News

OJ Williams – new regional manager

OJ Williams regional manager, south west, Steve Morgan OJ Williams has appointed a new regional manager, Steve Morgan, to oversee its commercial and domestic oil business in the south west of England. Steve brings over 15 years of managerial experience to the role, having held several senior positions within the FMCG and car hire sectors. Steve will be responsible for stimulating growth in the region, motivating the team and ensuring top customer service. Paul Williams, director, England and Wales, commented: “Over his career, Steve has worked in a wide range of sectors and the skills he has acquired will complement his new position within the fuel industry. His managerial expertise, coupled with his excellent reputation for customer service, ensures he will be a key addition to the team.” Steve said: “I’m looking forward to being able to apply my expertise as part of such a driven and dedicated team. I’m eager to contribute to OJ Williams’ continuing success and help to drive growth going forward, as well as to support the team in ensuring the OJ Williams brand is the first choice for customers across the region.”www.ojwilliams.co.uk

News

Oil boiler sales rise

Figures compiled by the HHIC show a rise in oil boiler sales during October and November 2012 New statistics have revealed a welcome rise in oil boiler sales. Figures compiled by the Heating and Hot water Industry Council (HHIC), supplied to the organisation by OFTEC members, have shown a significant recovery in sales at the end of last year, as temperatures fell in autumn. For all but two months, 2012’s sales have been below 2011 totals. However, sales during October and November have shown a significant recovery, with November’s figures exceeding not just 2011, but 2008 and 2009 as well. Total boiler sales for the year to mid-December were recorded at 47,413, a fall of approximately 10% on 2011.

Interview

Taking a different approach

Speaking to many fuel distributors in Ireland recently, the most frequently used word to describe the current market was ‘challenging.’ “It’s been a tough year to date,” said Donall O’Connor, managing director of online distributor www.ValueOils.com based in County Antrim.  “Customers are trying to extract the best price for everything – including their oil – and at the same time they’re also buying lesser quantities.  On top of that, oil is less attractive for heating and gas is making significant inroads.” FON asked distributors what they were doing to tackle the tough times and to ensure their business survives, and even thrives. Be prepared “We spend a lot of time preparing the company for the busy periods, so that when they arrive we’re in the best position to take advantage of opportunities,” added Donall. “Being web-based, we have a lower cost structure; 99% of our orders are online. That means we can compete at the sharper end of the price strategy, and offer a more attractive deal.” “We introduced a budget prepayment scheme following customer feedback. While we don’t offer credit, customers can choose to put an amount on a card each month, and then just pay the balance when the bill comes in.” Stay positive Agreeing that customers are increasingly price focused is Gordon Halnon, of County Wexford-based Gordon Halnon Oils.  “You can lose a customer for the sake of €10 here or there. Service is much less important to them. “It’s extremely competitive but important to stay positive. Hold onto your customers as best you can – the market will get better eventually and we all want to be there when it does!” Reward customers and staff Another distributor spoke about benefits now being offering to customers and staff. “We incentivise staff with new account and upgrade bonuses, and seasonal prizes – last year’s was a 42-inch television; this year we’re offering free iPads for the highest upgrade to our premium kerosene. “When they purchase 700 litres or more of heating oil, customers are being offered 10ppl off their next fill of petrol/diesel from one of our retail sites.” However, this distributor emphasised that the biggest way to safeguard business was to protect reputation. “Deliver on promises, be fair and do the right thing when situations arise.” Diversify Brian Uprichard, who owns Armagh-based Brian Uprichard Fuels, said: “We diversified about a year ago and acquired a petrol station.  As well as added sales from petrol, we also have a kerosene pump for heating oil. For those who might be struggling, it’s a way to budget for small amounts of oil at a time. “We’ve also put a PayPoint logo in the shop, so when customers come in to pay for petrol they see the logo and ask about the delivery business.” Brian’s last piece of advice is the easiest to implement.  “Get down on your knees and pray a lot!”

