Petrogar Combustibles S.R.L. distributes and sells fuel in Argentina, with more than 50 years of experience in the sector. It supplies companies in construction, industry, services and farming from its offices in Buenos Aires, and it is one of the companies that trust Fibady.
What does Petrogar do?
Petrogar sells gasoline, diesel and marine diesel, bought directly from leading producers.
- Straight from the refinery. The product reaches the customer with no intermediate storage or transfers, with quality checks along the distribution chain.
- Coordinated logistics. The company organises transport from the plant of origin to each point of consumption.
- Supply to fit. Deliveries are planned around each customer's consumption.
- Nationwide coverage. It serves the whole country.
What does a fuel distributor ask of its numbers?
Fuel distribution is a high-volume, low-margin-per-unit business. That makes three questions weigh more than in other sectors:
- How much cash will there be over the coming weeks? Product is bought continuously and sold on credit. Cash is decided week by week, not at month end.
- Who pays late? With tight margins, a few extra collection days eat the profit of the deal.
- What margin does each product and each type of customer leave? The purchase price changes often, and the average margin hides the differences.
How does Fibady fit a distribution company?
Fibady answers those three questions with the data the company already has:
- Cash by day and by week. Cash flow forecasting from each bank's transactions and from expected collections and payments.
- Collections and payments. Ageing of what is outstanding and collection and payment days by customer and by supplier.
- From profit to cash. The bridge that explains why profit does not show up in the bank, through working capital.
- Budget vs. actual. P&L compared with the budget, with its variances.
- Several entities. If the group has more than one company, they are shown separately and consolidated.
For whoever runs the company, that means seeing how the business is doing without asking for the report.
Petrogar and Fibady
Petrogar is a Fibady customer. For confidentiality, we do not publish details of its operations: what is described above is what Fibady offers any distribution company.