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Case Study

 

COGO’S COMPANY

Situation

CoGo’s Company, a large convenience store chain with 75 stores in Pennsylvania and Maryland, needed a fuel transportation provider for 32 of its stores that would deliver on-time and ensure that stores would never run out of fuel. What’s more, they wanted a carrier with safe, friendly drivers that would always conduct themselves in a professional manner around their customers, a requirement that their current carrier was not meeting.
  • CoGo’s sought a versatile transportation company with a reputation for prompt delivery and one that could go even further and take over the fuel inventory management, order management, and delivery scheduling for all the stores.
  • Previous transportation companies had misjudged inventory, thus resulting in occasional shortages of product. Simply put, various locations ran out of fuel, creating an inconvenience to their customers, lost fuel sales, and lost in-store sales of other products.
  • Managing fuel inventory at 32 stores is not easy. Many have small tanks with high volume and often-times irregular demand. Adding to the difficulty, many stores operate in areas that transition to seasonal blends for a portion of the summer months. The challenge is to deplete one product from a tank completely and schedule the delivery of the new blend immediately following, all without running out of fuel when a customer needs it.

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Opportunity/Decision

Through Source One, CoGo’s was able to solve multiple tasks and address a variety of needs involving transportation and management of the fuel inventory. Source One provided solutions that facilitated the process, saving time and creating a professional atmosphere.


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Actions

  • Source One management visited the various CoGo’s sites to evaluate the situation. Source One studied tank sizes and delivery constraints unique to each store’s location and documented historic store sales.
  • Source One set up CoGo’s on its ‘Auto Fill Program’ with each store providing inventory levels through an easy to use phone-based inventory management system. Source One scheduled delivery based on those inventory levels, historic store sales and other factors such as changes in weather, holidays, and even road construction.

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Results

Source One made an immediate and positive impact. “The transition went fairly smooth. Source One’s staff is very professional and knowledgeable,” said Ray Kostrzycki, CoGo’s Director of Marketing. “Any problems that we were incurring prior to Source One handling transportation have pretty much disappeared.”
  • Source One effectively manages inventory. “We had locations that would run out of product and that doesn’t occur now,” Kostrzycki said. “They know how to manage the inventory and they are able to keep tank levels at a reasonable range. By managing the inventory and keeping the inventory turning, it helps manage your cash flow as well.”
  • Source One delivers – literally. “The biggest headache is trying to get the load there at the right time without running out,” Kostrzycki said. “Source One does a really good job of that.”
  • Source One tackled each project with a specific plan, addressing the needs of stores with small tanks and irregular demand. “Source One handles the complete process for us and makes sure fuel is in the tanks when it is needed,” Kostrzycki said. “Their dependable service gives me one less thing to worry about.”
  • Source One’s association to Guttman Oil helped CoGo’s streamline the process. Supply and distribution were handled almost simultaneously.