News

Reaping the benefits of integration

Finding one solution to help with several issues across the business makes for a healthy investment for the distributor. FON looks at the new and improved software packages that could make the difference New module for the WP Group Fuelsoft implemented a new Lubricants Warehousing module at the WP Group this summer to add to the bulk fuels software already in use. The new module incorporates recommended stock ordering, automated purchase order processing, multiple bin locations, put away lists, picking lists, despatch lists, management of bulk and packaged lubes, and customer and industry specific price lists. This provides the ability to upload cost and selling prices directly from the manufacturer. David Fairchild, WP Group managing director, said:  “We are delighted with the new Lubricants Warehousing module developed by Fuelsoft. It has helped to streamline our warehouse and purchasing processes.” Fuelsoft has also jointly developed a new Screen Popping module that allows the order entry system to automatically ‘pop’ the screen with the account details of the incoming telephone call. John Allen, Fuelsoft software director, said: “We decided to upgrade our software with our development partner, Phoenix IT. They already specialise in screen popping software for Sage, so we knew the new product would provide our customer base with a very established and well respected application.”  New integrated solution for Hingley & Callow Fuelsoft and Touchstar installed and implemented their integrated solution at Hingley & Callow this summer.  The Touchstar solution allows scheduled orders to be transmitted directly to the Raven handheld computer in the cab, enabling the driver to print out their schedule of work and invoices eliminating the need to return any paperwork to head office. The in-cab computer returns confirmed quantities and images of the customer’s signature back to the application. The signature can then be included in the body of the invoice which can be emailed to the customer. David Kingsman, Fuelsoft managing director added: ‘”We are very excited about the high level of integration between the Fuelsoft and Touchstar solutions. This will provide our customers with the ability to control the flow of data to and from vehicles that never return to a manned depot and improve their cash flow by invoicing earlier’. www.fuelsoft.co.uk A common solution to vehicle tracking Identifying a single tangible saving within a modern business can be a challenge. Potential savings tend to be spread throughout the operation, but if they can be addressed with a common solution, things can get interesting. Temperature shrinkage, spillage, vapour loss and leakage can all cause a product loss for fuel distributors. Some also lose fuel in transit due to human interference. It is a prospect that business owners are reluctant to consider, but with soaring fuel costs, should be monitored. In response, Mechtronic has launched the Stocksmart vehicle tracking and data transfer system. Designed specifically for the fuel oil market, StockSmart makes vehicle, stock and driver monitoring straightforward. Other tracking systems offer benefits, but can be expensive and involve onerous contracts, while not giving all the required information. Mechtronic has developed an affordable, web based system with no contractual ties, giving easy access to satellite tracking data from any computer. Real time vehicle tracking can be presented on Google mapping or satellite picture.  Small ticket icons on the trail denote historical delivery information, and a geo-fencing feature shows entry and exit times for any designated location. A summary ticket report enables quick assessment of vehicle efficiency and allows users to spot unusual behaviour. Routers benefit from vehicle contents tracking and remote end of shift reporting, allowing efficient allocation of remaining stock. A complete breakdown of miles travelled, driving time, stationary time and total working time gives StockSmart users a constant picture of vehicle activity. www.mechtronic.ltd.uk   A unique UAP In April, Toptech released a new unified automation platform (UAP) unique in today’s market. Leveraging two industry leading platforms, MultiLoad II and Toptech Data Services (TDS), provide a hosted automation platform designed to offer unprecedented flexibility, ease of use, and simplicity.  The MultiLoad II acts as the control platform to manage all of the facilities loading process.  Each MultiLoad connects over the internet to TDS, which serves as the user interface to visualise consolidated load data, manage business data, run reports, and perform inventory management and balancing.  MultiLoad will receive all database updates from TDS at regular intervals, so if the internet connection is severed, it will continue to function independently.  Steve Wert, director of software technologies, said: “Toptech’s UAP combines cutting edge technology with the power and reliability of our existing products.  The result is a solution that allows our customers to take advantage of the flexibility and scalability of cloud computing in concert with the process control features of MultiLoad.” Kathy West, PFT Alexander, said: “This is exactly what the next generation of this robust system needs to fit the new alternative fuels markets. With the choices offered to size the solution to the immediate customer needs and the option for additional growth later, UAP is ideal for this market.” www.toptech.com User friendly software for small or large fleets Building on expertise gained through eight years of supplying fuel control systems, Hytek has successfully developed the FC10 to come with web-based software as standard. Customers can access data securely from any PC around the world, making the product ideal for small or large fleets, multi-sites and multi-user applications. Software comes with a number of pre-prepared reports supplying the regular information required by most fleet managers, or users can simply create individual bespoke reports from scratch. Each Alpha FC10 can store information for up to 2000 separate refuelling operations. Hytek can also programme software and data tags with individual customer details prior to delivery, enabling a quicker installation. Replacing an old fuel wizard system, two FC10 fuel control based Alpha pumps have been installed at a council in Norfolk. Technical engineer, Scott McClean who oversaw installation and provided end user training on the software package reported positive feedback on this user friendly system.  www.hytekgb.com  Integrating every aspect of fuel management Kan’to Instruments has continued the development of its web-based suite iNTELLIGENT GAUGING. A well-proven platform provides both real-time and historical data in tabular and most importantly, graphical formats, for inventory and alarms’ management. Recent additions to the suite include extensive search of historical data, opening and closing stocks for reconciliation, email and SMS alerts, and stock reports. Kan’to managing director, Dimitri Papaioannou, said: “The future of this platform lies in integrating every aspect of fuel management and depot automation, for either distributors or end-users, with scalable capability to suit both.  Work is well under way in partnership with well-known organisations. Many features are in development as we speak, including remote system maintenance and diagnostics, and interactive use of the information on the web.  Other features include regular stock/status reports via email or SMS.” The concept has also been marketed successfully outside the UK. www.kanto.co.uk

