silicon controls silicon controls, copyright 2013 commercial in confidence the road to 65% average...

Silicon Controls

Silicon Controls, copyright 2013 Commercial in confidence

The Road to 65% Average FillGLOTEC, Mexico City

March 2013

Brian Kline360.635.3496

[email protected]

GASLOG Program Management


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%



GASLOG Services - tank level to truck delivery

Central Database

Cellular/PSTN or WirelessNetworks

Cellular/PSTN or WirelessNetworks

Secure Internet/LAN

access

Secure Internet/LAN

access

Configuration dataTank, Alarm, site

settings

Tank Sensor (Gauge to signal)

Tank monitor (GSM unit)

Operational dataLevels, Alarms, Diagnostic data

A.B.

C.

D.

Bus. Apps.ERP & Scheduling

Truck Route

Customer Tank

Telemetrymanagement

Customer/Site: Address

A. Communications manager

B. Management suite

C. Report Scheduling

D. ERP Interface

Tank Levels & Alarms

Customer, Site, Tankupdates

WHERE DOES TANK MONITORING FIT IN?



2009 to 2011

236,374 sites

1,039,000 deliveries

WHY DEPLOY TANK MONITORING?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1 3,678 1,699 3,586 4,248 6,046 6,802 5,602 5,261 4,302 2,391 364

3 2,383 3,742 7,765 10,733 14,871 17,441 14,075 8,045 2,923 692 142

4 412 1,787 3,353 4,968 6,391 6,889 4,727 1,684 364 53 13

5 223 1,418 3,037 4,354 5,056 4,944 2,813 847 170 15 11

6 102 1,147 2,593 3,850 3,830 3,278 1,564 365 63 9 7

7 46 805 1,935 2,611 2,621 1,995 850 216 41 11 6

8 33 515 1,369 1,851 1,751 1,236 452 126 18 4 5

9 18 382 906 1,286 1,079 793 271 77 18 3 1

10 8 332 730 885 812 523 184 41 5 2 -

15 20 886 1,573 1,740 1,539 988 365 77 16 6 7

20 1 400 459 456 402 237 85 18 7 2 1

25 2 230 239 162 175 106 31 9 1 3 2

30 3 140 171 134 121 87 31 6 - 1 -

50 2 232 184 165 141 110 43 8 2 - -

100 - 137 116 98 96 72 42 4 1 1 -

6,931 13,852 28,016 37,541 44,931 45,501 31,135 16,784 7,931 3,193 559

2.9% 8.79% 20.64% 36.5% 55.5% 74.8% 88.0% 95.1% 98.4% 99.8% 100.0%

6,931 20,783 48,799 86,340 131,271 176,772 207,907 224,691 232,622 235,815 236,374

14 108 267 466 678 866 975 1,019 1,034 1,038 1,039

1.34% 10.39% 25.70% 44.82% 65.23% 83.34% 93.83% 98.03% 99.45% 99.90% 100.00%

No. of Sites

TOTAL

Average drop size as % of tank volume

Cum % cust

Num

ebr o

f dro

ps p

er y

ear

Cum drops (k)

Cum % drops

Cum Sites

Industry average fill ~33% despite rapidly falling cost of technology

Payback in 1 year

Payback 1-2 years

Payback 2-3 years



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%

Number of Customers 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% >90% TOTALDrops/year

0 - - - - - - - - - - - - 1 268 52 145 168 144 116 85 54 37 26 37 1,132 2 96 92 177 249 321 383 200 72 37 13 5 1,645 3 32 60 112 202 418 520 213 75 17 8 1 1,658 4 6 32 80 187 293 353 157 68 20 3 1 1,200 5 6 21 57 118 169 200 83 37 9 - - 700 6 2 11 34 85 103 132 71 18 2 - - 458 7 - 10 20 46 61 62 42 17 4 - - 262 8 1 2 14 25 54 46 24 7 - - - 173 9 - 1 9 19 17 26 6 - - - - 78

10 - 1 5 18 17 13 10 2 - - - 66 >10 - 7 22 59 71 48 17 3 - - - 227

TOTAL 411 289 675 1,176 1,668 1,899 908 353 126 50 44 7,599

Total # drops 630 944 2,399 4,944 7,049 7,602 3,459 1,221 327 88 54 28,717 % of drops 2.2% 3.3% 8.4% 17.2% 24.5% 26.5% 12.0% 4.3% 1.1% 0.3% 0.2% 100.0%

Average drop size as % of tank

Industry Average

33%

WHY DEPLOY TANK MONITORING?

1. Tank monitors increases avg fill by 60-80% within 3 months of deployment2. Reducing drops & associated variable costs and ultimately requiring less trucks3. Improves customer service in an increasingly competitive energy market



HOW DO LPG PROVIDERS INCORPORATE TM?

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

0%

10%

20%

30%

40%

50%

60%

70%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Num

ber o

f tan

k m

onito

rs

Aver

age

fill

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 applicationsKey to distribution efficiency &a platform for customer service

A B C D

A

B

C

D

E



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

E



Ease of Deployment

Quick, simple installation <10minsHazardous area Zone 0 certifiedConfigured remotelyBattery operated (5 year life)Driver install

Modular, Adaptable Components

Ease of integration with back officeRange of networks (GSM, RF, PSTN)Multi & single tank solutions (Virtual)Digital & Analog inputs (e.g. meter & level)Range of unique sensor solutionsCommon plug & play architecture

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

GASLOG 5 Year Cost of Ownership

Data Gateway

GSM Calls

Install & maint.

GASLOG hardware

Low Cost of Ownership

Low equipment costMinimize comms. costMinimal maintenanceRobust and reliable

WHAT TO LOOK FOR WHEN SELECTING TM TECHNOLOGY?



Amerigas, Inergy, Suburban, Blossman Gas, Thompson Gas, Growmark, Revere Gas, TruPointe, SOS Fuels, Delta Liquid Energy, United Landmark, Air Liquide…

Calor GasBOC

BOC, Elgas, KleenheatOrigin Energy, Vital Gas

BOCContact 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



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

5. Reduced delivery trucks by 27% in same period

6. 10% (42,000) fewer deliveries per year

7. Yearly reduction of 1,000,000 miles

8. Run outs down from 4,500/year to < 1,000/year9. 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?



One approach (next steps)

1. Assess actual payback and savings potential using historical data2. Engage drivers & operational staff in deployment3. Integrate tank monitoring with back office applications early4. Assess performance and monitor improvements5. Drive districts, targeting aggressive goals (65% average fill)6. Develop a robust model to assess subsequent deployment phases7. Review working practices, be prepared to modify culture8. Focus on cost reduction, realize customer service improvements9. Successful programs require collaboration and strong leadership

WHAT HAVE WE LEARNED IN THE LAST 10 YEARS?

IT Operations & Logistics

Depot Teams & Drivers

Strong Leadership



Thank you

“To measure is to know, if you can not measure it, you can not improve it”Lord Kelvin (William Thomson 1824-1907)

silicon controls silicon controls, copyright 2013 commercial in confidence the road to 65% average...

Documents

tank monitors

tank updates

tank monitoring fit

management suite

customer service slide

confidence agenda

years payback

tm technology