Source: Petroleum Business Department, IRPC Public Company Limited Competition Strategy IRPC’s primary sales strategy is to emphasize the quality of its clean petroleum products manufactured through processes that meet high standards, backed by good services via advanced real-time order processing system, PDA on Mobile, on the IRON platform. In addition, the company strives to increase market share and sales volume while maintaining suitable marketing margins. Services provided by IRPC to its customers are as follows: • Oil Depots: IRPC operates 8 oil depots to cater to customers in all parts of the country, with round-theclock services (only at Rayong and Phra Pradaeng depots) and has established a new oil depot at Bang Pa-in District, Ayutthaya Province to accommodate demand of the transport sector in the central and northern regions. This helps improve distribution efficiency, thus saving costs and transportation time. • Transportation: IRPC operates fuel tanker trucks throughout the country, along with tanker vessels and berthing terminals for maritime customers. • Personnel: Customers have access to dedicated teams of sales agents, sales coordinators, and sales services department, along with ticketing services for processing of sales orders from customers through SAP software, which allows online data to be updated on real-time basis to ensure accuracy and standardize processes, leading to enhanced efficiency and eliminating redundancies. Executives and operating staff at all levels can use the data obtained for further analysis, decision-making and management. IRPC has also introduced the IRPC Oil on Net via the IRON platform developed to manage the distribution and sales of petroleum products electronically. IRON combines IRPC’s sophisticated supply chain management 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 in phases to cover the company’s other sales channels. • Quality inspection: IRPC’s technical staff provide 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. Channel % 1. Wholesales 15 2. Exports 30 3. Section 7 Traders 53 4. Industry 2 The following table shows sales of IRPC’s fuel products by distribution channels. Petroleum Business Distribution Channels IRPC focuses on producing fuels that meet the demand of its customers, in compliance with the standards of the Ministry of Energy. It also emphasizes distribution through the most profitable channels. The prices of IRPC’s fuels correspond 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 • Direct sale to industrial operators, such as land and marine transport companies, public transport companies, construction companies, and others, including IRPC subsidiaries. • Wholesales/Jobber, large and small, for resale to other direct-sale operators and retailers. • Section 7 Traders, large and medium traders with their own oil depots who distribute the fuels through their own networks and distribution channels to the end users. • Exports, 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 southern China, Cambodia, Laos, and Myanmar. In 2023, IRPC’s export sales accounted for 30 percent of its total sales. • Bunker, which refers to sales of Automotive Diesel Oil (ADO) to ships docking at IRPC’s terminals. • Fishery, which refers to sales of green diesel to the association of territorial fishing fleet operators. 79 Structure and Business Operations of IRPC 56-1 ONE REPORT 2023
RkJQdWJsaXNoZXIy ODg4NTI=