bulk oil program overview - john deere · bulk oil program overview rev. march 19, 2018 . 2...
TRANSCRIPT
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Table of Contents 1.0 Overview ...................................................................................................... 3
2.0 Introduction ................................................................................................. 3
2.1. Purpose of Converting to a Bulk Oil System ................................................... 3
3.0 Two Distinct Programs - Overview ................................................................... 3
3.1. Distributor Delivery ..................................................................................... 3
3.2. Distributor Pick-Up (6,500 Gallons) ............................................................... 3
3.3. Additional Program Information .................................................................... 4
4.0 Value Story .................................................................................................. 4
4.1. Dealership Benefits ..................................................................................... 4
4.2. Retail Customer Benefits ............................................................................. 4
4.3. Features and Benefits Detail ........................................................................ 4
4.4. Cost Saving Calculations .............................................................................. 6
5.0 Distributor Delivery – Bulk Program Details ...................................................... 9
5.1. Who will distribute John Deere oil? ................................................................ 9
5.2. How will the oil be delivered to the dealer and customer? .............................. 11
5.3. Bulk Oil Distributor Part Numbers: .............................................................. 11
5.4. How will the oil be invoiced? ...................................................................... 12
5.5. How will the quality be verified? ................................................................. 12
5.6. What are the Warranty Terms? ................................................................... 12
5.7. Dealer Equipment ..................................................................................... 13
5.8. Customer Direct – Rules/Regulations .......................................................... 13
5.9. Customer Direct – Set Up Process ............................................................... 15
6.0 Dealer Pick-Up (6,500 Gallons) – Bulk Program Details .................................... 15
6.1. Where can a dealer pick-up John Deere oil? ................................................. 15
6.2. What are the dealer requirements? ............................................................. 16
6.3. How will the oil be invoiced? ...................................................................... 17
6.4. Factors to consider - Dealer Pick-Up Bulk Program ........................................ 17
6.5. Additional Information ............................................................................... 18
7.0 Marketing Bulk Oil – Review ......................................................................... 18
Bulk Oil Program Overview
Rev. March 19, 2018
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7.1. Preparing to Sell Bulk Oil ........................................................................... 18
8.0 Support Materials/Information ...................................................................... 19
8.1. Bulk Tank Decals ...................................................................................... 19
8.2. Print Stock ............................................................................................... 19
8.3. Visual Media ............................................................................................. 19
8.4. Bulk Oil Contacts ...................................................................................... 19
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1.0 Overview
This document outlines the benefits in converting to a bulk oil system for John Deere dealerships and describes how the bulk oil program works.
2.0 Introduction 2.1. Purpose of Converting to a Bulk Oil System
Converting to a Bulk Oil System provides a direct cost savings and improves the distribution of oil in your dealership, as well as a dealerships customer location.
A bulk system is an excellent way to meet current and future environmental needs. The requirements for handling oil are changing and converting to a Bulk Oil System will meet these challenges by:
allowing safer and cleaner storage of large quantities of oils in the workplace
reducing the number of containers that pollute the environment, or cannot be reclaimed efficiently
Bulk oil is a:
proven and effective way to grow your lubricants business
provides customers with John Deere’s premium products at a competitive price
3.0 Two Distinct Programs - Overview
3.1. Distributor Delivery
Fluid is delivered by the distributor
Minimum delivery amounts:
o Dealership - 400 gallons
o Customer – 200 gallons
o Quantities may change depending on individual distributors and distance
Oil orders are placed directly through the bulk oil distributor
Product is invoiced by John Deere to dealer
Oil and delivery of oil is included in the bulk oil part number price
3.2. Distributor Pick-Up (6,500 Gallons)
Dealer picks up via their own transport trailer or arranges transportation through an independent transport company to deliver up to 6,500 gallons of total product to the dealership
Dealer is responsible for transportation charges and product is FOB from blender location
Dealer can order a combination of each product up to 6,500 gallons of product(s) per order
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Order through John Deere Program Code ST-QS or ST-PG
New dealers utilizing this program option for the first time, in order to properly establish an account with the blender must:
o Notify John Deere’s customer support group via email at: [email protected]
o Provide their dealer account number
3.3. Additional Program Information
Contact Information
o Phone: 1-866-866-1212, Option 2, Option 4 o Email: [email protected]
Reminder: Bulk oil purchases count towards your truckload packaged product discount!
