Pinnacle Petroleum Solutions Firing on All Cylinders
“Given that complexity and opportunity represents to make a real impact on client profits, we did not want to spend any time or precious development dollars working on non-industry specific products. We chose to focus on expanding our products in ways that can uniquely add value to convenience store retailing and petroleum marketing.” — Pinnacle CEO Bob Johnson
The fuel marketing space is unique and petroleum sales have consistently provided a stalwart buoy of much-needed revenue for fuel marketers (a trend that should continue for the foreseeable future). We’ve always focused on the petroleum market, not only for its overall economic importance, but also the challenges and opportunities afforded by its volatility and complexity. Fuel Smart, among other Pinnacle products, has allowed us to accommodate the needs of our fuel marketing clients with respect to adjusting quickly to inventory and market demands. By championing better fuel marketing solutions, Pinnacle consistently demonstrates our belief in the relevance and longevity of this market.
The Power of Fuel Smart For Petro Marketers
Razor-thin margins still pose a challenge for today’s fuel marketers and the prospects for that improving don’t look promising. While fuel marketers’ control over margins is limited, their control over process efficiency is almost absolute. Pinnacle’s Fuel Smart streamlines the fuel management process and is a fundamental management tool for growing fuel margins. Utilizing business intelligence to minimize outside variables, increase efficiency within fuel marketers’ controls, and respond to the near-daily changes within the industry; Pinnacle fuel solutions offer distinct advantages over competitors and industry trends.
Fuel Smart’s functional array includes managing accounts receivable, price quoting, smart billing, inventory management, fuel payables (reconciliation of open bills of lading that are paid based upon dispatch, deliveries, contracts discounts, etc.), and up-to-date business intelligence, and many others. Financials and tax data are easily managed and Fuel Smart will integrate with the Microsoft Dynamics GP general ledger (many clients’ ledger of choice) without issue.
Fuel Smart delivers a comprehensive package of services and business intelligence that is as powerful as the user needs it to be. Fuel marketers looking to save money through process efficiency will benefit from Pinnacle’s professional services team and user training.
Pinnacle and Petroleum
In 2010, veteran Pinnacle client Pilot Oil significantly expanded its petroleum marketing business through the acquisition of Western, Maxum, and Simons petroleum companies. Considering their need to process more than 4,500 bills of lading each day, they needed a solution with the capacity to handle that volume of processing. In 2014, Pilot processed 633,389,512 gallons of fuel through Fuel Smart. Of their daily 4,500 bills of lading at the time, 50% of them were processed through Fuel Smart with a 0% failure rate upon reconciliation. The other half, meanwhile, had a 20% failure rate (which included a number of manually processed bills).
Pilot Oil also took advantage of Fuel Smart’s ability to instantly update inventory and margin reporting. Pilot is just one of many companies that were able to streamline their processes, and reduce the monetary investment required to correct data and register inventory.
Volatility of the Market and Need for Data
The 2016 NACS State of the Industry Report yielded key insights into the petroleum marketing future. Petroleum volumes will likely continue to decline, but liquid fuels still dominate; over 97% of vehicles sold in 2015 utilize gasoline. Ride sharing economies and millennials’ acceptance of public transportation will create immediate challenges for fuel. Industry regulation continues to favor the growth of electric-powered vehicles, though the wide-adoption of the technology will take years.
Still, as the market changes, the need for more accurate and timely data becomes paramount. We want to continue delivering tools, including Fuel Smart, that gives petroleum marketers access to live business intelligence that informs decision making and expands fuel margins.