Core Logistics and HPCL – Partners in Success

They chose well, when they chose HPCL at the time of founding their company. Ferrying cement bulkers all across southern India and up to Maharashtra, Arul Natarajan, Partner, Core Logistics swears by the fuel giant’s professionalism and attributes their tension-free operations to the diesel supplier. Sarada Vishnubhatla reports.

Arul Natarajan, Partner, Core Logistics

Fuel is the single highest cost overhead for any transport company. The black gold also takes the credit for giving nightmares to the fleet owner in multitudinous ways. What makes the situation better and sometimes even profitable for the owner is the seamless service on part of the fuel company. And, this is what makes the two, partners in success!

It is probably the highest kind of endorsement that any fuel company can get when the fleet owner feels that ‘fuel or any issue pertaining to it never crops up in my daily load of work’. It may sound counter-intuitive for a fleet owner to feel so, but it is a fact at Core Logistics.

We spin in a happy circle listening to this highest praise for HPCL’s service professionalism because it is not every day that a fleet owner gives such an honest appraisal.

At its Core

Like a well-oiled machine, the monthly fuel supply order placed by Core Logistics gets fulfilled by HPCL promptly. It is this simple work dynamics that has been in place since Core Logistics was founded in the year 2010. Their fleet of 400 cement bulkers guzzle about 4,50,000 litres of diesel a month. And, Natarajan does not have to worry about the fuel supply at the different fueling stations, the quality, the amount, its purity or other such issues when it comes to HPCL.

He shares: “We began our company with 50 cement bulkers in 2010 and today it is a Rs. 150 crore company with a capacity of 1,20,000 tonnes per month. We cater to more than 32 cement companies but are more concentrated towards southern India and go up to Maharashtra.”

HPCL is where We are

HPCL meets 75% of Core Logistics’ monthly fuel requirement. From day one of setting up of Core Logistics, HPCL has partnered it by fueling it.

Natarajan talks about the early days of their association with HPCL: “It was HPCL who approached us first. Though every brand works more or less the same way, we liked the benefits that HPCL was offering us. Also, HPCL was in close proximity to our locations initially. It is only practical to hope and keep fuel stations close to the locations geographically. The reason being our vehicles cannot go extra miles to refill because businesswise and as per cost, it does not make sense. And in these many years, it so happened that geographically wherever we set up, HPCL was always close by. That way we got more attached to them. So, it was not only by choice but that they also naturally became part of our business growth. As we grew more and more comfortable with HPCL, our work association continued to blossom and we are convinced that it will do so in the future too.”

HPCL’s DriveTrack Program

What endears HPCL with the management at Core Logistics is that the company offers driver life insurance program wherein a driver’s family receives Rs. 1 lakh upfront in case of an accident and fatality. Today, the DriveTrack Loyalty Card Program is digitalized eliminating cash handling.

Natarajan elaborates: “Another reason that HPCL was attractive for us was because of their DriveTrack Loyalty Card Program. They offer insurance cover for accidental death and total and partial permanent disabilities for drivers and helpers of the vehicles which are enrolled and active under this program.”

The DriveTrack allows for controlled fuel spends enhancing efficient fund management by the driver using central cash management system. The program also allows for mileage and distance calculation of the vehicle besides helping track them using a web-based real-time tracking program.

Benefits with HPCL

Natarajan feels confident in HPCL’s commitment to give qualitative and seamless service. He feels: “Our volumes are good. HPCL officials personally monitor the stocks at the pumps where we fill our vehicles. It means the world to us especially when there is a problem. HPCL gives special attention to our requirements and ensures that our vehicles never run out of fuel. We cannot change our pumps at the drop of a hat because we have fixed routes that we ply on. So HPCL helps us by keeping an eye on the dealer and how he is rotating his stock even when our vehicles are on the move.”

Core Logistics and HPCL share a great relationship. And it takes tireless effort and work which both the partners put in. Natarajan shares: “Whenever there is a problem, HPCL officials keep us up to date. They always ensure that the dealers who engage with us are taken care of. They make sure that the dealers have enough staff at hand always to serve our vehicles. We know for a fact that HPCL keeps motivating the dealers to give us the best service possible, so that our business does not suffer.”

He continues: “HPCL clarifies any doubts that we have. They are always present for us. We transact directly with the oil company and they make it a point that the transactions are documented and shared with us in their entirety at the year-end or even in between if we seek.”

Natarajan makes a special mention of the elaborate outlets that HPCL has built with well-maintained beautiful parking spaces. He is also happy that they have built restrooms for the drivers, which are open for use by the drivers during a night halt or so, for example. He feels: “The only thing we wish for is that there could be a few more such rest areas and facilities built on the routes that our drivers take, for example, on the state highways which are our staple routes.”

In a nutshell, Core Logistics is simply happy that their fuel needs are met seamlessly with the highest service professionalism, which translates into keeping their downtime at a nil.           

“Only when I am approached with a bill to pay for the fuel consumed in a month, I am reminded of the fuel part of our business and HPCL,” says laughingly. “The rest of the time, not a single issue of fuel or HPCL’s service crops up. And that, in my opinion, is the ultimate sign of professionalism on part of the fuel company.”

– Arul Natarajan, Partner, Core Logistics