Whether your role in the oil and gas industry is as a manufacturer, refiner, distributor or marketer, you cannot escape higher freight costs that will compromise your profit margins. The changing fuel landscape generates new challenges for oil and gas logistics. Participation in the processing of petroleum products means dealing with growing international demand, new regulations and structural industry changes. Combined, these are challenges that create unprecedented volatility in an industry that depends on stability.
Budget pressures demand that you have efficiency driven strategies to support every stage of running a smooth operation. Among other things, adequate transportation solutions will help you to streamline operations. With good transportation solutions for your oil and gas supply chain, previously unattainable efficiencies are possible.
Perhaps you need to improve ways of hauling equipment to job sites. Safely transporting over-sized freight from one location to another could be an issue for your operation. Whatever the need, consider innovative solutions that can help to keep your profit margins intact.
Overcoming changes and challenges require full consideration of new logistical solutions that support your transportation needs. Some of the latest services offered by transportation companies that support oil and gas include the use of dedicated fleets, transportation management services and, leasing and rental services. These specialized services offer a better way for your operations to complete daily tasks.
Dedicated Fleet
In the transportation industry, a dedicated fleet is a group of trucks owned by a carrier and licensed for exclusive use by a shipper. Services through dedicated fleets enable you to perform normal tasks without adding the costs to normal operations.
Typically, the shipper will make arrangements for using the dedicated fleet. This ensures that the required truck capacity you need is always available. With a dedicated fleet, you avoid the complex problems in logistical planning and avoid the rising costs of using transportation equipment. Rather than paying for the upkeep of trucks, you can have a scalable fleet that is pliable with current shipping needs.
Transportation Management
Questions abound for anyone who wants to run a smooth operation within the oil and gas industry. You have to worry about negotiating the best rates with carriers that are favorable to your company. Routes or modes of transportation can negatively impact your profit margins if you are not taking advantage of the most effective processes. Additionally, the inability to control your transportation network hinders optimizing efficiencies.
To resolve these issues, you want to partner with a transportation company that specializes in the oil and gas industry. Optimal success requires having a company that understands your needs and provides services that respond accordingly. Improving efficiency across every mode of transportation that your operation uses is essential. You will be able to drive more value and have better control over the entire logistics operation.
Good transportation management should include services that manage your shipment process from order request to route selection and shipment destination tracking. Some services may also include freight brokerage services to reduce valuable time spent on soliciting freight services. One way to drive business growth is to partner with a transportation company that cuts transportation costs.
Reducing your risk level is also key to improving profit margins. You need oil and gas transportation solutions that does not expose you to constant losses or damages. With dependable on-time pickup and delivery, your freight is moved fast without costing you valuable time and resources.
Leasing and Rental Services
Most likely, you do not have a one-size-fits-all transportation solution. Therefore, options for having the best fleet when you needed should deliver flexible terms. Leasing is one option available that will free up capital and allow you to earmark money for core areas. In addition, you will reap significant financial benefits with an improved cash flow and balance sheet.
There are exorbitant costs to owning and maintaining a private fleet in the oil and gas industry. Too much time spent on repairs after a breakdown absorbs resources best served within your core competency. Leasing trucks provides terms that are suitable to the size and scope of your operations will lower transportation costs.
Rental service is another way to fuel your supply chain efficiency. There are various truck sizes available whether you will need a delivery across the country or across town.
Fleet Management Solutions
You have the option of either using these innovative services individually, or taking advantage of collective services. Fleet management solutions provide an all-in-one service to the oil and gas industry. Customized solutions are based on your operational needs, but may include:
As a producer, driller, supplier or service provider in the oil and gas industry, you have specialized product handling needs. To function properly, you need specialized equipment and services that can respond to those needs.
There are key benefits for oil and gas companies that harness innovative transportation solutions. Aligning the right solutions with needs, you can:
Transportation companies recognize the benefits and have tailored their services around what you need. A three-pronged approach – nimbleness, lean operations and safety processes – combines all of the necessary and ancillary services to optimize these benefits.
Nimble
The right transportation solutions will help you adapt operations to the changes in demand without compromising what is important. Having a nimble operation comes from outsourcing transportation needs that support outstanding customer service. As a result, you can optimize your capacity to improve business operations while meeting the challenges of the industry.
Run Lean Operations
Inefficiency within your supply chain is one of the fastest ways to lose out on profits. With leaner operations, those inefficiencies are no longer part of the equation. Having a network of fleet performance helps you with leveraging best practices in the industry. You can optimize the use of assets that reduces operating costs with better routes and service levels.
Driving Safety Home
Owning, operating and managing a transportation network comes with many risks. As an oil and gas company, you already contend with multiple risks to simply operating in the industry. The last thing you need is to wonder about an entirely separate industry, although you rely on services within that industry to support your business.
Typically, companies within the transportation industry must comply with specific safety standards. Otherwise, they cannot operate successfully. While you are concerned with safety issues for your operations, your transportation partner should focus on reducing your level of accident exposure. Compliance with regulations will help to build a long-term partnership that shows measurable results in your bottom line.
Oil and gas companies that choose to take advantage of transportation solutions can leverage benefits and reduce transportation costs. This is achieved while maintaining a high level of customer service. A solid partnership gives you full access to logistical experts that understand your industry and the valuable serve you provide.
Keeping management of your transportation needs separate from core business operations – while understanding the importance of effective transportation services – will help to improve your profit margins.
Handling services related to oil and gas create enormous transportation challenges. Road transportation requirements and expanding natural gas use are just a couple of issues that can impact your operations. Industry-leading safety practices, maintenance solutions and flexible fleets will help to increase efficiencies while reducing the costs of running a smooth operation.
