What is the driver behind this article, you may ask? Well, we attended the GAWDA Spring Management Conference in Savannah, GA, in April. Efficiency of distributors was part of the theme of a panel of experts that, in the main, were discussing the supply chain and how gas distributors could deliver high pressure (HP) cylinder gases for a lower cost.
During the meeting it was suggested that the delivery cost was around $11 per cylinder – the aim was to improve efficiency across the supply chain to reduce this by approximately $1 per cylinder, or about 10%. To me, the answer was more obvious – move to higher pressure, higher capacity cylinders and witness a significant reduction in delivery cost for the gas.
Changing technology over the past 20-30 years has led to the design and capability of cylinders manufactured to operate at working pressures of beyond 4,500 psi. Yet a recent survey by Baird/CryoGas asked the question of the purchasing trends of distributors for HP cylinders and 56% of those surveyed were still buying cylinders below 2,500 psi operating pressure. So what’s the right call for your business? Is there a ‘right call’ at all?
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