According to AAA, the average regular gas price in the U.S. is $3.592 per gallon as of June 13. After falling for much of the second half of 2022, consumers are witnessing higher fuel prices this year due to increased demand and tighter supplies. Saudi Arabia also announced that it would begin cutting oil production by 1 million barrels per day in July to support the “stability and balance of oil markets.” This latest news is expected to increase prices over the travel season. And sadly, another trend that is increasing gas prices is fuel theft, with organized rings stealing enormous amounts of fuel.

Crime Ring Steals Fuel over Eight-Month Long Period

Eight people were arrested and charged last month with being part of a large-scale fuel theft network that stole more than 100,000 gallons of fuel from service stations in the Houston area. Between February 2022 and October 2022, local officials believe that up to 16 suspects are responsible for more than 60 incidents of fuel theft.
The suspects used a technique known as pulsar tampering, which involves manipulating fuel pump systems that measure how much fuel is being dispensed. A device is connected to the fuel pump to keep the fuel flowing while charging only a fraction of what was pumped. Crimes like this affect more than the gas station from which they are stealing, and we all end up paying more at the pump.

Real-Time Data Visibility & Detection

As the single largest expense fuel retailers and convenience store operators manage, every operator has a process in place to manage their fuel inventory. Surprisingly, many still manage fuel inventory and reporting using labor-intensive spreadsheets or outdated technologies incapable of monitoring real-time inventory fluctuations and eliminating sources of loss.

With a comprehensive data analytics platform, stakeholders can collaborate more effectively to understand anomalies. It is about gathering information together and then sharing those insights with personnel to examine operations with precision. Furthermore, a data analytics platform permits monitoring of locations remotely and at scale. Companies can monitor key systems from afar, ensuring that equipment is operating properly, and remain on top of exceptions.

Traditional back-office systems simply cannot keep up with daily reconciliation, especially for most accounting team’s typical 4-to-7-day audit time and high-loss threshold. Additionally, it is tough for a remote account team that isn’t actively running the business to determine whether dispensers are being used at unusual hours or if data from the tank system matches the pump record.

With an intelligent analytics solution, every fuel touchpoint including terminal to hauler, hauler to tank, tank storage, and dispenser to customer vehicle, can be reconciled in real time making it easier to quickly identify the root cause of an issue and recommend immediate resolutions.

As thieves are becoming more sophisticated and employing technology to evade discovery, they are counting on you to carry on as usual while they steal fuel covertly. However, if operators had access to the right software technology, scenarios like the one in Houston would have been identified quickly and not allowed to persist for eight long months.

Account for Every Drop with Frictionless Fuel Management

The advantages of the right software platform extend beyond data insights for fuel theft detection. Convenience store owners and operators utilize Titan Cloud’s Frictionless Fueling software to gain real-time visibility into their tanks’ inventory levels as well as to track other deviations across tank charts, meters, deliveries, temperature, and leaks. What’s more, Frictionless Fueling significantly enhances the customer fueling experience by identifying and preventing fuel issues like sluggish flow, nozzle unavailability, or tank shutdowns to have a real impact on the bottom line.

Operators rely on Titan to have total insight over all fuel movements, allowing them to make informed, proactive fueling decisions to track every drop of fuel purchased, stored, and sold.

Frictionless Fueling’s powerful benefits include:

• Detecting and responding to usage and demand changes in real-time
• Avoiding run-outs and overfills
• Optimizing operator and carrier management
• Identifying priority issues automatically with rapid first-time resolution
• Lowering overhead with true just-in-time inventory management

According to one Titan customer, after implementing Frictionless Fueling, they significantly reduced inventory variance, lowered acceptable delivery variances by 60%, and increased fuel sales by .5% per site.

Getting Ahead of Fuel Theft

As fuel theft is pervasive throughout the oil and gas sector, it is critical to adopt a comprehensive strategy to quickly uncover and address any issues in near real-time. While criminals will navigate new ways to evade security measures, focusing on the fundamentals will help operators stay ahead of criminal activities. Companies will benefit from hardening core infrastructure, real-time data, and purpose-built software to gain a deeper understanding of the problem.

In this eBook, get detailed tactics you can implement now to stop fuel theft before it becomes a major problem for your business, as well as:

• Trends every fuel facility should be aware of
• Building a more granular accounting picture to understand your fuel inventory
• Educating and training your staff to be safe and prepared
• Best practices to implement a data analytics platform, and more…

Download the eBook

With fuel theft on the rise, companies need to take precautionary measures. The biggest challenge to navigate is the unpredictable nature of crime — it’s impossible to know what illicit actors are thinking and planning. After all, they’re working actively to outsmart protective best practices. It’s an issue that’s endemic and timeless to the industry.

Solving the problem means hardening core infrastructure and implementing systems to overhaul operations. In this guide, you’ll learn actionable recommendations for how to identify and prevent fuel theft at your organization. This guide is particularly helpful for leadership at convenience stores and in the fleet space.

Gain perspective for how to stay ahead of theft issues before they have a chance to cause major problems in your business. Read the full report on fuel theft here. 

1. Implement a Digital Analytics System

Many convenience stores and trucking companies still manage their data using spreadsheets, hard files, and paper. With these systems, companies cannot perform analyses at the pace needed to pinpoint — and stop — sources of loss.

With a comprehensive digital analytics solution, stakeholders can work together more efficiently to understand anomalies. It’s about pulling information together and then sharing those insights with personnel to examine operations with precision.

