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Mon, Aug 04, 2003

Exxon Goes to Digital Distribution

Special Setup for 'World's Largest Piston-Single Fleet'

The Civil Air Patrol, which represents the world's largest piston single fleet, with 550 aircraft, may be the spearhead of a new movement in aviation lube distribution.

Interestingly, CAP services are needed and located in near-inverse proportion to population density: where there are a lot of people, the need for searches is lower. Hence, figured both CAP and Exxon Elite big cheeses, there might be a distribution problem -- Exxon Mobil Aviation Lubricants might not be available to all who want them, where they want them.

David Parsons, GM of that part of Exxon Mobil's business, explained that Exxon Elite aviation oil has what CAP pilots need a lot: corrosion protection and lubricity. Many of those aircraft are flown on lousy schedules, with long periods of near-idleness followed by intense use. "Exxon Elite," he explained, "reduces wear, promotes internal cleanliness; and it's multi-grade semi-synthetic formulation provides exceptional lubrication protection."

Colonel Al Allenback, Executive Director of the Civil Air Patrol, noted that, "CAP itself is responsible for 90%+ of search and rescue in the inland US. Controlling fleet costs, especially fleet costs and maintenance, is a high priority."

In addition to the 550 CAP aircraft in the direct fleet, CAP's 35000 senior volunteers use some 4000 additional aircraft in their essential work. With 27,000 CAP cadets (ages 12 to 21) in the pipeline, teaching, and showing good examples of good maintenance procedures and practices are paramount.

CAP members to get a break:

So, Exxon figured, CAP members deserve a break, and a chance at building brand loyalty. To that end, Exxon Mobil has set up an 'e-store,' through which CAP members can have Exxon Elite and other lubes delivered to their doors, or to their airports -- wherever they need them, but can't get them through normal channels. CAP members, through a special portal, also receive a decent discount. Through a 'shopping cart' interface, the CAP folk can order, and have shipped, all the oil they need -- even if it's just a case.

The website also has access to many technical documents and on-line tech support.

How it works:

 Exxon's web store is set up to look at the order and consider several factors, including the cheapest and quickest shipping. What happens after an order is placed, is that Exxon's e-store looks for the nearest distributor, actually buys the product from that distributor, and then has the distributor drop-ship to the customer. That way, the distances are minimized, and HQ isn't shipping small quantities (like under half a pallet) to jillions of small customers. Distributors are sufficiently stocked to handle the load, and the customers get their oil quicker, and as cheaply as possible.

Will this program be expanded to non-CAP members? Exxon Mobil's folks weren't saying. The program is in its infancy, and working well; whether the direct-ship ordering will become the wave of the future will depend on this program's success -- and what the competition does.

FMI: www.capnhq.gov; www.exxonmobil.com

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