1. DTN Refined Fuels White Paper March 2009Keeping Good Customers This document requires Adobe Reader Tough6.0.1 orin version Timeswww.dtn.com/refinedfuels later. To view this document, please download Adobe Reader from: http://www.adobe.com/Running effective customer managementprograms in todays economic climatecan be challenging; especially in the faceof fierce competition for business.Suppliers are searching for completecontrol over credit to mitigate risk; alongwith product management tools thatimprove customer ratability andoptimize supply. Now, multipledepartments within an organization must Suppliers are searching to also leverage real-time visibility into mitigate risk, improve customerliftings at all terminalswhether ratability and mitigate risk.proprietary, exchange or third party to take swift strategic action in fast- In a recent survey, DTN asked suppliers to select which of the following challenges they face in their business:moving markets. Increased credit activity and risk 58.3% Lack of centralized credit control 25.0% Because most organizations tend to Delays in data to invoice slow receivables 41.7% operate in functional silos; a third party Lack of real-time lifting information to optimize41.7% solution may be needed to conquer the product inventory Maximizing product availability for best customers 33.3%impact of common wholesale marketing Effort managing product /credit across terminals 16.7% pains across multiple departments: from Time allocated to customer service communicating 41.7% credit and accounts receivable, to allocation and credit levels marketing, supply and management. Rack marketers demanding control over business 16.7%

2. Maintaining PreferredSmarter Credit Controls and Faster Supplier StatusReceivable Processes Acquiring a new customer costs up to five to seven times over the cost to Tightened credit markets have spurred high-profile maintain a profitable relationship with an bankruptcies across the industry and raised alarms across existing customer; making it worth the credit and marketing departments. Yet attempting to manage effort to keep current customers happy.these increases in credit activity and risk without a centralized But todays customers are gettingsystem of credit control can limit the teams effectiveness. The savvierdemanding shared information ability to limit customers liftings to defined or pre-paid credit on credit and product allocation levels, limits across all terminalsusing one platformreduces and control over their own set ofexposure to bad debt. Using a credit system to pre-establish customers. A fuel supplier organizationlimits on contracts protects suppliers, as well. must meet and exceed customer expectation to gain and maintainCredit management systems should: preferred supplier status. Preauthorize customers for credit prior to load Suppliers can improve customer service Create single/multiple load allocations to help manage and deepen their trusted supplier statustime-consuming pre-pay customers by providing on-demand access to Enable swift action if a customers financial position takes product and credit availability a negative turn information. If customers are notdocument requires Adobelock out a customer across all the terminals they This aware Instantly Reader version 6.0.1 or do business out ofno matter what terminal automation later. To view this document, please download Adobe of their current level of allocations and system is in place Reader from: http://www.adobe.com/ contract commitments, they can incur costly demurrage charges and higher delivery costs as they dispatch trucks toAccurate billing is another critical customer touch point to dry terminals. Proactive facilitate smooth management of customer relations. Real-time communications help customers: lifting information enables: Better manage contract compliance Faster invoicing Identity supply issues faster Improved cash flow Dispatch more effectively Support for customer prompt payment programs Reduce truck downtimeSharing detailed volume information for both credit and product allocations Provide on-demand access directly assigned to each buyer, as well as availability of supply for unbranded to product and credit rack channel of trade improves customer availability for preferred relations. When these communications are branded to reflect a suppliers unique supplier status. company image, a powerful new customer touch is generated. 3. Check out DTNs Refined FuelsRatable Demand and Improved Resource CenterSupply Management www.dtn.com/refinedfuels/webcasts.cfmSuppliers still struggle to understand their for live and recorded online seminarsinventory position and allocation remaining at thirdparty terminals. Shared internal communicationsof lifting information via SAP or other ERP systems Nimble Management Trends help suppliers know when and where they are outof product. Reliable supply is the most important Fuel suppliers are increasingly using allocation thing fuel suppliers can offer, yet reduced refinery methodology to plan, forecast and manage runs, pipeline allocations and outages can make it supply as well as enforce the more traditional difficult to reserve product for customers. Instant, branded and contract monthly volumes.up-to-the-minute views of rack demand acrossterminals helps fuel suppliers proactively protect There are three primary methods of allocationsupply by channel of trade or contractual management:commitments. 