There are several challenges all fuel distributors face when it comes to storage and delivery. Although these challenges are constantly changing, it is useful to know what these obstacles are in advance.
The more you know, the better prepared you will be to face these challenges, and tackle them head-on. Here are just a few of the difficulties facing the fuel distribution and storage industry today:
Many factors go into fuel distribution, and they’re not cheap. About two-thirds of fuel distributors’ total cost is transportation. But, even though fuel prices have gotten lower, the cost of fuel distribution equipment has steadily increased, as have labor costs.
Due to these spikes, lower gas prices have a smaller effect on the fuel distribution industry than they have on the average consumer. Rather, these lower gas prices are canceled out by the other costs in fuel distributors’ supply chains.
Low Driver Retention Rates
There is a substantial driver shortage in the trucking industry, which has greatly affected fuel delivery at-large. According to the American Transportation Research Institute, the current driver shortage is the third greatest problem facing the industry today. Two major causes are drivers’ minimal job security, and heavy workload. Many drivers have to change jobs multiple times during their careers, and consider the livelihood too difficult. Thus, fuel distributors tend to lose their drivers to stable jobs that are closer to home.
To counteract this shortage, fuel distributors should utilize more aggressive recruiting measures. By actively training potential drivers, and lessening their workload once they’re onboard, fuel distributors can increase their driver retention rates. Two additional improvements are altering drivers’ timetables so they don’t spend too many days on the road, and integrating automatic transmissions to make driving less strenuous. If you can lessen the time drivers spend away from home, you’ll be able to keep more drivers in the long run.
In the fuel distribution industry, time is of the essence. Whether you work in agriculture, aviation, or industrial manufacturing, you need the right fuels and lubricants to be delivered on time, and in the proper condition. However, considering the other obstacles facing fuel distributors today, you may want someone else to handle these facets of your company.
Consider using a top supplier of fuels, grease, and chemicals, like Gaubert Oil. With a comprehensive delivery service, you can trust that your industrial fuels and lubricants are in good hands. Gaubert Oil offers name-brand fuels and lubricants, like Chevron, Summit, and Placid, as well as expert advice from STLE-certified specialists. Whatever your needs may be, Gaubert Oil can help you navigate the challenges of fuel delivery at a price you can afford. With over 90 years of experience, Gaubert Oil has already faced the ever-changing obstacles of the fuel distribution industry, and knows how to get the job done.