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Case Study - Construction Fuel Case
Above the Standard Procurement Group, Inc.®, www.ATSPG.com
2
Case Study - Construction Fuel IndustryNovember 07, 2012
W
e approached this prospect several times: (1) Email; (2) Phone; (3)
Video Conference; and (4) finally, in person. Through the entire pro-
cess of our discussions, we listened to the need of centralization. We
discussed their goals, what they wanted to do with the information we would
find, how they would go about strengthening their procurement and financial
systems through centralization, and we provided an outline of what we could do
to help them with this.
Their need arose due to the tens of millions of dollars per year they were spend-
ing on fuel, oil, fleet usage, and fuel management costs.
We conducted our assessment and our analysis summary resulted in:
„„ They were buying from many suppliers that did not allow this organization to
utilize the leverage of volume buying;
„„ Their accounting department paying multiple vendors (multiple procedures,
processes, invoices, requisitions, purchase orders, and logistics); and
„„ The fuel area to procure was not just fuel, but multiple bids (see below).
Project
Name
% savings Cost Savings Notes Outcome
Fleet 23% $ 6,300,000.00 This included
fuel, finance, and
maintenance for
more than 4,000
vehicles
Vendors
Selected
Trucks 14% $ 1,355,000.00 Ford Fleet Trucks Ford
Rebates
Increased
& Vendor
Selected
Fuel Card 11% $ 2,700,000.00  Created
standardization and
savings does not
mirror Level C Fuel
Stations
Vendor
Selected
Fuel
Hedging
24% $ 12,400,000.00 Fuel / Oil Hedge Vendor
Selected
Total   $ 22,755,000.00    
Company
Name
Construction
Industry
Mining, Con-
struction
Initial
Need(s)/
Project(s)
Reduce Costs
for Oil and Fuel
Consumption
3
Case Study - Construction Fuel IndustryNovember 07, 2012
Outcome(s)
ATS was able to reduce costs by $22.75M from the above cost categories, while
increasing effectiveness through improved communications, implementing best
practices throughout the organization for these projects. By working with each
location, vendors, and client staff we helped all understand their vital role in the
most important part of their business – their core competencies and their custom-
ers. We conducted stakeholder meetings to improve all processes, procedures,
ideas, and best practice.

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33.1.016 Construction Fuel Case Study

  • 1. Case Study - Construction Fuel Case Above the Standard Procurement Group, Inc.®, www.ATSPG.com
  • 2. 2 Case Study - Construction Fuel IndustryNovember 07, 2012 W e approached this prospect several times: (1) Email; (2) Phone; (3) Video Conference; and (4) finally, in person. Through the entire pro- cess of our discussions, we listened to the need of centralization. We discussed their goals, what they wanted to do with the information we would find, how they would go about strengthening their procurement and financial systems through centralization, and we provided an outline of what we could do to help them with this. Their need arose due to the tens of millions of dollars per year they were spend- ing on fuel, oil, fleet usage, and fuel management costs. We conducted our assessment and our analysis summary resulted in: „„ They were buying from many suppliers that did not allow this organization to utilize the leverage of volume buying; „„ Their accounting department paying multiple vendors (multiple procedures, processes, invoices, requisitions, purchase orders, and logistics); and „„ The fuel area to procure was not just fuel, but multiple bids (see below). Project Name % savings Cost Savings Notes Outcome Fleet 23% $ 6,300,000.00 This included fuel, finance, and maintenance for more than 4,000 vehicles Vendors Selected Trucks 14% $ 1,355,000.00 Ford Fleet Trucks Ford Rebates Increased & Vendor Selected Fuel Card 11% $ 2,700,000.00  Created standardization and savings does not mirror Level C Fuel Stations Vendor Selected Fuel Hedging 24% $ 12,400,000.00 Fuel / Oil Hedge Vendor Selected Total   $ 22,755,000.00     Company Name Construction Industry Mining, Con- struction Initial Need(s)/ Project(s) Reduce Costs for Oil and Fuel Consumption
  • 3. 3 Case Study - Construction Fuel IndustryNovember 07, 2012 Outcome(s) ATS was able to reduce costs by $22.75M from the above cost categories, while increasing effectiveness through improved communications, implementing best practices throughout the organization for these projects. By working with each location, vendors, and client staff we helped all understand their vital role in the most important part of their business – their core competencies and their custom- ers. We conducted stakeholder meetings to improve all processes, procedures, ideas, and best practice.