Get Control With Petroleum Logistics Software
How Petroleum Logistics Software Creates Operational Accountability.
- Control drivers
- Inventory visibility
- Manage profitability
Most petroleum marketers are searching for ways to increase control over their operations. Owners and operations executives want to know which delivery drivers meet and exceed set standards and which are gaming the system. They also recognize that inventory needs to be accounted for in an airtight way, leading to questions and uncertainty regarding quantity and location. These factors impact profitability, and profits are the primary result of greater control. We’ll explore how Petroleum Logistics Software can provide control and accountability, leading to a better culture and higher profits.
Get Control of Drivers
Drivers are the backbone of any petroleum marketing business. Finding and keeping good drivers is a goal shared by all. The question becomes, “How can I tell which drivers are performing to standard?”. If drivers control the delivery plan or some routes are more complex, a poor driver probably looks good, while an excellent driver looks terrible. Instincts can’t be trusted. Petroleum Logistics Software provides a delivery plan that accounts for route complexity and more. It sets a proper standard no matter where the deliveries are. Drivers are always more productive when there is a reasonable plan to follow, and they have accountability to the times outlined in that plan. The kids play harder when you keep score.
Having a solid plan means you set clear expectations. Managing to those expectations is made clear by comparing the plan to what occurred. “Planned versus Actual” reporting is crucial to understanding where improvement can happen. Managers can better coach their drivers when they have the correct data. “Out of route” miles become apparent when compared to the plan on a map, and the manager has the evidence needed to coach or discipline a driver properly. Moreover, this process will reveal problem deliveries that may need addressing with the customer.
Control extends into the delivery itself. Processes, enforced via software, that ensure accurate delivery. If the driver is not close to the delivery location, they receive a warning that must be overridden or approved by dispatch. This warning limits the temptation and ability to make an illicit sale. Additional controls are in place to ensure the right inventory goes to the proper tank with barcode scanning. Cross-fills become increasingly rare, and what went wrong is obvious.
Get Control of Inventory
Inventory accounting is critical to the success of a petroleum marketer. Invoices and allocations are much easier to handle when the inventory location and amount delivered are recorded with certainty. Retained inventory in Tankwagons causes problems when the amounts and compartments are unknown. Petroleum Dispatch Software tracks the location, type, and quantity of inventory retained in delivery vehicles, allowing for control in the field and back office. You can plan opportunistic deliveries with confidence and ensure wet-hosing operations create accurate and detailed invoices.
Two-way connectivity to industry-standard Liquid Controls meters (LCR) lets the driver control flow from a phone or handheld device. Barcode scanning ensures the correct tank is filled, while the meter/software guarantees the right product flows into the tank. When loading, the software keeps track of exactly how much product goes into each compartment, considering what product was last in that compartment. The system provides warnings in the event of compatibility issues.
Get Control of Money
Having control of drivers and inventory creates greater control of money. Increased driver productivity and tighter inventory accounting means lower costs and greater profitability. The lower costs typically amount to a 5%-10% reduction in two of the highest cost categories. ROI is substantial enough to fund other business ventures or increase margins significantly. Adding clarity in the invoice process to these reductions also improves quality of life. Clear and professional invoices make customers happy and reduce conflict. Paperless accounting in the logistics process prevents lost documents and can reduce the time to invoice by days. Proof of Delivery is instantly available to your customers who require it, which results in fewer inbound calls to customer service.
Control provides more than monetary benefits, but the return is vast. Being in control improves culture, retains the best employees, and generally increases quality of life. Petroleum Logistics Software creates the means for this control. Knowing how each driver is performing helps keep dispatch running smoothly. Inventory accounting prevents liability and lost products. The cost reduction that comes with control will create more opportunities for business and longevity. Control is the key, and Petroleum Dispatch Software provides the control.
