Caltex’s magazine for employees, franchisees & resellers
Issue 49 Sep – Oct 09
Gallery
Martin Place, Sydney, merchandise sellers (from left to right): Sandra Magon, Peter McKay, Kelly Haynes and Damien Altschul
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Also in this issue
Caltex aims to broaden its retail reach
In late May 2009, Caltex entered into an agreement to acquire 302 Mobil service station sites. This agreement is subject to regulatory review and clearance.
"The proposed acquisition is a good strategic fit for Caltex. It will enable Caltex to grow its business consistent with its long term strategy of being a marketing-led business," said Caltex Managing Director and CEO, Julian Segal.
"Currently, Caltex is primarily a wholesaler of fuel but a relatively small player in the retail fuel market when compared with Coles Express, Woolworths and BP. This acquisition will allow us to better compete in the retail fuel market with these major players."
“We know what our customers want. Caltex has one of the most successful convenience retail networks across the nation, with both company and franchised stores operating predominantly under the Caltex Star Mart brand. This proposed acquisition will allow our fuel, convenience and card offer to be more accessible to our customers.”
Caltex is proposing to purchase the 302 Mobil service station sites as a going concern, providing it with experienced people to help grow the business. “Subject to regulatory clearance, Caltex will take on more than 1700 employees. We regard employees as a key asset," said Julian.
"Caltex's long term commitment to a strong balance sheet will enable the proposed acquisition to be funded from internal sources. Caltex remains committed to maintaining a strong balance sheet moving forward.
“Regulatory review and clearance by both the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB) is ongoing, and we are working with the regulators to assist them with their review.”
The acquisition cost to Caltex is in the order of $300 million including estimates for inventories and other settlement costs which will be finalised on completion.
STOP PRESS: On 2 September the ACCC released a Statement of Issues on the proposed acquisition. This indicates the ACCC’s preliminary views, drawing attention to particular issues of varying degrees of competition concern, as well as identifies lines of further inquiry that the ACCC wishes to undertake. Caltex will address the areas of competition concern and will continue to work with the ACCC while its review is ongoing.
The ACCC has indicated it will deliver its final decision on 7 October 2009.
Caltex's stellar Starlight day
Chilly weather and the lacklustre economy didn’t dampen the efforts of the many Caltex employees and partners, who helped raise a record $295,110 for Starlight Day – over $45,000 more than in 2008 and a hefty lump of the $1.6 million the Starlight Foundation was aiming for this year.
“Our record-breaking result has really highlighted our continuing commitment to Starlight by our retailers, resellers and Caltex employees across the board,” says Carmen Prince, Sponsorship and Social Investment Manager Caltex. “Starlight is absolutely thrilled with the result which went a long way to helping them achieve their fundraising target.
“What a great way to kick off our Caltex Starlight 10 year celebrations!”
Working from before dawn to dusk on 1 May, 287 Caltex Starlight volunteers fanned out around suburban and city railway stations and CBD thoroughfares in Sydney, Melbourne, Brisbane and Perth selling Starlight merchandise to office workers and commuters. At the refineries and terminals there were barbecues and raffles and, at Lytton, local community involvement through the ‘Be a Star, Wear a Star for Starlight Day’ event organised in conjunction with a local school. Lytton refinery and terminals raised $12,000 overall, while Fremantle terminal collected nearly $11,000.
Around 570 retail sites participated, selling Starlight goodies such as badges, pens, stress balls and straws and in store promotions featured products generously donated by Caltex suppliers such as Nestle, Cadbury and Coca-Cola Amatil.
In Adelaide, Caltex volunteers from Birkenhead terminal were permitted to sell Starlight merchandise in the two hours before kick-off in the showdown AFL match of the season, the game between Port Adelaide and Adelaide, raising $1800 for Starlight in the process.
The Starlight Foundation, which helps seriously ill children, has been involved with thousands of families since it was founded in 1988.
Jo Branscombe, a Caltex volunteer working the early morning shift in Sydney’s Martin Place says: “A young woman came up and told me how Starlight had helped her when she was little. People recognise the Starlight logo and just want to support it.”Melody pools her efforts for MS
Melody Xu, a member of the Caltex business services team, doesn’t mind getting cold, wet and tired – as long as it’s for a good cause.
The ebullient Refining, Supply and Distribution Project Accountant competed in the “MS 24-hour Megaswim” at the Homebush pool in Sydney in July to help raise funds for multiple sclerosis.
Part of a team of 15, Melody raised over $1700 having completed a gruelling 138 laps in two hours .
“The idea was for one team member to be in the water at all times,” explains Melody, who heard about the marathon via her North Sydney swimming club and decided to take the plunge.
