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I.T. Co. Presented Best Practices in Filling Station Chains Management Optimization

31.10.2008

I.T. Co. Presented Best Practices in Filling Station Chains Management Optimization
On 30 October 2008 I.T. Co. held Best practices in filling station chains business organization annual conference within the framework of Autocomplex-2008 expo. 82 specialists participated in the event — including heads of oil companies and owners of filling station chains from different Russian regions and nearby foreign countries, as well as well-known experts of the petroleum products market.

Conference Best practices in filling station chains business organization was organized by I.T. Co. together with ANTOR — the leader in petroleum products delivery planning and transport monitoring. Information support provided by specialized magazine — Sovremennaya ASZ (Modern Filling Station).

The conference addressed the most acute problems in the retail petroleum products market. The event participants were presented results of petroleum products suppliers’ management systems, as well as business management tools allowing for enhancement of filling station chains operating efficiency.

The conference was opened by Alexander Fedin, Director of the I.T. Co. Fuel and Smart Systems Department. He told about the main problems that retail petroleum products market participants face today. In light of the financial crisis the ability to promptly react to changes and pay special attention to improvement of business efficiency gains the utmost importance. According to Alexander Fedin, all these objectives can be achieved if companies have a serious business-specific management tool at hand. Also Alexander elaborated on experience in consulting and implementation of efficient changes in business-processes of big oil companies. Key aspects allowing reaching transparency and clarity of business administration are changes in marketing and sales strategy, as well as optimization of filling station chains business-processes in the company's governing office. The conference participants learned about the efficiency and productivity assessment methods for business-processes optimization projects.

General Director of InfoTEK-Consult Tamara Kandelaki, Ph.D. in Economics, described the current situation in the petroleum products market and gave an expert outlook on it, evaluated influence of the financial crisis on the Russian oil market, told about the oil and petroleum products prices dynamics, and attempted to forecast changes in the market situation that are likely to occur in the nearest future. Mrs. Kandelaki's speech caused great interest among the event participants, and discussions of the issues raised by her stretched into the unofficial part of the event.

Denis Pavluhin, leading engineer of the I.T. Co. Fuel and Smart Systems Department, gave a speech on the results that were achieved by oil companies after automation of filling station chains stores, including with the help of solutions based on I.T.-Oil: Trade System software. Today there is a situation when practically all leaders of the Russian oil products retail market have stores selling concurrent goods, and often offer clients other services (service, carwash, dry-cleaning, etc.). Moreover, filling stations owners are trying to increase the share of profit received from these new business directions. Thus, LUKOIL passed the Program for development of retail sales of non-fuel goods and services 'till 2014. Thanks to this initiative the oil company is intent on increasing its “non-gasoline” sales turnover almost five-fold.

During the conference General Director of ANTOR Alexander Timashev presented a solution for planning of petroleum products deliveries and transport monitoring in I.T.-Oil management system.

Dmitry Gaganov, head of the Petroleum depot section of the I.T. Co. Fuel and Smart Systems Department, raised a relevant issue of petroleum depots efficiency enhancement. Today, according to Rostehnadzor, there are 3751 petroleum depots and petrochemicals warehouses, and over 90% of them are technically outdated and require modernization, which in turn leads to losses during receipt, storage and sales of petroleum products. According to specialists’ estimates, lowering of losses incurred during basic operations can produce up to 20% of petroleum products savings. The main goal of using the specialized I.T.-Oil Petroleum Depot solution is tracing of petroleum products and lowering of the named losses, which will facilitate achievement of major petroleum depots and petrochemicals warehouses objectives, namely: provide for uninterrupted supplying of consumers with petroleum products in necessary quantity and assortment; preservation of petroleum products quality and minimization of their losses during receipt, storage and sale to consumers.

Sergey Chernobrovkin, Business development manager of the I.T. Co. Fuel and Smart Systems Department, and Alexey Matveyev, Director of the Loyalty Programs and BTL of PA 4TE Projects Department, presented reports on filling station loyalty programs.

And, finally, one of the raciest reports at the conference was speech of President of NO MosneftSoyuz Galina Zinchenko, who touched on the subject of small and medium business survival through union of independent filling stations. The Moscow region was used as an example for overview of the fuel and energy industry market, evaluation of its structure, comparison of operating conditions of independent filling stations and vertically integrated oil companies. Analysis of these factors has lead to a decision on integrating to survive.

Thanks to the round-table format, the conference participants were able to exchange opinions and share experience, answer each other's questions. I.T.-Oil solutions were presented at the I.T. Co. stand at Autocomplex-2008.

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