FLORHAM PARK, N.J. -- More companies are using third-party software providers for daily fuels pricing, Kalibrate Technologies said. It has unveiled the results of its second annual global fuels pricing survey comprising feedback from executives at retail petroleum companies representing more than 19,000 sites and 28 billion gallons annually.
The study revealed an increase in the number of companies turning to third-party software providers for daily fuels pricing solutions and a growing trend towards use of price optimization to generate retail pump prices.
The number of respondents reporting the use of third-party fuels pricing software increased from 76% to 83% between 2012 and 2013. Survey findings show "in-house" systems as the second ranked pricing software in use, with 17% of respondents stating they use an in-house developed pricing system compared to 24% in 2012.
The top four reasons for investing in fuels pricing software are opportunity to improve profit, ability to automate processes in order to get prices out faster, ability to integrate with other systems to streamline the pricing process and analytics that address business needs.
In regards to price optimization, 47% of respondents indicate that price optimization is a must have and they always use this capability; this is in stark contrast to only 26% using price optimization in 2012.
The primary reason for employing price optimization remained the same with 66% of respondents using it to increase margin while maintaining volume/market share.
"Retail fuel pricing is a mission critical process that requires 24/7 automation and business intelligence to respond to daily market changes and cost volatility so that you can quickly and effectively generate optimal prices and maximize performance," said Bob Stein, president and CEO of Kalibrate. "When you add in the importance of being in compliance with various regulatory requirements surrounding fuels pricing, more and more retailers see the need to replace their internal legacy systems with [new] solutions."
Kalibrate (formerly KSS Fuels) is a leading global provider of fuels pricing and retail location intelligence. Its software, analytics and consulting solutions draw on more than 20 years of expertise and insight into the needs and opportunities of petroleum retailers. Kalibrate has headquarters in Manchester, U.K., and Florham Park, N.J.
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