OPTIMUM’S ‘FUEL MANAGED SERVICE’ WINS LONDON UNITED CONTRACT
Transdev-owned London United is renowned as one of the premier major quality bus operating companies in the capital. Operating a network of routes across Central, West and South-West London, with over 100 million passenger journeys each year, the company operates from six garages in Fulwell, Hounslow, Hounslow Heath, Shepherds Bush, Stamford Brook and Tolworth, employing more than 2000 staff and maintaining a fleet of more than 650 buses.
With its buses covering some 23 million miles each year, running out of diesel fuel at any of its garages would cause a significant problem, which is one of the reasons why, following a recent three-way contract tender, London United awarded 50% of its fuel supply contract to Optimum Oils Ltd, a specialist supplier of fuel and lubrication management services.
Optimum Oils Ltd provides fuel and lubrication management services to the bus and coach industry. Its ‘Fuel Managed Service’ combines the security of Esso fuel supplies with professional, outsourced fuel stock management.
Commenting on Optimum’s appointment, Les Birchley, Director of Engineering at London United says that initially they had not considered outsourcing fuel management, but during contract discussion with the oil companies the reasons for splitting the contract became more compelling.
“The advantages of Optimum’s ‘Fuel Managed Service’ linked to fuel supplies from Esso means that our purchasing department is relieved of the administrative burden and the only input required of us is a daily email from each garage giving its current fuel stock level.”
Optimum was subsequently awarded half the contract, with the other 50% still supplied directly by another major oil company.
Commenting on the logistics of the operation, Optimum’s Malcolm Hollingsworth says that as soon as the stock levels are received from each garage they are fed into a computerised scheduling system to create a delivery template that ensures London United maintains adequate fuel stocks and Esso’s fuel loads are optimised.
The Optimum Fuel Managed Service has significant advantages for both parties and is also flexible enough to accommodate fluctuations in demand as Malcolm Hollingsworth explains ”We are linked directly to Esso’s computer system so we can actually see them planning their loads. This means we can coordinate our deliveries with their schedules."
He adds that while London United’s overall fuel usage is fairly consistent, there are variations and occasionally Optimum makes adjustments, with either an additional load or a part-load.
Summing up, Les Birchley says the key to the relationship is communication. “The people at Optimum know our business, the service is absolutely hassle-free, and we’re delighted with that. We trust them to do the job and they do it very well. “
London United also uses Optimum’s lubrication management service, which maintains stocks of engine, gearbox and other lubes, and can include regular analysis of oil samples to monitor mechanical condition.
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