How optimized is your oil supply chain? Developments in oil industry technology are advancing not only the E and P (extraction and production) field but also the entire process of bringing oil products to buyers.
True, oil supply optimization begins at the source with fascinating technologies such as:
- Unmanned aerial vehicles (UAVs) and other robotic systems aiding the inspection of infrastructure and help prevent leaks
- Emissions monitoring systems and tracking software helping to make the industry more sustainable
- Cloud-based solutions for data storage to make analysis and decision-making a more efficient process for drilling companies
Emerging tech presents powerful benefits down the supply chain, ensuring oil moves efficiently and responsibly from drilling sites to refineries.
Likewise, oil suppliers today are employing technologies from the refinery to your doorstep, to prevent time and product waste, help customers contain costs, and help ensure supply security.
Here are just three examples to ask your suppliers about. Some have broad applications you may consider for your own business.
Want to learn more about Renkert Oil? Contact us here!
Laura McKown, Finance Coordinator, Renkert Oil
Oil Industry Technology at the Supplier Level
From cost-effective inventory management to customization in order fulfillment and transportation logistics, many technologies are at work to supply oils to a wide variety of markets.
1. Inventory Management: Ultrasonic Tank Gauges
Run-out is one of the most common challenges oil customers face. An empty tank doesn’t just lead to the time loss of a production delay. It also requires a costly emergency delivery to replenish the inventory.
One modern solution is an ultrasonic tank gauge with remote monitoring. A sensor inside the tank feeds data to a control unit. The unit then transmits real-time data over cellular networks to report on everything from run-out predictions to precise tank location.
This technology can be used in two ways:
- Buyer-Managed Inventory. As a self-monitoring tool, ultrasonic tank gauges eliminate the time and potential for error involved in visiting tanks, manually inspecting product levels, documentation, and estimating run-outs. The system will do so automatically.
- Vendor-Managed Inventory. As a vendor-monitored tool, this technology even eliminates the need for buyers to build ordering into the inventory management process. The data is provided directly to the supplier from the buyer’s on-site tank, either triggering an automatic replenishment or a simple approval process.
2. Order Processing & Troubleshooting: Cloud-Based ERPs
The ordering process can be arduous for oil buyers. In many cases, purchasers must exchange a great deal of information with the supplier. Current pricing, quantity needed, delivery windows, trucking requirements and specs needed for certificates of analysis are just a few examples.
Delays can be exacerbated by working with suppliers whose systems, from order fulfillment to payment processing and inventory management, are poorly integrated. This is why it’s worth asking your supplier about cloud-based ERP (enterprise resource planning) software.
Customers benefit from working with suppliers that use cloud-based ERPs in several ways:
- Streamlined Communications. ERPs store a wealth of customer information, making the process easier by automatically uploading your needs and preferences to the order.
- Demand Forecasting. Historical order frequency can be used to remind customers to place an order, taking seasonal changes into account.
- Error Reduction. Human error can always happen on both sides of the ordering process, but stored historical data helps minimize mistakes by confirming key details.
- Fewer Delays. With access to integrated systems through the cloud, your point of contact is more likely to be able to answer questions and address concerns quickly.
This is one way leading suppliers are working to better utilize data to create a more “customer-centric” supply chain.
“According to Gartner, 83% of surveyed supply chain leaders say that they are being asked to improve the customer experience (CX) as part of their organization’s digital business strategy. Moving the supply chain to a customer-centric supply chain is the most often approach to doing that as 50% of respondents mention that.” — Brian Straight, Editor in Chief, Supply Chain Management Review
3. Transportation Logistics: Rail & Trucking Freight Management
Day-to-day, supply security is determined by your supplier’s logistics capabilities. This is where the rubber meets the road (literally and figuratively). Logistics is the key to consistent scheduled deliveries and quick turnarounds on spot orders.
The first question to ask any new supplier is about expertise and capabilities. The basic ability to meet your needs is paramount. However, technology in experienced hands can make a significant difference in your experience as an oil buyer as well.
Ask your oil supplier about the use of tech-savvy partners to provide these benefits:
- Responsive Trucking. Fleet management technology gives your supplier’s trucking partner visibility into a variety of potential supply disruptions, empowering your supplier to circumvent them and get your product to you on time and at cost.
- Cost-effective Rail. Rail logistics technology provides suppliers with real-time and predictive data, allowing them to make adjustments when needed to ensure on-time delivery. If you have the resources to support transloading from rail to your own transport vehicles, the large capacity and reliability of rail freight make it an excellent option.
Trucking and rail logistics aren’t the only means of transportation, of course. They’re only the most logistically challenging when responding to immediate needs. You may also want to ask about other logistics capabilities such as barge and sea transport.
Of course, we strongly recommend you turn to one oil supplier in particular to ask about capabilities that affect your day-to-day business operations!
How Renkert Oil Leverages Oil Industry Technology for Supply Security
As you may have guessed, Renkert Oil leverages technologies like these to provide our customers with the best possible experience.
Vendor Managed Inventory
For interested customers that have on-site tanks, we provide VMI service via the SkyBitz SMARTank ST90 LTE cellular remote monitoring system. This can be an excellent way to control cost and ensure consistent supply.
Order Management
Though we have always been proud of the level of service we provide our customers, our recent adoption of the NetSuite Cloud-Based ERP offers increased efficiency. This is particularly helpful for customers with specific needs, such as custom certificates of analysis.
Logistics
Just as we encourage our customers to ask suppliers about their use of technology, we pose the same question to our logistics partners. From trucking to rail freight management, we value experience and innovation in transportation. It’s just part of taking good care of our customers.
If Renkert Oil is not yet a supplier partner for your base oil and specialty oil supply needs, reach out to start a conversation. Ask us more about our use of oil industry technology and how we can help support your business goals.