Week 6 - Supply Management
Welcome to week 6 of our 8 week series on modern technology, specifically in the downstream fuel space. This week we're continuing our discussion on our product suite, specifically our Supply Management module, and how it drives value for our customers.
Let's start with what we mean by Supply Management. Simply put, it's one place to manage supply contracts (buy and sell), pricing, allocation, and data feeds. The output of Supply Management is Best Buy.
The outcome of these things working together is improved margins.
As an example - you have 3 different supply contracts at 3 different terminals all within the same distance of the end location. You also have the historical sales data at that location. What is the lowest cost option for a load to be scheduled, picked up, and delivered based on those variables? We'll tell you.
How, you ask? Good question. During setup, all supply contracts and pricing formulas are added to the platform. All pricing data feeds are sent to us as well. Remember from last week all tank levels are also available to us. With all that we know what needs to go and where, plus what supplier / terminal combination has the best price based on the existing contracts. Taking those variables, plus a few more, we make the recommendation.
It's also important to know how much allocation you actually have at the terminal. Are you ahead or behind for the month? Is there product actually available? We'll tell you, real time, how you're performing against your contracts to ensure you're optimizing your contract performance.
Wait, there's more. Once we get the BOL we can also create a buy price and a selling price so they can be matched, reconciled, and invoiced. But we'll get further into that in a couple of weeks.
When you think about how you manage your buy and sell contracts, pricing, and allocation management if there is little automation or a centralized place this happens, we would love to chat.
If you would like to learn more, just hit comment and we'll get something on the books.