Chain Companies Plan for Oil Products Distribution (Branding)
Distribution of oil products as fuel in our country dates back to 70 years ago. At that time which was concurrent with Britain’s occupation of Iran, oil was sold to the consumers, based on the decided price, by owner’s micro system as the sale agents of products.
Nowadays, Iran’s National Oil Distribution Company, following the above-mentioned system, is responsible for distributing fuel via 8000 oil and gas products distributing stations throughout the country. This procedure is still followed due to the governmental dominance on most of social and economic aspects of the country. The amount of spent money on administration of this system indicates its insufficient turnover. Alteration and improvement of system was started by National Oil Product Distribution Company’s announcement of a (branding) plan for creating chain companies for distributing fluid products of Oil and CNG.
Benefits of properly executing this strategic plan are as follow:
- Organizing the operation of fuel stations in the country by branding the operational companies via integrated management;
- Forming exclusive mother companies for operating CNG stations in order to invest on new station construction;
- Establishing fair conditions and creating a healthy atmosphere for competitions;
- Providing the possibility of effective and efficient monitoring and supervision on behalf of the institutes which are responsible for reducing government control;
- Increasing the quality of services to the final consumers and increasing efficiency in fuel stations;
- Making more profitability and encouragement for more investment on new station construction.
The government might take the first step to make a healthy atmosphere for competition for the purpose of increasing the quality of fuel supply and service in the stations. This can be done so that this plan with the ultimate gal of releasing the fuel supply rate and establishing a celling of price for the by-products supply in a way that finance turnover is sensible can be successfully executed.
The plan which is proposed by National Oil products Distribution Company has deficiencies and ambiguities in relation to the scope of options and the resulted benefits for the brand in comparison to the current conditions. We hope that, when this point is explained, the plan efficiency grows and a great change is seen in the distribution system. All in all, the key to success of this governmental supervision plan is to create an appropriate atmosphere for the fair competition among the current active companies in this area, to remove monopoly, to give interests, in any forms, and to block the limitations of the legal activities of the branded companies.
The branded companies should have the following characteristics:
- Standard operation procedures;
- Specified process and instructions for all its activities including providing services as well as technical and operational aids and equipment maintenance and repair;
- Skilled personnel in technical sectors who have the essential knowledge of the organization and machines;
- Integrated and masterful management;
- Uniforms for the personnel,
- Welfare facilities, consumer attraction points and advertisements.
TGP Company, using its fruitful experience from several years of operating CNG stations and with reliance on its management great talents, has decided to take part in the competition, as a fuel brand.