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Supporting Exchange Agreements

November 11, 2010

A major oil company has been using COST2SERV Network Strategy in all regions within its European operations for nearly a decade to optimise its supply chain. The system is run throughout the annual re-negotiation of exchange agreements to analyse a number of issues impacting agreements.

The company also uses COST2SERV to measure the impact of proposed changes to its overall network and in its negotiations with haulage contractors. It recently decided to upgrade the system to provide a common method of planning for all regions, and an enhanced user interface was introduced to improve user friendliness.

In addition, a new method of estimating the possibility of multi-dropping for each service station was incorporated. This led to an even more accurate view of the secondary transportation costs, thus providing an extremely detailed picture of both the primary and secondary supply chains on a pan European basis.