Kinaxis® (TSX), a leader in end-to-end supply chain orchestration, has announced a co-development agreement with ExxonMobil, one of the world’s largest integrated companies in fuels, lubricants, and chemicals. This collaboration aims to create technology solutions tailored specifically for the energy sector, addressing the growing demand for energy products essential to modern living.
The partnership will focus on tackling unique supply chain challenges within the energy sector, particularly in the complex fuel commodities market, which currently lacks industry-wide standards and relies heavily on spreadsheets and manual processes. The goal is to develop a supply and demand planning solution that facilitates integrated refinery-to-customer planning, leveraging real-time data for accurate supply and demand management. This innovative solution is expected to enhance automated data visibility, improve inventory management and terminal replenishment, and provide better supply scenario planning, ultimately leading to reduced supply costs and increased arbitrage opportunities.
In the realm of chemicals and lubricants, Kinaxis and ExxonMobil will work on an advanced planning solution that addresses manufacturing and logistics constraints while incorporating scenario modeling and evaluation.
Additionally, the co-development will enhance existing sales and operations planning solutions specifically for upstream operations, optimizing the sourcing, storage, and transportation of materials and assets to improve utilization and lower costs.
Last year, we centralized all ExxonMobil supply chain activities into a single organization, creating one of the largest supply chain operations globally. This process helped us identify critical solution gaps that can enhance our ability to capture additional value,” said Staale Gjervik, Supply Chain President at ExxonMobil Global Services Company. “Our collaboration with Kinaxis, a leading provider of supply chain technology, is crucial for developing solutions for a business as large and complex as ours.
“ExxonMobil has a unique understanding of the significant opportunities available to enhance energy supply chains, from improving sales and operations planning to increasing agility in field operations and effectively managing vast transportation networks,” stated John Sicard, CEO of Kinaxis. “There is an urgent need to boost efficiency at every stage, from extraction to end-user consumption, and we are excited about the potential impact we can make across the sector.”
With over 140 years of experience, ExxonMobil is one of the largest energy companies worldwide. This partnership will leverage ExxonMobil’s extensive industry knowledge and Kinaxis’s leading supply chain expertise and digital innovation to develop solutions specifically designed for the energy sector.
