Spotlight 34
Designed to boost the oil heating industry, the Oilsave campaign is a joint initiative between OFTEC and the Federation of Petroleum Suppliers. Should the two organisations do more together?
Brian Allerton, WCF
In recent times, FPS and OFTEC seem to have been working more closely together and I think this has been to the betterment of the industry. Closer communication must make for a better understanding of each other’s aims and aspirations. After all, we’re all working towards the same goals.”
Mark Askew, FPS
“It’s important that those who represent all aspects of our sector should have the ability to work together in a constructive way, within areas of mutual interest.
“Over recent times the FPS has worked hard to develop good working relationships with its partners in the sector and is currently working on the Oilsave campaign with OFTEC. We’ve also worked with OFTEC on other joint initiatives and will continue to seek ways in which we can operate together to support the industry which we serve.
“We’re already working closer together than we have for some time and are in regular communications at all levels. We also meet to discuss how the relationship is developing and to see if there are other areas in which we can co-operate.”
Derek Wallace, Carrs Billington
“As both organisations are oil related, it certainly makes sense for them to move closer together.”
Jeremy Hawksley, OFTEC
“OFTEC and FPS already work closely together, most notably on our joint marketing campaign, Oilsave, where we are promoting the benefits of oil heating to consumers and working hard to defend our industry – with the support of many others from within our sector.
“Our members share many goals, particularly around the need for a strong and sustainable industry. For this reason, we’ll continue to explore opportunities to work together now and in the future.
“However, while we share many interests we serve different groups with different needs within the oil heating sector. OFTEC believes those interests are best served by having two independent trade associations to focus on and champion the particular needs of their members.”
Mark Nolan, Nolan Oils
“I think the two organisations should work more closely. We’re both representing the same trade, so I think only good can come of working together.” (Mark Nolan was inaugurated as FPS president last month, his tenure of office will be two years)
Being proactive rather than reactive was one of the really strong messages conveyed to an audience of over 60 fuel oil distribution staff who attended last month’s Fuel Oil News Distributor Debate in Northern Ireland, writes Irish correspondent, Aine Faherty
Distributors from north and south of Ireland attended the event in Templepatrick, where much emphasis was placed on the promotion of oil as a viable, trustworthy and efficient fuel and heating solution.
“Everyone needs to make a concerted effort to push oil and to improve the view people have of the industry,” said Mark Askew, chief executive of the Federation of Petroleum Suppliers and first speaker. Highlighting the very important role drivers have as the industry’s PR men, a view endorsed by David Meekin of Meekin Fuels, Mark said: “We must carry the right message and the right image to the consumer by way of proper and up-to-date driver training.”
Although oil has undergone a long period of instability over the last eight years, BP’s Angus Fraser assured delegates that, despite exiting refining, the oil major remains committed to the Northern Ireland market. Stressing the importance of strong, long-term relationships, he said BP strove to pass on the best possible price to customers and that high quality products and a reliable source of supply – even when stock is low – remained the company’s invaluable strengths.
“Most people hate to change software,” said Fuelsoft’s David Kingsman. “Thinking it’s a case of the better the devil you know. However, putting up with short term pain to change systems and learn new work practices, could reap rewards long term. A well-rounded integrated system links telephone and computer, meaning orders can be taken and monitored more easily and backed up by a 3D secure website for payments.
In feedback, many attendees found the fuel quality presentation given by chemist Julia Mansfield of Fuel Science Additive Technologies provided great insight into reasons behind fuel’s variable quality. An issue of particular relevance to Ireland, which imports 80% of its fuel requirements, and where the closure of Whitegate, the country’s only refinery, is expected in the near future.
Initially painting a dim picture for the home heating oil distributor, David Blevings, Northern Ireland Oil Federation said average profit for such a business was less than 2% of turnover. In March 2009, 900 litres of kerosene was £300 cheaper than it is today; add this to the fact that solid fuel and gas are considerably cheaper and ”it’s easy to see why people are choosing to go elsewhere,” he said.
Remedy – show your customer you’re here to help – a condensing oil boiler could save 20% on fuel costs – form a partnership with an oil installer and offer a fixed contract and a budget plan. “A customer upgrading to a modern condensing boiler will be a customer for another 20 years.”
