Simplify and Improve Fuel Inventory Control with Today’s Technology
Fuel operators fully-realize the costs of maintaining fuel inventories at their retail locations. At $3+ cost per gallon, an average retail c-store can have over $50,000 of inventory on-hand at any time. At a travel center, this inventory can exceed $200,000 or more!
Much mystery still surrounds what happens to fuel products as they are received from the terminal, dropped into the underground tanks by the hauler, rests underground in the tanks and lines, and how accurately the fuel is being dispensed.
Many operators may still rely on tank gauge testing and statistical inventory and delivery accounting to track their fuel purchases, sales, and underground inventories. Traditionally, this has been a fine practice, but may not give you the immediate notice that you need when shortages, theft, leaks, or losses occur. Oftentimes, it can be as long as 30 days before large variances or shortages are detected. But, if an operator is below the 1%+130 gallon variance allowed by most states, then that may be considered good enough.
Fortunately, growing technology does exist to better-automate inventory reconciliation and add addition depth and metrics to the equation. As companies grow and advance into the future, investment in data analytics and increased technology can pay off handsomely.
For example, with automated continuous inventory reconciliation, you can obtain the most accurate and complete picture of your fuel operation — from every underground tank and fuel line, and dispenser, into your customers’ fuel tanks. A robust system can feature real-time, continuous reconciliation technology and is also ideal for high volume sites equipped with automatic tank gauging systems (ATG) and advanced dispenser pump controllers. However, no matter the volume or size of a site, a serious issue can still cost the operator thousands […]