Retail Efficiency in China’s Oil Industry1.ppt
Retail Efficiency in Chinas Oil Industry,Retail Efficiency,Fewer SitesSave more Money,More Sites Cost More Money for:Distribution,Site Operation,Site Maintenance,In China distribution costs are 60-70%of sales price.,Efficient Growth comes from higher Volume per Site,Low Volumes per Site do not cover the High Costs,Enabling Retail Efficiency,Saving MoneySaving money on Retail OperationsSaving money on Site MaintenanceSaving money on Distribution Increasing Throughput per SiteFocus on the CustomersOffer Regional Bulk Accounts to Wholesale ConsumersMarket easy Payment Methods to all Customers Target Retail Consumers with new Shop Formats,Saving Money,Retail Operating Costs-Cash Control in China,Cash Handling&Countingfrequent cash handlingexcessive cash counting no audit trailno cash receipts printed poor accountabilityallows attendant fraudhandling lossescounterfeit lossesno cash balance reporting,Retail Operating Costs Cash Control Best Practice,POS Cash Drawer&Journal printed journal(audit trail)cashier loginrecords all cash transactionsprints customer receiptsprints amount tendered by customerprints change given to customerscash balancing each shiftcashier performance reports,Retail Operating Costs Payment Control in China,Forecourt Delays for:-”in shop”payments:-local accounts-checks,credit cards-account cards-coupon change-writing receipts-VAT receipt printing,Unattended cars block refueling points.No time for attendants to serve new customers.No audit trail for payments processing and credit checking,Retail Operating Costs Payment Control Best Practice,Forecourt POS System-all payments in forecourt-connects to all dispensers-handles account payments-handles fleet card payments-handles credit card payments-handles coupons with bar codes-handles cheque payments-forecourt cash drawer-receipt printing for each sale-prints tender type-audit trail for all sales,Retail Operating Costs Stock Control in China,Stock Management-some electronic tank gauges-electronic meter totals-few sites have printed reports-daily reporting by telephone-reports do not integrate:-dispenser totals-received volumes-transaction volumes-tank gauges-no audit trail for stock movements-no detection of leaks or pilferage,No loss detection and no loss analysis.,Retail Operating Costs Stock Control Technology,Forecourt ControllerIntegrates all devices at the siteDispenser&tank gauge calibrationTransaction controlPayment card handlingSupports many dispenser protocolsPrice sign updateCar wash controlIntegrated wet stock reports,Retail Operating Costs Stock Control Best Practice,OpeningStock,Deliveries,Sales,ClosingBook,ClosingDip,DailyLoss/Gain,%,Loss/Gain,CumulativeSales,%,Date,Tank#1Super03/05/0369084 0 5954 63131 63022-108-1.82-1085954-1.8204/05/0363022 0 6402 56620 56573-47-0.73-155 12355-1.2605/05/035657315800 6777 65596 65633 37 0.55-118 19132-0.6206/05/0365633 0 6037 59596 59571-25-0.41-143 25170-0.5707/05/035957114400 5873 68098 68127 29 0.49-115 31043-0.3708/05/0368127 0 5465 62662 62597-64-1.18-179 36508-0.4909/05/0362597 0 5438 57159 57203 44 0.81-135 41946-0.3210/05/035720310900 5148 62955 62986 31 0.60-104 47094-0.22,+,-,=,-,=,Daily Forecourt Wet Stock Management Reports including:Reconciliation History Report(below),Site Maintenance Costs in China,No Standardization local pump modifications many different IC card reader types non-standard systems systems different at each site systems too complex for local repairNo Centralization inconsistent data between sites repairs must be made at each site repairs must be made to each pump systems very expensive to install,Site Maintenance Costs Standardisation,Industry StandardsIFSF Standard Forecourt ProtocolNACS Open Site Architecture v0.5NACS POS/BO Interface GuidelinesISO 8583 Card Acceptor to HostAPI Petroleum Measurement NRF Unified POS v.1.7,Site Maintenance Costs Centralization,Site Maintenance Costs Centralization,Site Maintenance Costs Centralization,ChevronTexaco plan for only three large Retail DataCentres located around the world in:Asia/ME/Africa,North AmericaEurope and West Africa,Each head office would initially operate in country pricing,buying and merchandising until such time as regional or global suppliers and logistics could be supported.,Each service station would communicateand report sale transactions in real-time with a sub-zone database in the regional data-hub.,Oil Sales&Vehicle Growth in China,Annual Oil Sales in China,Million tons,
