Transcript No Slide Title

Silicon Controls
The Road to 65% Average Fill
GLOTEC, Mexico City
March 2013
Brian Kline
360.635.3496
[email protected]
Silicon Controls, copyright 2013
Commercial in confidence
GASLOG Program Management
AGENDA
1. WHERE DOES TANK MONITORING FIT IN?
2. WHY DEPLOY TANK MONITORING?
2010 37%
3. HOW DO LPG PROVIDERS INCORPORATE TANK MONITORS?
4. WHAT TO LOOK FOR WHEN SELECTING TM TECHNOLOGY?
5. HOW MATURE IS THE TELEMETRY MARKET?
6. WHAT HAS ONE LPG COMPANY ACHIEVED?
7. WHAT HAVE WE LEARNED IN THE LAST 10 YEARS?
2012 52%
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WHERE DOES TANK MONITORING FIT IN?
Tank Sensor (Gauge to signal)
Truck Route
GASLOG Services - tank level to truck delivery
Customer/Site: Address
Tank monitor (GSM unit)
Bus. Apps.
ERP & Scheduling
Tank Levels
& Alarms
Customer,
Site, Tank
updates
Customer Tank
Telemetry
management
A.
Communications manager
B.
Management suite
C.
Report Scheduling
D.
ERP Interface
B.
Secure
Internet/LAN
access
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C.
Operational data
Levels, Alarms,
Diagnostic data
A.
Central
Database
Configuration data
Tank, Alarm, site
settings
Cellular/PSTN
or Wireless
Networks
D.
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GASLOG Program Management
WHY DEPLOY TANK MONITORING?
No. of Sites
Average drop size as % of tank volume
70%
60%
50%
40%
30%
80%
90%
100%
10%
20%
1
3,678
1,699
3,586
4,248
6,046
6,802
5,602
5,261
4,302
2,391
364
3
2,383
3,742
7,765
10,733
14,871
17,441
14,075
8,045
2,923
692
142
4
412
1,787
3,353
4,968
6,391
6,889
4,727
1,684
364
53
13
5
223
1,418
3,037
4,354
5,056
4,944
2,813
847
170
15
11
6
102
1,147
2,593
3,850
3,830
3,278
1,564
365
63
9
7
7
46
805
1,935
2,611
2,621
1,995
850
216
41
11
6
8
33
515
1,369
1,851
1,751
1,236
452
126
18
4
5
9
18
382
906
1,286
1,079
793
271
77
18
3
1
10
8
332
730
885
812
523
184
41
5
2
15
20
886
1,573
1,740
1,539
988
365
77
16
6
7
20
1
400
459
456
402
237
85
18
7
2
1
25
2
230
239
162
175
106
31
9
1
3
2
30
3
140
171
134
121
87
31
6
50
2
232
184
165
141
110
43
8
2
137
116
98
96
72
42
4
1
1
6,931
13,852
28,016
37,541
44,931
45,501
31,135
16,784
7,931
3,193
559
2.9%
8.79%
20.64%
36.5%
55.5%
74.8%
88.0%
95.1%
98.4%
99.8%
100.0%
6,931
20,783
48,799
Cum drops (k)
14
108
267
466
678
866
975
1,019
1,034
Cum % drops
1.34%
10.39%
25.70%
44.82%
65.23%
83.34%
93.83%
98.03%
99.45%
Numebr of drops per year
0%
100
TOTAL
Cum % cust
Cum Sites
-
1
-
236,374 sites
1,039,000 deliveries
-
-
-
2009 to 2011
-
Payback in 1 year
Payback 1-2 years
Payback 2-3 years
86,340 131,271 176,772 207,907 224,691 232,622 235,815 236,374
1,038
1,039
99.90% 100.00%
Industry average fill ~33% despite rapidly falling cost of technology
Silicon Controls, copyright 2013
Commercial in confidence
GASLOG Program Management
WHY DEPLOY TANK MONITORING?
Number of
Customers
Drops/year
0
1
2
3
4
5
6
7
8
9
10
>10
TOTAL
268
96
32
6
6
2
1
411
Total # drops
% of drops
630
2.2%
0%
Average drop size as % of tank
30%
40%
50%
60%
10%
20%
52
92
60
32
21
11
10
2
1
1
7
289
145
177
112
80
57
34
20
14
9
5
22
675
168
249
202
187
118
85
46
25
19
18
59
1,176
144
321
418
293
169
103
61
54
17
17
71
1,668
116
383
520
353
200
132
62
46
26
13
48
1,899
944
3.3%
2,399
8.4%
4,944
17.2%
7,049
24.5%
7,602 3,459 1,221
26.5% 12.0% 4.3%
85
200
213
157
83
71
42
24
6
10
17
908
70%
80%
90% >90%
-
-
-
54
72
75
68
37
18
17
7
2
3
353
50
44
1,132
1,645
1,658
1,200
700
458
262
173
78
66
227
7,599
327
88
1.1% 0.3%
54
0.2%
28,717
100.0%
37
37
17
20
9
2
4
126
-
TOTAL
26
13
8
3
-
37
5
1
1
-
Industry
Average
33%
1. Analysis of 1,039,000 deliveries shows an average delivery size of just 33%
2. The majority of customers receive 5 or less drops per year, with most drops being less than 40%
1. Tank monitors increases avg fill by 60-80% within 3 months of deployment
2. Reducing drops & associated variable costs and ultimately requiring less trucks
3. Improves customer service in an increasingly competitive energy market
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70%
70,000
60%
60,000
50%
50,000
40%
40,000
30%
30,000
20%
20,000
10%
10,000
0%
A. Assess fill efficiency and calculate ROIs
Number of tank monitors
Average fill
HOW DO LPG PROVIDERS INCORPORATE TM?
