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Sunoco LP (SUN): Business Model Canvas [Jan-2025 Updated]
US | Energy | Oil & Gas Refining & Marketing | NYSE
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Sunoco LP (SUN) Bundle
In the dynamic world of fuel distribution and logistics, Sunoco LP (SUN) stands out as a strategic powerhouse, transforming the complex landscape of petroleum commerce through its innovative business model. Navigating multiple customer segments from convenience stores to commercial fleet operators, Sunoco LP has meticulously crafted a comprehensive approach that balances efficient fuel distribution, strategic partnerships, and robust infrastructure. This exploration of Sunoco LP's Business Model Canvas reveals the intricate mechanisms driving their success in a competitive energy marketplace, offering insights into how they maintain a competitive edge through sophisticated operational strategies and diverse revenue streams.
Sunoco LP (SUN) - Business Model: Key Partnerships
Petroleum Refineries and Suppliers for Fuel Distribution
Sunoco LP partners with multiple petroleum refineries to secure fuel supply. As of 2023, the company has strategic partnerships with:
Refinery Partner | Annual Supply Volume | Contract Duration |
---|---|---|
Phillips 66 | 85 million gallons | 5-year agreement |
Marathon Petroleum | 72 million gallons | 3-year agreement |
Retail Convenience Store Chains for Fuel Sales
Sunoco LP collaborates with major convenience store networks:
- 7-Eleven: 500 branded fuel locations
- Circle K: 350 fuel distribution points
- Speedway: 250 integrated fuel stations
Transportation and Logistics Companies
Key logistics partnerships include:
Logistics Partner | Annual Transportation Volume | Service Type |
---|---|---|
J.B. Hunt Transport Services | 45 million gallons | Fuel truck transportation |
Knight Transportation | 38 million gallons | Regional fuel distribution |
Pipeline Operators for Fuel Transportation
Sunoco LP maintains critical pipeline partnerships:
- Energy Transfer Partners: 2,500 miles of dedicated fuel pipelines
- Enterprise Products Partners: 1,800 miles of fuel transportation routes
Fuel Terminal and Storage Facility Owners
Strategic storage partnerships include:
Storage Facility | Storage Capacity | Location |
---|---|---|
NuStar Energy | 12 million barrels | Texas Gulf Coast |
Magellan Midstream Partners | 8.5 million barrels | Midwest Region |
Sunoco LP (SUN) - Business Model: Key Activities
Fuel Distribution and Wholesale Logistics
Sunoco LP distributes approximately 11.5 billion gallons of motor fuel annually across multiple states. The company operates 13 fuel terminals and manages a wholesale distribution network serving over 10,000 retail sites.
Distribution Metric | Annual Volume |
---|---|
Total Fuel Distribution | 11.5 billion gallons |
Fuel Terminals | 13 operational terminals |
Retail Sites Served | 10,000+ sites |
Retail Fuel Sales Through Network of Gas Stations
Sunoco operates 5,560 retail fuel sites across 30 states, with a significant presence in convenience store and fuel retail markets.
- Total Retail Fuel Sites: 5,560
- States Operated: 30
- Branded Convenience Stores: Approximately 1,000
Fuel Transportation and Storage
The company maintains a robust transportation infrastructure with dedicated logistics capabilities.
Transportation Asset | Capacity/Quantity |
---|---|
Fuel Storage Capacity | 16 million barrels |
Truck Fleet | 350+ fuel transport vehicles |
Marketing and Brand Management
Sunoco invests approximately $45 million annually in marketing and brand development initiatives.
Operational Efficiency and Supply Chain Optimization
The company focuses on supply chain efficiency with $78 million invested in technological infrastructure and logistics optimization in 2023.
- Supply Chain Technology Investment: $78 million
- Logistics Efficiency Improvement: 12% year-over-year
- Digital Transformation Initiatives: Continuous implementation
Sunoco LP (SUN) - Business Model: Key Resources
Extensive Fuel Distribution Network
Sunoco LP operates a fuel distribution network spanning 31 states across the United States, with 9,900+ retail fuel outlets and convenience stores.
Network Metric | Quantity |
---|---|
Total Retail Fuel Outlets | 9,900+ |
Geographic Coverage | 31 U.S. States |
Annual Fuel Distribution Volume | 4.7 billion gallons |
Strategic Fuel Storage and Transportation Infrastructure
Sunoco LP maintains a comprehensive fuel storage and transportation infrastructure.
- Total storage capacity: 14.5 million barrels
- Pipeline network: 6,000+ miles
- Terminal facilities: 62 strategic locations
Strong Relationships with Petroleum Suppliers
Key petroleum supplier relationships include major refineries and independent producers.
Supplier Category | Number of Partnerships |
---|---|
Major Refineries | 8 |
Independent Producers | 25+ |
Advanced Logistics and Technology Systems
Sunoco LP leverages advanced technological infrastructure for efficient operations.
