Defining an asset or fleet logistics strategy includes many decisions such as: choice of vendors, repair or replace policy, transportation routes, stock locations, shared or local stocks, and spare part quantities.
An optimal logistics strategy can give you a competitive edge by reducing cost (spare part procurement, storage and handling, asset downtime) and streamlining maintenance and operations.
Logistics optimization is easiest to conduct during the asset design (when the asset is already built, changes are expensive and often impractical).
Furthermore, efficient logistics planning during design can help bidders to win tenders for BOT (Build, Operate and Transfer) projects by showing a low Life-Cycle Cost.
When a facility is already operating, overhauling the logistics policy might not be possible, however, some parameters such as spare part provisioning can still be optimized.
Logistics optimization requires an interdisciplinary analysis of equipment failures and fault tolerance, turnaround times and probabilities of stock-out, as well as costs of downtime, spare procurement, transportation and maintenance resources (manpower, support equipment, consumables and utilities).
BQR has over 30 years of experience conducting logistics optimization projects and developing optimization algorithms.