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DON'T BAITER YOUR DERV SUPPLIER • Certainly, reduced crude cost

17th May 1986, Page 37
17th May 1986
Page 37
Page 37, 17th May 1986 — DON'T BAITER YOUR DERV SUPPLIER • Certainly, reduced crude cost
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Which of the following most accurately describes the problem?

means that industry as a whole should enjoy lower prices for finished products. The monitoring services demonstrate a unique rate of price reduction this year and, since Karen Miles' article ("Fighting for cheap litres" CM, April 19) prices have dropped further.

What's the right road to effective buying?

Ideally, choose a supplier prepared to provide consistently regular, properly informed price review!

For the operator to shop around is sound advice, but — moderation in all things — he should balance the marginal advantage of promiscuous buying against the cost of the time spent on it and the resultant long-term lack of appeal which his business may present to suppliers. The buyer expects prompt service, reliable delivery and security, that means the supplier's commitment. The conscientious oil supplier, in being geared to provide this, reasonably expects some commitment from the buyer in return.

Conoco invests time in its customers. We expect tough negotiations to gain and increase our business and, having succeeded, we're ready to commit ourselves to looking after our customers in every sense of those words. A bit of bluff may be part of negotiation, but trust and respect are the basis of successful relationships. Crying wolf and "using" the supplier too often don't lead in this direction.

Group purchasing — the ROADS way — is a good idea and, providing it's properly organised and the supplier is assured of regular purchase continuity and reliable payment, brings the mutual benefits of better terms for operators and centralised rather than piecemeal negotiation for suppliers. Despite what you may think, all suppliers have had to seek wide-ranging cost reductions in recent years — and have to seek yet more now — and field representation is one area where reductions have been made.

In Conoco's case we've introduced SupplyLine 0800 282782 to supplement our regular representatives' customer price review and service calls. SupplyLine is free and provides an instant response to inquiry and pricingiorder placing service to keep pace with market trends (and it really is user-friendly — try it!).

Large loads are advantageous. As fleet operators ourselves we increase our vehicle capacities to take advantage of increased gross vehicle weight. If it costs less to deliver your derv, you can expect it to be reflected in your price. Similarly, if it costs us a lot of time (which is money) to chase you for payment, don't expect to be a most favoured customer!

Dery duty none of us can do much about. In fact, it hurts us more than it hurts you — we pay it before you do and provide HMG's collection facility for free.

I doubt whether any transport operator I know of could honestly feel disappointed about his price movements this year (I'd be glad to hear from any regular Conoco customer who feels he hasn't had a fair number of improvements!).

Bargain hard by all means, but remember that immense investment in UK North Sea and onshore exploration and production, refining capacity, an owned fleet and depot networks and field force must be supported. If you nail your supplier to the floor he's in no shape to help you when you need him, is he?

L. J. J. Merriott

Manager — national consumer sales Conoco Ltd London, SE]

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People: Karen Miles
Locations: London

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