• A few weeks ago, the Gravitate team attended the SIGMA Annual Conference, which stands out as one of the most exclusive in the fuel marketing industry. At this event, we learned about major concerns for fuel marketers right now.

• Driver and truck shortages are putting stress on supply chains. However, the right technology can help fuel marketers to work around these issues while enhancing productivity.

• Additionally, improved customer service, such as real-time invoicing capabilities, and biofuel and renewable diesel potential are popular topics of conversation.

A few weeks ago, the Gravitate team attended the SIGMA Annual Conference 2021 to meet with clients and prospective customers to discuss our software for fuel marketers. Each year at SIGMA, top-level decision-makers in the fuel marketing space come together for educational sessions and networking with peers, fuel buyers, transportation companies, and business partners.

We are honored to be a Silver Partner with SIGMA. Supporting this organization is one of the best decisions we have made, and we are happy to continue our sponsorship of the organization that propels our industry, customers, and stakeholders.

During our three days at SIGMA, here are the main takeaways that stood out as important.

1. Driver shortages mean an “everything shortage.”

The U.S. is experiencing a severe shortage of truck drivers for a variety of factors. The fact is, it’s a highly competitive labor market. The impact of the lack of drivers on our supply chain is only going to get worse.

In the fuel marketing space, it’s especially concerning that there could be a shortage of drivers to deliver the fuel that end users depend on every day. During the spring conference, the talk was about fuel shortages resulting from a lack of drivers. However, by November, this shortage had spread to ports and other logistics infrastructure. Many c-stores can’t get the plastic packaging or Topo Chico they need to stock shelves. In the corporate offices, the same shortages exist with qualified fuel supply managers and IT business analysts.

Fuel marketers will have to become more adept at optimizing volume per truck and increasing truck and driver utilization. During times of transportation shortages, the right dispatch software can pivot to focus on reducing transportation usage above all other factors.

2. The top priority: Getting transportation.

These days, with the shortage of drivers and trucks to deliver fuel, the paradigm has shifted. The priority isn’t procuring cheap transportation or optimizing transportation anymore. It’s getting transportation, period. Many fuel marketers are left wondering, Can I even get a truck to get my product to the store?

However, the better you are at managing your transportation fleet, you can do more with less. This comes from having the right technology in place to help your drivers avoid wasting time at the terminal when the primary product isn’t available or a no-fit situation at the site. Technology can give dispatchers optimize a driver’s day and select the best load order to help them to be as productive as possible. The right in-cab technology helps to set drivers up for success and even help them improve their pay.

3. Fuel marketers want real-time invoicing capabilities.

Fuel marketers want to become more customer-friendly and supplier-friendly. This means invoicing customers and paying suppliers on time. Technology can help to facilitate that.

For example, a common desire is to be able to send invoices to customers as soon as fuel is dropped—real-time invoicing. This capability is rarely limited by the supply and logistics systems. The key to invoicing in a timely manner is the ability for a system to integrate BOLs, Taxes, Contracts and Prices with a front-end technology. Many of these data points are housed in different systems and are associated with different processing speeds. For instance, taxes for delivered fuels are typically complex and require a tax determination engine like IGEN to help. Companies like NGL Energy Partners have enabled best-in-class invoicing through their use of automation in their back office systems. Companies like capSpire (an advisory firm) help fuel marketers to optimize invoicing processes.

4. A Tale of Two Wholesalers: Buyers and Sellers

A wave of consolidation is sweeping through the wholesale and fuel distribution business. Companies like Offen Petroleum and Parkland are gobbling up small, family-owned operations to acquire new customers, territory, and assets. Today, there seem to be two types of privately-owned distributors and wholesalers:

• Sellers: Companies with second- or even third-generation owners who are ready to sell the business. This is a great market to sell companies, and many are taking that option.
• Buyers: Companies whose owners have strong succession plans and want to keep building and growing their businesses, acquiring new assets, and providing wealth for future generations.

Both types of businesses can use help. Sellers can use help from companies like Matrix Capital, which facilitate acquisitions and asset sales in this market. For buyers in need of capital, BMO Harris Bank is an expert in the c-store and wholesale fuels market and can provide assistance in funding growth plans.

5. Biofuels are so hot right now

Consumers and fleet operators interested in minimizing their environmental impact have a lot of options to consider for reducing carbon emissions.

LPG or compressed natural gas are good, lowering carbon options for powering trucks, but their main drawback is that they require expensive modifications to fleets or require companies to purchase new trucks in addition to other associated infrastructure.

Assuming that power is derived from natural gas and renewables, electric vehicles can also offer a lower carbon footprint transportation option. However, they are not commercially available for freight or fuel trucks and require a complete overhaul of the existing fleet. As such, this option is very expensive in the short term and requires a staggered approach.

On the other hand, biodiesel and renewable diesel are low-carbon alternatives that can be leveraged by existing combustion engine vehicles. Companies like Renewable Energy Group (REG) manufacture and market biofuels from oils and waste products. Little to no modifications are usually required. As such, the growing demand for biofuels that is driven by both consumer preferences and government policy will provide fuel marketers with an increasingly important product line. In an environment where carbon emissions and climate change are important considerations, Biofuels offer a valuable complement to conventional fuels. Advisory firms like capSpire help fuel wholesalers and retailers optimize RINS management to ensure that their customers gain the maximum benefit from adding renewables to their portfolio.

Did you attend SIGMA this year? Share your experience with us here.