Channel % 1. Wholesales 18% 2. Exports 30% 3. Article 7 Retailers 50% 4. Industry 2% Competition Strategy IRPC’s primary sales strategy is to emphasize that its quality, clean petroleum products are manufactured through processes that meet high standards. The company was the first in this region to introduce the most advanced, real-time order processing system, called PDA on Mobile, which operates on the IRON platform. In addition, another strategy is to increase market share while maintaining suitable marketing margins. Services provided by IRPC are as follows: • Oil Depots IRPC operates five oil depots around Thailand to cater to customers in all parts of the country, with round-the-clock services at Rayong and Phra Pradaeng depots. A retail center was established at Mae Klong Oil Depot in Samut Songkhram to serve customers in western and upper southern regions. • Transportation IRPC operates fuel delivery trucks throughout the country, along with tanker vessels and berthing terminals for maritime customers. • Service Personnel Customers have access to dedicated teams of sale agents, ticketing services for sales order from customers through SAP software, which allows information to be updated in real-time. SAP solutions improve accuracy and standardize processes, leading to enhanced efficiency and eliminating redundancies. Executives and operating staff can use the data obtained for further analysis and decision-making. IRPC has also introduced the IRPC Oil on Net (IRON) platform, developed to manage the sales of petroleum products electronically. IRON combines IRPC’s sophisticated supply chainmanagement with its total business solution approach to respond to customers’ requirements for transaction convenience and augment IRPC’s business efficiency. With continuing development, the system will be expanded to the company’s other sales channels. • Quality Control IRPC’s technical staff provides solutions and relevant knowledge to customers. They also inspect the quality of products and services at all stations and depots, to ensure quality that customers can trust. Table shows breakdown of IRPC’s fuel product sales by distribution channels to gradually ramp up production to pre-COVID-19 levels. In addition, the prospect of a US return to revive Iran nuclear deal will result in an additional of 1.4 million barrels of crude oil per day on the international markets. In the second half of the year, US production is expected to increase by at least 1 million barrels per day as producers anticipate high and stable prices. Oil demand will rise by four to five million barrels per day to the pre-COVID-19 levels this year. However, the pace of demand recovery remains uncertain depending on how the coronavirus pandemic might play out. One issue that must be closely monitored is OPEC Plus currently low surplus capacity may not keep pace in a fast demand recovery scenario, pushing oil prices even higher. Petroleum Business Distribution Channels IRPC focuses on producing fuels that meet the demand of its customers and comply with the standards of the Ministry of Energy. It also emphasizes distribution through the most profitable channels. The price of IRPC’s fuels corresponds to the market situation. The company works closely with its subsidiaries to devise the most beneficial marketing and sales strategies. IRPC’s Customers and Distribution Channels are as follows: • Direct sale to industrial operators, such as overland and maritime transportation operators, public transport operators, construction companies, among others, as well as sale to IRPC affiliates. • Wholesalers or jobbers, large and small, for distribution to other wholesalers and retailers. • Article 7 retailers large and medium enterprises with their own oil depots who distribute the fuels through their own networks and distribution channels to the end users. • Export Exports are categorized into maritime exports to key markets in Asia, such as Singapore, Cambodia, and Vietnam, as well as overland exports to countries in Indochina, like Cambodia and Laos, and Myanmar and southern China, which accounted for 30 per cent of total sales. • Bunker which refers to the sales of Automotive Diesel Oil (ADO) to ships docked at IRPC terminals. • Fishery which refers to the sales of green diesel to the association of fishing fleet operators in territorial waters. Source: Petroleum Business Department, IRPC Plc 83 Structure and Business Operations of IRPC IRPC PUBLIC COMPANY LIMITED
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