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Highlights
- Kinaxis and ExxonMobil join forces to develop tailored supply chain technology for the energy sector.
- New solutions aim to enhance planning, visibility, and efficiency in fuel commodities and lubricants.
- Collaboration targets key operational gaps to optimize sourcing and reduce costs.
Kinaxis, a recognized leader in end-to-end supply chain orchestration, has announced a strategic co-development partnership with ExxonMobil, one of the largest integrated fuels, lubricants, and chemical companies globally. This collaboration aims to create innovative supply chain technology solutions specifically designed to address the unique challenges faced by the energy sector.
The partnership comes at a time of rising demand for energy products essential for modern life. Kinaxis and ExxonMobil will work closely to identify and tackle supply chain challenges that are particularly prevalent in the energy sector, developing industry solutions to mitigate these issues. By leveraging their combined expertise, the companies seek to revolutionize how energy supply chains operate.
A primary focus of their collaboration will be on creating a robust supply and demand planning solution for the complex fuel commodities market. Currently, this sector lacks an industry-wide standard and often relies on manual methods such as spreadsheets, leading to inefficiencies. The new solution aims to facilitate integrated planning from refineries to customers, providing timely data for accurate supply and demand forecasting. This approach promises numerous benefits, including automated data visibility, improved inventory management, and enhanced terminal replenishment capabilities, all of which could lead to significant cost reductions.
In addition to fuel commodities, Kinaxis and ExxonMobil are also working on advanced planning solutions for the chemicals and lubricants segments. These solutions will focus on managing manufacturing and logistics constraints while incorporating scenario modeling and evaluation. By addressing these critical areas, the partnership aims to streamline operations and enhance overall supply chain efficiency.
Furthermore, the co-development initiative will tailor existing sales and operations planning solutions to better serve upstream operations. This adjustment aims to optimize the sourcing, storage, and movement of materials and assets, ultimately improving utilization and lowering operational costs.
Staale Gjervik, president of ExxonMobil Global Services Company’s supply chain, commented on the collaboration, stating, “Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization. This has created one of the largest supply chain operations in the world, allowing us to identify critical solution gaps to capture additional value.” His emphasis on collaboration with Kinaxis highlights the importance of integrating advanced supply chain technology into ExxonMobil's expansive operations.
John Sicard, CEO of Kinaxis, noted the urgency of enhancing energy supply chains, remarking, “There is an urgent need to increase efficiency in every step, from extraction to end-user consumption.” He underscored Kinaxis's commitment to leveraging its supply chain expertise to drive impactful changes across the sector.
With over 140 years of experience in the energy industry, ExxonMobil brings invaluable knowledge to the partnership, while Kinaxis offers its market-leading supply chain technology and digital innovation. Together, they are poised to create tailored techniques and software solutions that will address the specific needs of the energy sector, paving the way for a more efficient and cost-effective supply chain landscape.
This collaboration not only highlights the growing importance of advanced supply chain solutions in the energy sector but also positions both companies as leaders in the ongoing evolution of supply chain management. As they embark on this initiative, the potential for significant improvements in operational efficiency and cost reduction is vast, setting a new standard for the industry.
