The Importance of Crude Inventory Management
While countless white papers have been published on the importance of inventory management, at refineries across North America it seems the jury is still out. Through the collective experience of the Trindent Hydrocarbon Loss Control practice we’ve witnessed every inventory management structure imaginable. While one refinery will keep the crude tanks filled to capacity in order to avoid any chance of shortage, another will minimize inventory to maximize cash in hand and the ability to act on moving spot prices.
Although there is no “one size fits all” solution for crude inventory management, Trindent’s loss control specialists have consistently helped our customers identify and implement measurable improvements to their crude and intermediates inventory management practices. Depending on the particular needs of the customer, the result can be better management of risk, increased working capital, or reduced debt service. Regardless of the specific benefit, the end result is a better visibility into the day to day inventories which enables our customers to develop and maintain a forward looking inventory strategy.
By: Skye Lee