Product tanker

Product tankers is an oil tanker for the carriage of refined products derived from crude oils. Product Tankers are designed to carry clean petroleum products (CPP). According to the distillation process, CPP encompass light (e.g., Gasoline, Naphtha) and middle distillates (e.g. Diesel, Jet) products.

A clean product tanker carries light petroleum products, a dirty product tanker carries heavy petroleum products. The product tanker is intended for transportation and distribution of crude oil derivatives from the refineries to consumers. Product tankers are usually short-range coastal tankers, hence are smaller in capacity. They carry products from processing plants to distribution units.

Carry refined oil products that can be classified into 2 main groups:

– White products (Diesel oil, gasoline, jet fuels, kerosene, lube oils, etc.)

– Black products (fuel oils, residual products)

The Product Tanker Fleet includes the following categories of vessels, based on their carrying capacity:
*Aframax – Long Range 2 (LR2): 90.000 – 120.000 dwt. The name Aframax comes from an oil tanker rate system introduced by Shell called the Average Freight Rate Assessment.

*Panamax – Long Range 1 (LR1): 65.000 – 80.000 dwt. The term “Panamax” is used for defining the certain type of vessels (tankers, container carriers and bulkers), that have maximum dimensions to pass the Panama Canal with maximum amount of cargo onboard.

*Handymax – Medium Range (MR): 35.000 – 55.000 dwt. Handymax ships are categorised into the class of Handysize bulk carrier ships. These carrier vessels can be termed as being amongst the smallest bulk carrier ships in operation today.
Product tanker

Procurement

Procurement is the full range of activities related to purchasing goods, services and works.

Procurement can range from contracting for an entire service to purchasing small assets such as office equipment. Procurement is most commonly associated with businesses because companies need to solicit services or purchase goods, usually on a relatively large scale.

Procurement activities preceded by planning, referring to business plans and inline with expansion strategy of the company.

Procurement differs from purchasing in that purchasing merely reflects the act of acquisition, while procurement encompasses more elements of the supply chain (logistics, transportation etc.).

Procurement of goods and services may be categorized as:
*Direct procurement
*Procurement by comparing at least three written quotations
*Procurement by means of an institutional bidding process

The procurement method will depend on the total estimated cost of the required good or service.
Procurement

Supply chain inventory

To a country, inventory is the artery and represents the material wealth of a nation. To a company and its supply chain, inventory is assets. As such, inventory management is crucially important.

Historically, organization used to carry high stock, which they almost viewed as a sign of wealth. Extra inventories are necessary to buffer the uncertainties and inefficiencies introduced when one link in the supply chain acts independently from another.

However, this attitude changed many years ago when organization learned that managing inventory efficiently and effectively is a key element in remaining competitive.

Any excess stock raises costs with consequent effects on profit, sales, market share and overall performance.  Increasing supply chain inventories typically increases customer service and consequently revenue, but it comes at a higher cost. A more subtle problem is that high stock levels hide other problems, such as poor material quantity, inaccurate forecast of demand and unreliable suppliers.

Better management of inventories throughout the supply chain represents a huge opportunity for businesses.

Inventory is a stock of any item or resource used in an organization. An inventory system is a set of policies and procedures that determines what inventory levels should be maintained, when stock should be replenished and how large order should be. There are five categories of inventory
*Raw materials
*Work-in-progress
*Finished goods
*Maintenance, repair and operating
*In-transit-stock
Supply chain inventory