In This Issue

PilotPoints

TechTalk

FastForward

ServiceLink

FeedBack

Steve Jordan, Chairman and Chief Executive Officer of Central Crude in Lake Charles, LA, says, “Since the very beginning of Central Crude in 1974, we’ve always believed that our success would ultimately be based on our core values of integrity, innovation and a strong work

ethic.” Obviously, Steve’s special “formula for success” has worked extremely well for his company over the decades. In the 38-years since its initial founding, Central Crude has grown to become the largest South Louisiana based crude oil purchaser/transporter/marketer, while expanding beyond crude into natural gas gathering, processing, treating and compression. And more recently, the company has begun trucking operations in support of the fast-growing Eagle Ford Shale trend in South Texas. Currently, Central Crude is building a trucking terminal near Kennedy, Texas, right in the heart of the drilling activity. Steve Jordan describes Central’s rapid growth in these terms: “Diversity has become our strongest asset. We serve a large number of clients, ranging from major oil corporations to independently-owned companies. Our entire Central Crude team recognizes and readily accepts the premise that our

customers’ loyalty to us is absolutely critical to our continued success…and their loyalty depends entirely on our solid performance every day of the year!”

With its impressive market expansion, Central Crude’s daily focus on exceptional performance and building strong loyalty among its customer base has led them to a recognized need to consider new automation technology to ensure optimal customer service, workforce productivity, data accuracy and regulatory compliance. With over 40 company-owned and owner-operated crude hauling trucks, the company definitely recognizes the value of a paperless system. George Jordan, Chief Operating Officer, put the company’s challenge in these terms: “With our expanded diversity comes significant increases in the complexity of doing business – in keeping track of the myriad of details we’re currently dealing with in our crude oil and natural gas operations. We made a decision to investigate the advantages and benefits of automating our fleet of crude oil trucks initially.”

Steve JordanChairman & CEO

George Jordan COO

Management at Central Crude looked to the marketplace and discovered that the vast majority of all automated crude oil transporters in the U.S. have relied on TouchStar solutions. As a long-time innovator of Mobility Software applications for the Oil & Gas Industry, TouchStar was eager to work with Central Crude in the development of a software automation solution specifically designed to meet their needs. Kevin Dufrene, Chief Financial Officer for Central, established the crucial objectives for the proposed new venture:

1. Significantly reduce “back office clutter”, or the total number of hand-processed tickets (thousands per month currently);

2. Drive greater attention to D.O.T. compliance issues, ensuring improved scorecard grades, particularly with regard to “Hours of Driver Service”;

3. Reduction in “Days Sales Outstanding” (DSO), permitting earlier billing and faster revenue retrieval; 4. Gain a more accurate, real-time accounting of where and what crude oil markets our products are going

to, in an effort to optimize our marketing efforts.

Kevin Dufrene, CFO, says, “The TouchStar team showed us how their field-proven, in-cab Mobility Software application, CrudePac, through a new custom interface with WolfePak back office Enterprise software, would provide the solutions we were looking for. For example, it would permit us to capture the all-important “Hours of Driver Service” data that’s so critical to D.O.T. compliance and to our overall safe operations.”

Steve Emerson, Lead Dispatch for Central Crude, and Dallas Wilks, WolfePak Maintenance Supervisor, are both working closely with the TouchStar Team and with Charlie Wolfe, Owner of WolfePak Software, in the development of the new specialized interface. This combined effort will result in a pilot program for Central Crude that will represent the first commercial integration of a WolfePak back office Enterprise Software application with the comprehensive TouchStar CrudePac Mobility Software package.

“We have great expectations for our new truck automation solution”, indicates Kevin Dufrene, CFO at Central Crude. “We’re all anxious, from the management team, to our back office staff, to our drivers in the field, to initiate the pilot program during 2012. If it’s as successful as we expect it to be, we’ll definitely consider automating our water hauling fleet as well”, concluded Kevin Dufrene.

Kevin DufreneCFO

Sorting through the array of mobile computers available for business use is no easy task these days! Dozens of manufacturers offer hundreds of devices, but only one may be best suited for your particular environment and workforce. Rather than trying to stay on top of all the products that are being introduced and discontinued, enterprise buyers can quickly cut to the chase by following 5-basic tips:

1. Consider the environment and the user; 2. Stick to industry standards and certifications; 3. Simplify support; 4. Require flexibility; 5. Pay attention to power.

