Oil storage terminals are facilities for storing crude oils and petrochemicals products worth billions of dollars. Terminals operators are facing stiff competitions within the industry, they are pressurised to optimise their storage tanks to operate efficiency and maximise storage capacity. Furthermore, they are required to hit the performance and safety levels required by customers, as well as regulatory agencies.
Importance of Effective Procurement
Procurement holds an important role in oil storage terminal, Effective Procurement helps in keeping operational costs down and can be strategic for a business to be able to optimally utilize its resources. It also helps with quality control and product categorisation, ensuring on-time delivery on site and cost saving (without jeo pardising quality and safety).
Within the oil storage terminal business, procurement costs can be huge owing to the size of the business itself. Even slight changes can show a significant difference in the operating costs. Thus, to improve the efficiency of procurement in the oil storage terminal, incorporating automation and digital technologies is crucial. I shall discuss RFID technology in warehousing control and control of maintenance and inspection.