How Automation is Transforming Fuel Wholesaler & Distributor Workflows 

Of the more than 120,000 convenience stores selling fuel in the United States, about 50% have a major oil company brand. The remaining 50% sell unbranded fuel purchased either on the open market or via unbranded contracts with a wholesale distributor. 

The wholesalers and distributors stretch of the supply chain can take various forms, depending on several factors. Distributor workflows vary to accommodate short trucks versus larger transport, for example, and wholesalers without their own trucks may need to engage third party haulers on a local, regional or national level. Wholesalers and distributors must also use supply contracts to monitor price and profitability for each delivery.  

Put simply, there are many moving parts. Cohesive logistics systems are vital to streamlining operations, while outdated tracking methods that rely on paperwork and manual processes only introduce liability. Diminished operational efficiency, unnecessary errors, and ultimately, lost revenue—all can be avoided using a unified system.  

Time is Money 

Perhaps the simplest fix automation can introduce is eliminating manual data entry and paper-based back-office operations, which are time-consuming and prone to human error. They also slow down decision-making, inhibit market change response, and cause costly supply chain disruptions. These exacerbate the estimated 20-30% of total fuel supply chain costs that are already eroded due to inefficiencies. In turn, delayed reactions can result in missed opportunities and reduced customer satisfaction.  

This slippery slope can be avoided by integrating industry-specific, AI-based technology. Using real-time data tracking and reporting, an automated system saves a fuel wholesaler time—and ultimately money—by: 

• Using AI-based demand forecasting to ensure on-time deliveries and route optimization, steering drivers away from under-allocated terminals, reducing costs and keeping tanks full 

• Enabling one-click mass dispatch across multiple contracts, simplifying allocation to ensure optimal fuel delivery by company-owned trucks or third-party carriers 

• Facilitating detailed, real-time communication with haulers and customers to respond quickly and efficiently to changes 

• Matching orders and invoices in real-time, evaluating transactions for accuracy within seconds  

• Providing greater visibility of fuel cost, revenue and profit for each delivery based on real-time market pricing to ensure that business is maintaining target margins 

• Processing clean transactions for payment instantly while flagging discrepancies for resolution   

Innovation is Growth 

In the larger business picture, an efficient supply chain is better primed to scale. For fuel wholesalers looking to optimize the day-to-day as well as cultivate future planning, automation becomes the key to turning a typical wholesale business into one positioned for significant growth. A technology savvy operator holds a competitive edge in a market that demands quick and accurate service.   

Advantages for innovative wholesalers include:  

• Those already making decisions based on data analytics can use the same analytics to accurately evaluate possible growth opportunities or partnerships.  

• Existing digital hubs can provide the framework to incorporate multiple systems when merging businesses.  

• Automated reporting eliminates the risk of inaccurate financial discrepancies or compliance issues—deal killers for a company on the rise. 

When fuel wholesalers are burdened with complex workflows and further handicapped by outdated methods for managing them, the entire supply chain is impacted. Today’s fuel lifecycle demands data-driven optimization and end-to-end automation to free up labor hours, save cost, and keep inventory moving. 

To learn how you can streamline and future-proof your wholesale or distribution business, talk to one of our solutions consultants today.