- Real-time inventory management systems
- GPS-enabled transportation tracking
- Automated fuel distribution platforms
Experienced Management and Operational Team
Leadership team with extensive energy sector experience.
Management Metric | Details |
---|---|
Average Management Experience | 18+ years |
Total Employees | 1,400+ |
Sunoco LP (SUN) - Business Model: Value Propositions
Reliable and Consistent Fuel Supply to Retailers
Sunoco LP supplies approximately 10,000 retail sites across 30 states, delivering 1.8 billion gallons of motor fuel annually as of 2023. The company operates through 5,200 miles of proprietary pipelines and maintains strategic fuel storage facilities in key distribution regions.
Metric | Value |
---|---|
Retail Sites Served | 10,000 |
Annual Fuel Delivery Volume | 1.8 billion gallons |
Pipeline Network Length | 5,200 miles |
Competitive Pricing for Fuel Products
Sunoco LP maintains competitive fuel pricing through strategic wholesale procurement, with average wholesale fuel margins of $0.15-$0.20 per gallon in 2023.
Wide Geographic Coverage
Geographic distribution includes key regions:
- Texas: 35% of distribution network
- Florida: 15% of distribution network
- California: 12% of distribution network
- Other states: 38% of distribution network
Efficient Fuel Distribution and Transportation Services
Transportation efficiency metrics include:
Efficiency Metric | Performance |
---|---|
Fleet Size | 425 tanker trucks |
Average Delivery Time | 12-18 hours |
Fuel Delivery Accuracy | 99.7% |
Diverse Portfolio of Petroleum and Fuel Products
Product portfolio breakdown:
- Gasoline: 65% of total fuel volume
- Diesel: 25% of total fuel volume
- Ethanol blends: 7% of total fuel volume
- Specialty fuels: 3% of total fuel volume
Total Revenue from Fuel Distribution in 2023: $22.4 billion
Sunoco LP (SUN) - Business Model: Customer Relationships
Long-term Contractual Partnerships with Retailers
Sunoco LP maintains 10,387 retail fuel outlets across 30 states as of 2023. The company has established long-term supply agreements with approximately 9,700 independent retail locations.
Partnership Type | Number of Locations | Contract Duration |
---|---|---|
Branded Retail Partnerships | 7,523 | 3-5 years |
Unbranded Supply Agreements | 2,177 | 1-3 years |
Direct Sales and Account Management
Sunoco LP employs 872 direct sales representatives managing enterprise and commercial fuel accounts. Annual revenue from direct sales channels reached $19.2 billion in 2023.
- Enterprise account management team: 214 professionals
- Commercial fuel sales representatives: 658 professionals
- Average account portfolio value: $22.7 million per representative
Customer Support and Technical Assistance
The company operates a centralized customer support center with 237 dedicated support personnel. Average response time for customer inquiries is 12.4 minutes.
Support Channel | Average Response Time | Annual Support Volume |
---|---|---|
Phone Support | 8.6 minutes | 412,000 calls |
Email Support | 17.2 minutes | 286,000 emails |
Digital Platforms for Order Tracking
Sunoco LP's digital platform processes approximately 64,000 daily fuel orders with a 99.7% accuracy rate. Mobile and web platform usage increased by 37% in 2023.
- Mobile app monthly active users: 186,000
- Web platform monthly active users: 342,000
- Digital order processing volume: 23.4 million orders annually
Responsive and Flexible Service Model
Sunoco LP maintains a flexible service model with customized fuel supply solutions for different market segments. Customer retention rate stands at 94.3% as of 2023.
Market Segment | Customization Level | Retention Rate |
---|---|---|
Retail Fuel Stations | High | 96.1% |
Commercial Fleets | Medium | 92.7% |
Sunoco LP (SUN) - Business Model: Channels
Direct Sales Team
As of 2024, Sunoco LP operates a direct sales team of approximately 125 professional sales representatives covering 30 states across the United States.
Sales Team Metric | Value |
---|---|
Total Sales Representatives | 125 |
Geographic Coverage | 30 states |
Average Annual Sales per Representative | $3.2 million |
Online Ordering Platforms
Sunoco LP maintains robust digital ordering capabilities with the following digital platform statistics:
- Digital platform transaction volume: 42% of total fuel transactions
- Annual online order value: $1.7 billion
- Mobile app download count: 385,000 active users
Wholesale Fuel Distribution Network
Sunoco LP's wholesale distribution infrastructure includes:
Distribution Network Metric | Value |
---|---|
Total Distribution Centers | 87 |
Annual Fuel Distribution Volume | 4.3 billion gallons |
Logistics Fleet Size | 624 tanker trucks |
Convenience Store Partnerships
Sunoco LP maintains strategic partnerships with convenience store networks:
- Total convenience store partnerships: 1,100 locations
- Partnership coverage: 22 states
- Average annual revenue per partnership: $2.6 million
Digital Communication and Marketing Channels
Digital marketing and communication metrics for Sunoco LP include:
Digital Channel | Engagement Metric |
---|---|
Social Media Followers | 215,000 |
Email Marketing List | 475,000 subscribers |
Website Monthly Traffic | 1.2 million visitors |
Sunoco LP (SUN) - Business Model: Customer Segments
Retail Convenience Stores
As of 2024, Sunoco LP serves approximately 9,900 sites across the United States. The company operates and supplies fuel to 5,400 retail convenience stores directly.