2018 Bulk Oil Program: Distributor Program and 6,500 Gallon Program (Bulletin # 060571)
4.0 Value Story
4.1. Dealership Benefits
Reduced purchased cost of oil
Reduced material handling of drums and pails
Improved inventory control of oil
Reduced drum disposal problems
Increased shop efficiency
Reduced warehouse space requirement
Reduced injury to employees from drums and pails
Environmentally friendly
Potential to increase retail sales to customers (other lubricants, filters,
belts, and more)
4.2. Retail Customer Benefits
Convenience (#1 reason customers purchase bulk lubricants to be
delivered direct to their location)
Reduced purchase cost of oil
Reduced handling of drums and pails
Eliminate drum disposal problem
Reduced risk of oil contamination
Environmentally friendly
4.3. Features and Benefits Detail
Cost Savings
o Lower Purchase Cost
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Your purchase cost will be lower on oil purchased on the Bulk Oil Program when compared to packages products (drums/totes).
Refer to the Cost Calculations Section to calculate your actual savings.
o Eliminate Handling Cost
Your handling cost will be eliminated for packages products as bulk oil will be pumped directly into your bulk oil storage tank
To calculate your savings, use the formula on the Calculation Sheet in the Cost Calculations Section.
o Residue Oil Waste
Reduce the amount of oil that is wasted from residue left in drums
The amount of oil that is left in empty 55 gallon drums is estimated to be a minimum of 2%
Use the formula on the Calculation Sheet to calculate your actual savings.
o Empty Drum Storage and Disposal
Cost of handling, storing, and disposal of empty drums can be eliminated
This will be a factor in the future as regulations are established on how they are stored and disposed of.
o Service Shop Efficiency
Increase the efficiency in your service shop Service technicians will be able to fill equipment direct
from a metered hose in place of using small containers to fill compartments
Accomplished through reduced trips and through automatic metering of oil into the compartment
Results will save valuable time that the service technician can use to repair machinery
Potential to be one of the biggest cost savers at your dealership
o Improved Inventory Control
Realized savings through improved control Metering systems help eliminate waste and improve
internal billing by making it easier to register the quantity of oil loaded into a machine.
Safety
o Employee Safety
Unloading and handling full drums can be a safety hazard due to the weight and size of the container
Ability to reduce the chance of lost employee time due to injury from lifting or dropping the containers.
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Environmental Effect
o Empty Containers Reduced
The number of empty containers will be reduced Disposing of used 55 gallon drums is becoming a problem
in many areas In the future, this will be more of a problem in both
storing of the empty containers, as well as getting rid of this waste product.
o Improved Spillage Control
There will be improved spillage control with a modern “UL” approved Bulk Oil Storage System
Oil will be kept in an approved area in one single container rather than in multiple 55 gallon drums.
o Cleaner Dispensing
Internal distribution will be cleaner with the use of metered guns that deliver just the amount of oil needed vs. the gravity flow system of filling a small bulk container to be carried to the machine.
o Waste Oil Recovery System
The Bulk Oil Program will recommend a method to handle waste oil
It is becoming more and more important that used oil be handled in a careful and safe manner
In the future, it will also become more important that you have a good system to store used oil, due to customers returning used oil rather than disposing of it in an improper manner.
4.4. Cost Saving Calculations
Handling Cost
o Handling costs are based on estimated costs to unload truck, transfer to warehouse, move to shop and transfer oil. The minimum time to complete this cycle is estimated at 20 minutes per drum (55 gallon) or $25.00 per hour.
Residue Waste
o It has been estimated that minimum of 2% of oil is left in a container or contaminated. The amount is 1.1 gallons per 55-gallon drum.
Empty Drum Storage and Disposal
o Use this to calculate your cost incurred to dispose of empty drums. Even if you sell the drums for a small amount, handling costs will not be recovered. In the future, you may have to pay to have removed.
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Service Shop Labor Savings
o The time required to fill a transmission or engine can be very costly in service shop time.
