Overview

In today’s rapidly changing fuel market, with shrinking margins on fuel, increased competition, regulations, and alternative energy’s, oil companies are seeking solutions that will enable them to increase revenues, reduce operational costs, create and increase long term customer loyalty, manage stocks and inventory in a more efficient manner, reduce losses and prevent fraud.

In light of this, Multitech has partnered with a number of manufacturers to offer a flexible, modular and reliable ‘Site to Network’ Fuel Management solution for the Retail fuel industry, offering oil companies the capabilities to fully manage and control their Commercial and Operation activities.

Industry Challenges

Most of Oil companies face the following challenges:

• Tight margins and a competitive market structure
• Exceptionally price-sensitive customers
• Increased manpower and operational costs
• Frequent changing government compliance regulations
• Financing constraints
• Volatile service station rental fees
• Dealers/Franchisees loyalty and network discipline to headquarters’ strategy and target market
• Remote network service station management
• Losses in sales due to inventory shortages and fraudulent activities (e.g. dumping, theft, etc.)

Global Trends

The following details that present-day global trend in the petroleum industry:

• Fuel retailers moving towards unmanned sites by deploying Fuel Automation System.
• Expansion to other business ventures in order to increase profitability (e.g. C-stores, Car Washes)
• Consistent aggressive fuel pricing strategy by the Hypermarket industry and large supermarket chains projects on oil company sites Traffic (Volume), revenue and profit.
• Enhancing customer experience.
• Proactive marketing strategies to increase customer loyalty, traffic, and on-site purchases (C-Stores)