1. Considering the Environment and the User:

The most important factor to finding the right fit for an enterprise

computer is the environment in which it will be used. Failure rates for handheld devices vary widely, from 11% to 38% annually, which is a reflection of how rugged the mobile computer is and how well it is suited for its specific usage environment. Drops are the leading cause of damage to mobile computers. To be considered rugged – and therefore reliable – mobile computers must be rated to repeatedly withstand at least 5-foot drops onto a non-yielding surface.

2. Sticking to Industry Standards and Certifications:

Rugged mobile computers are specialized devices designed for collecting data and providing real-time information in non-office environments, but they should still adhere to enterprise standards for connectivity, security and development, whenever possible. Specifying devices that meet these standards criteria, will help keep down development, integration and support expenses which can vary greatly. Look for mobile device manufacturers that have partnerships or certified interfaces with your Enterprise Software provider.

3. Simplified Support:

It’s very important to consider not only the workers who will use mobile computers, but those who will support them as well. Support-friendly features and compatibility with IT asset management and mobile device management systems help increase up-time and productivity while reducing support costs. Management features can be a key differentiator between consumer-oriented and enterprise-grade mobile devices. Changes to applications and device configurations are inevitable, so standardized systems and remote management capability are key to keeping mobile device populations consistent and optimized.

4. Requiring Flexibility:

Rugged mobile computers can withstand drops, shocks, humidity, heat, cold, rain, snow and even occasional vandalism. But often they can’t survive a “change of mind” or business requirements. The leading reason mobile computers are replaced…is not damage or device failure. Instead, most mobile computers are replaced because they’ve become technologically obsolete and can’t support desired information systems, software applications or business processes. To avoid this unnecessary expense, it’s important to select mobile computers that can change with the organization and provide a solid platform for future enhancements.

5. Paying Attention to Power:

Scanning and imaging, data collection and processing, wireless communication and other enterprise mobile computing activities…all draw power from the device’s battery. Power management is a very important (and often overlooked) feature of mobile computers because it directly impacts up-time and user productivity and acceptance. Differentiating factors include whether data is lost if the device loses power, how quickly batteries are recharged, whether the charging dock prevents overcharging, the maximum number of times batteries can be

recharged, whether the mobile computer provides intelligent power management to limit its battery consumption, and if extended-life batteries are available.

In summary, many mobile computers can quickly be ruled-out from consideration because they lack the battery power to last the length of a shift, or lack the staying power to remain reliable throughout a 3-to-5-year life cycle. Features like rugged construction, well-supported operating systems, standard interfaces, remote management support and flexible peripherals provide value by protecting companies from having to replace their mobile computers prematurely. By understanding how these features differentiate devices, and by carefully considering the environment in which mobile computers will be used, enterprises will be able to determine which specific models will provide the most value.

(Source: Intermec White Paper)

When Phillips Energy, Inc., a highly successful, Virginia based propane, fuel and services provider decided to make its transition to an automated truck system, management had several key objectives: provide better customer service; generate more accurate ticket information; increase delivery productivity; and reduce human error and internal administrative burden. Fast-forward now…four months into the deployment, and Elizabeth Phillips McCormick, Vice President of Phillips Energy, Inc., evaluates the new system in these positive terms, “Through automation, we’ve already seen a significant cost savings in time saved on posting tickets and an impressive reduction in paperwork!”

Susan Silvia, Operations Manager for Phillips Energy, describes the company’s original quest for automation systems in this manner: “We researched multiple software providers in our industry and found the Blue Cow Ignite platform to be the best Enterprise Software match for our operational directives and our budget. Ignite’s ability to interface with other technologies was also critical to our decision-making process.” In terms of finding a comprehensive propane Mobility Software application, and after reviewing available truck interfaces, Phillips Energy decided that the field-proven TouchStar GasPac application would do the job and appeared to be very user-friendly. Plus, the 7”, large-screen TouchStar Treq in-cab computer with related Blaster printer had earned a reputation for being durable and dependable.

