Digitalization Potentials in Supporting Offshore Logistics

Abstract

Abstract Energy production is one of the most important segments in the global economy, and at a larger scale, the oil and gas industry is one of its biggest sectors, Therefore, its offshore logistics and services support plays a crucial role in its operations. Offshore logistics refers to the transportation of equipment, personnel, and supplies to offshore oil rigs and platforms. The logistics process involves a complex network of personnel, vessels, helicopters, trucks, warehouses and other assets that must be coordinated to ensure timely delivery of goods and services. The process of reshaping services, products, and entire business models by the adoption of digital technologies is called digital transformation (Attaran, 2020, n.d.). According to a report by Statista, the spending by companies on services and technologies that will enable digital transformation is expected to reach US dollars 2.3 trillion by 2023 around the globe (Diaz, Smith, Landaeta & Padovano, 2020, n.d.). This technical paper begins with the introduction of digital transformation and describes several types of digital technologies that are either utilized or can be utilized by the offshore logistics as a part of its full supply chain, aimed at understanding how digital transformation will positively impact the business value chain. The paper addresses four main questions and provide answers to them; what is the significance of digital transformation in the Supply Chain, shipping, and offshore logistics? What are the drivers of digital transformation in the supply chain, shipping, and offshore logistics? What are the impacts of digital transformation on the offshore business value chain? And finally, what are the challenges of digital transformation in the supply chain, shipping, and offshore logistics? Themes that emerged are drivers; Expectations of customers, Importance of Speed, Insight Of Customers, Artificial Intelligence is central to Business, The need to control cost, IoT, and Big data analytics, Surviving in the Business Realm. Challenges/barriers; Silos, Security Breaches, Budgeting, Lack of Necessary skills and talent, Resistance to Change and risk aversion, and Legacy procedures and systems.