DIGITALISATION
How to save up to 30% on operational logistics costs with data-based order management
Sylvia Kerscher, Head of Sales, FoxInsights
For some months now, the downstream market has been disturbed by various influences. Supply security and frequently changing prices are key challenges. Decision-making based on real time data is gaining importance, considering the impact of extreme market situations in the energy industry (the increased need for renewable and sustainable energy sources, the move away from fossil fuels, and the knock-on effect of global crises with regard to energy supply). Without data, supply decisions must be made randomly, which can lead to high costs being paid.
The longer one dispatches to a high frequent customer segment without using data, the more money will be wasted. That is predominantly since suppliers would rather deliver one time too often than having a customer run dry. Doing this over a longer period, the additional kilometres driven add up. Supply systems without a real-time data-point, in which customers actively decide about their order, intensify the supplier’s pain even more.
Data answers the question: Who really needs a delivery right now?
Intelligent tank data analysis shows that, on average, only 42.3% of a diesel tank’s capacity is used, which means 57.7% are not. The median drop-off volume is 3.848 litres, with a mean refill interval of 14 days. In the interest of both the supplier and the B2B customer, the goal is to use 70% of the capacity and thus extend the interval. For customers, this results in paying less for deliveries and also benefiting from better scale prices if they purchase larger quantities each time. For the supplier, the optimisation lies in the reduction of delivery costs, which make up the largest cost block.
Analysis indicates that operating costs can be reduced by up to 30% if deliveries are kept to a minimum.
Remote Tank Monitoring is already positively impacting tank utilisation
Figure 1: A fill level history with consumption and delivery patterns as it is shown in the FoxPortal, FoxInsights’ central platform that provides a detailed overview of all customers’ tanks fill levels. In this example, the tank capacity used is only about 42%, resulting in short refill intervals. This means that deliveries are made far too early and thus money is lost on every single delivery.
Figure 2: Remote Tank Monitoring increases tank utilisation and thus extends delivery intervals. The more data-driven the delivery decisions are, the lower the costs per litre delivered can be.
Analysing the data on hand, FoxInsights states a 10% increase of tank utilisation through transparency.
LUBE MAGAZINE NO.175 JUNE 2023 25
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