The Financial Advantage of Performing Fuel Delivery Comparisons
In the complex world of fuel management, maintaining accuracy and accountability is critical for businesses that rely on fuel deliveries, such as convenience stores, gas stations, and fleet operations. A limited number of solution providers have developed advanced methodologies to ensure fuel deliveries align with what is received and stored in underground tanks. Their approach revolves around meticulously comparing fuel delivery records—particularly Bills of Lading (BOLs)—with real-time tank data, ensuring inventory integrity and operational efficiency.
Many fuel operators feel that they can curate their own deliveries using statistical data, but that data is not curated and does not consider many factors. Often, those methods employ ATG-based delivery reports that do not take fuel sales DURING delivery into consideration. Also, it is difficult to apply the impact of temperature on the load and existing tank contents. As we may know, colder fuel entering a warm tank will expand in volume. Warmer fuel entering the tank will shrink in volume. And, not to mention how time-consuming such manual reporting can be to your staff. Automating this process can improve accuracy and free up accounting personnel to address the many other areas of potential fuel variances.
Failing to curate your fuel deliveries properly can lead to a 1-2%+ negative revenue impact to your bottom-line. While the current fuel margin may be 35 cents or more per gallon, every gallon of fuel loss due to delivery shortages can cost you $3+, the total cost of the gallon!
The Importance of Accurate Fuel Reconciliation
Fuel is a high-value, high-volume commodity, and even small discrepancies can result in significant financial losses or regulatory issues. Mismanagement can stem from intentional and unintentional delivery shortages, dispenser or tank theft, meter inaccuracies, or even environmental leaks from […]