•
Evaluate technology, run trials (50-500 units)
•
Integrate TM level with ERP
B. Estalbish % of un-forecastable customers
•
Evolve operational processes
•
Integrate with scheduling system
C. Reduce variable costs and # of trucks
•
Rollout to 30% of tanks
•
Integrate with routing & on board truck
computing
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
D. Unique selling point
Key to distribution efficiency &
a platform for customer service
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•
Customer web portal
•
Move customers from will call to forecasted
delivery based on benefits
E. Investigate other applications
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GASLOG Program Management
WHAT OTHER APPLICATIONS DOES TELEMETRY SUPPORT?
Tanks &
Cylinders
Cathodic
Protection
Float Gauge
Metering
Magnetel
Ultrasonic
Meters
Cathodic Protection
Pressure
Temperature
Reticulation
Auto Change
Over
Auto Changeover
Cage Door Monitor
Cages
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GASLOG Program Management
WHAT TO LOOK FOR WHEN SELECTING TM TECHNOLOGY?
Ease of Deployment
Low Cost of Ownership
Quick, simple installation <10mins
Hazardous area Zone 0 certified
Configured remotely
Battery operated (5 year life)
Driver install
Low equipment cost
Minimize comms. cost
Minimal maintenance
Robust and reliable
Modular, Adaptable Components
Ease of integration with back office
Range of networks (GSM, RF, PSTN)
Multi & single tank solutions (Virtual)
Digital & Analog inputs (e.g. meter & level)
Range of unique sensor solutions
Common plug & play architecture
Silicon Controls, copyright 2013
GASLOG 5 Year
Cost of Ownership
$9.00
$8.00
$7.00
Data
Gateway
$6.00
GSM Calls
$5.00
$4.00
$3.00
$2.00
$1.00
Install &
maint.
GASLOG
hardware
$-
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GASLOG Program Management
HOW MATURE IS THE TELEMETRY MARKET?
Calor Gas
BOC
Ipragaz (Turkey), Liquigas (Italy)
Primagas (Benelux, Spain, Denmark, Norway, Czech
R, Slovakia)
Philippines, India,
Pakistan, China
Amerigas, Inergy, Suburban,
Blossman Gas, Thompson Gas,
Growmark, Revere Gas,
TruPointe, SOS Fuels, Delta
Liquid Energy, United
Landmark, Air Liquide…
BOC
Contact Energy
BOC, Elgas, Kleenheat
Origin Energy, Vital Gas
Telemetry is not new, these companies have deployed 90,000+ units
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GASLOG Program Management
WHAT HAS ONE PROPANE DISTRIBUTOR ACHIEVED?
Case study 2003-2009
Program
1. Deployed 50,000+ tank monitors over 5 years
Average fill
52%
2. Improved integration with ERP, Scheduling
3. Deployed routing & truck computing
4. Drove operational change management program
Results
Routing &
scheduling
ERP &
forecasting
1. Reduced delivery trucks by 27% in same period
2. 10% (42,000) fewer deliveries per year
3. Yearly reduction of 1,000,000 miles
Telemetry
Tank Level
4. Run outs down from 4,500/year to < 1,000/year
5. From 14,000 fixed day delivery to 3000
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WHAT HAVE WE LEARNED IN THE LAST 10 YEARS?
1. Assess actual payback and savings potential using historical data
2. Engage drivers & operational staff in deployment
One
approach (next steps)
3. Integrate tank monitoring with back office applications early
4. Assess performance and monitor improvements
5. Drive districts, targeting aggressive goals (65% average fill)
6. Develop a robust model to assess subsequent deployment phases
7. Review working practices, be prepared to modify culture
8. Focus on cost reduction, realize customer service improvements
9. Successful programs require collaboration and strong leadership
Silicon Controls, copyright 2013
IT
Operations
& Logistics
Depot
Teams &
Drivers
Strong Leadership
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GASLOG Program Management
“To measure is to know, if you can not measure it, you can not improve it”
Lord Kelvin (William Thomson 1824-1907)
Silicon Controls, copyright 2013
Commercial in confidence