A transportation management system (TMS) for oil and gas has simplified the logistics process and cut costs for oil truck tankers.

How TMS Reduces Cost for the Oil and Gas Industry

We’ve posted before about how a transportation management system (TMS) can help you gain real-time visibility into your supply chain so that you can make fast, informed decisions.

In this article, we will explore the benefits of a TMS for a specific industry: oil and gas.

Oil and gas companies today are under more pressure than ever before to reduce their costs. One area where significant savings can be achieved is transportation.

Some of the benefits of a TMS oil and gas solution include:

  • Improved visibility into transportation operations
  • Better control over transportation costs
  • Increased efficiency and coordination across modes of transport

1. Improved Visibility into Transportation Operations

An online transportation management system allows employees to communicate and coordinate transportation needs. This system provides a centralized location for employees to view transportation options and make booking decisions.

Employees can also communicate with each other to create a coordinated plan for shipping materials, and a unified TMS means they all have access to the same data and information necessary to make informed decisions.

The oil and gas industry is cyclical, with high and low production periods, and this volatility can make it difficult for companies to forecast their shipping needs. A TMS for oil and gas can help companies plan better and react more quickly to changes in the market and streamline the shipping process, resulting in fewer missed shipments and faster transit.

2. Better Control over Transportation Costs

The oil and gas industry has unique needs for transportation management. Many companies are spread out across the globe, making it difficult to move supplies and products efficiently.

A TMS oil and gas solution can help reduce the cost of shipping for these companies by organizing and optimizing transportation routes. By optimizing routes, a TMS can reduce the amount of mileage traveled by trucks.

In addition, a TMS can help to improve communication between shippers, carriers, and receivers, resulting in faster turnaround times and lower transportation costs.

3. Increased Efficiency and Coordination Across Modes of Transport

The oil and gas industry is a critical sector of the economy, responsible for powering vehicles, heating homes, and fueling industries. However, the process of extracting, transporting, and refining oil and gas is resource-intensive and can be costly.

Oil and gas companies have to move a great deal of product in various ways, both crude oil and refined products, to meet the world’s demand. The products have to be moved from where they are produced to where they are used.

A transportation management system can help reduce the cost of moving goods within and between oil and gas facilities. This can help save time and money and improve the efficiency of the oil and gas supply chain.

For example, it can help to optimize routing and scheduling so that vehicles are used more efficiently. It can also help to improve order accuracy and reduce the amount of wasted time and fuel due to unnecessary trips.

We Can Help with Supply Chain Inefficiencies

TMS oil and gas software can also help companies track their shipments and identify any inefficiencies or bottlenecks in their supply chain.

Once you’ve identified these obstructions, CloudLogix can help you find ways to remove them and make your supply chain processes more efficient. Contact us today to schedule a demo of our platform.