Channel % 1. Wholesale 18% 2. Exports 37% 3. Section 7 Trader 42% 4. Industry 3% Source: Petroleum Business Department, IRPC Public Company Limited 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 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: • Transportation operators, public transport operators, construction companies, among others, as well as sale to IRPC subsidiaries. • Wholesales/Jobber, large and small, for distribution 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 2022 IRPC’s export sales accounted for 37 per cent 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 fishing fleet operators in territorial waters. 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 6 oil depots to cater to customers in all parts of the country, with round-theclock services at Rayong and Phra Pradaeng depots and additional fuel distribution point at IRPC Surat Thani Depot in Surat Thani Province to expand customer services to middle and lower southern regions. • Transportation IRPC operates fuel tanker trucks throughout the country, along with tanker vessels and berthing terminals for maritime customers. • Service 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 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. 56-1 One Report 2022 76 IRPC PUBLIC COMPANY LIMITED
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