![]()
Abstract The demand for the midstream to be flexible, responsive, and integrated to the value chain has always been high, but it will continue to grow given the expected volatility to both supply and demand. To help drive the most value for the Downstream, we believe midstream organizations need to be focused agility through the following 3 responses:
Optimizing Cost: To bring capacity for agile responses, we believe there is a need to understand the drivers for cost across the system, vs. transaction by transaction, and build up a should be cost view for inbound and outbound logistics, considering the amount of logistics consumed as well as the price being paid. We will explore the most critical drivers of cost for midstream companies to consider and articulate the most impactful ways to address these. Optimizing Commercial Decisions: Leveraging analytics and machine learning to improve both inbound and outbound logistics and commercial decisions will take the midstream to the next level at driving optimization. This will explore and demonstrate how digital changes how decisions are made, thereby fundamentally changing the way companies organize around optimization.
Organizing for Agility: Large, functional organizations have grown within the value chain from trading, to supply, to optimization and scheduling. We believe a smaller, more cross functional agile team structure can help maximize the ability to respond to market conditions. This will explore how these teams can be formed – what they are composed of, how they work, and how they integrate into the broader ecosystem.
This paper will explore each of these areas as well as what actions midstream companies can take today to position for the future vision.
In today’s post-COVID-19 landscape, having an agile and responsive midstream function is no longer about increasing profitability, it’s about survival.
Site News