Who benefits mosts from VMI in bulk chemical & fuel distribution..?

Posted on 22 Apr 2010
  • Reduced distribution costsif you don't use telemetyr you are being inefficient
  • Lower carbon emissions
  • Improved customer satisfaction
  • Longer term & single source supply contracts
  • Fewer panics & run outs
  • Long term production scheduling, helping manufacturing and purchasing

Efficient production is helped by reliable forecasting, so knowing what customers are consuming and when enables plans to be made, maximising plant efficiency and utilisation of resources. Production are further helped as once telemetry /VMI has been implemented there will be fewer instances of panic production runs. This has a knock effect to procurement - all suppliers prefer well organised customers and those that continually require quick turn around from their supplier surely suffer as a consequence when it comes to contract negotiation time.

With VMI you no longer rely upon your customers phoning in with tank levels or sending through orders, thus reducing order processing and at the same time increasing the level of customer service. This helps the sales team not just keep hold of existing customers but get hold of new ones. Sales people love having something new to sell, it gives them reasons to engage further with prospects, and it offers these prospect tangible benefits. Clients can be locked in to longer contracts and single source arrangements, which you could argue would bring them risk, but any risks are more than outweighed by the cost and service benefits of VMI.

VMI improves efficiency

Fewer miles means less CO2 contaminating our delicate planet. Investment in vehicle development is improving efficiency and having an impact, but fleet managers should be encouraging the use of VMI as it reduces the number of miles the fleet has to cover significantly. Some recent analysis with one client showed they undertook 24% fewer deliveries once VMI was installed - how long would it take for a vehicle manufacturer to get close to this?

How many environmental benefits in the chemical, fuel and foodstuff inductries can also contribute so much to the bottom line..?

Products such as the Metron2 from Powelectrics ensure that VMI can be easily deployed. It is wireless & self containe. There's no need to arrange with your customer for a mains electricity feed, or for a phone line to be fitted. The in built display makes set up and test quick and easy. VMI has never been more affordable or more justified.

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