1. Via ERP systemswhich produce delayedresults that are only available after invoicing.Suppliers need a way to respond to the needs of 2. Directly at the terminalwhich is dependent the market and eliminate rack raiding when spoton the terminal operator and their system. Adobe Readerskyrocket6.0.1 or event of a supplyThis document requiresmarkets version or in the 3. Using centralized systems To manage the interruption or other supply concerns. The ideallater. to view this document, please download AdobeReader from: http://www.adobe.com/ is flexible enough to facilitate action totechnical aspects of allocations at bothsolutionproprietary and third party terminalsto avoidkeep traffic moving at the rack if product isdelays in reaction to adverse supply and/or available without changing existing allocationmarket conditions.strategies:Management leveraging a single platform can Limit global volume for a specific customer make more effective marketing decisions andacross multiple terminals maximize throughput volumes with the ability to Immediately stop all volume for rapidly view data, such as: terminal activity, specific customers real-time BOLs, customer activity, allocationContinued on page 4 monitoring, and activity and database reports. Multiple systems mean multiple data structures, skill sets, and data requirementswhich all serve to slow the process and pose an unacceptable risk.Another trend is the use of mobile technology to speed decision-making. Its important to take advantage of tools that offer alerts via PDA or www.dtn.com/refinedfuels Smartphone for immediate action on rectifying critical customer issues in a 24/7 world. When a lifting is denied, suppliers should have access to credit, product or set-up denial codes. Proactive communication at the moment of denial can avoid a costly breakdown in customer relations. Field personnel should also have the ability to access allocation information remotely, and even accept a customer request via an email-enabled PDA device. 4. Extend Control to Rack Marketers As the industry consolidates,more marketers are selling product directly at the rack and giving their customers access to pull product on their supplier account. Margins are tighter on this business versus delivered business and these customers can pose a greater risk. Rack marketers require control over their credit and product, just like suppliers do.Rack marketers are challenged by an inability to manage liftings; or control how much they are willing to sell. They have no way to protect volume for their own stores. Rack marketers are seeking ways to speed order to cash by efficiently capturing real-time BOLs, so they can bill the customer to collect funds in a timely fashion.In a recent industry survey, DTN asked Rack Marketers to select all of the challenges they faced in their business: Inability to manage liftings; or control how much you are willing to sell 50.0% No way to protect volume for yourselves and top customers 50.0% No external communication to customers28.9%This document requires Adobe Reader version 6.0.1 or Increased credit activity and risk73.7%later. To view this document, please download Adobe Lack of centralized credit control18.4%Reader from: http://www.adobe.com/ Delays in data to invoice customers and timely fund collection65.8% Ratable Demand and Improved Supply Management (continued) Quickly and effectively scale allocations back or forward as required for either individual allocations, or select terminal or terminal groupsAs demand slows, its more critical than ever to closely monitor contract liftingsespecially in the face of extreme market volatility. Suppliers must also have the ability to take quick action to capture new sales opportunities through wholesale sales efforts. Monitoring rack activity helps marketing adjust tactics mid-day to stimulate or reduce demand to avoid price inversions on product in the tank. As well, trading departments tied into the system can ship or buy additional barrels to take advantage of marketing opportunities and increase the accuracy of risk management hedging activity. 5. Robust and Flexible Control from DTN DTN TABS is an online service, delivering robust and flexible credit and product control and is quick to implement; provides a clear return on investment; and is an ASP model that carries a manageable cost of ownership. DTN TABS interfaces with SAP, and other ERPTake immediate action with systemsallowing multiple departments toPDA-enabled requests to protectaccess real-time lifting information.customer relationships. Designed and developed by a consortium of industry leaders, DTN TABS is the Effective Customerleading third party terminal allocation and credit control servicesupporting more Managementsuppliers and rack marketers than any other service. In production for over 25 years, DTN Keeping good customers in tough times TABS interfaces with all major terminal requires a commitment to agility throughoutThis document requires Adobe Reader version 6.0.1and many proprietary automation systems or an organization. Maintaining a single platformlater. To view this document, please download terminal operators support the systems. Most Adobe of credit and product control across implementation of DTN TABS as it reducesReader from: http://www.adobe.com/ departments eliminates double work; while the work load for the terminal employees internal communications of real-time liftings and reduces liability by putting control in the deliver powerful benefits: hands of the shippers and marketers. A/R can shave time off the customer invoicing Further, DTN is an active participant in PIDX process to improve cash flow and fully supports industry standards to Marketing departments improve on-the-fly ensure interoperability and optimization of the sales strategies downstream supply chain. DTN is committed Trading departments increase the to enhance and extend DTN TABS to keep effectiveness of risk management efforts pace with industry requirements and customer Supply teams can optimize product inventory needs. This ongoing investment ensures that DTN TABS will evolve to meet suppliers future The recent spate of high-profile bankruptcies business needs while helping to reduce capital has sounded the alarm bell throughout the expenditures on proprietary internal systems. industry. To mitigate credit risk, todays fuel supplier requires firm control over credit Visit www.dtn.com/promo/GoodCustomers allocationsincluding immediate lock out of to read a case study on the DTN TABS specific customers across all terminals. solution. Schedule your in-depth needs www.dtn.com/refinedfuelsanalysis by contacting DTN at 800-391-1175. Suppliers who can accept customer requests for additional volume via remote devices can better support key customer relationships. Proactive communication of remaining allocation levels improves dispatch decisions and protects customers margins. Finally, todays fuel supplier will strengthen customer relationships by enabling power and control to their customers selling product directly at the rack.