5
reasons why a blended transportation model could be the answer for you
Are
higher freight costs squeezing your profit margins? Is a changing fuel
landscape creating new logistics challenges? Are you looking to reduce risk and
boost safety, efficiency, and control? Whether you’re a refiner, manufacturer,
or distributor, challenges like structural changes, growing demand and tighter
regulations are driving volatility.Blended Transportation Natural Gas
Perfect
storm of challenges
The
challenges energy industry professionals face aren’t limited to exploring,
drilling for and refining oil and gas products. Market trends, a tougher
regulatory environment and the dynamic nature of the transportation landscape
add to the complexity of moving oil and gas products and equipment.
Transportation challenges include:
Constantly
changing demand levels and market conditions
Exposure
to risk and safety issues
Freight
capacity crunch that makes it hard to cover loads
Ever-shrinking
pool of qualified drivers
Regulatory
environment
Rising
fuel prices that consume more of the transportation budget
A
blended solution: the key to securing capacity, minimizing risk and staying
safe
For
savvy oil and gas network managers, one way to overcome these challenges is by
adopting a “blended solution”- a strategic mix of fleet and for-hire capacity.
By considering all network lanes and freight models, these solutions improve
transportation agility. That agility leads to greater reliability and
predictability of capacity, service and costs.
Fleet and for-hire carrier networks can complement one another
effectively – if they’re designed, monitored and regularly adjusted to find the
right balance as impacts to the network change.
5
reasons why blended may be the way to go
Improved
safety: safety is the #1 priority for every oil and gas company. Therefore,
logistics providers must be keenly focused on safe operations. This is
especially critical when it comes to recruiting, training and retaining drivers
who’ve mastered rigorous oil & gas processes. For example, qualified
drivers understand the importance of properly securing loads, pumping/filling
tankers and preventing injuries and accidents.
A
blended solution connects you to safety services and resources you might not
have in-house: driver safety training, driver screening, compliance and risk
management programs. Preventive maintenance routines and carrier management compliance
programs keep minor issues from becoming safety risks on the road and in the
field. In general, blended solutions minimize overall exposure to safety risks.
Flexibility
and network control: an integrated for-hire carrier / dedicated fleet solution
provides the balance required to address highly dynamic oil & gas network
demands and risks. Knowing you have committed capacity (equipment and drivers)
on priority segments or for high-volume regions that you can complement with
common carriers enables greater control and flexibility in an evolving industry.
A
blended solution also provides a holistic view of transportation network cost
and service performance. With visibility
that enables you to monitor safety, cost and service, you can better manage all
three for continuous improvement. What’s more, you have the network data and
business intelligence you need to boost efficiencies and reduce costs and risk.
Cost
savings: for years, oil and gas companies had little visibility into
transportation or any idea of the “cost to service” their operations.
Historically, cost was secondary to safety and service. As demands on the industry grow and it
becomes increasingly competitive, the focus on cost efficiencies is growing
too. A transportation management system supported by a blended transportation
network provides the transportation
agility and discipline the industry needs to dynamically optimize fleet and
for-hire solutions. The result: a more cost-effective solution. Instead of
securing capacity on an ad hoc basis and paying steep premiums on the spot
market or for expedited freight, costs are more predictable.
Provide
better service: with captive capacity and trained drivers, oil and gas
companies experience fewer pickup and delivery delays and can realize more
consistent service. Using properly maintained vehicles and equipment prevents
problems that can delay deliveries and disrupt schedules.
Guaranteed
capacity: by working with qualified transportation partners, you don’t have to
worry about the freight capacity crunch: dedicated fleets guarantee capacity is
available. What’s more, transportation partners can help you become a “shipper
of choice,” which leads to more favorable carrier relationships and rates on
procured capacity.
Getting
product out of the ground and to market takes a variety of specialized
equipment (mini-floats, bulk, flatbeds) that can be tough to find. Case in
point: flatbeds play a significant role in transporting pipe, drilling
equipment and supplies to and from drilling or rig sites. And the flatbed
shortage is more severe than any other. With a blended solution, you can
greatly mitigate capacity challenges and prevent disruptions to rig site
service and operations.
Start
by optimizing your network
Say
you’ve always used a for-hire carrier to move oil and gas equipment, products
and materials. Or, you have your own fleet. In today’s environment, you may
need to tap every resource at your disposal to get the capacity you need,
improve network control and minimize risk.
Getting
there …
A
blended approach to transportation can be a smart way to solve driver,
capacity, safety and regulatory challenges. Interested? Consider starting with
a network analysis to identify your unique requirements. Then, team up with a
qualified partner to optimize your network with transportation strategies
focused on efficiency, safety, savings and predictable capacity.
http://blog.ryder.com/2014/07/blended-transportation-model/