution model
  • The need for strategic logistics scenarios to be considered by the Client for future development (Finland and Russia)

EFESO Supported by:

  • Data gathering and analysis of current/forecasted volumes
  • Modeling a cost structure according to the current logistics and distribution solution and calculation of the related “should cost”
  • Definition of the best logistics & distribution model along with calculation of the related overall cost
  • Scouting for logistics and distribution service providers
  • Preparing and launching an RFI process for Service Providers, as well as their evaluation and selection
  • Design of future scenarios/strategies for supplying the Russian market

Results

  • Identification of future strategies according to some key external variables
  • Optimization of the logistics and distribution model, highlighting:
    • potential savings in logistics costs
    • potential savings in distribution costs
    • potential improvements in service level
  • Identification of the best logistics & distribution service provider according to Company requirements