Retail Efficiency in China’s Oil Industry1

1、retail efficiency in chinas oil industry retail efficiency grow i ng ret ai l (2002) 2 25 50 00 00 0 2 27 75 50 00 0 3 30 00 00 00 0 0 00 00 01 11 1h h 0 02 2 3 3. . 4 40 0 3 3. . 6 60 0 3 3. . 8 80 0 4 4. . 0 00 0 4 4. . 2 20 0 b b p p s si it te es s ( (e ex xc cl l . . v ve eb ba a) ) a av vg g.

2、. f fu ue el l v vo ol lu um m e e si t es (excl . v eba) vol um e per si t e (m l pa) b b p p g gr ro ow w i i n ng g v vo ol l u um m e e/ / s si i t te e grow i ng ret ai l (2002) 2 25 50 00 00 0 2 27 75 50 00 0 3 30 00 00 00 0 0 00 00 01 11 1h h 0 02 2 3 3. . 4 40 0 3 3. . 6 60 0 3 3. . 8 80 0 4

3、 4. . 0 00 0 4 4. . 2 20 0 b b p p s si it te es s ( (e ex xc cl l . . v ve eb ba a) ) a av vg g. . f fu ue el l v vo ol lu um m e e si t es (excl . v eba) vol um e per si t e (m l pa) b b p p g gr ro ow w i i n ng g v vo ol l u um m e e/ / s si i t te e 2 25 50 00 00 0 3 37 75 50 00 0 5 50 00 00 00

4、 0 0 00 00 01 11 1h h 0 02 2 0 0. . 5 50 0 1 1. . 0 00 0 1 1. . 5 50 0 2 2. . 0 00 0 2 2. . 5 50 0 s si it te es s a av vg g. . f fu ue el l v vo ol lu um m e e si t es (excl . i ndependent s) vol um e per si t e (m l pa) c c h hi i n na a c c o om m p pa an ni ie es s v vo ol l u um m e e/ /s si i

5、t te e fewer sites save 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

6、saving money saving money on retail operations saving money on site maintenance saving money on distribution increasing throughput per site focus on the customers offer regional bulk accounts to wholesale consumers market easy payment methods to all customers target retail consumers with new shop fo

7、rmats saving money retail operating costs - cash control in china cash handling & counting -frequent cash handling -excessive cash counting -no audit trail -no cash receipts printed -poor accountability -allows attendant fraud -handling losses -counterfeit losses -no cash balance reporting retail op

8、erating costs cash control best practice pos cash drawer & journal -printed journal (audit trail) -cashier login -records all cash transactions -prints customer receipts -prints amount tendered by customer -prints change given to customers -cash balancing each shift -cashier performance reports reta

9、il 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

10、 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 -ha

11、ndles 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 telepho

12、ne -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 controller -integrates all

13、 devices at the site -dispenser & tank gauge calibration -transaction control -payment card handling -supports many dispenser protocols -price sign update -car wash control -integrated wet stock reports retail operating costs stock control best practice opening stock deliveriessalesclosing book clos

14、ing dip daily loss/gain % loss/gain cumulative sales% date tank #1super 03/05/0369084 0 5954 63131 63022 -108-1.82-1085954 -1.82 04/05/0363022 0 6402 56620 56573 -47 -0.73-155 12355 -1.26 05/05/035657315800 6777 65596 65633 37 0.55-118 19132 -0.62 06/05/0365633 0 6037 59596 59571 -25-0.41-143 25170

15、-0.57 07/05/035957114400 5873 68098 68127 29 0.49-115 31043 -0.37 08/05/0368127 0 5465 62662 62597 -64-1.18-179 36508 -0.49 09/05/0362597 0 5438 57159 57203 44 0.81-135 41946 -0.32 10/05/035720310900 5148 62955 62986 31 0.60-104 47094 -0.22 +- =-= trend shows that daily losses are not cumulative. .

16、. (indicating no leakage) 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 - system

17、s too complex for local repair no 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 standards -ifsf standard forecourt protocol -nacs open site a

18、rchitecture v0.5 -nacs pos/bo interface guidelines -iso 8583 card acceptor to host -api petroleum measurement -nrf unified pos v. 1.7 site maintenance costs centralization router tank monitors head office forecourt shop non- intelligent devices forecourt controller wan (includes security) site proce

19、ssor virtual back office point of sale ethernet switch access point for wireless (dsss) kiosk shop handheld customer payment / recognition consumer handheld dispensers customer payment /recognition office browser browsers central back office at company hq connects all service stations around the cou

20、ntry into a single hub centralized forecourt control connects all dispensers, tank gauges & payment terminals site maintenance costs centralization retail company operationtown center accounting & finance management information system human resources logistics merchan dising marketing regional store

21、 district dcshredp country region district store / dc districtdistrictdistrictdistrictdistrict construction business development storestorestore the largest multinational retailers usually centralize their retail management systems at the country level however, since operations functions are managed

22、 in each region, each district and at each store - access to those functions is provided at these sub- locations. country-wide servers for a large retailer typically support 1500 sites, but some multinational petroleum retailers plan to support a group of countries with different currencies, languages, and tax configurations from a single system and database instance. site maintenance costs centralization chevrontexaco pl