Interview with Kenny Isbell, Vice President, Apache Oil Company.
Kenny Isbell Vice President, Apache Oil Company.
When thinking about lubricants, customer service doesn't necessarily come to mind. But Apache Oil has made customer service their strategic edge over competitors. "Because the products we sell are commodities, we have made the Apache Oil brand all about service," explains Kenny Isbell, Apache Oil's Vice President. "Our 65 employees answer our clients' lubricant and fuel needs, 24 hours a day, 7 days a week, 365 days a year."
Located in Pasadena, Texas, the company is a nearly 40-year-old, family-owned and operated business that provides fuel and lubricants to a wide variety of Gulf Coast businesses. Opened in 1971 with a small office, minimal warehouse and one steel-tank truck to deliver fuel, the company today operates from a 30,000 square-foot warehouse and uses a fleet of 35 trucks operating 24/7.
When Isbell graduated from Baylor University with a degree in biology, he went to work for a NASA contractor. Then in 1996, he answered a call from his father to help with the family business. Since then, the company has grown 20-fold since 1996, sustaining double-digit growth for 13 years.
"I wear a lot of hats," explains Isbell about his role at Apache. "As Vice President, I have three direct reports, including lubricants manager, operations manager, and sales manager. I also work with key customers and handle our advertising and marketing strategies. I guess I do whatever it takes to get the job done."
Doing 'whatever it takes' includes earning the qualification of Certified Lubricant Specialist from the Society of Tribologists and Lubrication Engineers. (For those unfamiliar with this field, tribology is the science of the mechanisms of friction, lubrication, and wear of interacting surfaces that are in relative motion).
Isbell explains how the company has achieved such consistent and impressive growth. "We have won and kept large customers because of our absolute commitment to service," he says. "Wherever you are, Apache Oil can, and will, be there for you. We mainly service Harris and the contiguous counties in Texas. However, we can, and do ship anywhere in the world."
When Apache gets a client call for emergency service, its staff goes into high gear to fill the client's need. "But we encourage our customers to either establish regular delivery programs, or to let us put them into our system to monitor their consumption. Using remote sensors we can actually monitor their usage in real time over the Internet. That way we can anticipate their needs. Being able to anticipate their needs is a tremendous advantage for both the client and for us," explains Isbell.
The company develops business by focusing on specific niches within its industry. According to Isbell, "We target a segment and then focus our services on meeting that niche's unique needs. A good example is our marine division. We broker marine fuel all over the world. Within one hour of an emergency request we can be on the scene with product. We delight in spoiling our customers. When we hear the words, 'We're out,' we begin moving heaven and earth to get product to that customer."
Another niche is in turnaround work, the refurbishing of chemical plants and refineries. During a turnaround, the plant must be totally shut down. Apache Oil can supply diesel fuel for all equipment the client has to use during the plant shutdown, and the manpower to handle all fueling requirements, on site, 24/7.
As Isbell says, "For turnaround work, we found that our bobtailed fuel trucks were too large to get into some of the smaller plant areas. So we innovated - modifying Polaris rangers, adding square fuel tanks and a battery-powered pump. The resulting vehicle has now been approved by Shell for use in their refineries."
Today, Apache operates through multiple divisions. Some overlap because the company categorizes by product, such as fuel, lubricants, filters, chemicals and supplies; also by industry, such as auto, marine, oil and chemical; and by usage, such as emergency or turnaround. Each customer is different, but for every customer in each division, Apache tries to be a one-stop shop and to provide remarkable service.
Isbell stresses learning from every situation. For example, he said "After Katrina we were called in to work with the railroads to provide fuel to the generators they had to use to power the track switches. We were using regular 4-wheelers, and had significant problems backing down to the tracks with a fuel trailer on steeply slanted banks. So we modified several off-road vehicles, adding fuel tanks and developed a supply vehicle that worked for that specific situation. After that, we started our Emergency Division to focus specifically on hurricane work. Today, after a hurricane, we can help set up tent cities and provide fuel to banks, groceries, municipalities, and gas stations in hard hit areas. After Hurricane Wilma, we shipped trucks to Ft. Lauderdale, Florida, to supply fuel to power dryers and blowers used by disaster restoration companies."
Apache also developed a solution to the common loss of electricity following a storm -- loss of power to gas station pumps. Isbell says, "We developed an online metering and coupling system that allows us to pump gas directly from our 18-wheeler fuel truck into commercial vehicles and cars."
When asked what advice he would offer to other service businesses, Isbell's reply was immediate. "Before you can take care of your customers, you have to take care of your people; treat them like family." According to Isbell, staff turnover not only impacts recruiting and training, it also affects customer service continuity, which affects your bottom line.