Tom Noonan – Maxol is concentrating on the retail side of its business, having condensed its distribution arm in recent years
Following Maxol’s announcement that it plans to invest 50 million euros expanding its all-Ireland service station network and rebranding its image, Irish correspondent Aine Faherty spoke to chief executive, Tom Noonan about the company’s move from loss to profit-making
In the news lately for all the right reasons, the Maxol Group has bucked the recession trend and experienced a €60 million turnaround in its net cash position, from minus €41 million at the end of 2005 to a net cash position of +€18 million at the end of 2011.A rise in retail
In January, Maxol unveiled a new forecourt identity and a five-year business development plan involving a €50 million investment to expand and upgrade its retail business. According to chief executive Tom Noonan, this should have a very positive impact on the overall image. “Good looking service stations are the best form of advertising we have, they help to reinforce a brand in which the consumer can have faith.”
Whilst the company has interests in three other distinct areas – fuel cards, distribution and lubricants, Mr Noonan explained that retail had proved to be the most lucrative area in recent times.A fall in distribution
At present, distribution arm, Maxol Direct forms a modest portion of the business, down from over 40 businesses at its peak to less than 20 now. At one point the group, which had an annual turnover of €700 million in 2011, worked off the model of having one distributor per county across the island – a model that would be nowhere near feasible today with high costs and reduced working capital.
Following a shake-up of the business in the mid 2000s, the company decided to undergo “enormous rationalisation” and divested itself of many distribution businesses around Ireland, some of which had only been acquired a few years previously.
At the time, Maxol had begun to notice a slowdown in the fuel market and recognised that property prices had peaked. Home heat was considered too risky with an economic slow down imminent and encroaching competition from gas and solid fuel. With a shorter winter season, that spanned just three to four months, there was concern that its large team of drivers and vehicles would be left idle for the greatest part of the year. And so the decisive downsizing action, which has proved invaluable, was taken.
For those businesses that have survived in this difficult sector until now, Tom believes they are in a strong position to move forward. In order to do this, he says that people need to make sure their business is as efficient as possible and realise that cash is not everything. However, managing cash flow and having a balanced portfolio is of utmost importance with a greater need than ever to keep the fleet moving.
“In the downtime of the year, oil distributors need to look to the commercial market,” he says for businesses such as hauliers, pubs and other industries that carry on steadily enough throughout the year.
“The bottom line is that the industry has changed – domestic customers are using remarkably less oil and businesses in general are watching their pockets. The key to survival therefore is making big decisions fast in a bid to stay afloat.”
With heating oil consumption already in decline in Northern Ireland, plans to extend the gas network are not a welcome development to distributors already under pressure reports Irish correspondent, Aine Faherty. Market share peaked in 2005 with 75% of households using heating oil; reduced to 68% in 2009.
Speaking at the company’s base 20 miles from the urban Belfast centre, Ken Hylands, managing director, Hylands Fuels, recalled the impact of a similar gas expansion in Belfast and surrounding areas.
“We just had to adapt in advance,” said Ken. “I would advise businesses in targeted areas (see box right) to do the same and be prepared. The secret is to continue providing a service at a competitive price and to ensure customers remain loyal to a product they still want. Nowadays customers just want to pay for what they can afford, so it’s important to have easy payment options with credit card, direct debit and standing order options.
In Ken’s experience, customers may not opt for gas, even when available, preferring to stick to what they know best. “Some may not have the option to switch; a majority of homes on an estate/road must opt for change before the high cost of running a pipeline into the area is warranted.”
Expansion is due to start in 2015, north and north west towns under consideration include Dungannon, Cookstown, Magherafelt, Coalisland, Omagh, Enniskillen/Derrylin and Strabane. Hillsborough, Ballynahinch, Downpatrick, Saintfield and Crossgar are being considered in County Down.
Not overly concerned is Malcolm Hill, business development manager with Solo Petroleum and AH Fuels which has most business in rural County Tyrone. Whilst Malcolm is confident that as a long established business, customers will remain happy with oil, he is concerned about the knock-on effect on ‘an oversubscribed fuel business.’
“Any increase in gas coverage will have a detrimental effect on the oil business, pushing its customer base away from the inner city/towns and into the more rural areas,” reported Michael Strain, general manager, Topaz Direct.
Gas is already in the main towns in which Kelly Fuels operates. “It will just be another competitor and we’ll have to deal with it,” said Derek McAuley. He likens the presence of gas to the new competition posed by the selling of home heating oil on forecourts.
