News: PKN ORLEN masters complex primary distribution with innovative planning solution from Quintiq
June 29, 2017 - Quintiq, a Dassault Systèmes brand and global leader in supply chain planning and optimization (SCP&O), today announced that it has successfully gone live with its planning and scheduling solution for PKN ORLEN’s primary distribution channels in Poland.
“The Quintiq solution is the steering wheel of our supply chain,” said Szymon Skupień Director of Logistics Planning Department at PKN ORLEN. “It provides us with control as well as end-to-end visibility and a single source of truth for planning – an advanced and increasingly crucial standard for the oil and gas industry. It will enable us to quickly analyze different market scenarios and build effective plans aligned with our commitment to service our clients with the highest reliability possible as our regional reach continues to grow.”
Like many companies in the oil and gas industry, PKN ORLEN faced challenges in its primary distribution process. It needed better decision support for its multi-modal choices of pipeline, rail and truck for transferring its base fuel and petrochemical products. To add to the complexity, the pipeline sequencing and constraints of order-driven product deliveries, inventory capacity and the requirement to maintain national security stock quotas also needed to be considered at the planning level. Prior to Quintiq, the resources used to manage, store and transport product mixes were manually planned and the information was not shared across departments.
“Many of the solutions available simply couldn’t manage the level of complexity involved in planning within the oil and gas industry,” said Rafał Gąska, Director of Logistics Infrastructure at PKN ORLEN. “Poland has a long and proud history as a pioneer in the petroleum refining sector. PKN ORLEN is continuing that legacy with the launch of Quintiq’s innovative solution.”
Quintiq was selected in 2016, after a successful benchmarking proof of concept, as part of PKN ORLEN’s efforts to maximize the return on their investments in the modernization of their inter-modal primary distribution processes. With volatile market conditions putting pressure on oil and gas companies to realize cost-efficiencies, the company needed a way to improve efficiency and reduce their reprocessing efforts. The Quintiq solution allows PKN to schedule the distribution of refined products via pipeline, rail and truck throughout Poland, including additive delivery and final product blending at depots.
Quintiq’s optimization software integrates seamlessly with PKN ORLEN’s existing systems to automate previously manual processes. The data flow has now been streamlined between applications such as refinery scheduling, railway dispatch and order, shipping and billing management. With enhanced accuracy of information for decision support and a single source of information, planners are able to collaborate across departments to deliver the best plan to align with all of the company’s goals.
According to Dennis Ostendorf, Business Unit Director Oil & Gas at Quintiq: “In the oil and gas industry, complex puzzles are the norm rather than the exception. Regulatory requirements, cost-balancing demands and ever-shorter response times create a critical need for a planning solution that can help a company cut through these complexities to meet their goals and work within the ever-shorter response times required in today’s highly competitive marketplace. PKN ORLEN saw this need as an opportunity for innovation and capitalized on it. With Quintiq steering its supply chain, PKN ORLEN has gained a significant competitive advantage and is now fully equipped to sustain its growth even through turbulent times without compromising on the stability and quality that it is so well known for.”
About PKN ORLEN
PKN ORLEN is a major Polish oil refiner and petrol retailer. Together with its subsidiaries, it is the leader of the fuel and energy market in Central and Eastern Europe and the only Polish company ranked in the Fortune 500. PKN ORLEN has six refineries and the region’s largest network of modern service stations, including almost 2,700 locations in Poland, the Czech Republic, Germany and Lithuania. It is also one of the largest petrochemical companies in Central and Eastern Europe. The company employs approximately 20,000 people.
Every business has its supply chain planning challenges. Some of those challenges are large. Some are complex. Some seem impossible to solve. Since 1997, Quintiq has been solving each of those challenges with a supply chain planning & optimization software system. Today, approximately 12,000 users in over 80 countries rely on Quintiq software to plan and optimize workforces, logistics and production. Part of Dassault Systèmes (Euronext Paris: #13065, DSY.PA), Quintiq has offices in the Netherlands, the USA and around the world.