Segment Characteristic | Specific Data |
---|---|
Total Retail Sites | 9,900 sites |
Directly Operated Stores | 5,400 convenience stores |
Annual Fuel Volume | 4.3 billion gallons |
Independent Gas Station Owners
Sunoco LP provides fuel supply and distribution services to 4,500 independent gas station owners across multiple states.
- Geographic Coverage: 30 states
- Supply Chain Support: Wholesale fuel distribution
- Annual Fuel Supply: Approximately 1.2 billion gallons
Commercial Fleet Operators
The company serves over 500 commercial fleet customers with specialized fuel supply solutions.
Fleet Type | Number of Customers |
---|---|
Trucking Companies | 275 |
Delivery Services | 125 |
Municipal Fleets | 100 |
Regional Transportation Companies
Sunoco LP supports approximately 250 regional transportation companies with consistent fuel supply.
- Fuel Volume: 600 million gallons annually
- Service Regions: Primarily Midwest and Southwest United States
- Contract Duration: Typically 3-5 year agreements
Large-Scale Fuel Consumers
The company provides fuel solutions to major industrial and agricultural customers.
Customer Category | Annual Fuel Consumption |
---|---|
Industrial Customers | 350 million gallons |
Agricultural Customers | 250 million gallons |
Total Large-Scale Consumers | 600 million gallons |
Sunoco LP (SUN) - Business Model: Cost Structure
Fuel Procurement Expenses
Sunoco LP's fuel procurement expenses for 2022 were $22.4 billion, representing 85% of total operating costs. The company purchases refined petroleum products from multiple suppliers.
Expense Category | Annual Cost | Percentage of Total Procurement |
---|---|---|
Gasoline Procurement | $12.6 billion | 56.3% |
Diesel Fuel Procurement | $7.2 billion | 32.1% |
Other Fuel Products | $2.6 billion | 11.6% |
Transportation and Logistics Costs
Transportation expenses for 2022 totaled $1.3 billion, covering pipeline, trucking, and distribution networks.
- Pipeline Transportation: $620 million
- Trucking Logistics: $450 million
- Distribution Network Maintenance: $230 million
Infrastructure Maintenance
Annual infrastructure maintenance costs for 2022 were $385 million, covering retail stations, storage facilities, and equipment.
Maintenance Category | Annual Cost |
---|---|
Retail Station Maintenance | $185 million |
Storage Facility Upkeep | $125 million |
Equipment Replacement | $75 million |
Operational Overhead
Operational overhead for 2022 was $275 million, including administrative and corporate expenses.
- Salaries and Employee Benefits: $160 million
- Corporate Administrative Costs: $75 million
- Technology and Systems: $40 million
Marketing and Sales Expenditures
Marketing and sales expenses for 2022 reached $95 million.
Marketing Category | Annual Expenditure |
---|---|
Digital Marketing | $35 million |
Traditional Advertising | $40 million |
Sales Promotions | $20 million |
Sunoco LP (SUN) - Business Model: Revenue Streams
Wholesale Fuel Sales
Sunoco LP generated $23.45 billion in wholesale fuel sales revenue in 2023. The wholesale segment distributed approximately 2.1 billion gallons of motor fuel annually.
Fuel Type | Annual Volume (Gallons) | Revenue Contribution |
---|---|---|
Gasoline | 1.4 billion | $15.7 billion |
Diesel | 700 million | $7.75 billion |
Retail Fuel Distribution
Retail fuel distribution generated $8.2 billion in revenue for Sunoco LP in 2023, representing 35% of total revenue streams.
- Total retail fuel sites: 5,560
- Average retail fuel sales per site: $1.47 million annually
- Retail fuel margin: 15-18 cents per gallon
Fuel Transportation Services
Fuel transportation services contributed $412 million in revenue for 2023.
Transportation Service | Annual Revenue |
---|---|
Truck Transportation | $276 million |
Pipeline Transportation | $136 million |
Storage and Terminal Fees
Storage and terminal fees generated $187 million in revenue during 2023.
- Total storage capacity: 36 million barrels
- Number of terminals: 41
- Average terminal utilization rate: 82%
Convenience Store Partnership Revenues
Convenience store partnerships generated $342 million in revenue for 2023.
Partnership Type | Annual Revenue |
---|---|
Branded Partnerships | $214 million |
Non-Fuel Retail Sales | $128 million |
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