RetailEfficiencyinChinasOilIndustry1

1、retail efficiency in chinas oil industryretail efficiencygrow i ng ret ai l (2002)2 25 50 00 00 02 27 75 50 00 03 30 00 00 00 00 00 00 01 11 1h h 0 02 23 3. . 4 40 03 3. . 6 60 03 3. . 8 80 04 4. . 0 00 04 4. . 2 20 0b 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

2、l v vo ol lu um m e esi 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 egrow i ng ret ai l (2002)2 25 50 00 00 02 27 75 50 00 03 30 00 00 00 00 00 00 01 11 1h h 0 02 23 3. . 4 40 03 3. . 6 60 03 3. . 8 80 04 4. . 0 00 04 4. . 2 20 0b

3、 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 esi 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 e2 25 50 00 00 03 37 75 50 00 05 50 00 00 00 00 00 00 01 11 1h h 0 02 20 0. . 5

4、50 01 1. . 0 00 01 1. . 5 50 02 2. . 0 00 02 2. . 5 50 0s si it te es s a av vg g. . f fu ue el l v vo ol lu um m e esi 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 t te efewer sitessave more moneymore sites cos

5、t more money for:distribution,site operation,site maintenancein china distribution costs are 60-70% of sales price. . .efficient growth comes from higher volume per sitelow volumes per site do not cover the high costsenabling retail efficiency saving money saving money on retail operations saving mo

6、ney 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 formats saving moneyretail operating costs - cash control

7、in chinacash 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 reportingretail operating costs cash control best practicepos cash drawer &

8、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 reportsretail operating costs payment control in china forecourt delays for:-”

9、in shop” payments: -local accounts-checks, credit cards-account cards-coupon change-writing receipts-vat receipt printingunattended cars block refueling points . . .no time for attendants to serve new customers . . .no audit trail for payments processing and credit checking retail operating costs pa

10、yment control best practiceforecourt 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 te

11、nder type-audit trail for all sales retail operating costs stock control in chinastock 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 gauge

12、s-no audit trail for stock movements-no detection of leaks or pilferage no loss detection and no loss analysis. . .retail operating costs stock control technologyforecourt controller-integrates all devices at the site-dispenser & tank gauge calibration-transaction control-payment card handling-s

13、upports many dispenser protocols-price sign update-car wash control-integrated wet stock reportsretail operating costs stock control best practiceopeningstockdeliveriessalesclosingbookclosingdipdailyloss/gain%loss/gaincumulativesales%datetank #1super03/05/0369084 0 5954 63131 63022 -108-1.82-1085954

14、 -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 -0.4909/0

15、5/0362597 0 5438 57159 57203 44 0.81-135 41946 -0.3210/05/035720310900 5148 62955 62986 31 0.60-104 47094 -0.22+-=-=trend shows that daily losses are not cumulative. . . (indicating no leakage)daily forecourt wet stock management reports including:reconciliation history report (below) site maintenan

16、ce 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 t

17、o each pump- systems very expensive to installsite maintenance costs standardisation industry standards-ifsf standard forecourt protocol-nacs open site architecture v0.5-nacs pos/bo interface guidelines-iso 8583 card acceptor to host-api petroleum measurement -nrf unified pos v. 1.7 site maintenance

18、 costs centralization routertankmonitorshead officeforecourtshopnon-intelligentdevicesforecourtcontrollerwan(includes security)siteprocessorvirtual backofficepoint ofsaleethernet switchaccess point for wireless (dsss)kioskshophandheldcustomerpayment /recognitionconsumer handhelddispenserscustomerpay

19、ment/recognitionofficebrowserbrowserscentral back office at company hq connects all service stations around the country into a single hub centralized forecourt control connects all dispensers, tank gauges & payment terminalssite maintenance costs centralization retail companyoperationtown center

20、accounting &financemanagementinformationsystemhumanresourceslogisticsmerchandisingmarketingregionalstoredistrictdcshredpcountryregiondistrictstore /dcdistrictdistrictdistrictdistrictdistrictconstructionbusinessdevelopmentstorestorestorethe largest multinational retailers usually centralize their

21、 retail management systems at the country levelhowever, since operations functions are managed 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 chevron