4 gallon engine compartment 15 minutes 20 gallon engine compartment 30 minutes
o The time required to fill a compartment using a bulk hose metering valve is as follows:
4 gallon engine compartment 5 minutes 20 gallon engine compartment 10 minutes
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Savings Calculator
1. Yearly purchase cost savings on service shop oil
(Cost savings per gallon = cost per gallon pail/drum – cost per gallon bulk)
Total Gallons X Cost savings per Gallon = Purchase Cost
Savings
X =
2. Handling costs
(Estimated at 20 minutes per 55-gallon drum or $25.00 per hour)
# of pails/drums X Handling (per
minute) X Hourly rate/60 =
Handling Cost Savings
X X =
3. Residue oil savings
(Estimate: 5-gallon pail = .1 gallon, 55-gallon drum = 1.1 gallons)
# of pails/drums
X Residue gallons X Cost per gallon = Residue Oil
Savings
X X =
4. Empty pail storage and disposal
# of pails/drums X Disposal cost per pail/drum = Storage/Disposal
Savings
X =
5. Service shop labor savings
# of pails/drums X Disposal cost per pail/drum = Labor Savings
X =
a. Estimated time to fill a compartment using a pail/drum system
i. 4 gallon engine compartment – 15 minutes
ii. 20 gallon transmission compartment – 30 minutes
b. Estimated time to fill a compartment using a bulk hose metering valve
i. 4 gallon engine compartment – 5 minutes
ii. 20 gallon transmission compartment – 10 minutes
6. Oil not billed to customer (due to lack of measuring)
Unaccounted Gallons (Est.)
X Cost per gallon = Lost Sales Savings
X =
Total Yearly Savings (Total of all savings columns) =
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5.0 Distributor Delivery – Bulk Program Details
5.1. Who will distribute John Deere oil?
Distributors are selected by John Deere to deliver selected John Deere oil in bulk quantities direct to dealers and retail customers.
Distributor network is comprised of local or regional independent oil distributors that agree to distribute John Deere oil.
Solicitation of a distributor in an open-territory requires the preparation of a business case to be presented by John Deere to the targeted distributor based on the following information:
o Projected annual volume(s) for applicable oil provided by dealer
o Storage capacity for each oil (tank size)
o Estimated number of storage tank refilling per year
o Distributor access to tanks
Many have been working with Deere for many years and are trusted and valued partners.
Distributors for Bulk Oil
A&I DISTRIBUTORS
Billings, MT
Contact: Kevin Stevenson
Phone: 406-245-6443 (Ask for Kevin)
Cell: 406-698-7409
Coverage: MT, WY, ID, W SD
CENTRAL OIL
Monroe, LA
Contact: Hardeman Cordell, Jr./Ray
Jennings
Phone: 800-489-6634
Coverage: LA, SW. MS, SW. AR
CIRCLE LUBRICANTS
Bay Shore, NY
Contact: Customer Service
Phone: 631-234-8900
Coverage: Eastern NY (Counties – Bronx,
Dutchess, Kings, Nassau, New York,
Putnam, Queens, Richmond, Rockland,
Suffolk, Westchester), Connecticut
CONSERVANCY OIL
Grand Junction, CO: Sarah Mitchell
970-243-6934
Durango, CO: Jeff Hitchell
970-259-1590
Albuquerque/Las Cruces, NM: Cheryl
Mirabel
505-243-7434
Sanchez, Kimberly 505-243-7434
Coverage: NM, W. CO, W. TX
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CRUS OIL Inc.
Salt Lake City, UT
Contact: Brian Roderick
Phone: 800-658-8444
Coverage: UT, NV
DECKMAN OIL COMPANY
9 NORTON
HONEOYE FALLS, New York
Contact: Customer Service
Phone: 585-624-1630 Local (toll free 800-
836-0562)
Coverage: Western NY (Counties -
Allegany, Broome, Cattaraugus, Cayuga,
Chautauqua, Chemung, Chenango,
Cortland, Erie, Genesee, Livingston,
Monroe, Niagara, Onondaga, Ontario,
Orleans, Oswego, Schuyler, Seneca,
Steuben, Tioga, Tompkins, Wayne,
Wyoming, Yates)
DOOLEY’S PETROLEUM
Murdock, MN
Contact: Randy Dooley/Dave Becker
Phone: 320-875-2641
Coverage: MN, WI, E. SD
FLEETWING CORP.
