This restructuring of the industry’s distribution channel has generated valuable business results. Oliver Wyman’s experience suggests that there is considerable value at stake in restructuring the retail channel and refocusing retail support efforts to align to retailer preferences while taking out capital and reallocating operational spend. This includes a dramatic (often over 20%) increase in fuels volume that can occur after this refocusing of channel support strategies.
Yet these changes have also raised significant new challenges for downstream fuels executives as their strategies, marketing tactics, and mindsets need to fully shift from managing direct retail to competing in channel-partner-dependent markets. To surmount these challenges - and boost their companies’ bottom lines - managers must reexamine how they do business with retail channel partners.