This report documents an original case study summarizing the success of an East Kalimantan oil & gas operator in creating an improved logistics organization. The Logistics and Supply-Chain Management (L&SCM) Project was designed and implemented in an eighteen (18) month period beginning in October 1998. It focuses on the operational aspects of aviation, marine services and the supply base function. The paper describes key project management aspects from preliminary planning, sponsorship and team selection through the management of change (MOC) during transition to implementation. A chronological review addresses the original charter, the discovery phase, analyses, recommendations, implementation and provisions for continuity and continuous improvement.

Performance to deliverables, keys to success and lessons learned are detailed including the implementation of new standards/policies/procedures, innovative technology and empowered personnel. Dealing with challenges both internal and external to the organization will be discussed, in particular resistance to change, legacy thinking and the supply market.

The paper also reveals new information generated from field data and computer modeling of marine logistics activities. These applications and resulting information were paramount in leading us to a successful business solution to improving the logistics operation.

Final conclusions revolve around an implemented logistics program that created quantifiable value to all stakeholders and generated client/market acceptability. Major results include creating a new, accountable logistics organization that operates 20% less expensively. Internal clients enjoy a transparent operation providing safer and more reliable service. Management has a more cost-effective, disciplined organization that is measurable. Suppliers and contractors better understand business needs and have provided quality resources.

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