Kinaxis, a global leader in end-to-end supply chain orchestration, announced a co-development agreement with ExxonMobil, one of the world’s largest integrated fuels, lubricants and chemicals companies, to create supply chain technology solutions specifically for the energy sector.
Amid growing demand for energy products that support modern living, the two companies will work together to identify specific supply chain challenges and create a potential industrial solution to address them.
Kinaxis and ExxonMobil will focus on a supply and demand planning solution for the complex primary fuels market that lacks an industry-wide standard and relies heavily on spreadsheets and other manual methods. The solution will enable integrated planning from refinery to customer, with fast data for more accurate supply and demand planning, balancing and signaling. Benefits include automated data visibility, improved inventory management and terminal replenishment, and improved planning for supply scenarios that are expected to create arbitrage opportunities and reduce supply costs.
In the chemicals and lubricants sector, companies are developing an advanced planning solution that provides management of manufacturing and logistics constraints coupled with modeling and scenario evaluation.
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Finally, co-development will adapt to sales and operations planning solutions established specifically for upstream operations to optimize the sourcing, storage and movement of materials and assets to improve utilization and reduce costs.
“Over the past year, we have brought together all of ExxonMobil’s supply chain activities and expertise into a centralized organization, creating one of the largest supply chain operations in the world, which has helped identify critical solution gaps to enable our businesses to generate additional value,” said Staale Gjervik, president of Supply Chain, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is critical to delivering solutions to a large and complex company like ours.”
“ExxonMobil is uniquely positioned to understand the biggest opportunities for improving energy supply chains, whether it’s more accurate sales and operations planning, increased agility in field operations, efficient management of massive transportation networks, or rapid adaptation to complex regulatory environments,” said John Sicard, CEO of Kinaxis. “There is an urgent need to increase efficiency at every stage, from extraction to end-user consumption, and we look forward to having a profound impact across the industry.”
With over 140 years of experience, ExxonMobil is one of the world’s largest energy companies and will bring its deep knowledge and experience in the energy sector. Kinaxis will leverage its leading expertise in supply chain and digital innovation to create technology and software solutions specifically designed for the sector.
SOURCE: Businesswire