You can significantly cut down on the cost of your olive oil by receiving it in a flexitank or tanker. This means that a truck would deliver to your facility with about 6,000 gallons of olive oil. This oil is pumped into a “silo” or “storage tank”, located at your facility. The question is, how do you know when it’s right to make the switch from totes to flexitanks/tankers?
The answer is in the numbers: when is it actually going to save you money, and how much will you save? This oil storage system at your facility costs about $30,000 to set up, but oil savings are usually about $0.10-0.20 /lb depending on the commodity market (as compared to totes). Because of the initial setup cost, you have to be using enough consistent volume to make setting up this system worth your investment.
We recommend considering installing a storage system and switching to tanker/flexitank delivery when your annual olive oil usage is about 200,000 lbs (about 25,000 gallons) for each olive oil grade that you use. Based on these volumes, your new system would pay for itself within a year. From there on out, your savings would be substantial.
Do some quick math based on your own facility to see if the switch is worthwhile:
Centra Foods has also developed a low-cost alternative system where a tanker will show up at your facility and pump the oil into totes which can then be easily stored in your existing facility. In this system, you can get the tanker price and avoid the $30,000 setup fee. Contact us to learn more.