Sasol OBC SIG Forum Presentation - SEPTEMBER 2010
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Sasol OBC SIG Forum
Presentation
SEPTEMBER 2010
IMPERIAL Logistics © Date: September 2010 1
Agenda • Case for Change • The Approach • What is On-Board Computing (OBC) • What we Delivered • Benefits Identified • Pilot Results • Pilot Learning's • The Road Forward IMPERIAL Logistics © Date: September 2010 2
Case for Change
• Volition assisted Sasol Oil with a 2½ year Supply Chain design and implementation
project.
• The Supply Chain project business case identified technology initiatives to improve
operational efficiencies. On-board Computing was one of these initiatives.
• On-board Computing was identified to resolve issues caused by slow capturing of
proof of deliveries such as:
– Poor supply chain visibility at customer and depot level, hampering end-to-end
supply chain optimisation.
– Poor customer service caused by delays between delivery and billing runs
resulting in low credit limits.
– A high debtors book.
• On-board computing would address the issues by:
– Reduced POD capturing lead-times.
– Electronic delivery performance information.
– Improved delivery control (E.g. Correct volumes at correct location).
IMPERIAL Logistics © Date: September 2010 3
The Approach
• An initial feasibility study delivered a business case to identify the high level risks
and opportunities that on-board computing presented.
• On presentation of the business case it was decided that a pilot project was
needed to:
– Prove the feasibility of On-board Computing operating model within the Sasol Oil
environment and reduce uncertainties.
– Verify required technology, it’s stability and support.
– Test different technology solutions and identify the solution most suitable to Sasol
Oil.
– Update the business case.
• This pilot was to run concurrently with the pilot for consignment stock due to the
similar nature of the two projects.
• Two different vendors were selected for the pilot
• 2 Secondary Sasol tankers operating from Alrode were used.
• 2 Primary tankers operating between Secunda and Alrode were used.
• The pilot was run for 6 Weeks.
IMPERIAL Logistics © Date: September 2010 4
What is On-Board Computing (OBC)
Geo-
Fence
Considerations:
• 2 Options – APN or without.
• Wifi / Cradle Delivery List Download.
• Real-time or Daily POD Uploads.
• Intrinsic Safety.
IMPERIAL Logistics © Date: September 2010 5What is On-Board Computing (OBC)
Handheld Devices
Printer / Workboard Palette
Additional functionality available with OBC:
• GPS Navigation / WiFi.
• Bluetooth link to tanker flowmeters.
• Push to talk and panic buttons.
• Barcode and document scanning.
• Routing and re-routing of deliveries.
• Integrated cell phone.
IMPERIAL Logistics © Date: September 2010 6What we Delivered • Obtaining stakeholder inputs and buy-in. • Running of the pilot design, setup and operations. • An updated Gate 3 Business case for the different OBC scenarios (primary and secondary transport). • Technology vendor selection assistance. • Detailed functional requirements specification for OBC. • OBC Business processes. • An operational responsibility and accountability definition between Sasol Oil departments. • A rollout strategy for full OBC implementation. • OBC pilot lessons learnt. IMPERIAL Logistics © Date: September 2010 7
Benefits Identified
• Tangible Benefits:
– Reduced delivery capturing personnel. Only for ad hoc requirements.
– Improved cashflow - Every day saved in capturing the deliveries is a day's quicker
payment.
– Improvement in recovery of tax/duties.
– Reduced deliveries to wrong locations. GPS Verification.
• Other Benefits to Consider:
– Improved visibility and control to enable better planning and scheduling.
– Ability to monitor driver behavior (Time spent at each location) and optimise
bottleneck areas (E.g. Loading) and set delivery time benchmarks.
– Pre-inspection sign-off can be done on the device.
– Customer surveys can be done easily by the driver.
– Seal numbers can be verified with the device.
– The logbook of the truck can be done electronically to reduce driver admin.
– Improved optimisation of trucks causing less overtime required by drivers.
– Electronic PODs can be easily retrieved to address customer queries.
IMPERIAL Logistics © Date: September 2010 8Pilot Results Scenario A – Primary and Secondary OBC Avg Transmit Time = 1 hr, Delivery Capture Success > 65%, Ability to capture drop times IMPERIAL Logistics © Date: September 2010 9
Pilot Learning's
• Project Setup
– A dedicated SAP / system interface resource was required due to the number of interface
points and the complexity of these.
– Resolve the vendor server setup as a priority (E.g. Where will it be hosted)
– Allow a sufficient time for live testing before rolling out go-live;
• Device Software
– Software must be rigorously tested to work bugs out of the system and to test all possible
situations;
– Cater for emergency orders and rerouting.
– Add ability to track loading arrival and departure times;
– The ability to update software remotely is essential
– Unplanned deliveries functionality use on the device must be controlled strictly to ensure
that drivers do not use the functionality to deliver product illegally.
• SAP
– Daily billing runs have to occur more frequently to improve invoice turn-around time.
– Load confirmation automation is a prerequisite for auto POD capturing.
IMPERIAL Logistics © Date: September 2010 10Pilot Learning's
• Drivers
– Emphasis needs to be placed on driver training. Not only application use but also
troubleshooting.
– Drivers must be managed to make use of the device every time. Performance metrics for
this must be put in place (E.g. Scheduled vs. Captured Deliveries).
• Other Learning’s
– Spend enough time with stakeholders to define a detail FRS.
– Keeping the hardcopy as a backup works nicely when the system is offline.
– If OBC is to be installed for external transport service providers it is essential to ensure that
the sufficient buy-in is received before implementation;
– A retractable cable is the best installation option for securing devices on trucks. This will
provide a neat installation as well as limiting the risk of theft.
– Customers need to be informed of electronic signatures that will be used for the proof of
delivery.
– The solution will mature with the business processes and require software changes and
upgrades. The vendor must therefore rather be seen as a long term partner than a once-
off solution provider.
IMPERIAL Logistics © Date: September 2010 11The Road Forward • On-Board Computing was approved for rollout. • A vendor from the pilot was selected to do the full OBC implementation. • It was decided that integration with the flowmeter on the vehicle was a mandatory requirement to eliminate delivery capturing errors. • The OBC rollout project is in the detail design phase currently. • Initial device installations are planned for October 2010 and will be completed in April 2011. IMPERIAL Logistics © Date: September 2010 12
IMPERIAL Logistics © Date: September 2010 13
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