“My friends, colleagues and family have all supported me. I’m hugely grateful to everyone who helped me reach the target.”
Melody is no stranger to fundraising, having worked on Starlight Day while at Caltex. Now she aims to complete the Sydney-to-Wollongong cycle ride later in the year to raise more for MS, a debilitating autoimmune disease.
Single-supplier lubes service for Caltex’s Sydney customers
Clients of Caltex in greater Sydney can expect even better service in future, thanks to a new three-year contract deal under which the reseller Caltex Energy NSW (CENSW) will handle all Caltex lubes distribution for the metro area.
Previously Caltex had been using an external carrier for packaged lubricant distribution in greater Sydney, with CENSW handling all other business including pump-outs and bulk lubricant deliveries. When the entire lubricant business recently went out to tender, CENSW was the winner.
“It’s fantastic news because it means we’re competing on a level playing field with other carriers and can provide a superior offer based on service and price,” explains Operations and Logistics Manager Paul Crane. “From now on, Caltex people who understand Caltex’s requirements will be dealing with Caltex products.”
Customers can expect time-saving synergies too. A large workshop that previously received packaged goods separately can now have all its lubes needs attended to at the same time from the Caltex truck fleet.
To win the tender CENSW acquired two new vehicles, and branded them with Delo, Caltex’s premium diesel engine oil.
Ian Ross to embrace new role
“It’s an exciting area I have little experience in,” says Ian Ross. “But it’s a privilege to have a chance to make a difference in a completely new job.”
Discussing his appointment as Manager Supply Operations for Supply and Distribution, Caltex’s former National Manager Reseller reflects that it’s not the first time he’s been thrust into a challenging new position in which he has little experience. When he joined Caltex 11 years ago, Ian was employed for a year as a brand manager before moving into the reseller area.
“I’m delighted Caltex considers I have the necessary leadership skills,” Ian says. “I’ve worked for a few companies and not too many would take that kind of punt on a person’s development.”
General Manager Supply and Distribution Ken James strongly endorses Ian’s talent. “He has demonstrated he is a highly capable business leader showing genuine concern for his people, their development and effectiveness along with delivering great business outcomes in the reseller area,” Ken said when announcing the appointment. “He will bring a new perspective and capability to Supply Operations.”
Ian says his first priority is to learn. “The catchcry for me will be to focus on people first while asking lots of questions,” he says. “The Supply Chain team is very experienced but I hope some of the insights and ways of thinking I can bring from marketing will make a meaningful contribution.”
Ian takes over from Richard Muller who has been acting Manager Supply Operations since late 2008 and has returned to the Supply Analysis Manager role. Ian’s replacement as National Manager Reseller is Peter Holmgren, previously the National Customer Service Manager.
LPS at work
There were many challenges introducing over 450 short term contractors into one of the biggest turnaround and inspection shutdowns at Kurnell Refinery this year, particularly as many of the workers had not set foot on the site before.
As the hustle and bustle of a large shutdown got underway and hundreds of contractors started working on repairs to the refinery's number one fluidised catalytic cracking unit (cat cracker), it was imperative that Kurnell looked out for their safety and well being, particularly as many had not been on the site before.
The shutdown group adopted the loss prevention system (LPS) “buddy” system to facilitate a safer shutdown. LPS methods are used throughout Caltex by its employees to prevent, or reduce, loss using behaviour-based tools and proven management techniques. The LPS buddies assisted the short term workforce to use LPS and other safety tools such as incident and injury free (IIF) to make the shutdown as safe as possible.
The LPS buddy schedule was developed to allocate buddies to every work group for the duration of the shutdown and involved personnel from across the refineries. This schedule empowered the LPS buddies to attend each one of the more than 700 toolbox meetings held at the start of each shift to talk about the safety aspects of working in a refinery – meetings which happen every day throughout the year, whether a shut-down is underway, or not.
Throughout the shutdown, the LPS buddies also participated in almost one thousand audits, loss prevention observations (LPO’s) and safe performance self assessment (SPSA) discussions, further raising safety awareness.
Through these activities, the LPS buddies helped positively reinforce what Caltex’s Kurnell Refinery was doing well and also identified areas for improvement during the recent shutdown. It also helped with planning for the safe execution of future shutdowns.
Retail’s award winners
Calstores recognised the outstanding performance of its best store managers with the Calstores “Getting it Right!” awards. Pictured from left are regional finalists: Ross Metcalfe, WA; Kylie Schubert, Vic/Tas; Daniel Milosev, NSW; Tom Peterson, Qld (Store Manager of the Year); Sue Creacy, SA with Leo Pucar.