The Northern Ireland Oil Federation (NIOF) has little doubt that the extension will go ahead as planned with oil customers targeted to switch. “This represents a real threat,” said David Blevings, NIOF executive director.
However, David did point out that the Northern Ireland Housing Executive (NIHE), which currently manages 90,000 social housing dwellings, may not hurry to changeover, despite gas being its preferred fuel. “With oil boilers only installed at many of these dwellings in recent years, these boilers are not at the end of their useful life so I anticipate gas conversion rates will take awhile. Whilst this is good news in the short term, we really do need to sit up and take notice of impending changes.
“We need to lobby direct store delivery (DSD) to support and introduce the Kingspan/Carillion Pay As You Go system to public sector housing and others that will allow oil to compete on a level playing field.
“If the oil sector is to retain a healthy market share it needs to think long term about the services it offers to the customer and become an energy provider offering energy services, not just oil.”
A recent report by the Fuel Poverty Action Group has called on fuel oil distributors to establish a priority register* for vulnerable customers
James Owen, S Owen and Sons, Shropshire
“We’ve noticed that many of our customers are ordering smaller quantities of oil as they’re struggling to pay for larger deliveries. We do have a lot of elderly customers who prefer to pay cash on delivery and we’re happy to accommodate them. Although we don’t advertise this fact, if a customer were to come to us and ask for £100 or £200 worth of fuel, we would do it as it spreads the cost for them and also means that we get paid on time.”
Kevin Bennetts, Consols Oils, Cornwall
“We always keep an eye open for vulnerable customers potentially in fuel poverty and do as much as we can to assist them which may, on occasions, mean a relaxation of very tight credit terms to accommodate them. We also actively encourage cash-strapped customers who are able, to come to the yard with four or five cans and fill them at a sensible price so that they purchase fuel in bite size chunks rather that incur a much larger bill for a bulk delivery that overwhelms their budget. As a result kerosene sales from the yard have increased considerably.”
John Cooper, Stevenage Oils, Hertfordshire
“As a smaller company we have a long relationship history with many of our customers, particularly our older and more vulnerable ones and we do try to be as flexible as we can with them.”
John Roberts, White Rose Fuels, Yorkshire
“Whilst we don’t have anything specific in place for our more vulnerable customers, we do offer all of our customers the option to spread payments across the year, using our budget payment plan. We’ve also done the odd emergency delivery for our longer standing, more vulnerable customers. We have one or two nursing homes on our books; they’re extremely loyal customers and we would always endeavour to get out to them quickly if the need arose.”
Robert Taylor, Butler Fuels
“Yes, an online service can offer benefits in that customers can place orders and email us with any queries, whenever it suits them.
However, we do believe that even though many customers may choose to order online, there’ll always be a large number who’ll continue to prefer to use the phone.”
Helen Needham, Hingley & Callow
“Huge benefits I would say – given the amount of abuse we’re currently taking from those customers foolish enough not to have remembered to check their fuel tank. Oh to be at the end of a computer rather than a phone line!
“On a serious note, while an online sales channel would undoubtedly have cost saving benefits, we would be concerned that we’d lose the personal touch we’re able to offer as a family business. We like to nurture the customer relationship and hope that some customers still appreciate the banter!”
Chris Bingham, Craggs Energy
“It’s a small number of people buying online presently but – it’s growing significantly. We’ve a band of customers who only buy online. If you don’t have the facility, you can’t blame customers for buying online somewhere else.
“I understand the rationale behind wanting to protect prices from competitors, but customers want to buy online which is leading to the growing presence of third party sites.
These sites are not owned by oil companies, they’ve no interest in the industry, no investments made and no personal risk. If we’re not careful, in the medium term – between one and 5 years – current distributors will be excluded from this sales channel, becoming simply hauliers in a world that’s all about who can ship fuel for the lowest price.”
Richard Burton, Barton Petroleum
“There are definitely benefits for those distributors choosing to offer an online sales channel. It’s my view that you can’t afford not to have an online route to market. Increasingly there are customers who will only transact online, and this group of customers will inevitably grow.”
Grant Lockie, Johnston Oils
“Whilst a high percentage of our orders are through traditional channels such as the phone or our sales team, we offer online ordering as well to facilitate an increasing demand.”
