Effectively monitoring your fuel is key to running a successful business operation. Whether your priority is profit or compliance, neither can be successfully achieved without clear visibility of your stock and operations.
Fuel management systems are an important, effective tool for tracking fuel usage data that you can then use to improve business operations. This article will explore some of the benefits of how this data can help decrease costs and increase your profit margin.
#1: Improve Data Accuracy
Fuel management boils down to accurate data. Whether it’s customer purchase patterns or storage tank levels, a system provides you with regular updates. This allows you to pinpoint your replenishment cycle or intervene with early responses to any potential issues.
Over the last few years, the gross margin on fuel has become extremely thin. Distributor costs, taxes, licensing, etc., decrease that margin, even more, making it crucial for your fuel management system to accurately distribute and track purchases while keeping accurate measures of the on-hand product.
#2: Simplify Compliance
Fuel is the most challenging and demanding product to manage, as it is highly regulated at the federal, state, and local levels. A fuel management system offers a solution that will ensure all compliance areas are covered.
Fuel Management compliance is different in every state and territory so get in touch with us if you need help and advice. SIRA is something that all fuel retailers should take seriously. ServoPro members can access a SIRA service at a competitive price insuring you are compliant.
#3: Monitor Stock Variance
Fraud is a common issue for many fuel site operators, but it’s only one of the problems you can face without proper monitoring of your stock variance. When you have an automated fuel management system in place, it can take the work out of monitoring stock variance.
If you’re experiencing stock variance, you’ll be able to determine whether your losses are:
- Caused by a tank leak
- Technical
- Normal or abnormal
- Following a pattern
With this data, you can intervene with quick responses, saving time, money, and your reputation as a reliable business.
#4: Improve Efficiency
With a fuel management system, you can prevent waste and improve efficiency. Tracking a variety of details such as making sure you are purchasing your fuel from the most reliable and price competitive supplier.
Tracking fuel prices from different suppliers helps you weigh your options and choose where to conduct your business. This will allow you to be consistent with your prices and keep customers coming back. It also relieves the burden of such minimal profit margins.
A fuel management system can significantly reduce your expenses over time. By arming yourself with accurate, real-time data, you can utilise it and become a more profitable business.
The needs of every fuel retailer are different when it comes to a fuel management system. Reach out to us for personalised advice on the best solution to fit your needs.