Paul Nazzaro, President Advanced Fuel Solutions paulsr@yourfuelsolution.com Managing Your Fuel Distribution Business within a Challenging and Changing Environment The ultimate goal of the petroleum supply chain, no matter what one’s position within it, is to bring fuel from production to consumption with 100% customer satisfaction. While some perceive customer satisfaction as a product of low price, in reality the price of customer satisfaction is high product quality. In our industry, product quality, and thus customer satisfaction, is challenged at every stage of the supply chain. From the refining process to logistics, transportation and storage, all the way down to distribution, fuel quality is compromised by time, temperature, organic and inorganic contaminants and unintended contact with other petroleum products and blends, all of which impair the future performance of the fuel. Maintaining fuel quality and performance is further complicated by the changing makeup of the supply pool itself—not to mention the equipment it’s intended to power. Increasingly stringent regulatory standards regarding sulfur content and renewable fuel levels, as well as mounting pressure on original equipment manufacturers (OEMs) to increase fuel efficiency and decrease carbon emissions, has widened the compatibility gap between today’s equipment and fuel, placing more responsibility on fuel distributers to proactively ensure that fuel quality is maximized, consumer messaging is clear and customer satisfaction is achieved. Fortunately, fuel distributers have a story worth sharing. As rapidly as hardware developments have been proceeding in recent years, so too has fuel additive technology. Today’s advanced additives can mitigate fuel problems and optimize performance to create premium products, tailored to meet the needs of customers. Cold flow additives prevent fuel gelling to keep diesel engines and heating systems running smoothly through the winter. Detergents keep tanks and injector systems clean and free of deposits. Combustion catalysts increase fuel efficiency and decrease emissions. Lubricity agents have never been more essential to counteract the removal of sulfur (a natural lubricant) in ultra-low sulfur diesel (ULSD). Water control treatments prevent fuel degradation and other water-related issues. Biocides control microbial contamination. Biodiesel is a cleaner burning and highly marketable renewable fuel that can be blended with traditional diesel at rates that beat natural gas on environmental benefits (this is why Bioheat is emerging as a mainstream heating product in the east). In short, for a few cents more per gallon, customers can have a far cleaner, more efficient and higher performing product that will quickly pay for itself in the form of reduced consumption, fewer service calls and less down time. Offering premium fuel can only serve as a differentiator if consumers are educated on the subject. Raising consumer awareness via website, social media, marketing brochures, traditional advertising, customer newsletters and through personal interaction are all good ways to promote the long-term benefits of superior fuel quality over the shortsighted practice of chasing price. But the most effective marketing strategy is to provide evidence that the enhanced fuel actually works. Showing customers their fuel filters, tracking efficiency measures and recording drops in maintenance issues goes a long way towards strengthening your value proposition, reconditioning your customers’ take on fuel and building loyalty not only to your brand, but to our industry. ICM 20 ICM/September/October 2016
ICM September-October 2016
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