1. Storage
Storage Capacity
Your diesel storage capacity should match your monthly consumption needs.
Example:
For a monthly consumption of 75,000 gallon’s, a minimum storage capacity of 10,000 gallon’s is recommended.
- Benefits:
- Better planning and lead time management
- Improved cash flow control
- Ability to negotiate better prices with vendors (larger storage often attracts discounts)
- Reduced risk of supply disruptions
- Cost efficiency through bulk purchases and improved inventory control
2. Credit Terms
Vendors’ pricing is often linked to the credit terms they offer.
To get the best value:
- Align your credit period with your purchasing intervals
- Buy in optimal quantities to benefit from better pricing
- This approach also helps manage your cash flow more effectively
3. Quality
Ensuring fuel quality is essential.
Recommendations:
- Check and verify product quality at the time of delivery
- Conduct random lab tests to confirm key parameters
- Evaluate vendors based on their quality assurance practices
4. Measurement
Important to have an On-site measurement equipment. These equipments must be calibrated at least once a year, to ensures accurate measurement of diesel deliveries.
5. Vendor Assessment
Choose vendors based on more than just price. Consider the following:
- Years in business and industries served
- Types of products and services offered
- Customer service and responsiveness
- Reliability in delivery schedules
- Commitment to accuracy and transparency
