Written by Scott McNutt

At April’s Supply Chain Forum hosted by the University of Tennessee, Knoxville, Haslam College of Business, a panel of Pilot Company executives—CEO Adam Wright, president of energy Jesús Guerra and former president of retail Brad Anderson—discussed how current events, as well as freight and supply chain dynamics, affect Pilot’s business. The event was sponsored by Haslam’s Department of Supply Chain Management and its Global Supply Chain Institute. Moderated by Chad Autry, associate dean for faculty and research, Myers Distinguished Professor of Supply Chain Management and R. Stanley Bowden II Faculty Research Fellow, the session featured informative discussion on how geopolitical tensions, energy transitions and shifting freight patterns are reshaping the supply chain landscape.

Key Pressures on Pilot’s Freight and Fuel Systems

Autry asked the executives what they considered the most significant forces reshaping freight movement and fuel demand, as well as how Pilot responds to these issues to meet customer needs. The trio said geopolitical pressures, like tariffs and the Iran conflict, are raising costs and tightening supplies, especially diesel. Specifically, Guerra noted diesel costs have risen 50 percent since hostilities began.

“We take our supply resiliency seriously,” Guerra said. “We oversee about a third of every gallon that is sold at our stores, and for the other two-thirds we partner with refiners. We think that balance gives us the best position to ensure supply chain reliability and lower the cost of diesel at our stores.”

Wright pointed to the “Amazon effect” as driving more short-haul, localized freight, changing traditional long‑haul trucking models. Giving customers what they want is the goal.

“If consumers demand stuff on their doorsteps, then however it gets there, they want it there,” he said.

According to Anderson, inflation and constricted capacity are squeezing both Pilot’s fleet customers and its retail margins, while the company strives for equilibrium.

“You want healthy fleets, so that they can be great customers, but we don’t want exorbitant shipping rates with higher fuel prices and tighter capacity that put pressure on our internal margin,” he explained.

Pilot’s Energy Strategy

Asked how Pilot is managing its legacy energy systems while exploring energy alternatives, Wright said, “What butters our bread is diesel and gasoline, which will be the dominant fuel source for the next 50 years. But one of our strategic pillars is to shape the future of energy. We want to advance alternatives, bearing in mind our customers’ preferences, the base technology and the business’s performance.”

In line with shaping the future of energy, Guerra said Pilot is building a coast‑to‑coast electric vehicle (EV) charging network with partners like General Motors and EVgo, supported by federal National Electric Vehicle Infrastructure (NEVI) grants. Wright added that Pilot is partly offsetting declining gasoline demand with EV charging revenue.

Advantages and Obstacles of Transitional and Alternative Fuels

Guerra emphasized the importance of biodiesel, renewable diesel and E15 ethanol. Biodiesel blends lower diesel costs and serve as a bridge fuel, while renewable diesel can replace diesel with no infrastructure changes.

“That is a complementary window, and we have done a good job to have that balance,” he explained. “We’re not forcing renewable diesel on our customers, but it’s there if they feel comfortable.”

Wright said Pilot’s EV network is long-term focused and grows at the pace of demand, but the transition may be slower than some predicted. Pilot is working with Tesla, which knows the major hurdles (battery weight, payload loss and massive infrastructure needs) facing the transition, on its heavy‑duty EVs network. Wright also added that grants, policies and technology shift constantly.

“The industry faces capital constraints, regulatory uncertainties, infrastructure gaps and sometimes misaligned incentives among stakeholders,” Wright said.

When Autry asked about the fleets’ stance on moving to alternative fuels, the executives said where there is predictability, there will be adoption, referencing the case of California, with unique regulations and government partnerships that can almost assure an ROI for green energy investments. Guerra noted that Pilot plays a major role in educating fleets and legislators about how transitional fuels lower cost impacts. He expressed surprise at how poorly legislators understand transitional fuels and how important tax credits are for them.

Public-Private Collaboration

Autry posited that no one entity can solve the energy puzzle, so he inquired if it is possible to get all the stakeholders on one page to create the scale of infrastructure needed. On the federal level, Wright said tax incentives and grants for renewable energy already create meaningful collaboration, citing NEVI grants as an example. However, that is contrasted with the difficulties coordinating between private, municipal, state and federal levels for nationwide projects. The Pilot representatives did indicate, however, that regional projects show promise.

Retail and Customer Behavior

The Pilot executives called Pilot “fuel‑agnostic,” offering whatever energy type customers need, with more than 900 locations providing a foundational network they can adapt and adopt. On the EV side, longer charging times create opportunities for retail sales.

“Whether it’s marketing through geofencing or giving personalized offers to compel them to come in, we’re meeting them where they are,” Anderson said.

Leadership and Talent at Pilot

When asked what qualities Pilot looks for in leaders, Wright emphasized sensitivity and connecting to people.

“I look for leaders who are authentic to who they are and who can make good decisions based on a piece of wisdom that says, ‘In the multitude of counsel, there is safety,’” he said.

Hard work, continuous learning and maintaining curiosity were qualities Anderson listed. Guerra shared advice he learned from Wright.

“’Argue like you’re right, and listen like you’re wrong,’” he recalled. “If you take that second part seriously, you get a really different perspective on being a leader.”

Pilot’s AI/ML Deployment

When a forum attendee asked how Pilot is using AI and machine learning, Guerra explained that from its 65-year history, Pilot has extensive, granular data on its fuel distribution, which it has used to formulate delivery plans. Now, the company will add forecasting using predictive machine learning to calculate future variables. At this point in implementation, he said, Pilot is at two on a scale of 10.

“By the end of the year, we’ll probably be at an eight and then continue to improve,” Guerra predicted. “Over time, it will be a significant contributor in efficiency and value generation.”

Anderson added that for their 900 locations, AI is already influencing fuel pricing, routing and partnership assessments. It’s even automatically populating fuels prices in first drafts of his emails. This prompted Wright to advise maintaining the ability to think independently, saying AI will spit out data, but it can be unreliable.

“Prepare your repair folks to still think for themselves,” he cautioned.

Organizational Alignment

Another audience question focused on how the Pilot leadership team stays united in organizational vision and business transformation. Wright summarized it as running the business through their shared purpose, virtues, business ambition and long-term value, which drives working together through affinity, independence, ownership, risk and freedom. These all come into play in weekly meetings in which leadership ensures they are aligned on key performance indicators.

“We plan, execute, measure and correct,” Wright said.

Geopolitical Volatility

Toward the end of their session, the executives were asked to address how Pilot handles major geopolitical disruptions — such as international conflicts, rising energy costs and supply chain shocks — that can radically affect fuel supply lines.

Guerra replied that internet posts can now drive commodity prices, but the team has to ignore the noise, maintain agility and stay grounded in market fundamentals. Wright echoed this sentiment, saying things ebb and flow short term, but Pilot is focused on the long term, running its system and continuing to build its plans.

Save the Date

The Fall Supply Chain Forum will be held November 10–12, 2026, at the Marriott Knoxville Downtown, and you won’t want to miss it. The event is exclusive to the over 75 organizations that partner with UT to learn, network, and recruit the best supply chain talent.

If your company is not an SCF partner, contact us to speak with a team member about either of our two corporate partnership options.