Streamlining Logistics for the Evolving Energy Landscape

A leading integrated energy company recognized the critical importance of optimizing its global logistics operations to support its evolving goals. 

Facing a changing energy landscape, the company sought to diversify its portfolio. The goal was to achieve growth while still focusing on key business priorities:

• Safety: Ensuring the highest safety standards across all operations.
• Cost optimization: Achieving cost savings while maintaining service excellence.
• Sustainability: Reducing environmental impact through emissions reduction and fuel efficiency initiatives.

Searching for the right energy logistics provider

The company recognized a third party logistics provider could help achieve their goals and sought one that could deliver clear supply chain visibility; enhance collaboration with carriers and stakeholders; and provide advanced technologies for route optimization, demand prediction, and overall performance improvement.

They turned to C.H. Robinson based on their strong reputation and unmatched expertise in the energy industry.

The company was at a crossroads. Their traditional oil and gas business was evolving, and they knew how important it was to adapt. C.H. Robinson had the necessary energy industry knowledge to help with operational efficiency goals without the need to compromise on safety or service.

Developing a foundation for growth with C.H. Robinson

Early in the relationship, the company and C.H. Robinson targeted high priority projects, including safety audits, assessments of existing carrier networks, and streamlining the company’s regional transportation operations in the U.S. Gulf Coast. This allowed the energy company to retain control over carrier relationships while C.H. Robinson Managed Solutions™ handled the freight execution, freight payments, and carrier scorecarding.

Supporting North American refineries

Across the company’s North American refineries, C.H. Robinson collaborates on day-to-day operations like managing relationships with the third-party vendors, coordinating international deliveries, managing inventory, and scheduling dedicated fleets for intra-refinery shipments.

Beyond these ongoing operations, the company trusts C.H. Robinson to manage time-sensitive and project logistics efforts, including those required during planned refinery maintenance shutdowns. This added layer of support ensures rapid delivery of critical parts and supplies, minimizing production disruptions.

Optimizing regional operations

In a key operational region, the company transitioned to a single-source outsourcing model with C.H. Robinson for over the road transportation. This model leverages a multimodal shipping strategy encompassing flatbed, heavy haul/over-dimensional, and freight optimization and consolidation services. Proactive safety incident management in the region was also implemented for carriers and suppliers.

As the relationship deepens, the company increasingly relies on expertise from C.H. Robinson for a wider range of services. 

Powering renewable energy infrastructure

By establishing a strong relationship, C.H. Robinson now plays a crucial role in supporting the company’s expansion into renewable energy, notably the rapid deployment of its electric vehicle charging (EVC) infrastructure.

Initially focused only on providing short-term storage for the project, the strategy evolved into a long-term initiative to install chargers at locations across North America, targeting high-traffic metro areas and regions with high EV adoption.

In just one year, C.H. Robinson provided a comprehensive warehouse and transportation solution that helped the company ship, deliver, and install over 300 EV charging stations to job sites in North America. This required close collaboration with engineering, procurement, and construction (EPC) resources.

Overcoming EVC logistics challenges

The dimensions of each EVC unit present unique challenges. The size and weight of the charging units necessitate specialized securement to prevent damage during transit. However, variations in dimensions due to multiple equipment suppliers initially prevented the creation of a standardized securement process. This added complexity as the company worked to rationalize its supplier base, which ultimately enabled the development of more consistent and efficient securement procedures.

Limited unloading capabilities at job sites also required creative solutions. Because the EVC units do not ship dock to dock, it isn’t possible to have a one-size-fits-all solution. But C.H. Robinson helps validate what the process can look like at each individual site, mitigating missed deliveries and job site downtime.

Developing a playbook for success

To address these and other project challenges, C.H. Robinson developed a comprehensive playbook of best practices, including proper securement techniques, shipping larger quantities to local staging areas, and the benefits of early involvement in construction planning.

In addition to the playbook, C.H. Robinson uses custom analytics to provide critical insights to identify shipping trends and adopt improvements. 

The data from C.H. Robinson allows the company to understand shipping trends and quantify the impact of improvement initiatives. This offers complete visibility into freight spend, ensuring the company gets the best value. And the carrier performance data helps with decisions about what carriers to choose based on safety and service priorities.

This approach, refined through continuous improvement efforts, not only ensures the success of the EVC project, but also provides a valuable framework for future renewable energy initiatives.

Quantifiable results: Efficiency, safety, and sustainability

Through advanced technologies, data-driven insights, and a focus on safety and sustainability, C.H. Robinson has delivered significant improvements and results for the company over their long-term relationship:

• 22% of annual loads are consolidated, optimizing transportation costs.
• 0.01% safety incident rate showcases both companies’ dedication to safety and risk reduction.
• 38% reduction in accessorial costs year over year through optimized routes, carrier negotiations, and proactive planning.
• 3.74 million tons of carbon emissions eliminated through fuel optimization and sustainable transportation modes.

A model for the future of energy logistics

This successful relationship serves as a model for other energy companies seeking to optimize logistics in the evolving energy landscape.