When using IIoT solutions to optimise the distribution logistics of oil, gas and chemical products, three elements are crucial: reliable data, the right key performance indicators (KPIs), and processes adapted with a view to continuous improvement.

Why define KPIs before integrating an IIoT solution?

The main purpose of KPIs is to provide an objective basis for measurement and to enable rigorous performance monitoring. Before implementing an IIoT solution, it is essential to know what you want to improve: preventing stock-outs, reducing logistics costs or eliminating over-deliveries. The indicators must reflect the company’s strategic objectives.

Objectives and KPIs therefore need to be clearly defined at the planning stage, when it is decided which tanks to equip. Priority is generally given to equipping customers on the basis of their strategic importance (e.g. contractual conditions), the frequency of deliveries (e.g. tanks undersized in relation to consumption) and the variability of their consumption (e.g. sharp fluctuations in requirements requiring increased monitoring to avoid critical shortages).

What KPIs can be tracked and with what level of reliability?

The quality of the data collected by tank telemetry units is a prerequisite for the success of any logistics optimisation strategy. At Sensile Technologies, we are renowned for providing reliable and robust solutions, with the best data accuracy and availability on the market.

From this data, our Oil Link™ cloud portal can display and track a wide range of indicators. Some of the most commonly used include:

• Drop Size Indicator (DSI): monitors tank distribution according to average delivery volume over a given period
• Dry Run Indicator (DRI): monitors the number of tanks that have run dry
• Logistics Performance Index (LPI): measures the instantaneous performance of deliveries

How do KPIs change over time?

Using these indicators and tracking them makes it possible to adjust processes with a view to continuous improvement. Our customers generally adopt a progressive approach and undertake such adjustments over periods of at least 3 years.

In the first phase of implementation, the focus is often on reducing the number of dry tanks, immediately guaranteeing an increase in customer satisfaction. Over time, companies improve their internal processes and aim for greater gains in logistical efficiency and costs per volume delivered. Thanks to reliable data and KPIs, distributors will be able to optimise their deliveries by triggering them as late as possible, while keeping the risk of tanks running dry under control.

Would you like to find out more about your potential gains and see a demo of these KPIs in action? Please contact us!