P&O Maritime Logistics has launched the innovative FlexDELIVERY™ service in Nigeria, partnering with IO Materials Services (IOMS) to transform the offshore energy logistics sector. This new model aims to address critical challenges in the energy industry by focusing on cargo delivery rather than the traditional asset-centric approach, significantly reducing delivery times and enhancing supply chain predictability and visibility.
FlexDELIVERY™ seeks to disrupt conventional offshore supply methods characterized by high costs associated with shore base operations and time-chartered vessels. Instead of relying on established facilities and equipment, this model utilizes a tech-driven approach that incorporates Big Data and AI, providing real-time updates on cargo movements via an online booking platform. This not only streamlines operations but also promotes transparency in the logistics chain, offering energy producers confidence to concentrate on their primary activities, such as energy extraction.
The service debuted on September 4, 2021, building on P&O Maritime’s previous ‘Supply on Demand’ innovation. By integrating shore base and quayside operations, FlexDELIVERY™ presents a comprehensive logistics solution tailored for Nigeria’s unique energy landscape. Given the current inefficiencies and high logistical costs in the sector, FlexDELIVERY™ offers a promising alternative. Traditional supply operations in Nigeria have been described as antiquated and inefficient, leading to costs that can be 2-4 times higher than the global average. FlexDELIVERY™ achieves a cost reduction of 20-30% per good transported, alongside improvements in fuel usage and travel distance.
Martin Helweg, CEO of P&O Maritime Logistics, emphasized the market gap and potential he identified for FlexDELIVERY™ in Nigeria, highlighting the opportunity to bring much-needed efficiency and cost savings to the offshore supply market. Christian Arndt, VP of Logistics, reinforced this by stating that smart solutions such as FlexDELIVERY™ could dramatically lower production costs while enhancing productivity.
IOMS will operate shore bases across Nigeria, facilitating broad coverage for oilfields and further diminishing supply chain costs through its Digital FlexBASE™ service. Matteo Volpi, CEO of IOMS, expressed excitement about the partnership, noting that their local industry knowledge combined with P&O’s innovative capabilities would be pivotal in delivering cost-effective supply solutions.
Overall, FlexDELIVERY™ positions itself as a revolutionary logistics model set to redefine the offshore energy supply landscape in Nigeria, prioritizing customer needs while promoting sustainability through reduced carbon footprints and enhanced operational efficiencies.
