Towards the design of a smart warehouse management system for spare parts management in the oil and gas sector

Abstract

IntroductionThe oil and gas production industry requires rapid changing. As oil and gas companies around the world are called upon to decarbonize, several sectors within the industry are attempting to find new ways of working to achieve decarbonization. One of those sectors is spare parts warehousing. During the past decades of oil and gas production, spare parts warehousing has not been prioritized in optimization measures. Warehouses have been filled with material, all activities have been performed manually, and financial expenditure has been high. Now, a large oil and gas production company in Norway is looking to optimize its spare parts warehousing to streamline its logistics activities and increase sustainability.MethodThis study addresses the optimization ambitions of the company and proposes key design elements of a smart warehouse management system using Industry 4.0 technology implementation. The study is conducted by performing a review of relevant literature and company ambitions, before embarking on a qualitative design measure to contribute to the company’s innovative success.ResultsThe study proposes optimization of the warehouse activities goods receipt, issuing of stocked goods, and inventory count. Additionally, the digital supply chain of tomorrow and the technical architecture of a track and trace system in the warehouse is suggested.DiscussionThe study’s results can be used in practical implications and provide a foundation for future research. Future research is suggested to include extensive visual simulations, practical implementation studies, and studies on long-term effects of implementation.