Unlike any other industry, oil and gas supply chains are incredibly complex. Supplying every operation with heavy equipment, rigs, pipes and hazardous materials requires extreme organization and strategy. Transporting such materials in such large volume demands using multiple modes, high capacity, special vehicles and strict regulatory compliance.
Oil and gas supply chains cannot survive any delays, disruptions or poor management. Every mistake and missed deadline can cost a company thousands of dollars. the mismanagement of such global processes can cause worldwide issues because the entire world is highly dependent on energy supplies.
Handling logistics for oil and gas companies by yourself is an expensive and inefficient approach, which often lacks visibility. Transportation is a large branch of the energy business and requires tons of time, efforts and enormous responsibility. Just one rig site may involve equipment from 80 different carriers. Considering that most of the drilling sites are located in inaccessible areas, it’s hard to imagine the volume of responsibility and costs involved in the process.
Many companies apply customized shipping solutions to their supply chains by outsourcing logistics operations to third-party logistics providers, or 3PLs. Outsourcing offers many benefits to energy companies:
Finding the right transportation mode and providing necessary equipment is crucial for on-time delivery. 3PLs partner with a wide range of experienced carriers and have a variety of options to offer for your shipping needs. Flatbed trucking, casing and tubing deliveries, rig site delivery, combining transportation modes, warehousing, freight management, and hotshot services – all of these options fall under a 3PLs expertise.
Unlike many other industries, safety is a top priority for the oil and gas sector due to its specific nature. Cutting costs on safety compliance is unacceptable, and 3PLs consider this factor while managing your supply chain. Logistics experts will provide assistance with regulatory compliance and ensure the transportation runs smoothly.
Technology and visibility
Due to its complexity and time-sensitivity, oil and gas logistics operations require increased visibility. Multiple processes mean lots of data that needs to be stored and systematized efficiently. 3PLs leverage advanced transportation management systems (TMS), which give complete visibility into supply chain and reports at all times.
When choosing a 3PL for your logistics solutions, consider the experience they have in your sector. While technology and a variety of carriers are important, understanding the specifics of oil and gas industry challenges is a key feature to look for.