Webinar Recap: Automating Fuel Supply with Real-Time Allocation Management

Operators who use manual systems to manage fuel for a distributed fleet or a network of locations lose hundreds of labor hours analyzing tank levels, managing carrier schedules, and trying to prioritize orders for route planning. Add the high margin of error inherent in paper-based processes, and you can be looking at rampant inefficiencies, run outs, retains and lost revenue. 

Kicking off our 3-part Fuel Supply & Logistics Mastery: Optimizing the Entire Supply Chain webinar series, Titan Cloud Director of Solutions Consulting Nick Viola and Senior Solutions Consultant Brent Puzak discussed these challenges and the ways integrated technology can help. 

Here are some takeaways from their conversation, Automating Fuel Supply with Real-time Allocations Management. To catch a full recording of the webinar, visit here.  

The Danger of Disconnect  

The retail fuel supply chain is linked from the point at which an operator buys fuel to the moment a customer pumps it into their car. Every step of the process presents an opportunity to optimize—or lose—revenue. To be successful, operators need to make business decisions with that connectivity in mind.  

“One of the things that we see across fuel supply chains is that between the supply and dispatch logistics teams, communication is fractured,” said Puzak. “But while each team has their own objectives and metrics, in reality they’re very tightly linked. “The fuel team utilizes a combination of contracts and spot buys from the rack to balance the constant need for fuel availability reduce costs over the long term. At the same time, the dispatch team depends on insights into the terminal, supplier allocations and product accessibility to deliver that fuel at the lowest cost possible. Ultimately, many issues across operations arise due to a lack of connectivity between teams and access to both data and visibility.” 

Spreadsheets or Solutions? 

One poll question asked audience members how they currently manage fuel contracts, allocations and best buy opportunities. The options were manual spreadsheets, in-house development software, or third-party software solutions and outsourced providers. More than half of the respondents reported using outdated, spreadsheet-focused systems. 

“Manual spot buying processes lead to missed opportunities,” said Viola. “Calculations may not fully account for all factors such as pricing and freight cost, and by the time the teams identify profitable opportunities that require the loads, the loads may already be dispatched and lifted from those locations.”  

Viola added that digital integration not only automates these calculations, it also centralizes critical information feeds so that buying decisions can be made quickly and thoroughly.  

“Our technology simplifies this complexity by providing a single connected platform, allowing you to integrate all of your operational data—from supply contracts and allocations to real- time pricing and freight rates. By doing so, you can reduce fuel supply costs by 25 to 75 basis points and make better buying decisions that are directly tied to execution.” 

Goals vs. Systems 

Additional poll responses revealed interesting opinions around attendees’ business goals and the ability of their current systems to achieve them. While more than 65% named ‘reduced operating costs’ as a primary goal for improving supply and allocation management within the next 12 months, nearly 75% reported only a neutral level of satisfaction with their current system. 

“I find it interesting that nobody’s highly satisfied with their system’s ability to automate and maximize fuel purchases and profitability,” said Puzak. “Effective, data-driven analysis and coordination between the fuel supply team and the dispatch team is essential to avoid unnecessary costs and capitalize on every opportunity in this rapidly changing market environment. Investing in integrated technology reduces system complexity, streamlines those operations and drives substantial cost savings, creating opportunities to capture real dollars for your business.” 

To access a full recording of the full webinar, Automating Fuel Supply with Real-time Allocations Management, visit here. 

Next Up in the Series:

Session Two: Streamlining Forecasting, Optimized Dispatch & Everything In Between
Tuesday, September 25 at 2:00 p.m. EST

Nick Viola

Director, Solutions Consulting

Nick Viola brings more than a decade of experience to his role as Director, Solutions Consulting for Titan Cloud. He began his career in the U.S. Navy as a Nuclear Submarine Officer and team leader onboard the USS Pennsylvania before moving to the private sector. Since then, Nick has been helping companies achieve their business goals through data-driven technology and processes, in industries ranging from operations and manufacturing, to supply chain, logistics, fuel, and technology. Nick's wide-ranging background adds a wealth of expertise to the Titan Cloud team.