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How does a Buffalo, New York based energy company with over seven decades of experience fuel their growth? Investing in mobile fueling is one way NOCO Energy has expanded the geographical footprint in its Business-To-Business sales strategy. Mobile fueling has been part of the portfolio at NOCO for nearly a decade. However, in 2003 the ante was raised when some further investments were made in the business. These acquisitions complemented the existing portfolio by extending coverage east to Syracuse, Rochester and Albany. The mobile fueling business provided a beachhead in these markets that allowed the company to grow its transport, tankwagon, lubes and other businesses.
Without a doubt, the company’s strong brand and the reputation for premium service levels helped the business proliferate. In addition, Scott Ernst, Director, Fuel Operations, said other keys to success have been, “uncompromised safety and regulatory compliance, a strong training program, effective technology and a lot of hard work.” Technology is an important aspect of how the product is delivered and how value is created. NOCO uses FuelEdge Technology, a product developed by Jacobus Energy. Kevin Galas, Manager, Fleet Operations explains how FuelEdge Technology works, “every tank that is going to be fueled is bar coded.” His drivers carry a handheld device that scans the bar code. The meter and pump can not be operated unless the handheld recognizes the tank to be fueled.
As the tank is fueled, the handheld stores the data on the delivery. This process ensures accurate billing, improved controls and also saves the drivers a lot of time when fueling. The system is synchronized at the end of the shift and the back office system provides reports such as gallons per truck, time to fuel an account, or profit per stop. NOCO’s trained and experienced drivers deliver fuel on a schedule specified by the customer. Before leaving the site, the driver will leave a summary of the volume delivered to each tank.
Operational effectiveness and strong execution are a source of competitive advantage in mobile fueling market state wide. Jack Catanzaro, General Manager, Industrial Products explained how his sales team uses the technology to win new accounts. He said, “Our sales staff works closely with the operations team in all segments of our company to ensure efficient delivery of our product and strong customer service levels.” Besides the convenience the service offers, mobile fueling gives a customer rack economics instead of retail economics. Additionally, for larger volume accounts longer term arrangements can be made. The customer also appreciates getting one bill and not having to deal with multiple corporate cards or driver expense reports.
The business has also benefited NOCO on several levels. The fleet fueling business has allowed expansion across the state with relatively low investment. Traditionally, expansion has meant investing in capital intensive fixed assets like bulk plants or terminals. Mobile fueling has required a comparatively modest investment. “Besides that, the service allows NOCO to establish a track record and level of comfort with customers not familiar with the brand,” said Catanzaro, “and this allows us to present our other offerings with confidence.” The relationships built through the mobile fueling business have led to other sales, including transport and tank wagon business, lubricants sales, natural gas and electric as well as other business.
NOCO remains excited about the future of their mobile fueling business. Ernst says, “It is all about filling in our current footprint and improving route density. The more dense the route, the more fuel our drivers can pump in a shorter period of time.” With increased fuel cost and a shortage of qualified labor presenting challenges to customers, NOCO believes they are in a good position to grow while helping their clientele reduce driver overtime and improve efficiency.
If you would like more information about FueEdge Technology, networking with other mobile fueling companies, information on transactional providers or need operational or sales assistance with your mobile fueling operation you can reach Glen Sokolis, President, Sokolis Group at 267-482-8371 or via email at gsokolis@sokolisgroup.com or www.sokolisgroup.com.
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