Opinion

Servicing customers

With 60% of the UK’s top 20 distributors providing boiler maintenance services to their domestic customers, it goes to show that such services still play a significant role in a distributor’s total offering ______________________________________________________________ Last year – according to research carried out by uSwitch – almost a quarter of households suffered a boiler breakdown. The average cost of repairing that boiler was £280. Although uSwitch reports boiler cover costing from as little as £130 a year, it says that with finances stretched, 62% of households do not have any cover. ______________________________________________________________ Providing customers with a one stop shop service Dorset-based Ford Fuel Oils currently has a team of five engineers operating in the south west. “As a fuel company, we saw boiler servicing as the next progressive step.  We wanted to offer our customers a one stop shop so we sell oil, we sell tanks and we replace boilers,” explains the company’s engineering manager, Gary Taylor. “The market in the south west is reasonably buoyant.  We have a good customer base with four depots to serve them,” addedGary. “One or two companies in the area are moving away from the industry, or have let people down, so we’ve also picked up business that way.” Longer term, Ford Fuel Oils is aiming to service the boilers of all its domestic customers. Distributors’ recommendations Whilst companies such as Carrs Billington, Barton Petroleum and Chandlers Oil & Gas do not provide boiler servicing, they do recommend local engineers.  Carrs Billington director, Derek Wallace told FON: “In a given area we recommend engineers and have done so for many years. The engineers are self-employed and we enjoy a very good working relationship.” Too much competition Cornwall-based Consols Oils does not offer boiler servicing. Managing director, Kevin Bennetts gave two reasons for this: “Firstly, we’re not technically competent and not inclined to get anyone in who is. It’s an overcrowded market. Secondly, we’d have to charge VAT, where as an independent, one man band doesn’t plus they’re better qualified, cheaper and already have a list of satisfied customers.” Send your views on boiler servicing and providing boiler cover to liz@fueloilnews.co.uk

News

The distributor offer revisited

Over the past 20 or so years the major integrated oil companies (refiners) have repositioned, progressively withdrawing from certain market sectors which they were formerly prepared to service. Two areas in particular spring to mind:

