White Papers

Welcome to OPIS White Papers. As a service to our customers, we provide this web site as a free education and research tool. It will aid your quest for solutions to current or approaching business problems or needs. To search the site, simply scan the White Papers listed below or enter a key word or phrase in the search window above.

Fuel Price Volatility: Thriving in the New Normal

Whether retailers, wholesale marketers, or fleet-based companies, bulk fuel buyers have one thing in common – fuel costs can make or break the bottom line. Starting in 2004, a “new normal” asserted itself within US fuel markets. Day-to-day price swings of 3 cents or greater that previously occurred only 6% of the time now happen nearly 50% of the time. This volatility is now embedded within wholesale fuel markets. Purchasing fuel at the lowest possible price while maintaining security of supply requires inventory management, fuel supply, freight, and daily dispatch management processes to work in concert. Many companies are beginning to use the best practice fuel purchasing strategies outlined in this whitepaper to thrive in this environment of high price volatility. These companies are experiencing an on-going fuel cost advantage over their competitors that unwittingly use pre-2004 buying strategies that do not sufficiently address daily fluctuations in fuel prices. Read more...