Managing Supply Chain Transformation – A complete overhaul

The Challenge:

Nexen, a $40 Billion upstream global oil and gas company (now owned by CNOOC), required a new supply chain strategy and roadmap for a key strategic operations facility in Long Lake, near Fort MacMurray. Recognizing that a complete transformation was required, Nexen engaged SCA to develop short and long term strategies and action plans.

How we solved it:

  • Address inventory requirements.By immediately reviewing facility storage needs through applied slotting analysis, SCA was able to recommend optimal warehouse layout including cube storage and material flow through the warehouse as well as a racking/storage configuration that increased internal productivity.
  • Develop a working concept.Through close collaboration with key Nexen staff and stakeholders, we developed a working concept that proved effective. Using an Edmonton DC staging/storage facility, a flow of transported materials and onsite deployment successfully supported a major turnaround plan targeted for 2016. The project scope included the qualifications of integrated logistics partners with centralized control and systems to track materials at all stages of the process providing visibility and a diligent RFP process.