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Amid declining demand, carbon regulations, pricing pressures and overcapacity, how can energy downstream companies increase margins and cash flow?
Greater efficiency driven by execution excellence is emerging as the new strategy to respond to these multiple pressures. In this report, Accenture discusses how downstream energy companies can achieve major gains by pursuing excellence throughout the value chain.
Execution excellence is critical for capturing value by improving overall effectiveness and asset management in the context of downstream energy transformation. Improved execution excellence generally results in:
Reduction of losses related to planned/unplanned downtime and suboptimization of assets
Increased efficiency and effectiveness in maintenance, production and workforce utilization
Reduced costs of materials for maintenance and operations
Increased capital efficiency
Downstream energy companies can achieve major gains by pursuing excellence throughout the value chain through four levers:
In sales, supply and trading, by providing real-time data from an improved technology backbone to support commercial optimization.
In plant operations, by addressing execution effectiveness from both the organizational and functional perspectives to deliver benefits from increased asset and labor utilization, particularly for complex turnarounds.
In sourcing and procurement, by streamlining and standardizing processes and increasing supplier collaboration to increase procurement return on investment to par with global benchmarks.
Through low-cost back-office operations, by developing networks of global business service centers, with support functions in pursuit of operational excellence and performance optimization.
Fay ShongManaging Director – Energy
Lee J. LavioletteManaging Director – Accenture Plant and Commercial Services
Sourav NiyogiExecutive - Procurement and Supply Chain
April 23, 2013
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