Weston-super-Mare based BWOC was founded in 1982 by Bob Wayne, a family man who had spent all his working life at different levels within the oil industry

Last summer, a new distributor emerged in the south west – Monument Fuels. Several months on, FON spoke to co-owner, Trevor Rolph, to find out more about the company and the trials and tribulations of setting up a new business 

Nestled in the heart of the Lancashire countryside, a mere stone’s throw from Carnforth station, which famously provided the setting for the 1945 film, Brief Encounter, lies WCF’s North West and Cumbria fuels division. Fuel Oil News recently met up with finance director, Jo Ritzema, North West general manager, Dave Spencer and commercial manager, Lynn Casson, at the company’s Carnforth depot Employee matters Founded as a farmers’ co-operative in 1911, the company was incorporated in 1988 and celebrated its centenary in style with a party last May. 100 years on WCF remains fiercely independent and proud of it. The company is owned by 3800 private shareholders, including many employees, which as Jo pointed out, is unusual in the UK for a non public organisation. “All of our employees are shareholders and encouraged to have shares, under the various schemes that we offer. Last year every employee received a bonus of £1500 in shares. It’s important to us that there’s a very strong element of employee ownership. It gives employees a sense of belonging and demonstrates to them that their opinions are valued.” Across the business, WCF employs approximately 250 people, around 50 of whom work in the company’s fuels businesses. “Staff retention is high,” says Jo. “This is partly down to our culture and partly down to location.” Proving the point, Jo has worked at WCF for 8 years, whilst Lynn has been there for 18 and Dave 23 years. Experience counts Following the removal of the default retirement age in October, the company is keen to retain drivers over 65. “It’s definitely an advantage to have older drivers in the business,” comments Jo. “Their local knowledge and existing customer relations are invaluable. It may be the case that an older driver is happy to work over the winter but would prefer the summer off to spend time with family, and we’re happy to accommodate that sort of request. The only downside, from a business point of view, is that the removal of the default retirement age, makes it very difficult to plan ahead.” Geographical spread The company consists of two main divisions; retail and specialised distribution, which includes fuels. WCF’s fuels sector operates from three main regions, all of which are run autonomously, each with its own general manager; North West (which covers South Lancashire to the Scottish Border, from the Irish Sea to the Pennines, as well as Wensleydale and Swaledale); North East (which encompasses Hexham and Northumberland, as well as the Tyne, Wear and Teesside areas) and Eastern (which primarily caters for the Yorkshire, Humberside and Lincolnshire areas, but also extends as far as Peterborough and into the Midlands). With depots in Boston, Pocklington, Immingham, Carlisle, Carnforth, Hawkshead, Peterlee, Gosforth and Hexham, and more than 1.5 million litres of storage nationwide, the company is well placed to cater for its wide spectrum of customers. Across the three regions, the company operates in the domestic, retail, agricultural, commercial, industrial and marine sectors. Currently, the company operates 32 tankers, which are normally leased on an 8 year basis, from a number of different companies. “We made an operational decision to lease, rather than buy tankers, as it gives us more flexibility,” explains Jo. “Often though, we’ll buy the tankers at the end of the lease period, if they have performed well.” Whatever the weather Like many other distributors, the severe weather last winter caused problems for WCF, but Dave said: “I can’t think of one person that we let down. The weather was terrible but we got through it because of our fantastic staff and drivers. Our drivers didn’t give up, even in the most badly affected areas, and on a couple of occasions, tankers got stuck and damaged.” Lynn echoed this: “Communication is extremely important to us. We never put the phones on voicemail during working hours and we always get back to people to keep them up to speed with their deliveries.” Indeed, it is the customer contact that makes WCF and the fuel distribution sector as a whole, an attractive place to work: “We have a variety of different customers and a good level of contact with them in the office. It’s very much a localised industry and as a result, we get to know our customers well. We get lots of indirect, positive customer feedback from our drivers,” says Lynn. When asked what is the biggest headache in the industry, Dave had to think hard: “Probably the uncertainty of supply from the refineries. We get more outages than we would like. Fuel is also way too expensive.” For Jo it is the sheer number of people competing in a small area. “Fuel distribution is a mature market and innovation is difficult. We need to make sure we are better than the competition.” Moving with the times In order to expand its customer base, compete with other firms and offer buying flexibility, the company has an online presence. In addition to individual websites for each separate region, which allow customers to order oil and manage their accounts online, WCF also operates www.fuelfighter.co.uk. “Fuelfighter is not a huge resource,” says Jo “but we wanted to have an additional internet presence for those customers who prefer to order their fuel online.” Looking ahead: “We’re aiming for steady growth,” says Jo. We are focussed on increasing our customer base, in what is a huge geographical area. Although we’re always in the market for acquisitions that add value to the company, we do have to be realistic that there is normally excess competition for those businesses that do come onto the market.”  