News

TSA talks competence

“Around 75% of the time, systems fail because they are designed or used incorrectly,” Peter Davidson, director – safety, commercial and projects, UKPIA, told a packed room of delegates at the Hilton Hotel in Coventry. “Both are caused by human error, and a lack of competence.”Increasing competence across each business, so that industry standards can improve, was a focus of the event.Peter argued that competence is not just about training, but also incorporates knowledge, experience and qualifications.A joint industry group formed by UKPIA and the Cogent Sector Skills Council has been set up to share good practice, within a framework of understanding the needs of the industry and the expectations of regulators.Peter explained: “We noticed a shortfall in clear and easy guidelines to enforce competency management systems, so we developed guidance to do it.”The guidelines are focused on the downstream oil industry, although they are relevant to other sectors, and have been designed to avoid jargon and be easily understandable.As the industry continues to learn and develop following the Buncefield disaster in 2005, the competency management system should be carefully designed to ensure its purpose is clearly defined, who should implement and how standards will be maintained.A copy of the guidelines is available on the UKPIA website at www.ukpia.com.Stepping up “Things aren’t half as bad as you would think if you just listened to the media,” said Phil Scott, safety & risk policy manager, Chemical Industries Association, which covers oil refineries and related transportation.He told the conference that guidance was available for the industry on process safety, but that embedding those guidelines into businesses needs a clearer strategy.“This is not an irresponsible industry,” he stressed. “There are just some companies who need to step up a bit.  There is a tremendous will, and evidence that things are improving.”Peter Baker, deputy director & head of Chemical Industries Division, Hazardous Installations Directorate, HSE, suggested that the way to deal with competence issues was “a bit like an AA meeting”. He said: “We have to accept the problem, identify the problem, and then take steps to solve the problem.”In response to a question from Daniel Brain at Murco, Peter explained that in terms of significant incidents, the old chemical and downstream oil industry was above the rest ofEurope. He went on: “But in terms of overall performance we are significantly ahead – both in the way we measure performance and the way we talk about performance.”Shane Wakefield, Chemical Industries Strategy Unit, Hazardous Installations Directorate, HSE, also talked about COMAH CA’s expectations of competency management systems.While there was a focus on competency in management, the conference also acknowledged the pitfalls the tanks themselves can present, particularly as they get older.Ageing issues David Burgess, of ABB Consulting, spoke about the challenge of ageing assets in the bulk liquid storage industry.  He told the audience that owners and users of equipment containing potentially hazardous fluids have a responsibility to the public and environment to minimise risk.An ageing tank can be damaged in various ways, including wall thinning which can cause corrosion, the biggest cause of tank failures in 2009. By installing an integrity management system, assigning responsibility for tank maintenance and including regular inspection, potential failure scenarios can be identified.Tank horrorsDr Rene Hoyle, Axiom Engineering Associates, told the audience about a series of storage tank failures due to corrosion and fatigue. He was forced to confirm that none of the images he had used to illustrate his presentation had been photo-shopped, despite the horrors some depicted!He used images to illustrate external corrosion, corrosion under insulation, underside corrosion, and internal pitting corrosion. Rene argued that a lack of understanding of mechanisms, lack of knowledge about the causes of corrosion, a lack of physical and financial resources to implement the necessary precautions, and perhaps even a lack of care, could all be reasons for the problems.He said: “We have the technology to stop corrosion being an issue – you just need to use it!”Oil fraudJohn Spargo, director at Customs 558, gave delegates an insight into the problem of oil fraud. The issue lies in differentiating between the excise duty responsibility of the warehouse keeper and the customer.  Currently, a warehouse receiving imported oil is authored by HMRC in duty suspension, and the duty is charged when the product leaves the terminal. However, John discussed whether that duty point could be moved, to where the product is measured out of the refinery, or even to the filling station forecourt.The delegates enjoyed a varied day of presentations and discussion, but the focus remained on improving the industry for all, particularly through competency issues. All the speakers provided a wealth of information that can be put into practice in business.Peter Davidson said:  “As an industry, you need to use all the resources available to you – wherever they are.”www.tankstorage.org.uk

News

Life begins at 40

Staff join managing director, Richard Burton to celebrate the company’s 40th anniversary On a recent visit to Barton Petroleum’s Wellingborough head office, features writer, Liz Boardman learned more about managing director, Richard Burton’s plans to celebrate its 40th anniversary and inject new life into the company. Moving with the times Having celebrated Barton’s 40th anniversary in style at an Oxfordshire hotel in September, Richard is keen to move Barton Petroleum forward and has recently reorganised the company. “Business is difficult, conditions are tough and the industry as a whole faces fresh challenges every day.  We feel that by reorganising, we’re better placed to deal with those challenges, and I am pleased to say that we are already seeing the benefits.” The company has increased sales resource appointing two new sales account managers and promoting Kevin Day to business development manager. Kevin has collective responsibility for sales over the entire company and is currently assembling a new team to strengthen this area of the business. In addition there are new depot managers at three out of the four depots, all of whom have come through the ranks. Steve Moulin is Leicester’s new manager, Mark Gamble takes the reigns at Wellingborough and Mark Varley has been promoted at Watford. Clive Morin has been also been promoted to develop the company’s key relationships with suppliers as well as taking overall responsibility for managing credit. “We have some long-standing employees at Barton, and where possible, prefer to promote existing staff to new roles,” said Richard. “We’ve got a great team here and a very loyal customer base.” Acquisitions, however, are not currently on the agenda. Richard admitted: “I’m not crazy about acquisitions. I would much rather grow the business organically from our own depots, however we will continue to evaluate opportunities as they arise.” In line with the new changes, Barton is relaunching its website to enable domestic customers to order and pay online.
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