Logistics Optimisation – From Insight to Action

Background & Challenge

A mid-size North Sea operator faced rising logistics costs and an increasing stock of unused rental equipment at its warehouses. Materials such as casing accessories and consumables were accumulating without being reused, creating unnecessary storage and rental cost.

The analysis revealed fragmented communication, unclear ownership, and limited visibility across the supply chain. Each stakeholder — from logistics coordinators and service providers to warehouse staff and vessel operators — worked efficiently within their own area, but the lack of coordination led to:

  • No unified stock overview or ownership
  • Late changes to equipment lists and time plans
  • Repeated handling and poor backload control
  • Cost variation in vessel and base operations
Introduction to Drilling

Second logistics map of the End-to-End Logistics Supply Chain Mapping, showing the mobilisation and discharge process from supplier to rig

Tailored Solution Delivered

A structured four-stage process was applied:

  • Alignment – Clarifying scope, expectations, and objectives
  • Logistics Study – Mapping the full supply chain from supplier mobilisation to equipment return
  • Lean Workshop – Identifying, prioritising, and assigning improvement actions
  • Implementation – Supporting follow-up and execution of defined actions

Interviews, site visits, and process mapping revealed more than 40 improvement opportunities across planning, mobilisation, vessel utilisation, warehouse management, and communication.

Significant Findings 

  • Excess inventory of tubulars and rental equipment accumulating both offshore and onshore
  • No unified system to track material movement or ownership
  • Large variations in average vessel handling cost per operation
  • Rehandling and deck congestion due to inadequate load planning
  • 16% of helicopter flights operated at less than 50% capacity

 

 

Results & Impact

The initiative delivered:

  • A complete map of the logistics process and communication flow, exposing waste and bottlenecks
  • Improved coordination between operator, drilling contractor, and service partners
  • Standardised procedures for equipment handling and backload management
  • Clear ownership of stock and responsibilities across the supply chain
  • Strengthened collaboration between onshore and offshore teams

The improvements led to significant cost savings through better use of utilisation of existing stock, improved fuel efficiency, and reduced rental periods — while creating a solid foundation for continuous improvement.

Contact Us to hear how We can help Your Organisation

Drillconsult | Fagerlunden 23 | 2950 Vedbaek | Copenhagen | Denmark | +45-31 11 11 01 | mail@drillconsult.dk | www.drillconsult.dk

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