Day 1  |  Day 3  

DAY 2 Thursday, May 17, 2007

9:00 – 9:30 a.m. Continental Breakfast

9:30 – 10:00 a.m.
Review of Yesterday’s Lesson / What You’ll Learn Today

Basic Buying Concepts Workshop:
Creating and Implementing a Successful Fuel Buying Plan
For the next four sessions, we will conduct two case studies that will focus intensely on creating a fuel buying plan for two very different fuel buyers – Scott Howard, Inc., a new manufacturing company that purchases approximately 20 million gallons of fuel annually, and Skyline, Inc., a jobber that sells more than 300 million gallons per year. Both companies face a multitude of challenges. For Scott Howard, the biggest challenge is to create a basic buying program that will keep trucks moving and not bust its fuel budget in this era of extreme volatility. For Skyline, the challenge is to leverage the large amounts of fuel that it purchases through various buying methods – branded, unbranded, spot, and ultimately some basic hedging - in order to control its huge fuel costs.

10:00 – 10:45 a.m.
Part One: Choosing a Supplier
Here we take step one – choosing a supplier. You’ll learn:

• How to choose which rack market(s) you need
  to designate for supply.
• What FOB means.
• Alternate rack supply points.
• How to contact a supplier – where you get contact names
  and how you know that you’re talking to the right person.
• If cheaper is better.
• How to take advantage of “arbs” between the markets.
• What your negotiating strengths and weaknesses are.

10:45 – 11:30 a.m.
Part Two:  Understanding and Choosing A Rack Benchmark
Now that Scott Howard, Inc. has chosen a supplier(s), it’s time
to decide on a buying strategy based on using a rack benchmark.
The choices of which benchmark to use are numerous and a bad decision can have very serious ramifications for the company’s fuel budget. Here you’ll learn:

• How to use historical data strips to compare benchmark options.  
• What benchmark options are available and if they
  apply to all fuels.
• The major differences between morning vs. closing and daily vs. weekly benchmarks.
• How floaters and data strips work.
• Branded vs. unbranded benchmarks.
• How to handle disputes.

11:30 – 11:45 a.m.
Refreshment Break

11:45 – 12:30 p.m.
Part Three: Understanding Spot Benchmarks
Both of our companies need to consider adding spot / bulk purchases to their fuel buying portfolios. However, spot buying is very complicated. Here you'll learn:                      

• When you should and shouldn’t buy spot bbls.
• What spot market you need to buy from.
• The difference between buying from majors,
  traders and brokers.
• What the risks are and what you should ask when you buy.
• What you need to know about pipelines and storage
  to purchase spot bbls effectively.  
• Date of lifting vs. three- and five-day running averages.

12:30– 1:45 p.m.
Networking Luncheon:
Discuss What You’ve Learned with Your Colleagues.

1:45 – 2:30 p.m.
Part Four: A Fuel Buying Scorecard
In this session, we’ll take an in-depth look at how end-users purchase fuel differently from jobbers, and how those differences affect fuel buying strategies.

2:30 – 3:30 p.m. 
Rack Supply Contracts – What You Need to Know
One of the most critical parts of any fuel buying plan is having a contract that works for you and your supplier. There are many key things that you need to be aware of in negotiating a supply contract. You’ll learn the key do’s and don’ts involved in creating and executing supply contracts, and what you need to know both as a buyer AND a seller/reseller.

3:30 p.m.
Cocktails with the Instructor
Join the instructor and your colleagues for an informal cocktail party that is loaded with networking possibilities.

---

Skip to Top of the page  |   Day 1   |   Day 3