If you’re a gas station owner or fleet manager, you are constantly thinking about your fuel supply. Did I order enough? Did I get the best price? Are my forecasts accurate?
Staying afloat during normal circumstances is tough enough.
Then, the unexpected hits. A hurricane rolls in, a cyberattack knocks down entire systems or a pipeline gets disrupted—completely halting your business operations.
That’s where contracts come in handy. Getting on contract with a supplier provides the best safety net for unforeseen events so that you can rest assured that you’ll have enough fuel when you need it most.
Many gas station owners and fleet managers opt for week-to-week or month-to-month fuel procurement, believing it offers the most flexibility and savings. However, it also comes with significant risk. You might save here and there, but what happens when disaster strikes? You won’t be a priority for suppliers because they will service their contracted customers first.
During hurricane season, supply chains are vulnerable to severe disruption. Roads may be inaccessible, and refineries might shut down. If you’re not currently on a contract, or if your supplier doesn’t have enough fuel in storage for such disruptions, you could run out quickly, leaving your bottom line and your community at risk.
Cyberattacks on critical infrastructure, including pipelines and fuel supply systems, have become more frequent. As we know, the 2021 ransomware attack on the Colonial Pipeline impacted the fuel industry across the entire Southeast. These attacks damage the distribution network and cause shortages that ripple through the market. Again, you’re affected more if you don’t have a contract that guarantees your supply.
So, how can you avoid major supply disruptions? You guessed it— contracts. They are your lifeline in turbulent times and offer the following benefits:
1. They Secure Your Supply, Offering Reliability: When you sign a contract, you secure a dedicated, reliable fuel supply.
2. You Get Priority Access During Emergencies: Suppliers prioritize contract customers during supply shortages so you won’t have to compete with others in the scramble for fuel.
3. Enjoy Price Stability & More Predictable Profit Margins: Contracts offer price stability, protecting you from sudden price spikes that can affect your profit margins.
4. Peace of Mind Is Priceless: With a contract in place, you can focus on running your business, knowing that your supply is secure and the price is stable.