Lakeland, FL
Contact: Debbie Tate
Phone: 863-665-7557
Coverage: S. FL
HALRON
Green Bay, WI
Contact: Customer Service
Phone: 800-236-5845 (Identify yourself as
JD dealer)
Coverage: E. MM, WI, N. MI
J. M. REYNOLDS
Wabash, IN
Contact: Steve Rice
Phone: 260-563-3317
Coverage: IN, MI, W. OH
MCPHERSON OIL PRODUCTS
Bayminette, AL; Atlanta, GA and
Decatur, AL
Contact: Brittany Purvis
Phone: 205-661-4528
Coverage: AL, N. GA, C. TN, E. MS, NW FL
MID-SOUTH SALES
Lexa, AR; Jefferson, AR; Blytheville,
AR; and
Jonesville, AR
Contact: Murray Benton
Phone: 870-933-6457
Coverage: W. TN, AR, N. MS
NORTHLAND PRODUCTS
Waterloo, IA
Contact: Diana Wagner
Phone: 800-772-1724
Coverage: IA, IL, MO, W. CO, NE, KS
PETROCHOICE
Defiance, PA
Contact: Tammy Black
Phone: 800-437-1802 x1040
Wright, Michele
Phone: 814-928-1022
Coverage: NJ, SE, PA, DE, E. OH
PETROLIANCE LLC
Apex & New Bern, NC
Columbia & Charleston, SC
Contact: Customer Service
Phone: 877-738-7699
Coverage: NC, SC
PILOT THOMAS LOGISTICS
Victoria, TX
Ordering for North Eastern Texas
Mid-con Orders
1-800-256-2056
Ordering Beaumont/Lagrange/San
Antonio and South Eastern Texas
Eagleford Orders
1-855-888-9687
Contact: Heather Nelson
Phone: 405-551-2332
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REEDER DISTRIBUTORS
Ft. Worth, TX
Contact: Jim Moore/Trey McMasters
Phone: 817-429-5957
Coverage: NE, TX, OK
SC FUELS
Modesto, CA
Contact: Customer Service
Phone: 1-800-659-5823
Coverage: CA
Phoenix, AZ
Contact: Customer Service
Phone: 602-278-8877 or 800-456-4200
Coverage: Arizona and Southern Nevada
TYREE OIL COMPANY
Eugene, OR
Contact: Brian Otto
Phone: 541-687-0076
Coverage: OR, WA
WALTHALL OIL CO.
Macon, GA
Contact: Johnny
Phone: 912-781-1234
Coverage: S. GA, NE FL
WESTERN MARKETING
Tye, TX; Lubbock, TX; and Amarillo, TX
Contact: Kitty
Phone: 325-692-4662 x 218
Coverage: Tye, Lubbock, Amarillo, TX &
surrounding areas
PMI Lubricants (Zimri Holdings, LLC)
Roanoke, VA and Richmond, VA
Contact: Winston Spaulding
Phone: 540-397-3846
Coverage: VA, W. VA, Pikeville, KY
5.2. How will the oil be delivered to the dealer and customer?
The distributor will deliver the oil via tanker truck fleet or truck with dedicated compartments.
The minimum delivery amount is 400 gallons for dealers and 200 gallons for dealer customers.
o Required minimum gallons can be a combination of available oils
o For dealer customers, the servicing dealer location must be utilizing the bulk oil program in their service department
o Customer deliveries are made in conjunction with dealer deliveries; any exceptions are at the discretion of the delivering distributor
The distributor will deliver based on a normal delivery route.
o Calls may also be placed directly to the distributor to discuss any special need situations in order to try and work out a customerized plan for delivery
The responsibility for marketing the bulk program is with the servicing dealership.
o Many distributors will aid dealerships in the selection of proper bulk equipment for customers who do not already have it.
John Deere also offers a bulk hardware program for direct purchase and delivery to dealers or customers
5.3. Bulk Oil Distributor Part Numbers:
Available from all distributors
o TY26682 (Plus-50™ II 15W40)
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o TY22028 (Hy-Gard™)
o TY27331 (Hitachi Super EX 46HN)
o TY27452 (Hydrau™)
Additional products available, on a distributor by distributor bases, including:
o Plus-50 II 10W-30
o Hydrau XR
o Torq-Gard Supreme 30W
For more information on available products:
o Reference Bulletin # 060571 (2018 Bulk Oil Program)
o Call: 1-866-866-1212, Option 2, Option 4
o Email: [email protected]
5.4. How will the oil be invoiced?
The distributor will complete a delivery receipt at the time of delivery; which includes:
o Date
o Time
o Number of gallons delivered by product
The dealer will sign this receipt and retain a copy for their records.
