NuStar Energy Selects DTN Value-Added Supply Chain Solutions
New supplier leverages integrated DTN supply chain and business intelligence solutions to provide superior customer service and gain competitive advantages
NuStar Energy L.P — one of the largest terminal and independent petroleum liquids pipeline operators — has selected a suite of DTN fuel supplier solutions to fulfill key operational, marketing infrastructure and other customer communications needs. DTN’s products are integrated into NuStar’s own systems to provide real-time rack demand and inventory information, along with superior market intelligence to help NuStar maintain its competitive edge, while maximizing profitability in a volatile fuel marketplace.
“We’re a new marketing company, and in developing our marketing platform we needed to look at new and alternative methods to provide information back to our customers, while establishing a system for handling our everyday business. From processing bills of lading to generating invoices, we’ve looked to DTN for assistance,” said Philip Marquez, director of wholesale supply and trading for NuStar. “It was an easy decision for us to build our operations around DTN’s suite of products. DTN has a good handle on what’s going on in the industry as well as in the NYMEX markets and the real-time information services help our customers stay profitable and efficient.”
NuStar is quick to recognize that having a DTN-based infrastructure will play an integral role in ensuring a smooth and profitable expansion. The company is currently selling refined products in terminals located in Alabama, Mississippi, North Carolina, South Carolina, New Jersey and Texas. In the near future, NuStar also plans to expand into Florida and the Northeast and is in the process of adding inventory at multiple locations across the country.
“The ease of transitioning to this system has been flawless. DTN does a great job providing the support we need in order to implement our system,” said Marquez. “I’m a big fan of the DTN platform because it helps us guarantee volume to customers. With DTN, when our customers roll their trucks up to the terminal, the volume they need will be accessible at the locations they want, at the contracted price they’ve arranged, no matter how tight supply might be.”
With DTN, NuStar has a complete solution for pricing and contract management; product allocations; inventory and credit management; and competitive daily analysis. NuStar is leveraging real-time rack order management tools from DTN for more than 85 percent of their business and they have plans to increase that number in the future. With DTN, NuStar can easily manage complex prompt and forward fixed-price contracts across terminals as the market moves throughout the day. NuStar sees a consolidated, real-time view of sales and inventory positions so they can gauge the marketplace prior to setting a price. Their authorized buyers always purchase at the current price and NuStar controls how much inventory to make available. Sales and inventory information is updated in real-time as deals are completed, so NuStar can optimize margins and move or protect inventory as needed. DTN solutions help NuStar manage supply and improve the speed and profitability of risk management hedging actions.
NuStar integrates electronic transaction data from DTN into their back-office systems to speed contract, billing and payable processes, and create an electronic “paper” trail aiding in data integration and contract management for both buyers and sellers. DTN helps NuStar manage credit limits and allocations for customers and trading partners to reduce exposure and protect inventory. NuStar can deny credit or adjust allocation limits with a few simple keystrokes, instead of calling each terminal with which they do business. DTN electronic rack prices and business intelligence tools then facilitate benchmarking and daily competitive analysis.
“NuStar is a great example of a company that integrates DTN solutions for maximum impact – not only for its profitability and efficiency, but also that of its customers,” said Robert Gordon, chief executive officer, DTN. “NuStar is a new leader interested in lightning-fast information and providing solutions for their customers. DTN is proud to assist NuStar in becoming a preferred supplier in the volatile and challenging fuel marketplace.”
With DTN, NuStar has access to real-time, electronic fuel transaction data that’s critical to helping mitigate the effect of price volatility. NuStar is able to improve customer service with guaranteed volume for rack orders through the DTN platform. DTN delivers ratable demand and insight to help NuStar better manage and optimize existing supply for key customers and partners.| DTN: 9110 West Dodge Road Omaha, NE 68114 www.dtn.com |
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