Silicon Controls
Silicon Controls, copyright 2013 Commercial in confidence
The Road to 65% Average FillGLOTEC, Mexico City
March 2013
Brian Kline360.635.3496
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%
GASLOG Program Management
Silicon Controls, copyright 2013 Commercial in confidence
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?
GASLOG Program Management
Silicon Controls, copyright 2013 Commercial in confidence
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
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%
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
GASLOG Program Management
Silicon Controls, copyright 2013 Commercial in confidence
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
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
E
GASLOG Program Management
Silicon Controls, copyright 2013 Commercial in confidence
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?
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 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
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
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?
GASLOG Program Management
Silicon Controls, copyright 2013 Commercial in confidence
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
GASLOG Program Management
Silicon Controls, copyright 2013 Commercial in confidence
Thank you
“To measure is to know, if you can not measure it, you can not improve it”Lord Kelvin (William Thomson 1824-1907)