Dartmoor has a harsh, unyielding landscape which is intersected by narrow roads and small country lanes connecting houses and communities together.  Deliveries on the moor can be difficult at the best of times, but trying to deliver fuel in the heart of winter along snowy, icy roads brings a whole new meaning to the word “difficult.”  It is a challenge that Okehampton-based Moorland Fuels relishes   “We pride ourselves on our ability to deliver,” said Moorland Fuels’ managing director, Ben More.  “We like to consider ourselves the fourth emergency service, having the ability to deliver to some extremely remote places, keeping people’s homes warm and their livelihoods secure.” New tanker joins the fleet Moorland Fuels recently bought a new tanker from the Maine Group.   Ben explained:  “Maine was our chosen supplier because they understood the difficulties facing a small company, both financially and geographically.  The result of the partnership was a narrow track tanker specifically designed for use in hard-to-navigate areas, both on the moor and in towns and villages.  “It plays a vital role in our fleet of vehicles and is a welcome sight for many of our more remote customers,” added Ben. The new vehicle is unique in that both its tank and pumping/metering equipment are produced by the same company, Maine. “This “one stop shop” has obvious advantages,” said Ben.  “Only one place to go with problems and one less profit margin to pay, as other tanker builders purchase equipment from independent metering equipment manufacturers.  Maine, like Moorland, are finding their way in a crowded market by trying to do things better and more efficiently but with customer service uppermost in their thoughts.”  Both hope for continued success together. Impressive growth The addition of the new tanker brings the fleet to five – impressive growth in a tough economic climate for this Devonshire distributor.  The tanker’s eye-catching artwork shows Dartmoor’s most visited granite tor – the legendary Haytor.  Artwork was designed by Bristol-based Cohort Designs and customised by KBS Signs in Exeter. “We see ourselves to be part of the Dartmoor landscape,” said Ben.   “We’re constantly looking for ways to improve our service to customers.  We recently launched a new website www.moorlandfuels.co.uk to provide more information to our customers about heating oil, tank replacements and boiler servicing.  It’s also a good place to catch up on company and industry news.” Many customers support Moorland Fuels because it is local and a fully independent distributor.  “They know we source quality products at the most competitive price to meet the demands of their industry, farm and home.”  The company works closely with its contracted supplier, BWOC, who were instrumental in supporting the start up of Moorland Fuels with both supplies and advice.  This relationship ensures Moorland Fuels is able to keep an extensive stock of fuels to meet customer requirements.

Established in 1935, Chandlers Oil & Gas now has six depots – Grantham, Lincoln, Retford, Spilsby, Spalding and Corby.  Started 76 years ago by Des Chandler, Tom Caunt and Joe Pell, today’s business is run by Tom Caunt’s grandsons, David Hindmarch and Nick and Simon Caunt Thirty-four drivers operate the company’s 7 articulated tankers and 27 rigids. Serving customers in Lincolnshire, Nottinghamshire, Rutland, Northamptonshire, Cambridgeshire, Norfolk and Leicestershire, they cover an area which extends as far north as Kingston upon Hull and east to Kings Lynn.  Fuel sales are split 40%  domestic, 40% agricultural and 20% commercial with product sourced from terminals at Immingham, Nottingham, Birmingham and Kingsbury. The majority of depots are fitted with skids and metering from Alpeco; five being bottom loading.  Grantham and Lincoln store 500,000 litres each with the remainder storing around 300,000 litres apiece.   Tank gauging software from Kan’to Instruments has recently been installed and is ‘working well’. Respect for customers and staff “We like to think that we run a tight ship,” managing director, David Hindmarch told FON during an autumn visit to the company’s Grantham depot.  “In essence, there are many distributors doing the same job – the key difference is the way in which we each do that job. “Our focus is firmly on service and in exceeding our customers’ expectations.  We genuinely endeavour to give a first class service as without those customers, we’re nothing.” The company is rewarded by having a ‘significantly loyal band of customers’. Also vital to Chandlers’ success is the close relationship which the company has with its staff.  David explained:  “We’ve worked very hard to create a strong bond between staff and management with relationships built on mutual respect and empathy.  Each and every member of our 60-strong team knows they’re an important cog in our wheel, they’re kept in touch with what’s going on and are involved in management decisions. Good performance is well rewarded. “For a company to perform well, employing good people is a must – and for this a good wage structure must also be in place.  