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Silicon Controls Silicon Controls, copyright 2013 Commercial in confidence The Road to 65% Average Fill GLOTEC, Mexico City March 2013 Brian Kline 360.635.3496.

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Presentation on theme: "Silicon Controls Silicon Controls, copyright 2013 Commercial in confidence The Road to 65% Average Fill GLOTEC, Mexico City March 2013 Brian Kline 360.635.3496."— Presentation transcript:

1 Silicon Controls Silicon Controls, copyright 2013 Commercial in confidence The Road to 65% Average Fill GLOTEC, Mexico City March 2013 Brian Kline 360.635.3496 briank@siliconcontrols.com

2 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence AGENDA 1.WHERE DOES TANK MONITORING FIT IN? 2.WHY DEPLOY TANK MONITORING? 3.HOW DO LPG PROVIDERS INCORPORATE TANK MONITORS? 4.WHAT TO LOOK FOR WHEN SELECTING TM TECHNOLOGY? 5.HOW MATURE IS THE TELEMETRY MARKET? 6.WHAT HAS ONE LPG COMPANY ACHIEVED? 7.WHAT HAVE WE LEARNED IN THE LAST 10 YEARS? 2010 37% 2012 52%

3 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence GASLOG Services - tank level to truck delivery Central Database Cellular/PSTN or Wireless Networks Cellular/PSTN or Wireless Networks Secure Internet/LAN access Configuration data Tank, Alarm, site settings Tank Sensor (Gauge to signal) Tank monitor (GSM unit) Operational data Levels, Alarms, Diagnostic data A. B. C. D. Bus. Apps. ERP & Scheduling Truck Route Customer Tank Telemetry management Customer/Site: Address A.Communications manager B. Management suite C. Report Scheduling D.ERP Interface Tank Levels & Alarms Customer, Site, Tank updates WHERE DOES TANK MONITORING FIT IN?

4 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence 2009 to 2011 236,374 sites 1,039,000 deliveries WHY DEPLOY TANK MONITORING? Industry average fill ~33% despite rapidly falling cost of technology Payback in 1 year Payback 1-2 years Payback 2-3 years

5 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence 1.Analysis of 1,039,000 deliveries shows an average delivery size of just 33% 2.The majority of customers receive 5 or less drops per year, with most drops being less than 40% Industry Average 33% WHY DEPLOY TANK MONITORING? 1.Tank monitors increases avg fill by 60-80% within 3 months of deployment 2.Reducing drops & associated variable costs and ultimately requiring less trucks 3.Improves customer service in an increasingly competitive energy market

6 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence HOW DO LPG PROVIDERS INCORPORATE TM? A.Assess fill efficiency and calculate ROIs Evaluate technology, run trials (50-500 units) Integrate TM level with ERP B.Estalbish % of un-forecastable customers Evolve operational processes Integrate with scheduling system C.Reduce variable costs and # of trucks Rollout to 30% of tanks Integrate with routing & on board truck computing D.Unique selling point Customer web portal Move customers from will call to forecasted delivery based on benefits E.Investigate other applications Key to distribution efficiency & a platform for customer service

7 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence WHAT OTHER APPLICATIONS DOES TELEMETRY SUPPORT? Reticulation Cages Tanks & Cylinders Cathodic Protection Metering Auto Change Over Float Gauge Magnetel Ultrasonic Meters Cathodic Protection Pressure Temperature Auto Changeover Cage Door Monitor

8 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence Ease of Deployment Quick, simple installation <10mins Hazardous area Zone 0 certified Configured remotely Battery operated (5 year life) Driver install Modular, Adaptable Components Ease of integration with back office Range of networks (GSM, RF, PSTN) Multi & single tank solutions (Virtual) Digital & Analog inputs (e.g. meter & level) Range of unique sensor solutions Common plug & play architecture Low Cost of Ownership Low equipment cost Minimize comms. cost Minimal maintenance Robust and reliable WHAT TO LOOK FOR WHEN SELECTING TM TECHNOLOGY?

9 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence Amerigas, Inergy, Suburban, Blossman Gas, Thompson Gas, Growmark, Revere Gas, TruPointe, SOS Fuels, Delta Liquid Energy, United Landmark, Air Liquide… Calor Gas BOC BOC, Elgas, Kleenheat Origin Energy, Vital Gas BOC Contact Energy Ipragaz (Turkey), Liquigas (Italy) Primagas (Benelux, Spain, Denmark, Norway, Czech R, Slovakia) HOW MATURE IS THE TELEMETRY MARKET? Philippines, India, Pakistan, China Telemetry is not new, these companies have deployed 90,000+ units

10 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence Program 1.Deployed 50,000+ tank monitors over 5 years 2.Improved integration with ERP, Scheduling 3.Deployed routing & truck computing 4.Drove operational change management program Results 1.Reduced delivery trucks by 27% in same period 2.10% (42,000) fewer deliveries per year 3.Yearly reduction of 1,000,000 miles 4.Run outs down from 4,500/year to < 1,000/year 5.From 14,000 fixed day delivery to 3000 Average fill 52% ERP & forecasting Routing & scheduling Telemetry Tank Level Case study 2003-2009 WHAT HAS ONE PROPANE DISTRIBUTOR ACHIEVED?

11 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence One approach (next steps) 1.Assess actual payback and savings potential using historical data 2.Engage drivers & operational staff in deployment 3.Integrate tank monitoring with back office applications early 4.Assess performance and monitor improvements 5.Drive districts, targeting aggressive goals (65% average fill) 6.Develop a robust model to assess subsequent deployment phases 7.Review working practices, be prepared to modify culture 8.Focus on cost reduction, realize customer service improvements 9.Successful programs require collaboration and strong leadership WHAT HAVE WE LEARNED IN THE LAST 10 YEARS? ITOperations & Logistics Depot Teams & Drivers Strong Leadership

12 GASLOG Program Management Silicon Controls, copyright 2013 Commercial in confidence “To measure is to know, if you can not measure it, you can not improve it” Lord Kelvin (William Thomson 1824-1907)


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