Dealer off-site customers receiving oil will receive a ticket, which a copy is also provided to the servicing dealer.
o The delivery receipt will constitute a dealer order and should be billed by the dealer to that customer.
The oil distributor will transmit the delivery receipt information to John Deere and the dealer account will be billed for the quantity of oil delivered at the current net price per gallon.
5.5. How will the quality be verified?
The lubricant supplier will continue to provide a certificate of analysis and collect oil retains before shipping the lubricant to the distributor.
Upon oil delivery to the dealership or customer, an oil sample will be taken and retained by the distributor for a period of six months to one year.
It is the dealer’s responsibility to provide clean bulk containers and to keep those containers free from contaminants and moisture.
5.6. What are the Warranty Terms?
The oil delivered in the bulk program has the same 90-day warranty as our pre-packaged oil.
All warranty requests must be pre-approved by the branch/division and JDM
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Warranty claims will result in the supplier and distributor retains being tested for contamination.
o Contaminants present in the dealership and/or customer oil, but not found in the supplier and/or distributor oil retains will not be covered by warranty.
5.7. Dealer Equipment
John Deere is not involved with bulk oil equipment
o Dealers are responsible for obtaining bulk oil equipment for their servicing location(s)
o Distributors may be able to assist the dealer in determining their oil equipment needs, as well as, being a source to obtain the equipment
o FarmChem, John Deere’s equipment partner, is an available source for bulk equipment
Phone (Toll-free): (855) 453-4333
Web site: www.JDDEF.com
Dealers will be required to have adequate approved equipment to receive oil via bulk delivery
o Dealer is responsible for knowing all local/state storage regulations and are responsible for ensuring that the equipment meets all regulations (local/state, etc.)
Minimum storage tank requirement is 275 gallons (1,050 liters) per product
o Tank size(s) must be adequate enough to handle proper volume usage, minimum delivery requirements and avoid constant refilling
Shop distribution equipment is to be determined by each individual dealer/dealer location
Optional equipment:
o Waste oil recovery systems that are “UL” approved providing an efficient, clean method of storing used oil(s)
5.8. Customer Direct – Rules/Regulations 1. In order for a dealer to sign up retail customers for bulk oil, the
servicing dealer location must be on the bulk oil program
o Customer must be within the servicing dealer’s area of responsibility (AoR) as defined by the dealer channel
2. The dealer is responsible for contacting his customers and signing them up for the bulk oil program.
o Recommendation is a customer use 330 gallons (1,250 liters) of a product per year to be considered a bulk oil candidate
o Customer is not required to have both products to be on the program.
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3. Tank size(s) must be appropriate to meeting distributor delivery requirements outlined in program and meet local/state regulations
o Repurposed tanks must be properly cleaned before initial filling of John Deere oil
o The bulk oil distributor may be able to provide assistance to the dealer in determining the customer tank and equipment needs
4. Dealer is responsible for purchase of the equipment
o Recommendation is for dealer to lease or loan equipment to the customer
Dealer retaining ownership of the equipment helps retain future business
Customer owned equipment allows the customer to change brand of oil at their discretion
5. Dealer is responsible for coordinating customer orders
o The distributor, at its own discretion, may contact the dealer prior to coming to the dealer's area and request dealer and customer needs
o Dealer is required to check on his customer’s tank levels to determine customer requirements, as well as that of his own service department
o Process ensures that the distributor delivery truck is loaded with the correct product mix
6. The customer bulk oil program is a keep-full program (top-off concept)
o Minimum customer delivery is 200 gallons per stop; which can be split between products
o Customer deliveries will be coordinated, and in conjunction, with oil deliveries to the dealer’s service department
Reduces the number of trips necessary to provide a high level of service and ensure that the customer does not run out of oil
Minimize the distributor's delivery expense and help keep our bulk prices competitive
7. If a prospective customer has an annual usage less than 330 gallons (1,250 liters) a year and does meet the requirements outlined above; the customer will be expected to take a one year’s supply on the initial delivery (minimum of 200 gallons)
o Subsequent delivery will be the following year (delivery minimums must be met)
o If the customer’s usage pattern changes, the customer will added back into the delivery schedule on the next delivery cycle, but will be required to meet the established requirements as outlined
8. Transport delivery requirements:
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o Routes must be passable
o Roads/bridges and customer locations must be adequate to handle a semi-tanker loaded with oil (loaded weight is approximately 80,000 lbs.)
