6 Steps to an Optimized Oil and Gas Supply Chain
Global ceramic proppant manufacturers have one of the most complex global supply chains in the oil and gas industry.
With multiple freight handoffs, service gaps, and surging demands, global ceramic proppant manufacturers have one of the most complex supply chains in the oil and gas industry.
But certain innovations in transportation and logistics are enabling these shippers to plan more effectively and manage risk. Other oil and gas companies can use similar innovations to streamline and optimize their own supply chains.
Used in fracking operations, ceramic proppant is heavy and dense, so transportation represents one of the largest costs, relative to the overall value of the product. Conversely, getting the transportation right can positively impact profits.
In the “before” diagram below, you’ll see a typical supply chain experience when a manufacturer ships ceramic proppant from China to North America. The “after” diagram shows that same experience once transportation efficiencies are added to the operation.
Proppant manufacturers aren’t the only companies in the oil and gas industry that can benefit by taking a fresh look at gaps in their supply chains. Whether upstream, midstream, or downstream, oil and gas businesses can add improvements in their supply chains, turning logistics into a competitive advantage.
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