Bulk Aviation Jet Fuel Procurement: Strategies for Cost Efficiency and Reliability The procurement process of jet fuel always requires high involvement because of its sensitivity. This highly inflammable and expensive fuel has a niche market with separate conditions and if buyers know those conditions, they can tackle many challenges in the bulk procurement process. The ultimate objective is to reduce costs and select the lowest possible price for every buyer. Moreover, some careful steps are required to stabilize the supplier selection and procurement process. Here are some steps you need to take for that successful trade. Data Analysis of Regions and Top Suppliers Bulk Aviation Jet Fuel Unless you have the correct data, going ahead is impossible. It is not just about jet fuel but anything you procure in bulk. Jet fuel is a high-involvement product, and you must do a correct data analysis before purchasing as you will have to gather historical and current prices and information about the fuel grades available in the market. It includes the suppliers available in the market and significant regions of crude oil. The Middle Eastern countries, Russia, USA, and some oil-based areas must be in your complete analysis. Preparing for Factors Affecting Price Fluctuations Do PESTLE analysis first. Many global events like the Ukraine-Russia war and conflicts in the Middle East and Africa are already active. These events can shift the decision from one supplier to another, no matter how lucrative the previous supplier offers you. It is not just about low prices in bulk aviation jet fuel but also about stable supply. Geopolitical Tensions Suppliers in countries with oil reserves might offer a cheap price range, but many factors can complicate things. You can not proceed with a safe deal if the entire region or a specific country has geopolitical tensions. A buyer chooses a supplier that can guarantee stable prices and supply to its customers. In the case of jet fuel, you must analyze the political issues via PESTLE analysis. Global Inflation Since some global conflicts have occurred, the US has imposed many sanctions, increasing businesses' challenges in international trade. Likewise, the jet fuel procurement process is not straightforward because of these challenges. When there are challenges like that, the inflation level increases. If you are selecting a supplier for low-cost supply, you will have to look at the inflation level of that country before the process is completed. Supply Chain and Tariff Challenges Supply chain challenges can create many hurdles in global trade. Likewise, when procuring jet fuel, you must consider every possible delay and risk involved in shipping. Political tensions between countries can disrupt shipping routes, increasing the overall cost. Avoiding Logistic Routes in Conflict Regions In this case, you should avoid every shipping route near conflict regions. Vessels are at high risk of potential damage in conflict zones, and the situation becomes more dangerous when bulk aviation jet fuel is in the containers. So, it is better to avoid all routes that may be threatened. Choosing Bulk Aviation Jet Fuel Suppliers from Different Regions Always keep backup when procuring anything on a large scale. Since there are different countries with large volumes of jet fuel, you can communicate with suppliers from other countries. It will prepare you to deal with possible hurdles without facing significant supply problems. Here are some ways you can follow to make deals safe. Keeping Alternatives Choose more than two suppliers to keep the options alive. If a supplier backs off at the last moment, you will have another option ready. If another supplier cancels the deal because of any issue, you can choose another alternative. In this way, you will not face delays and uncertainty. Even if you have to compromise a little on the price, at least keep an option with a high success rate of global trade. The Right Use of B2B Platforms You can get all those options when you properly use B2B platforms. There are many websites like Tradewheel.com and Alibaba.com where you can find global bulk aviation jet fuel suppliers. The benefit of using these platforms is that you will get lots of details quickly. Also, their customer representatives will connect you with the suppliers that meet your requirements. You will find many suppliers from the US and China that offer competitive jet fuel rates. Signing Long-Term Contracts Once you are connected with the right supplier, you must sign a long-term contract to avoid challenges like uncertainty. It will bind you and the supplier with legal formalities regarding the conditions you put into the contract. Fixing the Prices for Future Purchases The most crucial factor is price stability in the deal. You can lock the price when finalizing the bulk aviation jet fuel supply. It will prevent fluctuations and other issues. Future purchases will be free of sudden price and delivery conditions changes. Conclusion Bulk aviation jet fuel procurement is not as easy as one thinks. It takes many considerations, such as suppliers, prices, factors, supply chain, etc. Global tensions also significantly affect the deal between you and the supplier. A buyer has to include every possible scenario that can disrupt the price, delivery, etc.
Southland Boundless Advisors Ltd. (T&T)
Southland Boundless Advisors Ltd (SLBA Ltd.)is based in the Republic of Trinidad and Tobago, West Indies and operates in several major subsectors globally: