Companies that supply bulk or cylinder propane gas must balance the pressure to reduce costs with accurate and efficient service delivery to ensure residential and commercial customers always have an available gas supply. An added challenge is that bulk delivery schedules are dynamic, while cylinder deliveries follow a fixed schedule.
For both types of operations however, the inability to accurately forecast customer inventory is a significant factor in increasing the cost of delivery. Making more frequent deliveries to increase buffers does ensure customers are never without gas. However, this approach quickly drives up transportation, inventory and labor costs.
This white paper provides an overview of the key elements of a gas routing model. It provides an overview that can be used to help improve service while at the same time improving operational efficiencies – both of which are key for this highly competitive sector.
The capabilities described in the white paper include some that are inherent in the Descartes software and some that were established specifically to support oil, gas and propane distribution. The combined effect is a route scheduling system uniquely capable of helping liquid bulk distributors achieve optimal service/efficiency balance, maximize revenue yield per stop, and effectively model the real-world idiosyncrasies of liquid bulk distribution. The combined effect has enabled key customers to achieve optimal results and transform their distribution business.