Jo Ritzema, WCF Fuels
“An online sales channel offers additional choice for consumers in how they buy their oil, in particular for those who wish to make their purchase outside of normal working hours.”
Out on the road – Pete, Lindsey and Guy at Old Trafford
A few months after the Conoco Phillips demerger to create a business dedicated solely to its downstream operations, Phillips 66 took to the road in a uniquely branded bus to do what it does best – talking, and building customer relationships
Over 200 dealers and distributors turned up to the Phillips 66 roadshow at exciting locations across the country, to take a seat in the specially designed double-decker bus, talk to members of the team, and learn more about the company after its introduction to the UK market earlier this year.
It was a whirlwind journey around the UK, designed to allow as many customers to attend as possible. The dual-branded Phillips 66 and JET bus visited eight iconic venues, including the Falkirk Wheel, Bristol Planetarium, Twickenham and the Imperial War Museum. Fuel Oil News joined in the fun at the last event at Old Trafford football stadium, for a chat about the benefits of the recent reorganisation, and a peek into the Phillips 66 future.A seamless split
“Looking back at the demerger, it has appeared seamless – but there has been a lot of work from those behind the scenes in the organisation,” said Pete George, managing director, UK and Ireland marketing.
Lindsey Grant, manager, national sales, added: “The roadshow has been about showing that although operations are under a new name, we still have the same culture, mind-set and strengths. The name has changed, but we haven’t changed who we are.
“Our objectives from the outset were to introduce customers to our team and highlight our new customer-centric structure and approach. It was also just as important for us to get feedback from customers and find out more about their needs directly from them. We feel that we have achieved this and more.”
Phillips 66 was introduced in the UK in May this year, when the downstream business split from the ConocoPhillips name to create two independently operated companies. As a result, Phillips 66 focuses on downstream refining, marketing operations and trading in the UK, while also continuing to market its fuel brand as JET. The move also included a company restructure, involving the creation of a separate national sales team, led by Lindsey, to look after UK-wide brands, such as GB Oils and Watson Petroleum. Independents with a regional base are now looked after by Guy Pulham, manager, regional sales, and a team of regional managers.Distributor benefits
“We have introduced a number of changes during the reorganisation to further support our distributors. For example, regional account co-ordinators have been introduced to be on hand for customers when a member of the sales team is on the road or unavailable,” said Guy. “A new online system has also been installed at Bramhall, Immingham and Kingsbury which calculates the daily amount of fuel a distributor has lifted. If needed, they can request to lift additional product, meaning no wasted journeys.
“The service we provide for each customer depends on the type and level of support they require,” added Lindsey. “Whereas national customers need a UK outlook, regional customers now have a contact within their local area to match the needs of their business. Matching technology and different planning strategies are also tailored for each customer.
“The reorganisation addresses the way the industry is heading, and means Phillips 66 is at the forefront for the benefit of our customers,” said Lindsey.
Busy ensuring that the split and restructure was as smooth as possible for customers, the company has been less vocal than usual. The roadshow presented the perfect opportunity to show customers that it’s business as usual and shout about the benefits of the structural changes.
“We’ve seen a lot of people and it’s been a lot of fun,” Lindsey continued. “Our biggest strength is our service focus and the relationships we have with our customers, so the bus acted as the ideal mobile venue for us to talk informally to people in a friendly and relaxed atmosphere.”Culture of success
The company recognises its culture as one of its core strengths, emphasised by the name change to Phillips 66 – which has been one of the leading fuel brand names in the United States for decades.
“The Phillips 66 culture is very family oriented,” explained Pete George. “Our values of safety, honour and commitment are a perfect fit with the UK business.
“We like to think we have a different approach. We listen to our customers and they have almost unlimited access to us – most have got my mobile number. We’ve got a very responsive and energetic team who don’t have to answer calls at 10pm, but they want to. You can’t buy that culture, you have to create it.”
Pete was planning to retire later this year, but accepted his new position as part of the reorganisation and has no regrets about continuing.
“It didn’t take a lot to persuade me to stay on after the restructure. I love the unique culture of the company, which was shown at its best throughout the roadshow. It’s a breath of fresh air in a corporate world.”An earlier interview with Pete George was published on page 6 of the September 2012 issue of Fuel Oil News.
Due to be launched on 1st January 2014, the scheme manager for the Petroleum Driver Passport (PDP) is the Scottish Qualifications Authority (SQA).