o Customer tanks must be located so they are easily accessible by a 90-foot hose on the truck
o Tanks must be plumbed so they are fillable from the ground without having to climb a ladder
o Final decision on traveling certain roads and filling a customer tank rests with the transport driver
5.9. Customer Direct – Set Up Process
1. Dealer contacts customer and sells the Bulk Oil Program features.
2. Dealer sets up the customer with the Distributor
o Distributor can assist dealer in determine customer tank and pump needs
o Dealer is responsible for purchasing customer tanks or working out payment option for customers
o Tank should be sized to meet customer needs and meet direct oil program rules/regulations
3. Dealer sends customer order to the distributor via approved distributor method [call/email/fax]
4. Distributor delivers oil to customer
5. Distributor will leave a copy of the delivery ticket with the customer and will send a copy to the appropriate dealer location showing the gallons delivered of each product
6. Dealer invoices the customer at the dealer’s established selling price (determined by dealer based on local market competition and necessary margins).
7. Distributor transmits the number of gallons ordered by part number to Deere via EDI.
8. Deere invoices dealer for oil.
9. Re-order or keep-full schedule with customer will be arranged by the dealer.
6.0 Dealer Pick-Up (6,500 Gallons) – Bulk Program Details 6.1. Where can a dealer pick-up John Deere oil?
Dealer Bulk Oil Pick-Up Locations and Products Available
Chevron
1882 Milford St.
Charleston, SC 29405
Order part numbers:
TY26680 (Plus-50 II 15W40)
TY22077 (Hy-Gard)
Chevron
4401 Bells Lane
Louisville, KY 40211
Order part numbers:
TY26681 (Plus-50 II 15W40)
TY6278 (Hy-Gard)
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Chevron
841 Chevron Way
Richmond, CA 94802
Order part numbers:
TY26687 (Plus-50 II 15W40)
TY25265 (Hy-Gard)
Northland Products
1000 Rainbow Drive
Waterloo, IA 50704
Order part numbers:
TY26686 (Plus-50 II 15W40)
TY26625 (Hy-Gard)
TY27008 (Plus-50 II 10W30)
TY27400 (Hydrau Hydraulic Fluid)
TY27399 (Hitachi Super EX 46 HN
Hydraulic Fluid)
TY27718 (Hydrau XR Hydraulic Fluid)
Nortech Lubricant Distribution
Solutions Inc.
4875 Wendland Road
Temple, TX 76501
Order part numbers:
TY26683 (Plus-50 II 15W40)
TY25261 (Hy-Gard)
Phillips66
1000 Ella St.
McKees Rocks, PA 15136
Order part numbers:
TY26684 (Plus-50 II 15W40)
TY25263 (Hy-Gard)
6.2. What are the dealer requirements?
Dealer is required to purchase a full tanker of product(s) in one
purchase
Dealer selects the refinery and the part number related to the refinery.
Place order through one of the following John Deere special terms
program:
o ST-QS Program with terms
Payment: 5 months Discount: MDP Five equal consecutive monthly installments. The first
installment is due the first day of the first month following the shipment month or the requested delivery date month, whichever is later
o ST-PG Program with 2% discount (no-terms)
Payment: 1 month Discount: 2% The first installment is due the first day of the first month
following the shipment month.
Refinery pickup time is up to 8 days from placement of dealer order
o Dealer will be called back by John Deere with load number and the pickup time at the refinery (carrier must be on time; otherwise the carrier will be unable to pick-up the order for that day).
o Carrier tankers must be DOT certified and be clean with the proper safety equipment.
o Refinery has the right to refuse bulk oil pickup if these criteria are not met.
