Exel, Syncrude sign five-year contract

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Exel, a North American provider of supply chain management and a Deutsche Post World Net company, has announced a strategic partnership with Syncrude Canada Ltd., a provider of oil sands production. As part of the five-year agreement, Exel will provide in-plant logistics, supply chain redesign, and maintenance repair and operations (MRO) supplies procurement services.

Exel’s MRO integrated supply solution for Syncrude includes transportation, tool crib management, site store construction, package tracking, strategic procurement and receiving services. The company’s logistics network will source and distribute tools, consumables, and safety and mechanical supplies throughout Syncrude’s multiple production facilities in the Alberta oil sands region.

“Exel will provide the operations and procurement expertise to manage the entire MRO supply chain with end-to-end visibility for Syncrude,” says Ted Nikolai, president of the automotive, chemical and industrial business units for Westerville, Ohio-based Exel. “Our approach will separate and analyze the distribution and material costs of tools and supplies to understand and ultimately reduce the total cost for MRO supplies. Exel’s solution will help Syncrude realize time efficiencies and be assured MRO supplies will be available when needed.”

Exel also will implement the package tracking and site stores management systems to reduce the time it takes to order and deliver MRO supplies for Syncrude’s maintenance organization. The team will streamline the order process and also set up site stores for the rapid disbursement of MRO consumables. Key program objectives include improving the on-time delivery of MRO supplies to reduce waiting time for Syncrude’s maintenance community, increasing supply and tool availability, and reducing the total cost for MRO supplies.

Oil sands contain one of the largest known natural reserves of oil in the world. A total of 173 billion barrels of economically viable oil are trapped in a complex mixture of sand, water and clay. Oil sands are deposits of bitumen, a heavy, black, viscous oil that is converted into crude oil and then refined to produce gasoline and diesel fuels. By 2020, production is estimated to reach 3 million barrels per day. Second only to the Saudi Arabia reserves, the Alberta oil sands are located in three major areas of northeastern Alberta: Athabasca, Peace River and Cold Lake.