The scheme manager appointment follows a tendering exercise which saw SQA meet the quality and delivery requirements set by the UK Downstream Oil Distribution Forum (DODF).
Brian Worrall, DODF independent chair welcomed the appointment: “We continue to make rapid progress towards the launch of the PDP. SQA bring valuable experience and expertise which will ensure the quality and credibility of the PDP.
Detailed work is now underway to ensure that the PDP will be launched on schedule. The PDP will give assurance to fuel terminal operators, customers and the wider public that all tanker drivers have a common core of tested knowledge and competence in the loading, driving and off-loading of fuel tankers. It is supported by the PDP training standard which all tanker operators will be able to use as the basis of driver training and development.
The PDP builds on the knowledge already tested in the ADR certification process, incorporating additional knowledge and a practical assessment of skills. It includes content specific to five industry sub sectors; home heat, commercial, aviation, retail and marine.
Delivered through a combination of in-house or third party training and assessment providers accredited and audited by SQA, the passport will be valid for 5 years and will include an annual refresher day and both a written and practical assessment.
Email: john.bowman@skillsforlogistics.org
Jill Turner receives the award from councillor John Loughnan
Carbery Plastics has been recognised at an awards ceremony hosted by its local town council.
The company was nominated for a Spirit of Clonakilty Award by councillor. Cionnaith Ó Súilleabháin. The award which recognises Carbery’s contribution to the local economy, continued commitment to innovation and sales success in Ireland, the UK and Europe, was presented to the company’s Jill Turner at a recent ceremony in the West Cork town.
“I’m delighted to receive this prestigious award on behalf of everyone at Carbery,” said Jill. It recognises the contribution and commitment of the entire team to the continued growth and success of our business. Despite a challenging macro economic environment, Carbery continues to invest in its production processes and products, ensuring the company is positioned to capitalise upon the market opportunities of the present and the future.”www.carberyplastics.com
Encouraging the uptake of high efficiency oil-fired appliances is Martyn Bridges, OFTEC’s new chairman
….That is the challenge for Martyn Bridges, Worcester, Bosch Group’s director of marketing and technical support who has been appointed as the new chairman of OFTEC
The appointment, which takes effect on 25th April 2013, sees Martyn commence a two-year spell as chairman of the organisation, for which he has sat on various committees since its inception in 1991.
Having started his Worcester career as a technical services engineer in 1986, Martyn has since worked in a number of roles and departments before taking up his present position, which he has held since 2005. Martyn is responsible for the training, marketing, engineering services, product management and standards departments and is also involved in a number of Bosch-wide design and product committees.
Martyn commented: “I am extremely honoured to be given the opportunity to take up this role within an organisation which is key to the ongoing development of the domestic heating industry.
“I have been in the heating industry for 35 years and involved with OFTEC for over 20 years so I look forward to helping OFTEC continue the challenge of preserving the oil market, encouraging the uptake of high efficiency oil-fired appliances and growing the combination of oil and renewable solutions.”www.oftec.org
www.worcester-bosch.co.uk
Cash conscious consumers, rogue traders dealing in washed diesel and a sharp rise in the use of solid fuel, ensures that oil distributors in the Leinster region are feeling the heat this winter, writes Irish correspondent Aine Faherty
Martin Daly, head of sales and marketing at Top Oil says that a succession of shorter winters, coupled with a short home heating season, is putting pressure on the sector, as people use their central heating as a last resort. “People are burning turf or whatever fuel they can and supplementing this heat with oil,” says Martin. “In a bid to save them money in the long term, people are investing in solid fuel burners instead.”
This first Essar branded tanker is now working on deliveries to commercial customers
Last week Essar Oil (UK) unveiled its first ever Essar liveried tanker at the company’s Stanlow manufacturing complex
The tanker, which is set to become a familiar sight on the motorways of north west England, will be used on commercial deliveries. Operated by Flexigrid, Essar’s haulage service provider, the vehicle is the first branded tanker to be put on the road since Essar acquired the site in August 2011.
Colin Dixon, head of marketing at Essar Oil, said: “Our priority since acquisition has been to build our reputation for being a reliable supplier with whom it’s easy to do business. On the back of getting these basics right we’ve been able to expand our business, including that part in which we deliver fuel into the premises of the bus & rail companies, hauliers, parcel delivery companies, manufacturers and resellers. The fact that we’ll now have a very visible presence out on the roads is a sign of our determination to attract new customers, further grow the business and build our brand in the UK.”
