Valero, an international manufacturer and marketer of transportation fuels and other petrochemical products, required a reliable supply chain operator to ensure efficient fuel management optimisation across the country.
Valero was looking for a more cost-effective distribution solution that was vital to ensure Valero could continue to offer its customers competitive prices and, subsequently, continue to win new business.
Introducing a new way of thinking
Wincanton was chosen to handle the transport scheduling and customer orders, introducing several new and innovative solutions to enable seamless, more efficient operations.
- Vendor Managed Inventory (VMI) improves customer experience, enabling the scheduling team to monitor customer stock tanks remotely and predict when a delivery is required. This ensures customers always have fuel available and allows Wincanton to monitor levels and update the customer ahead of the delivery. With no customer input required, Wincanton provides a seamless, high-quality experience.
- Geofencing gives customers a notification 30 minutes prior to the delivery. This gives greater visibility of their product, as well as the opportunity to plan for its arrival to minimise disruption on-site.
- Access to Wincanton’s EnergyLink shared-user fleet increases the flexibility of the distribution solution. During peaks and troughs in demand, Valero is able to access greater or fewer numbers of vehicles and drivers. This ensures working capital is not tied up in underused resource during lower demand periods, while operations can be scaled up efficiently when required.
Managing a major fuel supply chain
By implementing these solutions, Wincanton has been able to help Valero on numerous different fronts; one of which is reducing operational running costs. By transferring the planning operations to Wincanton’s Worsley site, Valero has streamlined its activities to save on substantial running costs.
Supplying over 850 different customers with the fuel they require is no easy feat. Wincanton conducts 220 different deliveries-a-day. This is all supported by 52 dedicated tankers that make multiple stops along each journey. The geofencing technology makes this as efficient as possible with drivers no longer having to inform customers of their arrival time.