FuelQuest Inc., an on-demand software and services company for the global downstream energy industry, announced a five-year contract with Pilgrim’s Pride Corp., the world’s second-largest chicken producer with operations in the United States, Mexico and Puerto Rico. Under the agreement, FuelQuest Fuel Center will provide outsourced bulk fuel management services for Pilgrim’s 30 fleet fueling locations in the United States.
“In recent years, Pilgrim’s has seen rising food production costs on a number of fronts, including fuel,” says Jim Mullin, head of energy procurement at Pilgrim’s Pride. “Adding volatility on top of these high prices has made it even more difficult to hit our budget targets. When we began the process last year of centralizing our fuel procurement and lowering our overall fuel costs, it became clear that FuelQuest was the best option for us. Now we can achieve our bulk fuel management goals, and that ultimately drives bottom-line savings.”
Fuel Center uses a team of fuel experts and Fuel Management System (FMS) software to forecast and source fuel, acting as a supplier-independent extension of the fleet customer. Fuel Center assumes other critical fuel management activities, including order management and fuel, freight and tax charge reconciliation.
Fuel Center says these capabilities allow it to provide its customers the following benefits:
• Reduced fuel costs of 4 to 6 cents per gallon;
• Centralized control and predictability of fuel budget;
• Increased security of supply;
• Lowered administrative burden and improved invoice reconciliation; and
• Access to fuel market expertise using best-in-class technology.
Fuel Center says it also provides value management dashboards so customers can monitor the return on investment they are receiving from the Fuel Center service.
“We are pleased to have a market leader such as Pilgrim’s Pride adopt our outsourced fuel management service,” says Ryan Mossman, vice president and general manager for Fuel Center. “Fleet-based companies from every industry are feeling the pressure of rising fuel costs and market volatility. Our ability to drive greater fuel spend predictability and optimize fuel management operations – from procurement to reconciliation – helps these companies gain better control over this significant expense.”