Four Ways Oil Companies Are Increasing Efficiencies in 201613 Sep 2016, Posted by General, Industry Information in
It’s no secret that low oil prices have made competition more difficult in the oil industry. In order to turn a profit, oil companies are finding ways to increase efficiency. Many times this means picking a supplier that will save them money. Here are four things to look for as an oil company that will improve your efficiency in 2016.
Eliminate the Middle Man
Imagine if someone took additional money out of your wallet every time you bought something at the store. That’s exactly what a middle man does. Companies are realizing that if you eliminate the middle man in the supply chain, you will come out ahead in the long run. Becoming savvy and finding a supplier without a middle man increases your profits, while passing along savings to your customers. Profits are all about margin, and cutting the middle man will increase your company’s profits.
Tackling Emergency Scheduling Needs
Nothing keeps you from being efficient like an empty tank or shelf. Oil companies suffer a huge loss of efficiency when product is not available to customers. Business migrates elsewhere when product is not available. It is critical to pick a supplier that can make changes to fulfill an unexpected need quickly. Additionally, large suppliers usually do a better job of handling emergency calls. This will keep your company efficient in 2016.
Supplier Led Logistics Planning
Although it is great to have a supplier that can handle emergency supply needs, it is even more effective to have a supplier that will help you with logistics planning. Efficiency will increase when a plan is developed that both parties feel good about. With clear expectations and goals planned out, your operation will run like clockwork so that you can focus on expanding your business.
Using Green Advantages
Recycling oil is not just a gimmick, but a powerful efficiency tool that boosts profits. The more you can reuse what you already have, the better. Recycled oil is usually better quality than new oil. Find a supplier that will recycle for you. With this in place, you will have the ability to green-label your product, which increases your brand image and boosts sales.
Push 2016 to be a Banner Year
McPherson Oil can help give you the successful year that you need. With our Total Petroleum Management System, we can better serve your needs. TPM means that you have all your petroleum needs serviced in one place. That saves you time and money by reducing invoice volume and eliminating the middleman. As the largest oil supplier in the southeast, we will leverage that advantage to make sure that you have the supply you need when you need it. Contact us today to see how we can increase your company’s efficiency.