Originally published by Quantzig: Oil and Gas Company Achieves Huge Savings Through Route Optimization Analytics

Introduction:

In the dynamic realm of oil and gas logistics, optimizing transportation routes is essential for reducing costs and enhancing operational efficiency. Route Optimization Analytics offers a strategic approach to identify opportunities and streamline route planning, ultimately driving significant savings for companies in the industry. Through advanced analytics techniques like cluster analysis and scenario analysis, businesses can unlock valuable insights to optimize route plans and minimize logistics costs.

 

About the Case Study:

This case study delves into how Quantzig's Route Optimization Analytics solution empowered a leading oil and gas company to revolutionize its transportation efficiency and achieve substantial cost savings.

 

Route Optimization Business Challenge:

The oil and gas company faced the challenge of high distribution costs and sought to optimize its transportation routes to reduce service delivery costs. By attending one of our webinars on supply chain analytics, the company recognized the potential of analytics in enhancing route optimization and decided to collaborate with Quantzig.

 

Client’s Situation:

Benchmarking transit time across multiple routes and analyzing historical shipment data revealed that the client's distribution costs exceeded market averages. The company aimed to leverage route optimization techniques to reduce transportation costs and enhance efficiency.

 

Route Optimization Analytics Solution Offered:

Quantzig collected data from the client's logistics systems and employed cluster analysis, conjoint analysis, scenario analysis, and what-if analysis to evaluate current performance metrics such as site/node distribution, total distance traveled, delivery frequency, and costs. Based on this analysis, Quantzig provided recommendations to optimize route plans and improve efficiency.

 

Business Impact:

By implementing Quantzig's route optimization model, the oil and gas company identified alternative routes and cargo mixes to cover maximum clients while reducing total distance traveled and transit time. This resulted in a significant reduction in logistics costs, bringing the client's costs in line with market averages and driving overall operational efficiency.

 

Conclusion:

Route Optimization Analytics offers a powerful solution for oil and gas companies to enhance transportation efficiency and reduce costs. By leveraging advanced analytics techniques, companies can optimize route plans, improve delivery standards, and achieve substantial savings while maintaining service excellence in the competitive oil and gas logistics landscape.

 

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