Some tell-tale signals that it’s time to find a better way
Is it time to shake up the way you run your tanker fleet?
When you are running a large, dynamic tanker fleet, there are some tell-tale signs that systems and processes are not up to scratch. It might be time to consider shaking things up by investing in VMS when you…
1. …seem to be missing out on charters because you are too slow to quote
Speed and agility are key to closing deals. Providing competitive quotes is critical. If the companies that you are up against have the drop on you because they have the ability to respond quicker to requests for chartering costs, then you might find that you are consistently losing out.
The problem with losing a deal is not just losing the deal, but it’s the time wasted by your team on putting the quote together. Complex calculations taking into account multiple variables are required. It all soaks up valuable time and if the time spent by your workers is not generating revenue then you are effectively losing money.
If you find you are slow to respond to requests for quotes because of a heavy reliance on a manual process using spreadsheets, it’s really time to review how things get done there!
2. …find errors on estimates are eating away at your profitability
Quoting on charters is not just about speed. Any bozo can pick a number out of thin air and tap it into a quote and hit send… Prices given out for charters need to be accurate and based on known good data that delivers estimates which properly support each quote.
When you find large margins of error that pull down on the bottom line cropping up it might be worth trying to discover how serious the problem is. Forensic accounting might be called for (if you dare!) to discover the frequency and the scale of the problem.
If you find quotes are consistently costing you dear by narrowing margins and sometimes even making you run at a loss, it’s time for a re-think about your process for pricing charters.
3. …get caught out by inaccurate fuel cost calculations
Of course, tankers don’t run on briny. Fuel is a large chunk of a tanker’s operating budget and keeping on top of what’s in those bunkers and what it costs is a key part of counting the cost of every voyage. Market forces mean prices are subject to variation at the terminal. Fuel is volatile in more ways than one!
Taking on fuel in different terminals often at different prices complicates fuel accounting. Different types, such as marine heavy fuel oil and diesel for generators, and factors such as unpumpables and allowances for bad weather all have cost implications that need to be accurately and consistently considered.
If you find that fuel cost calculations lack consistency and accuracy, then it’s worthwhile considering a new way of accounting for what’s going through those bunkers.
Greater accuracy and better consistency for improved profitability with Q88VMS
Q88VMS is the fastest-growing voyage management system on the market for good reason. It’s helping leading tanker operators to maximize operational efficiency and boosting profitability to outperform industry averages across entire fleets.
Q88VMS provides the vital hard decision support information that informs on how much money you can make (or lose!) on every voyage.
To directly address the tell-tale signs outlined above, Q88VMS:
- Speeds up your ability to quote – complete in minutes what takes hours to do manually
- Allows you to get complex calculations right – consistently control margins and profitability
- Gives you certainty over fuel costs – achieve greater accuracy in fuel cost estimation
The features you need to close deals, be competitive and watch your margins
Q88VMS is a modular system that centralizes your data in the cloud and wraps it with a comprehensive set of tools, enabling you to do a better job of running your tanker fleet:
- Open Positions – Overview of cargo discharge and availability to take on new loads
- Estimates – Calculator for reckoning the financials of each voyage
- Voyages – Provides Financial Management for new business and Account Management functions to manage voyages
- Invoices – Tracks invoices and balances and part payments, compliant with accounting standards and bespoke integration with standard accounting systems
- Email – Integrate with operational email Inbox – one-click functionality to automatically go from an email to the info for each numbered voyage
- Reports – Powerful analytics – with Q88VMS it takes 30 seconds to do what takes half a day with Excel or half-an-hour with a comparable system
Q88VMS pays for itself quickly. Across your fleet, annual costs for each vessel break down into a per day rate that makes financial sense. Choosing Q88VMS is one of the smartest decisions you’ll ever make.