Oil Resurs Grupp, a supplier of petroleum products, has launched an ambitious ORG-Market project, which will be based on the Skolkovo information center. Semyon Garagul, the CEO, spoke in more detail about the new platform and its features.
How to describe ORG-Market in several sentences?
ORG-Market is a platform created exclusively for end consumers interested in purchasing oil products at an adequate cost and without sky-high margins. Our customers are various manufacturing and construction companies, large enterprises, that consume hundreds of liters of fuel daily. ORG-Market breaks a long chain of middleman traders who buy oil products from manufacturers and first resell them to each other, and only then to the consumer.
Currently, the platform can be used through the Toplivo mobile application, optimized for Android and iOS. The org-market.com website is also available for desktop users.
We hope that our website will be able to change the petroleum products market and streamline the business model to secure more effective ordering and purchasing.
How did you come up with the idea of such a marketplace?
The idea came up in 2016 when I was mastering the Workshop for Directors program at Skolkovo. We needed to figure out what we can do to enhance our business tenfold. We did not have to look too far, the solution was in front of us the whole time. We evaluated various platforms to see how successful they were and how rapidly they were developing. Many companies are now realizing that marketplaces are the future.
The project entered a new phase during my studies at the corporate university of Sberbank. One of the tasks I had was to work on my own project, so I suggested developing a fuel marketplace. It should be noted that even then, Oil Resurs Grupp was moving slowly but surely in this direction. However, greater efficiency and effectiveness required optimized internal business operations. This is a slow process since you need to create a whole array to lay a foundation for the platform. To make the project work, you need a highly automated service for both the sellers and the buyers – from the moment the order is placed to its delivery to the consumer's address. To achieve that, one of the key tasks was to transfer all paperwork to 1C and customize it according to our needs. Of course, the software still needs some refinement, so we improve it every day and we are not willing to stop.
It is unrealistic to keep track of everything on paper, and it is important to manage all possible cancellations, orders, and feedback from buyers. That is why we turn to various information technologies. The project is very complex, and the annual market sales reach about 4.5 trillion rubles. It is only logical that in such conditions there is no room for error and everything should operate smoothly.
How easy is it to use the platform?
I want to repeat that our goal is to completely automate the processes to eliminate the human factor and hand over the routine tasks to a machine or a capable algorithm. This rule also applies to the user interaction with the marketplace: it must be simple for every buyer.
When clients visit our platform, they are required to register and open their user account. It should be noted that the funds are debited only after the shipment. A full tanker leaves and then a supplier gets paid. This is convenient because a client does not have to wait for a bank to open, as it is very annoying on weekends or long holidays being left without any fuel. Having registered an internal user account on the platform, the client can place an order at any time.
Another advantage is that the clients do not need to calculate the cost of delivery or to search/hire logisticians on their own. They just need to indicate the address in the application, and the software will make all the necessary calculations. The client only has to press the "Buy" button, and that's it. It is also convenient as there is no need to request separate reconciliation statements and accounting documents – they are automatically generated for every order. Thanks to the platform, the oil products market will become fair and transparent; there will be no place for shady scheming and deception.
What other benefits do marketplace users get?
Truth is, both buyers and manufacturers of oil products get their share of benefits. The former buys the goods much cheaper, while the latter can sell them with a much higher profit. For example, the refinery's selling price is 40,000 rubles for a ton. Whatever the marketplace, when you purchase products in bulk, you get a nice discount. As a result, the refinery may essentially sell fuel for 40,000 rubles per ton and at the same time boost sales and income. This does not work when even a few intermediaries get in the way. In this scenario, the end consumer will procure a ton of oil products for almost 48,000 rubles.
All this affects the economy as a whole, as manufacturers of various goods are forced to mark up their products much higher. For example, the cost of sand extraction would increase by 30-40%. The process involves various equipment (excavators, trucks, specialized machines), which must be refueled. Of course, all the extra costs will be included in the price tag per square meter.
When the platform is 100% operational, the buyers will be able to place orders for petroleum products at the manufacturer's price. We do not plan to introduce any additional fees for the consumers. The manufacturer will pay about 200 rubles per ton. The marketplace will be free of charge for every user, without any subscription or membership fees.
Does the buyer pay for the shipping?
The goods may be delivered by authorized transport companies, although buyers are free to use their own transport. Transportation has an insignificant impact on the fuel cost since the price is 40-60 kopecks per 1 liter.
How safe is it to use the platform?
Oil Resurs Grupp is the main trader on the platform. The company has been operating in the oil products market since 2012, it is developing rapidly and demonstrates reliability and stability. This marketplace is built on partnerships as part of the development program for senior managers of the Sberbank corporate university. This is a joint project for the bank and the London Business School. The second link here is the Skolkovo Technopark, where the ORG-Market office is located.
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