In the early 1990s, renowned management consultant Peter Drucker advised companies to "do what you do best and outsource the rest." Since then, virtually all Fortune 500 companies have outsourced some part of their operations to third-party contractors.
Maintaining focus on the core mission and reducing costs are among the top reasons cited for outsourcing. Companies are also asking contractors to add value in other ways: to address capacity issues, improve service, provide access to intellectual capital and best practices, and accelerate organizational change.
"Those are some of the very reasons why so many of the nation's leading refining and chemical producers have chosen to outsource their material handling and site logistics to us," said Joel Dickerson, president of Petroleum Service Corp. (PSC). "We actually trace our company's founding back to a decision by Standard Oil, now ExxonMobil, to outsource the barge loading at their refinery in Baton Rouge, Louisiana. Our founder responded to meet that need in 1952, establishing the nation's first tankerman service.
"Since then, we've expanded our services to meet our customers' needs and bring more value to their operations. Our goal is to provide a level of safety, quality and efficiency that exceeds what they can achieve using their own personnel."
A successful partnership begins with the contractor selection process, and that's something Bill Myers is pretty familiar with after a 30-year career in the chemical industry as a logistics and supply chain leader. Myers recently joined PSC and serves as vice president of special projects.
"The terms 'outsourcing' or 'contracting' work are often misunderstood, sometimes conveying a negative connotation. You have to ask whether you're hiring workers to be directed and told what to do, or if you're hiring experts to provide safe and cost-effective services," said Myers. "The core business of producers focuses on manufacturing quality products to satisfy customer demand, not material handling. So, when we were looking for a company that could provide turnkey logistics services, we looked for one that offered the breadth and depth of industry- based operations knowledge we needed for real and immediate solutions."
A strong track record of experience and proven results is the best indicator of future success.
"The benefit of hiring a company like PSC was to acquire their expertise in multidisciplinary material handling," said Myers. "PSC offered operational processes that were built on best practices garnered over more than 65 years of service to top-tier refining and chemical manufacturing companies."
Maximizing value
"We work to identify and implement strategies to make a powerful impact on productivity and profitability," said Dickerson. "For example, we've achieved cost savings for our customers by optimizing staffing and providing flexibility to better match changing production schedules."
PSC's management team also works with each customer to develop a set of performance metrics and goals for the work being performed.
"We monitor the work activity and track all incidents. This information goes into quarterly quality reports we review with our customers," added Dickerson.
For more information, visit www. petroleumservice.com or call (281) 991-3500.
