Kinaxis® (TSX:KXS), a global leader in end-to-end supply chain orchestration, announced a co-development deal with ExxonMobil, one of the largest integrated fuels, lubricants and chemical companies in the world, to create supply chain technology solutions designed specifically for the energy sector.
Empowered by the growing demand for energy products that support modern life, the companies will work together to identify supply chain challenges unique to the energy sector and create a potential industry solution to mitigate them.
Kinaxis and ExxonMobil will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling. Benefits include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
In the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modelling and evaluation.
Finally, the co-development will fit established sales and operations planning solutions specifically for upstream operations to optimize sourcing, storage and movement of materials and assets to improve utilization and lower costs.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” said John Sicard, Kinaxis CEO. “There is an urgent need to increase efficiency in every step, from extraction to end-user consumption, and we’re looking forward to making a big impact across the sector.”
Operating for more than 140 years, ExxonMobil is one of the largest energy companies in the world; it will bring its deep energy sector knowledge and experience, while Kinaxis will tap into its market-leading supply chain expertise and digital innovation to create techniques and software solutions purpose-built for the sector.
