If you ask a company what room for error their company has, the answer is almost always zero. It´s no different with logistics.
For companies, “time is money” and this is certain for oil and energy companies who have scheduled jobs to complete on certain dates according to extraction cycles. These cycles require alignment with specialized personnel in restricted areas, if the material does not arrive when the personnel is scheduled to work, there is nothing to do, wasting resources and valuable time. This scenario stresses the importance of material readiness and in transit visibility in real time, as it facilitates information on when they will receive the material. In the oil and energy business exists a sanction called “non-productive time” (NPT) and it means that when a segment or a job is not started or completed on time, the oil and energy company economically penalizes the party which caused it.
Facing low prices of crude oil, companies need to reshape supply chains to get sustainable cost reductions and reach profitability in the mid and long term. End to end visibility in upstream, midstream or downstream portions of the business reduces substantially the inefficiencies, driving competitive advantages bringing you closer to achieving your strategic goals.