How to release cash tied up in oil & gas supply chains
Dermot Connolly, Head of Global Business Development

Announced acquisition
of Shell LPG HK &
Macau in April 2017
LPG and Retail & Oil:
74% of Group
Operating Profit
4 Separate divisions focused on
LPG, Retail & Oil,
Healthcare & Technology
Announced acquisition of Retail
West LPG in November 2017
Total Group Sales of
$16bn per annum
10,500 Employees
DCC / Exertis SCS

DCC Oil & Gas Acquisitions

six continents
Supply Chain Services – Where We Are
global operationsWe have and spanningpartnerships

Supply Chain Services – MRO for Exploration & Production
Best value materials
Reduced inventory management
overheads & materials supply
chain costs
Materials supply matched with
demand
Release of cash tied up
in stock
Consolidated supply base
Managed material sourcing,
procurement & fulfilment
Minimising Cost Optimising Capital Reducing Complexity

Why Are We Here?
WTI Crude Oil Prices - 10 Year Daily Chart
Daily closing price for West Texas Intermediate (NYMEX) Crude Oil over the last 10 years.
Source: Macrotrends.net (Dec 1st 2017)

The Current Situation
Lack of
Liquidity
Excess &
Obsolescence
Inaccurate
Forecasts
• Right Product
• Right Cost
• Right Place
Poor Communication
from Rig to Central
Lack of Process
Adherence
Build-up of
Aged Stock
Process Duplication,
Central and remote
Too Much Cash Tied
Up in the Supply Chain
• Right Time
• Right Quality
The Five R’S

So What are the Options?
• “Future Proof” the Model
• Look Outside the industry – apply lessons learned
• Take proven models from other sectors where relevant
(Industrial & Lifesciences)
• Sectors with increased pressure on margins, inventory
levels and supply chain costs
• Sectors that have over 30 years experience with
lean supply chain solutions
• Apply the processes & disciplines from these sectors to
deliver significant reductions in your supply chain costs

Oil & Gas Vs. Pharmaceuticals
Versus
• Central & Remote Procurement
Source: PwC Working Capital Management Study 2017
Different Industries,
Similar Supply Chain Challenges!
• Highly Regulated Industries
• Long-Term Decision Making
• Long-Term Capital Investment
• Complex Supply Chains
• Global Operations
NWC Improved from
79.5 to 76.5 days
NWC deteriorated from
28.5 to 31.2 days

Our Solution
Inventory
Financing
Logistics
Inventory
Postponement
Materials
Procurement
MRO Supplier
Management
Supplier Sourcing
/ Selection
End to End
ProcessInventory
Hubbing
Site/Rig
Fulfilment
Pay on
Consumption
Model

Client Case Study
Result
Operational restructuring, improved working capital, stock
off balance sheet, and reduced total cost of ownership (TCO).
Complexity Management (“Managing the Tail”)
Problem
Large, mature multinational industrial company challenged
with managing many suppliers with erratic spend across
several global operations.
Solution
Global Procurement and Materials Management:
200 suppliers reduced to one across five manufacturing
locations in Europe & US.

Client Case Study
Project Build Management
Problem
Large, mature multinational challenged with managing many global
suppliers into one location to meet project build install plan.
Solution
Global Procurement and Materials Management: 50 suppliers
reduced to one. Managing all procurement finance and logistics
to a JIT model.
Result
Operational restructuring, improved working capital, stricter
process, tighter controls, improved logistics costs and
significantly reduced total cost of ownership (TCO).

Learn how we can optimise your supply chain Cost, Capital & Complexity
exertissupplychain.com supplychain@exertis.com +353 1 405 6586
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