With well-trained and motivated staff who understand exactly what they’re doing and why, a company can’t go far wrong.” Marketing and managing the business Chandlers still has 6 sales people out on the road and spends a considerable sum on marketing.  Advertisements are aired on local radio, and Chandlers sponsors the weather on Lincs FM.  Leaflet drops and advertisements in parish magazines have further enhanced its marketing drive to attract new customers.  Running its own web and graphic design business, Hat Trick Media, helps Chandlers with such promotional activity. Also worth the investment was Alpeco’s i-meter.  “With i-meter tracking on our vehicles, we caught a driver stealing fuel red-handed.  It may have cost £300 a truck but given the high cost of fuel, it’s worth it.” With an ordering facility on its Chandlersoil.com website, an increasing number of orders are being placed online.  Previously, a shareholder in Boilerjuice, David said:  “As a national online supplier, I believe that Boilerjuice is still the best offering. It’s a good sound business.” Chandlers remains on the list of suppliers to Boilerjuice. “Cash flow can be an issue – strong credit control must be in place – we credit check everyone and have debt insurance with QBE.  Sometimes bad debt does come out of the blue although it’s never as a result of not having done due diligence or made checks!  It’s a continuing aspiration to have more customers on direct debit and, ideally I’d like to see an industry-wide initiative whereby every domestic customer pays by credit card at point of order.” Addressing industry challenges and maximising our strengths Like other distributors, in the run up to the publication of its off-grid energy report, David attended meetings with the Office of Fair Trading.  “The point I made was that our market’s already very competitive – if crude oil had been 30 dollars a barrel, we wouldn’t have needed any discussion.  December 2010 was almost a once in a lifetime occurrence, sadly.” The UK’s refining capacity is, however, a concern. “There’ll certainly be more competition for product in the future; although the advent of the wholesalers does offer distributors another fuel avenue, together with some interesting price mechanisms enabling us to buy forward, lock in and/or cap prices.  These newer companies are much more proactive then the majors and have given the market an interesting twist.” Speaking about other challenges facing the industry, David highlighted a lack of professionalism historically; the difficulty of extricating a good profit margin and a tendency to drag down the overall margin. “Certain companies are bereft of aspiration to create profit and that’s to the detriment of every other business in the industry.  Costs continue to rise forcing markets to work at unprofitable levels when compared to those of 10, 20 and 30 years ago.  I think the way some have priced over the last three to four years showed a complete lack of understanding of the market. “Whether an SME or a public company, 95% of this industry could enjoy steady and profitable growth achieved by means other than constantly cutting into margin.  A company with shareholders is usually driven to producing good profits. In acquiring Total Butler, I’m sure DCC’s ultimate aspiration will be to generate increased profits as well as increase its market share.   Because Total Butler belonged to an oil major with staff on the corporate career ladder – seemingly  inexperienced in marketing and sales and with no practical understanding of how the market operates – it led to profits plummeting. “The industry has many well-run businesses – large and small.  The presence of GB Oils has certainly influenced us all. “The management  of companies such as Watson Petroleum, NWF Fuels and Rix – all good operators – has been key to their success.  Each may have a different game plan and rationale but collectively, they have a responsibility to the industry in the way they perform and market themselves.  Running a business well is not about size; you have to have certain key elements right.  Understanding, empathising and communicating with your customers in a way they like, understand and trust is one of those key components. “This industry has some extremely talented people but in an industry that constantly tries to fall back on the lowest common denominator – price – such people can be dumbed down.  We all need to strive to add value to the industry that we represent, so that every sale is not dependent on who is selling at the cheapest price. “With all energies – not just oil – having risen in price over the last 12 months – gas is up 22% and electricity by 13% – let’s push our best aspects – heritage, integrity, competitiveness and service levels. “It’s all a bit of a challenge but change brings opportunity and the chance for us to grow our businesses more profitably.  As a company, we’re quietly confident and positive about the future.  “And what if you’re offered that big cheque,” FON asked.  “My office door’s always open,” replied David  “But there’s a conundrum – either the big players will get bigger and we will end up in a price war or, good sense will prevail and the industry will pull prices upwards giving a better return to all; so maybe Chandlers will hang around for awhile longer….”

