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Cost Saving Transportation and Logistics Service for Baker Hughes GE - Brazil

A milk run transportation solution that helped increase logistic and operational savings for BHGE across Brazil.
Posted 21 Mar 2019

Project Overview

In our Brazil Macae base Swire Oilfield Services introduced a transportation and logistics service that helped one of our key clients, BHGE reduce transportation costs by 30%, as well as optimizing their logistic processes and increase time savings across their offshore container operations.

Project Location

Macaé, Rio de Janeiro - Brazil

Service Provide

'Milk run' transportation service for offshore containers.


Key Challenges

  • Transportation was measured and charged by time, so when BHGE needed to hire a truck they had to pay for the quantity of hours used, with a 5 hour minimum charge. This was particularly costly if there was only one unit being transfer at a time.
  • They needed to find a solution that optimized their logistics and allowed them to save cost and reduce the administrative burden involved in their offshore container transportation.

Workscope

• Charge for the type of transported container only, with a clear price list.

• Assist customers with organizing their logistics, and a more efficient process to get units to their yard.

• A monthly charge service, to help reduce the volume of purchase orders required.

• A dedicated SOS point of contact to handle customer requests and transportation requirements.

Solution

The ‘Milk Run’ logistic service was introduced at our Macae container base as a shared logistics service to Swire Oilfield Services customers. The transportation truck body is divided into fixed 1x1m lots, and the customer is only charged for the area occupied by the unit they are transporting.

As part of the service customers can contact a dedicated team member with their transportation requirements, which is then processed and arranged direct by SOS and charged against a set price list. The transportation is then charged on a monthly base on one invoice, helping to reduce the volume of PO’s.

Benefits

• The ‘milk run’ solution has helped save SOS customers around 30% of their offshore container logistic costs.

• Customers are no longer required a hire an entire truck (paying for an entire day unnecessarily).

• SOS provide a fully managed service, handling all aspects of the transportation logistic for our customers.

• Customers can reduce the administrative burden, including raising and approving multiple PO’s.

Can we help you?

Swire Oilfield Services can offer a fully supported solution for your Offshore Container logistics across Brazil.

Find out how we can support you