Downstream Fuel Distribution Prototype

The Business Challenge​

Fuel Management Distribution Process Improvement. MDxBlocks was contracted by a major NoC to develop a conceptual Fuel Distribution Blockchain Framework, with a roadmap for future deployments, for crude and refined oil supply chain digitization. The goal is to transform oil and gas industry supply chain networks to enable immutable, transparent and auditable business transactions throughout all segments of the Oil and Gas Value chain; Well Production, Refineries, Storage, Terminals, and Retailers and corresponding means of transportation; trucking, rail, pipelines and shipping. 

FuelDistr.png

Current State

  • Paper based: Complex transactions involve a wide range of orders and documents such as purchase invoice, Bill of Lading, shipping documents, bank release documents requiring substantial time and manpower.

  • Front and Back Office Operations are error prone and disconnected: Investment of considerable time and effort to ensure all documents are in place and accessible to all stakeholders.

  • Audits and Compliance: New regulatory actions that are inconstantly applied or not standardized. 

  • Turnarounds, Shutdowns and Repairs: Unplanned actions at refinery and plants will result in increased operations costs and produce undesired results.

High-level Problem

  • Catered demand for crude oil globally results in need for much better visibility of all distribution points from supply to pump. 

  • Theft and Contamination resulted in less Integrity of the supply from segment to segment as it moved downstream. These issues become magnified in every step of refined products distribution. 

  • Reconciliation and Delayed Payments are the result of increasingly complex and rigorous human interaction and man hours from source to origination.

  • Alerts and Notifications mechanisms at facilities are not reliable or traceable because of current tracking processes.

  • Revenue fluctuation resulting from inaccurate distribution operations budget forecasts and budget allocations.

Project Process and Deliverables-Summary

Through discovery workshops and gap analysis, the MDxBlocks team conducted multiple virtual and onsite interviews, surveys and as-is collaboration environments focused on one key segment of the refined products value chain. The initial Fuel Distribution segment, from terminal to retail storage via trucking was identified and included assessment of paperwork choke points, distribution workflow, manual process constraints and human resources that will be refreshed and streamlined through Blockchain Solution architecture. A detailed Project Plan was submitted for Phase 1 of the Blockchain Fuel Distribution Model complete with resource model, milestones, data collection artifacts, solution architecture both Functional and Technology. 

A report with recommendations including solutions, templates, and roadmap was submitted with all work details covered through strict NDA. All corresponding benefits of the Blockchain solutions architecture promise increased efficiencies, speed, reliability, security and lower operating costs as a result.