Ask anyone about the fuelling requirements of the world’s busiest international airport and the first thing that inevitably comes to mind will be aviation fuel. Aviation fuel certainly ensures a smooth passage for Heathrow’s many hundreds of flights daily; but also vital to the airport’s smooth running is fuel for up to 7000 other vehicles which provide essential services – aircraft maintenance, buses to bring in staff, vehicles to push out and tow in planes; machinery to load cargo, handle baggage, empty toilets, clear snow, de-ice wings and stock up with catering supplies. Recognising the market’s potential Seeing potential in this niche and hitherto difficult to penetrate market, Phil Wright, a former regional manager with Total Butler, said:  “Following redundancy, I met up with David Fairchild (WP Group) to explore the possibilities; he was interested, and together with Neil Donald (former owner of Southern Counties), we set up Airport Energy in 2000. “At that time, legislation – in particular the updating of the Clean Air Act – meant that all vehicles, including those used on Heathrow now had to meet stringent targets.  As BAA, owners of Heathrow airport, switched to using ultra low sulphur gas oil – we focused on supplying this fuel which at the time was new to the industry and in limited supply.” The company now provides 95% of Heathrow’s airside fuel.  Additionally, it manages fuel supply and fuel facilities at Stansted and Edinburgh with fuel also supplied to Gatwick, Manchester, Liverpool, Bournemouth, Glasgow and Aberdeen airports.  Fuel is sourced from Greenergy and Esso with fuel supply to Scottish airports subcontracted to Highland Fuels. Adding fuel management services In 2004, Airport Energy Services was created to offer both an airside refuelling service and management services. “As customers realised the increasing importance of controlling and monitoring fuel usage, we introduced them to FuelOmat from Orpak Systems.  This system guarantees the right fuel in the right vehicle tank using a unique vehicle recognition service (VRS) as well as eliminating unauthorised refuelling.  It also collects and reports a wide variety of data, providing greater control over fleet management.  This initiative has helped BAA and our other airport customers to both save on cost and lessen environmental impact,” added Phil, now Airport Energy’s managing director. Working a hard day’s night Fuel Oil News recently toured the company’s Heathrow operation which has three fuel stations, 250,000 litres of storage, four tankers and an oil and water truck. Working airside is operations manager, Craig Heggie:  “A coil is fitted to the filler neck of each vehicle we refuel; this transfers data.  Without a coil in position, our trucks will not dispense fuel.  There are no cards and no keys – customers can just fuel and go, but we can see exactly what’s in every vehicle’s tank, and we can show customers fuel usage for a single vehicle or a fleet.” Craig is assisted by Alex McAtear, assistant operations manager, and a general manager, Dave Summers, who has recently been appointed. With its 30,000 workers, Heathrow is a city in itself. “It’s a very demanding environment,” Craig explained.  “Although our refuelling work starts around 5pm, the bulk is done after 11pm when planes are grounded.  We only stop refuelling when the airport starts moving again around 5am.” Airport Energy has 7 drivers.  “Drivers enjoy being their own boss – with just the night shift schedule detailing vehicles to refuel, they’re in charge but – working airside extreme care must be taken to avoid colliding with an aircraft. This seems obvious but it’s an extremely hectic environment. The big fuel consumers “We try to ensure that no vehicle is left with less than half a tank of fuel.  Big fuel consumers such as the vehicles which push back planes often have to be refuelled every night.  Air starts – used to bump start a plane – can consume up to 70 litres an hour.   When called into action, fuel must be available within four hours to refuel snow ploughs and, having three engines – one to heat the glycol, another to pump and a third to drive – de-icing equipment burns a lot of fuel. “Another useful aspect of our data capture is that it offers customers  useful comparisons.  For example, when considering the purchase of new equipment such data reveals the most fuel efficient. “Cargo customers like DHL work through the night so their vehicles are refuelled during an early morning tea break.  Starting at 1.30am, the airport’s 70 buses, which each use 200 litres a day, take two hours to refuel.  Each bus used to do a 7-mile round trip to refuel – we cut that wastage by taking fuel to them. “Eleven years on, this remains a niche market with good steady volumes which peaks in bad weather and during construction work,” added Phil.  The company supplied fuel to contractors building terminal 5 and is presently supplying fuel for work to upgrade terminals 1 and 2.

Manx Petroleums Ltd has been serving the Isle of Man community for over 85 years.   A Shell distributor for 58 years, the major’s withdrawal from both the island and UK downstream has seen Manx Petroleum go through a period of transition leading to the creation of a new brand identity.  To learn more, Fuel Oil News visited the company at its Battery Pier depot in Douglas