Are Bulk Cryogenic Spot Drops a Good Idea? For the sake of collective sanity- Let’s agree that business profits are good and necessary. Bulk Cryogenic Liquid Suppliers have a number of challenges to overcome in order to turn a profit at the end of the day. Others will be explored over time, but one that is universal is transportation costs. One element of this is how many miles must be traveled to deliver a given quantity of liquid oxygen, nitrogen or argon. For more effort than most of us can imagine goes into trying to optimize this ratio.
Yesterday a good friend used a golf metaphor for business that applies. To wit- He wants his business to operate like a golf ball. When you hit a golf ball out there it stays out there and doesn’t come back. All returns are costly and one of the most important things that can be done with cryogenic liquid delivery is to be sure that all of the liquid that leaves the plant stays out.
One way that delivery companies help assure they are able to do this is to identify bulk tanks that can be used as field receivers for liquid that is left in a truck at the end of its route. So, for instance, a liquid nitrogen truck drives out to a suburb area and delivers 5200 gallons of its 6000 gallon load to clients. The 800 gallons that might be returned to the plant is now a liability. To avoid returning it, the driver might go to a client that did not call in for delivery, but has a 9000 gallon tank that always has some room in it and drop off his remaining liquid He now comes back empty and converted the 800 gallons he had from a cost to revenue.
Is this a good thing?
Did the revenue generated offset the cost of an 800 gallon delivery considering that Company X typically hates to deliver under 1500 gallons?
Is this a good thing for the client that received this drop?
Manana (later).
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