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The energy industry in the United States is changing rapidly. Deregulation has opened up both growth opportunities and competitive pressures for energy companies. Although the full impact of deregulation has yet to be felt, the arrival of competition has forced energy companies to look for new areas to reduce cost.
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| One such area is logistics.
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| Historically, vendors had been allowed to manage the transportation of purchased material. Many energy companies now view this transportation as a potential area for cost reduction, either independently or as part of an overall supply chain strategy. Recognizing the potential to manage cost in this area, but not viewing it as a core competency, energy companies have increasingly turned to logistics companies for solutions.
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| Creating these solutions has been a challenge for logistics companies. Traditional logistics programs strive to implement solutions that are efficient and manageable. However, the fluid and complex requirements of the energy industry demand tremendous flexibility for shipping unique, high-dollar material from a wide variety of locations, often on short notice.
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| Logistics solutions for the energy industry can be successful only when their design recognizes the clients' main investment lies in ensuring the production or flow of energy. Successful programs will be operationally oriented, generating savings through efficiency and service. Transportation cost reduction cannot be the exclusive goal. The safe and timely delivery of materials that ensure the production or flow of energy must drive the design of the program.
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| Ardmore Power Logistics provides these solutions.
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| For more information on recent developments in the energy industry, we recommend you visit the Web sites of the following organizations and publications.
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| - Energy Information Administration
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| - Association of Energy Service Professionals
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| - Electricity.com
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| - UPMG - Utility Purchasing Management Group
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| - USMA - Utility Supply Management Alliance
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