Oil & Gas Case Study
The Issue
A leading brand of fuel was being adulterated (diluted) with other cheaper fuels and solvents in a Latin American country. As a consequence, the client was losing sales volumes and revenues. Moreover, the adulterated and misbranded fuel was causing damage to customer’s automobiles, thereby damaging the reputation of the brand. The client needed a means of ensuring that its authorized retail franchisees only sold authentic branded fuel, thereby maintaining the integrity of their supply chain.
The Solution
All fuel supplied to the franchised outlets was supplied from two major refineries supported by a complex distribution network. Authentix markers were blended into the fuel as a concentrate with fuel additives at the beginning of the supply chain and their presence checked for at retail fuel pumps. The marking solution included:
- A quantitative covert marker
- A qualitative covert marker
- Easy to use, field-authentication devices
- A program of field inspection
- An on-line investigative data management tool
- Chain of custody evidence for legal case management support
The Outcome
As a result of the comprehensive fuel marking and testing program, legitimate supply was maintained to 2,400 fuel stations. Over 500 legal actions were taken to close or de-brand fuel stations that were knowingly selling adulterated fuel. As a result of these actions, consumer confidence in the brand was restored. Sales have grown by 10% equivalent to $250 million annually.
