Saturday 22nd Oct 2016 - Logistics Manager

Cost efficiencies with night-time travel

Having bought Calor’s aerosol propellants business earlier this year, BOC has awarded the distribution of these bulk hydrocarbon blends in the UK to TDG European Chemicals after a rigorous tender process. As part of the five-year contract, TDG is operating about 20 dedicated tanks on behalf of BOC.

The distribution operation uses extensive double-shifted operations with 60% of the anticipated annual mileage being travelled at night, offering cost efficiency over daytime-only operations but also recognises the environmental considerations associated with LGV operations.

TDG is managing stocks of aerosol propellant at one of its operating centres in Lancashire to allow for improved responsiveness in the market place and enable BOC to position material closer to the end user.

The aerosol propellant market is highly driven by service and TDG’s commercial agreement with BOC mirrors this with mechanisms for reward across a range of service driven performance indicators. These include on time measured and segregated by type of time parameters, and rewards for incident free operations and equipment maintenance standards.

One of the particular challenges TDG faced was the fact that some of BOC’s biggest users have timed deliveries with just a 30-minute window, so first class planning and execution are critical to achieving these time constraints.