Fuels and Lubricants

A national freight provider had a requirement to tender its group fuel and lubricants requirements and to test various fuel supply chain options for its national truck fleet. The company did not have the in-house expertise to manage a such a complex sourcing project to test multiple supply options.

Services

To manage the strategic sourcing project, which included:

  • Define all forecast fuels and lubricants requirements for the national fleet.
  • Market assessment to identify the fuel supply chain options for tendering purposes.
  • Tender the requirements and test the supply chain option total costs.
  • Manage the evaluations, shortlisting, and negotiations process.
  • Awarding and developing supply contracts.

Outcome

Caliba delivered the following outcome for the client:

  • In excess of a 15% reduction in lubricants costs.
  • A new supply chain solution including the client owning its mobile bulk full outlets.
  • Eliminate the need for fuel cards with fleet diverted to client-owned bulk storage.
  • A 5% reduction in total fuel costs for the national fleet.
  • All spend under long-term contracts, with pricing formulas, and supplier service level requirements.