Management at Phillips Energy made the decision to initiate their automation process with their propane delivery trucks first, as part of a phased approach. They essentially felt that bringing online a single classification of trucks that only had to deal with one delivery product would be easier… especially going into the winter season. With that strategy in place, Phillips Energy currently has its fleet of LP Gas trucks running with the onboard Treq computers. When asked how the initial implementation stages of the Blue Cow and TouchStar interface have gone, Susan Silvia says, “As with any new interface/software integration, there are always going to be hiccups. We’ve had our fair share, but realize that anytime you, as a business, are vetting a combined system – which is what we’ve done – you’re going to have a few bumps in the road! However, that being said, overall, we are extremely pleased with how Blue Cow and TouchStar have pulled-through, making certain that our needs have been heard and met!” Susan Silvia goes on to say, “Any new interface

will have issues that need to be ironed-out – pricing plans, data mapping issues, communication errors, etc. – and keep in mind that no two businesses operate precisely the same. Consequently, I don’t believe that any company considering an interface that will result in increased productivity and enhanced return-on-investment should let a few minor issues along the way dissuade them from moving forward with a technology solution.”

Phillips Energy’s Propane Dispatch Manager, A.B. Fulcher, is excited about the results of their propane pilot program as well: “The drivers have much more information at their fingertips now – which is especially beneficial when it comes to unscheduled deliveries. And the new automated system has definitely resulted in far less errors and much less paperwork!” Fulcher continues, “Our drivers really like the system – it’s easy-to-learn, easy-to-operate, and they love the large 7” displays on the TouchStar Treq units in

their cabs. Our veteran drivers took a little longer to warm-up to the system, but all are pleased now and would not do without it.”

The company is looking forward to automating its fleet of fuel trucks next, with the installation of FuelWare. That Mobility application will be followed by FleetMarshal, a TouchStar Enterprise Software program that introduces dynamic dispatching. Elizabeth Phillips McCormick, V.P., puts it this way: “It will be incredibly beneficial for our dispatchers to be able to visually verify the amounts and types of fuels on the trucks at any given time – especially when having to dispatch unscheduled deliveries.”

Susan Silvia, Phillips Energy’s Operations Manager, summarized the company’s position with regard to their new truck automation system: “The experience has been highly educational for all of us. We take great pride in the fact that we invested in two new products in one year and played an important role in vetting the TouchStar interface with Blue Cow. As a result, I would fully expect that future users of the combined interface will be able to take advantage of our effort and the fact that the wrinkles have already been worked-out. Finally, as we’ve gone through this initial implementation stage, we have already seen definite improvements in our delivery and posting process. We expect even greater results and enhanced performance as we move forward with these advanced software solutions!”

Elizabeth Phillips McCormickVice President

Phillips Energy, Inc.

NiCad vs. NiMH vs. Lithium Ion

What’s the difference? The main difference between the NiCad and the NiMH is that the NiMH battery (the newer technology) offers higher energy density than NiCads. In other words, the capacity of a NiMH is approximately twice the capacity of its NiCad counterpart. That additional capacity translates into increased run-time from the battery with no additional bulk or weight. NiMH also offers another major advantage: NiCad batteries tend to suffer from what is called the "memory effect". NiMH batteries are less prone to develop this problem and thus require less maintenance and conditioning. NiMH batteries are also environmentally friendlier than NiCad batteries since they do not contain heavy metals (which do present serious landfill problems). Do be aware that not all devices can accept both NiCad and NiMH batteries.

Lithium-Ion (Li-Ion) has become the new standard for power in portable devices. Li-Ion batteries produce the same energy as NiMH batteries but weigh approximately 20%-35% less. This reduced weight can make a noticeable difference in mobile devices such as cellular phones, camcorders or notebook computers where the battery makes up a significant portion of the total weight. Another reason Li-Ion batteries have become so popular is that they do not suffer from the "memory effect". They’re also environmentally friendly because they don't contain toxic materials such as Cadmium or Mercury.

We greatly appreciate your many helpful responses to our recent “Oil & Gas Customer Satisfaction Survey”. In fact, we thought you might find the cumulative feedback interesting. For example, your combined responses to question #19 indicate that over 75% of you feel the 3-primary benefits offered by mobile computing are: “Improving invoices/& more accuracy in reporting”; “Savings in total drivers’ time”; and “Savings in office time”. (See graph below for specific breakout)

THIS IS TEST EMAIL ONLY This message was sent for the sole purpose of testing a draft message.