August 21, 2017

Hoyer Petrolog – New contract instils confidence

Last October HOYER Petrolog was awarded a new three-year contract by Esso to deliver fuel to all its Tesco Express sites in the UK and the Huddersfield-based business has since been working hard to deliver the new ‘full service’ solution that it entails.

The contract is scheduled to run through to June 2019 and also involves deliveries to Esso’s industrial, wholesale and aviation customers. It also sees HOYER Petrolog conducting all logistics management activities previously undertaken by Esso including order taking and creation, stock management, planning and delivery confirmation.

Allan Davison, Operations Director for HOYER Petrolog in the UK and Ireland, said the extension of operations to cover all logistics management activities was a significant development for the business: “I am delighted that our relationship with Esso continues to strengthen and would like to thank everyone involved at HOYER Petrolog for their contribution towards this successful outcome. The contract gives us tremendous confidence, as well as the security to invest in new equipment and other areas to further our service, which ties in with our overall strategy of carrying out more planning ourselves as we look to operate more efficiently.

“Due to the resources and infrastructure we have in place, we didn’t have to make much additional investment to support the new Esso contract. Over the last three years we’ve developed significantly as a business so all the IT systems are already in place. We have, however, had to recruit more staff to fulfil the order taking and planning service.”

Allan Davison, Operations Director for HOYER Petrolog in the UK and Ireland

Allan Davison, Operations Director
Allan Davison, Operations Director

The Hoyer Petrolog business currently has just over 800 core drivers, which is a figure that rises to over 900 once agency staff are included. This is in addition to just over 130 additional employees in operational areas as well as as HR, Finance and IT. These staff tend to be Huddersfield-based, although many of the managers are field-based, as drivers operate as far north as Grangemouth in Scotland and as far south as Plymouth.

“The reason we can provide a competitive solution in the retail and commercial fuels market is due to our infrastructure and the support we have as part of a wider organisation that also operates on the continent,” adds Mr Davison. “This is vital as a full service solution involves looking after every single aspect for the client. We have used a lot of IT and systems expertise developed on the continent and tweaked it for UK requirements. It’s now time to step back, optimise our operation, make it more efficient and prepare ourselves for the longer term.”

The agreement with Esso follows a string of new business wins for HOYER Petrolog, including recent contracts awarded by Eurogarages, MRH and Rontec in the south of England.

“In the short term the main objective is to get the Esso business fully integrated, which will be completed by April. Longer term, by being as efficient and as flexible as we can we can continue to grow the business in what is a shrinking marketplace. We’re able to do this because, as the market leaders in retail fuels distribution, we have significant scale and provide our customers with an excellent balance between safety, service and efficiency. A company with a smaller number of trucks would find it extremely difficult to provide the flexible resources required by a client – we have nearly 300 fuel trucks in the UK, which gives us a clear point of difference.”

With such a well-developed infrastructure and the ability to invest further with the new Esso contract secured, Hoyer Petrolog can look forward to further cementing its place within the marketplace in 2016.