Challenges

Jobbers and carriers strive to provide superior service to their retail customers and minimize costs for improved margin. Manual processes can increase costs unnecessarily and impact supplier and retailer relationships. Additionally, the distributor market is highly competitive, which drives companies to look for service and pricing advantages.

Jobbers that have vertically integrated owning their own retail locations or that offer a vendor-managed inventory service face a unique set of challenges in terms of operational complexity. With additional complexity comes the opportunity for additional costs if not managed correctly.

Within the fuel supply chain, there are opportunities to optimize for both improved service levels and lower operating or fuel costs. FuelQuest does so by providing software via its Fuel Management System, licensed distributor consulting services, and Zytax Compliance software.

FuelQuest distributor customers include Apex Oil, Global Companies, Petroleum Traders Corporation, Sun Coast Resources, and many more. With FuelQuest, distributors gain:

• Greater efficiencies in their dispatch, sourcing, and freight operations
• Faster payments and reduced risk of non-payment
• Improved margins via becoming a licensed distributor
• PCATS-compliance on delivery report and carrier load tender interfaces.

With FuelQuest, distributors can also offer their customers greater visibility into service levels. This differentiates the distributor offering from others in the market and creates a more transparent vendor-managed inventor service opportunity.

Becoming a Licensed Distributor

Distributors, retailers, fleets, and other downstream companies have the option of becoming a licensed distributor, which means they take motor fuels tax collection and remittance responsibility (versus the supplier having it). This can be advantageous for four reasons:

1. Allowance: Called a shrinkage or handling allowance, a discount is available in most states for taxes owed to the government
2. Float: Due to regulations on when distributors must remit taxes, an sizable float opportunity exists for anywhere from 21 to 62 days.
3. Supply: Distributors improve margin by increasing the number of supply options available.
4. Delivery: Retailers in particular reduce fuel costs by avoiding the premium of delivered pricing and can simply lower their overall freight costs.

Becoming a licensed distributor is not for everyone. Volume minimums and jurisdictional regulations will affect this decision. FuelQuest has consulting services that can quickly determine whether this is right for you.

What Is Fuel Management System (FMS)?

Fuel Management System is Software as a Service (SaaS) based product that automates all aspects of the fuel management process providing demand forecasting, inventory management, order management, dispatching, environmental compliance, invoice reconciliation, and more so customers can gain greater control and visibility over fuel as well as reduced fuel expenses. FMS powers the largest bulk fuel management network in the world and is in use by retailers and distributors - both small and large. To learn more, please visit our Fuel Management System page.

What is ForeSite^TM SV?

ForeSite SV provides real-time, independent visibility into fuel management operations, allowing supervisors to monitor and ensure the accuracy and effectiveness of their replenishment plans.
To learn more, please visit our ForeSite SV page.

What is ForeSite^TM IC?

ForeSite IC helps fuel managers track inventory and resolve issues with theft, fraud, leakage, deliveries, dispensing equipment, and operational errors that cause inventory variances.
To learn more, please visit our ForeSite IC page.

What Is Zytax Compliance?

Zytax Compliance is a software product that automates the import, processing, and filing of indirect taxes to local, county, state, and federal jurisdictions across the entire U.S. and internationally. Compliance reduces the complexity of the tax filing process generating signature-ready tax returns for distributors, retailers, suppliers, fleets, and other filers. Compliance lowers operational costs and improves filing accuracy and reliability minimizing business and compliance risks. Zytax Compliance is available in a SaaS version and includes automatic feeds of rules, rates, and form changes across all jurisdictions. To learn more, please visit our Zytax Compliance page.