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o Dealer is responsible for arranging transportation, all transportation fees and storage of bulk oil.
Dealer is responsible for determining and following all Local, County
and State regulations.
6.3. How will the oil be invoiced?
Oil is billed electronically to John Deere by the refinery and then John
Deere invoices the dealer on their parts system
Oil pricing is not price protected and is subject to change.
Product is FOB from refinery location (terminal).
6.4. Factors to consider - Dealer Pick-Up Bulk Program
Cost Factors:
o (2) 5000 to 8000 gallon storage tanks
o (2) High speed pumps
o (2) Hose reels
o (2) Metering devices
o 2000 – 4500 gallon tank wagon, cargo van or flatbed trailer for customer deliveries
Requires separate pump reels and meter to prevent contamination.
o Containment areas for bulk tanks or double-walled tank requirements
Check with your local EPA department or Fire Marshall Must adhere to any Local, County and/or State regulations
o Associated plumbing
o Spill kit
o Emergency spill plan
o Environmental Impairment Liability (EIL) insurance
o Cargo endorsement for trucks hauling 110 gallons or more of oil
o Depreciation of equipment
o Maintenance cost of delivery vehicle
o Delivery driver time cost
o Fuel
o Truck Liability
o Customer tanks, if applicable
o Other cost factors to consider (Dealer owned equipment)
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6500 gallon transport trailer, new or used Commercial driver license (CDL) Truck Liability Reels Pumps Maintenance of delivery vehicle Used transport trailer - needs to be cleaned and
refurbished
Dealer becomes an oil distributor and assumes responsibility for:
o Obtaining the oil
o Storing the oil
o Delivering the oil
o Customer Storage
o Local rules and regulations of state
o Warranty
6.5. Additional Information
Bulk oil purchase dollars counts towards your annual package
truckload discount ordering program commitment level 7.0 Marketing Bulk Oil – Review
7.1. Preparing to Sell Bulk Oil
Emphasize the features and benefits of using uniquely formulated John Deere products (Plus-50 II, Hy-Gard, etc.)
Develop a filter program to sell with the bulk oil program
o Highlight to customer that John Deere oil products meet the performance requirements for all his diesel equipment
o Be prepared to quote Fleetguard prices on his competitive equipment
Inquire about the environmental services the customer is currently using and explain the services that are available
Utilize the oil sales guide to learn about the products and to be prepared to explain the features/advantages/benefits to the customer
o Promote to the customer the benefits of adding fluid scan testing into the normal service routine
Counsel with your service manager for any possible competitive oil-related failures seen at your dealership and get personal testimonies from those customers to use in convincing additional customers to convert to John Deere oil
Determine the customer’s potential volume and equipment requirements
Recommend using a lease/rent strategy to lock in the business with your customer
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8.0 Support Materials/Information
8.1. Bulk Tank Decals
DKLD1034S: Plus-50 II 15W-40 (Small – 5” W x 12” H)
DKLD1034L: Plus-50 II 15W-40 (Large – 21” W x 16” H)
DKLD1035S: Hy-Gard (Small – 5” W x 12” H)
DKLD1035L: Hy-Gard (Large – 21” W x 16” H)
DKLD1037S: Plus-50 II 10W-30 (Small – 5” W x 12” H)
DKLD1045S: Hydrau (Small – 5” W x 12” H)
DKLD1045L: Hydrau (Large – 21” W x 16” H)
DKLD1046S: Hitachi (Small – 5” W x 12” H)
DKLD1046L: Hitachi (Large – 21” W x 16” H)
DKLD1048S: Hydrau XR (Small – 5” W x 12” H)
DKLD1048L: Hydrau XR (Large – 21” W x 16” H)
8.2. Print Stock
DKD1801: Oil Sales Guide
DKB5043: “Bulk up your bottom line” Brochure
DSPB44491: Counter Card
Bulk Oil Banner Order via AdZone – various sizes available
8.3. Visual Media
DV98-536A: Bulk Oil Right Choice DVD – Dealer Version
DV98-536B: Bulk Oil Right Choice DVD – Customer Version
8.4. Bulk Oil Contacts
Kristin Grems – Supply Management Specialist
o Email: [email protected]
Mark Peckenschneider – Product Manager, Bulk Oil
o Email: [email protected]