“We’re delighted to have an Essar branded vehicle as part of our fleet and look forward to growing our partnership with Essar over the coming years,” added Michael Blundell, Flexigrid director. The branding of the tanker reflects the hard work of the staff at both companies over the last 18 months, in particular the professionalism of the drivers in delivering the highest level of service.”
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“The closure of Coryton is already having quite severe consequences. It’s affecting other terminals in the area, with the high demand for product stretching resources to the limit. When it closed earlier this year, the weather was warmer and demand was low and the problem not as noticeable. Now, companies are queuing at the terminals as computers break down and getting further and further behind. I’m preparing as far ahead as possible, opening up over weekends, as I predict supplies will be low over the coming months.”
John Cooper, Stevenage Oil Co, Herts
“We didn’t purchase products directly from the refinery as a matter of policy, so its closure has made no discernible difference for us.
“We’ve noticed an increase in the amount of traffic at the Nu-Star, TDG and Purfleet terminals that we use on the Thames. As former Coryton users seek out products from alternative sources, such as the independent traders operating from storage points along the river, it’s inevitably led to congestion particularly at peak times, and this remains a concern as we approach winter.
“When Coryton becomes a storage terminal, it may actually prompt us to reconsider the use/purchase of product from the site as a secondary source of supply – dependent, of course, on a suitable pricing structure. And, as traditional Coryton ex-rackers drift back to purchase from the new terminal, it may also benefit the Thames terminals by reducing congestion.”
Neil Flynn, Linton Fuel Oils
“The impact of Coryton closing is showing; supply is already becoming an issue, especially around us. And with wholesale traders not buying much stock due to backwardation, there’s double trouble with not enough physical stock to supply and distribute. We’ve had situations where our hauliers have gone into terminals and there’s been no allocation or they’re on complete stock out.”
Mark Mackenzie, Nolan Fuels, Oxon
“Coryton’s closure is already affecting us as we used to utilise it extensively with certain suppliers. Unfortunately, now that source isn’t available, it’s impinging on the service that some of those suppliers can provide.”
Rob Warne, AD Fuel Oils, Essex
“It’s too early to say. P66 says it will have no impact but there are already allocations on kerosene. There’s bound to be an impact.”
Richard Burton, Barton Petroleum, Northants
Pictured at last year’s FPS Expo in Harrogate, James Smith with wife Anne and Kevin Kennerley, NWF Fuels
Well-known to many in the fuel oil distribution industry, James Smith started Fuel Oil News back in 1977. A journalist with family roots in the energy industry, having started Knutsford Oil, he spotted a gap in the industry’s communication channel giving rise to a trade magazine which, in November this year, will have been published every month for 36 years.
The funeral will take place at 1.30pm on Thursday 7th February at St Mary’s Church in Rostherne, Cheshire. Anyone wishing to attend and/or wanting further information should contact Fuel Oil News editor Jane Hughes on 01565 653283 or by email at jane@fueloilnews.co.uk.
An article exploring James Smith’s contribution to the fuel oil distribution industry will be published in the April issue of Fuel Oil News.
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Staffordshire Fuels relying on Alpeco’s technology to keep vehicles on the road
The new 6-wheel, four compartment vehicle built by Tasca Tankers is fully equipped with Alpeco’s bottom loading/electronic metering package, featuring the TE550 and new LC Sound gas separation system.
General manager Steve Davies said: “Whenever possible, we embrace new technology, especially when it improves safety and efficiency. We’ve been buying Alpeco equipment for about 10 years and have stayed loyal; the technology and reliability of the company’s equipment is beyond question. We’ve always been delighted with Alpeco’s speedy response to our service calls which helps keep our vehicles on the road.”
Based near Stone in Staffordshire, Staffordshire Fuels is an authorised Phillips 66 distributor supplying domestic, agricultural, commercial and haulage clients throughout Staffordshire and the West Midlands.
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
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!”
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
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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.
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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
“We input the price when the order goes into the system, at the point when the customer places the order and a delivery ticket is produced. I would say that 95 % of our orders are delivered within two working days.”
