Petroleum Distribution

Mission Statement

The Petroleum Optimization Center [POC] provides a resource planning & scheduling function, incorporating the use of an advanced Proportional Inventory Replenishment system – Aspen Retail. The name reflects the purpose of optimizing petroleum transportation operations.

The Planning & Scheduling component takes into account fuel operations throughout North America. The Petroleum Optimization Center maintains direct control over the assignment of orders to petroleum freight companies to ensure that the maximum utilization of resources is sustainable. Consequently, the POC recognizes the significant benefits & efficiencies it can provide to its customer base.

Our Vision

Our motivation is to provide value added services to customers. The Petroleum Optimization Center enhances the following tasks:

• More effective Inventory Management,
• Seamless order taking for all customers,
• Planning and scheduling from one location, consequently maintaining continuity in the areas of:
• Payload optimization
• Equipment utility
• Assignment of resources
• Improved Customer Service through
• Centralized monitoring & measurement [KPI’s]
• Developing and cascading of ‘best practices’

The overwhelming benefit is that we can offer ‘one stop shopping’ to our customers – integrated hi-tech inventory management, centralized order taking, demonstrated process continuity.

Goals

By institutionalizing processes, this allows improved inventory management and global operational efficiency through better utility, lower Cost Per Volume Delivered [CPVD], load leveling and closer scrutiny of customer service [run-outs/retains] The purpose of the POC is to optimize the use of available resources. The primary objectives are to:

• Provide a value added service to all customers
• Make decisions on the best match of loads to resources, considering elements such as customer service, costs [CPVD], payload, equipment utility, reduction in split deliveries, tank inventory leveling and driver retention
• Drive inefficiencies out of the cost component

Petroleum Optimization Center Operations

The function of the Petroleum Optimization Center is focused on Inventory Management, planning [payload optimization], scheduling, the distribution of Optimization Plans [Terminal Tender Reports] and customer & driver communication regarding product issues, i.e. deliveries, inventories.

System interfaces between the customer, carrier and POC [Aspen Retail] may vary depending upon local customer and Bulk Plus Logistics’ technology. Therefore, it will be the responsibility of the POC to develop procedures for the respective interface and ensure all personnel receive the appropriate documentation & training for current and future enhancements.

POC Operating Protocol

There are 4 pre-requisites to managing an efficient Petroleum Optimization Center and to ensure the Optimization Plan can be executed to the customers’ satisfaction; 1. the data quality in Aspen Retail must be accurate and current, 2. the available resources at the must be current, 3. the minimum Economic Order Size [EOS] must be achieved, and 4. the delivery window & lead time must be adhered to at all times.

Daily operations reviews are conducted to deal with:

• Available resources [amendments to the pre-set Transport Schedule, i.e. equipment, drivers]
• Data quality issues/changes requiring immediate correction of Aspen Retail [product changes, name changes]
• Scheduling issues
• Customer Service Non-conformances

Measurement

The Petroleum Optimization Center has a critical need to analyze the ability to meet its objectives in a repeatable manner. A Balanced Scorecard identifies the Key Performance Indicators determined to be the most effective in measuring the activities of the POC and the customer in meeting those objectives.