Network-Wide Fuel Loss
Published on April 01, 2021
The majority of fuel retailers are well used to tracking their wetstock variances (fuel losses and gains). This can be done via a variety of means – from manual record keeping and spreadsheets, to more advanced in-house or outsourced third-party solutions. But just tracking these variances isn’t enough to effectively manage your network wetstock behavior.
You need to understand them.
Understanding your variances
Knowing your variances is the start, but what good is knowing your variances without understanding what is causing them? And more importantly, what actions do you need to take to reduce those variances (which may indicate actual fuel loss), increase your margins, and safeguard against environmental, health and safety risks?
True visibility and understanding of wetstock performance, coupled with actionable business insights that help drive loss reductions, is where leading wetstock management solutions stand out when compared to more basic wetstock processes.
Perceived versus actual losses
Wetstock losses can fall into two categories. ‘Perceived’ losses are caused by events which may look like a tank is losing fuel, when it actually is not. This can happen for a number of reasons, such as mistakes in record keeping, poorly calibrated tank gauges and or poor dipstick readings.
‘Actual’ losses are real instances of fuel loss, which can occur due to faults with equipment, theft or fraud incidents, or natural causes such as temperature changes and evaporation, to name only a few. The most concerning actual losses are, of course, fuel leaks that lead to environmental damage, as well as potentially severe financial implications for the fuel retailer.
How an effective wetstock management system works
As described, there are a significant number of causes for the occurance of fuel loss. These can be pin-pointed by an effective wetstock management solution, which will: find the root-cause of the issues and – more importantly – define and drive mitigating actions which can eliminate them wherever possible; pro-actively quantify the volume impact of each of the pin-points to get a true understanding of wetstock performance quickly and accurately, reconciled all the way from the tank to the balance sheet.
DFS’ wetstock management solutions provide fully reconciled loss analysis and can pin-point over 50 sources of variance, providing a truly accurate and granular variance analysis. This can be reconciled back into the financial process, and drive actionable business insights that quickly lead to savings and increased profits for the fuel retailer.
Related Products
Copyright © 2024 Dover Fueling Solutions® | A Dover Company | Privacy Policy | Cookies | Terms