Derek Wallace, Carrs Billington
“The customer will only ever pay the price that we’ve quoted. It works for us. We have reasonable storage so if the price flies away from us we’re able to absorb it fairly easily. We don’t fix the price for an entire week but instead review it on a daily basis, so there would only ever be a limited number of orders affected at any one time. It’s swings and roundabouts when the price drops as the price also remains as quoted on the day of the order.”
Helen Needham, Hingley and Callow
“Here at Craggs Energy we have always, and will always, believe that the price quoted is always what the customer should pay. We operate on a strict 3-day delivery policy so the movements in the market have minimal affect, but more importantly, all staff here are people of their word and would do anything possible to never let the customer down!”
Chris Bingham, Craggs Energy UK
“The price quoted is the actual price – it’s as simple as that, irrespective of supply or demand. There’s no hidden agenda. We wouldn’t quote a price if we couldn’t deliver for 10 days as we aim to deliver within two to three days.”
Ben More, Moorland Fuels
“As an emerging business, in a highly competitive marketplace, we are constantly canvassing new customers. It is vital that we are competitive on price, and if the price quoted does not match the price invoiced, this reflects badly on our customer service. So it is very important that the price quoted is the price the customer pays.”
Nick Goodwin, Standard Fuel Oils
David Blevings of the Northern Ireland Oil Federation
Rationalisation of the Northern Ireland (NI) oil distribution sector has stepped up a gear. Several businesses have been acquired by former competitors and one has gone into liquidation
________________________________________________________________Recent sales
Rosie Harris holding her winning design
Moorland Fuels received 100 entries for its Christmas card design competition.
Cameron Forecourt managing director Barry Jenner with new operations manager, Martyn Roper
Cameron Forecourt has appointed Martyn Roper as operations manager.
The move comes as the company approaches the end of a record year in terms of turnover and profit despite another difficult year for the economy.
Based at the company’s headquarters in Barnsley, South Yorkshire, Martyn will have overall responsibility for production, installation and service activities. This will include project planning and the co-ordination of installation contracts throughout the country.
Martyn is a qualified electrical and electronics engineer who spent the early part of his career as a design engineer working for avionics and computer companies. His first management role was at Sanderson Computers where he was UK engineering manager, before moving on to head of operations for a government-backed standards organisation serving the transportation industry.
Barry Jenner, Cameron Forecourt managing director said: “As the company takes on bigger and more complex fuelling installation contracts, it has become necessary to appoint an overall coordinator to manage our nationwide activities. Martyn’s experience and knowledge will prove immensely helpful and will release others to concentrate on the maintenance of professionalism and quality which is at the core of all we do.” www.cameronforecourt.co.uk
Celebrating their success managing director, Gerry Jones (centre) with members of the Dunraven team
Dunraven Systems, suppliers of Apollo tank telemetry equipment, won Dundalk’s Best High Growth SME award at the annual Louth County Business Awards.
Gerry Jones, managing director of Dunraven Systems, said: “We’re delighted to win this award, which is a testimony to the hard work, effort and commitment of everyone at Dunraven, together with the loyalty of our customers. Since Dunraven was established, we’ve sought to provide quality, innovative and best in class solutions, backed by world-class levels of service and product support.
“During the past 12 months, we’ve continued to develop our business through the introduction of new products in response to customer demand and in anticipation of future market demands.”
The category award was sponsored by Louth County Enterprise board and is open to businesses who have demonstrated strategic growth, innovation and entrepreneurship in this sector.www.dunravensystems.com
Linton Fuel Oils national account manager, Rupert Mills
Rupert Mills has been appointed as national accounts manager at Linton Fuel Oils.
Linton has offered national fuel deliveries to customers for some time, but Rupert’s introduction will allow a greater focus on offering a superior level of service to those who value a single point of contact for all of their fuel requirements.
The company provides extensive coverage in London and the South East, and elsewhere uses only approved independent distributors.
Rupert said: “This is an exciting opportunity for the smaller distributors to have a slice of the national cake, offering a very real alternative to the corporate suppliers who currently monopolise the market. The strength of the independents is based on the excellent service these companies have always offered.”
Neil Flynn, sales director, said: “Linton nationwide will be carefully integrated into the traditional Linton business and will provide a great platform for the company’s growth strategy. With his extensive industry experience and in-depth knowledge of national accounts, Rupert is the ideal person to drive this new division forward.”
www.lintonfueloils.com