One benefit to a digital analytics system is the ability to monitor sites without being physically present. From afar, companies can monitor electric systems, ensure that equipment is performing effectively, and stay on top of sensor alerts.

Are dispensers being accessed at odd hours? Does tank system data reflect what’s being reported at the pump?

For both convenience stores and fleets, operations are in nonstop motion. At gas stations,  people are constantly picking up nozzles to make purchases. On the road, truckers are laser-focused on safety and making stops when they need to rest.

Spreadsheets can’t move fast enough to keep up with this activity. While it may be possible to identify fuel loss or theft through manual processes, the effort required will be extensive. With an intelligent analytics system, it becomes easier to quickly identify the root cause of an issue — and recommend immediate resolutions.

2. Bridge Gaps with Vendors

Often, it’s a third-party company that’s responsible for managing a company’s fuel inventory. These vendors are well-aware of fuel theft; however, they are overseeing complex processes across multiple companies. Anomaly detection may be challenging given the lack of uniformity across systems.

For instance, Titan Cloud recently worked with a company that utilized six different approaches to retrieving information from data. It was a cumbersome and antiquated process. The company used Titan Cloud to install and manage equipment end-to-end.

Over the next year, the efficiencies gained translated into 1 million gallons of fuel savings for this company. The group was able to prevent loss — including theft — while establishing a stronger foundation for future analysis.

3. Prioritize Staff Education 

Most employees, especially truck drivers and customer-facing staff at convenience stores, are focused on doing a good job. The thought of fuel theft is unlikely to cross their minds until after an incident takes place.

That’s why it’s important for executive teams to keep staff in the loop. For convenience store managers, a few simple measures can help identify theft early on:

• Are certain customers taking unusually long periods of time at the pump but paying small bills?
• What protocols should staff follow after noticing suspicious activity?
• What are some warning signs for staff to watch?
• How can staff best stay in sync with news regarding local crime?

Similarly, transportation and logistics companies need to support their drivers. Verizon Connect recommends the following best practices for fleet managers:

• Ensure drivers are aware of the dangers of fuel theft
• Provide training regarding basic vehicle safety (i.e. after-hours parking, locking fuel caps)
• Install fences, lighting, and security cameras in vehicles and fuel yards as a deterrence
• Remind drivers to park their trucks in a way that blocks access to fuel tanks
• Help drivers identify the signs of suspicious activity

Above all, it’s important to establish protocols for staff to protect their safety. Where there is illicit activity, there is also the potential violence. In no situation should companies put their staff in danger. 

Final Thoughts

With fuel theft being endemic to the oil and gas industry, it’s important to take a bird’s eye approach to rooting out the problem from occurring in the first place. Fighting individual theft incidences and tactics can help — but ultimately, bad actors continually find new ways to outsmart security measures.

Staying ahead of illicit activity means focusing on the basics. Companies will benefit from hardening core infrastructure and gaining a deeper understanding into the problem.

Remote connectivity provides the foundation that allows convenience stores, fleets, and any other facilities with fuel the visibility needed to tap into the power of technology. 

As the name implies, without remote visibility into your equipment, you’re stuck with manual, on-site processes that slow you down and cost you money. You won’t be able to tap into the benefits of remote solutions and you’ll have to keep performing every inspection on-site and filling out all paperwork by hand.

Remote connectivity is the first step in digital transformation. But it’s also crucial that the data you get from your devices is trustworthy and accurate. When you make major decisions for yourself or your customers, you have to know that you’re basing them on correct information. 

The right solution that’s dependable and accurate can revolutionize how you do business. But you don’t have to take our word for it. We talked with Joseph Whalen, the Retail Account Manager for RKA Petroleum, about how technology has improved the way they do business. 

This technology allows them to identify issues sooner, get them fixed faster, and make them the best at what they do. Here is what he had to say.

How has remote connectivity helped your daily operations?

Remote connectivity allows us to see up-to-date inventories, which in turn allows us to take care of our customers much quicker. It allows for better communication between our dispatchers and drivers, which ultimately saves our drivers time on the road.

What departments use remote connectivity in their day-to-day operations and how?  

Our Dispatch Team relies on our Titan devices throughout the day to check fuel levels and to make sure there are no major changes—plus or minus—at our customers’ sites. Management occasionally needs to access the information in the software if a customer needs any reconciliation reports. Our sales department utilizes the phone app as a backup on the weekend. As you can see, we use this technology across departments.

How has remote connectivity improved your services?

Having real-time data is crucial for knowing the levels at our various customer sites. If there is an unexpected increase at one of our customers’ sites, the real-time data allows us to make quick changes in deliveries and make sure that every customer has what they need. Also, if we ever notice that something doesn’t look quite right in the data, we can notify them that there may be an issue, such as a probe being out, a tank monitor issue, etc. We are able to see these issues further in advance and implement the fixes needed sooner as well.

Has remote connectivity helped you maintain compliance? If so, how?

Remote connectivity has absolutely helped us maintain compliance. Michigan law states that you only can fill a tank to 90%. Knowing the correct fuel levels helps us make sure we take the correct amount of fuel, saving time for the driver and saving money for the customer. Water in the tanks can also be a compliance issue. The water level icons also help with communicating findings to our customers so they can implement solutions before they rack up major problems–or major fines.

Has remote connectivity helped with fuel delivery? If so, how?

Coordinating a fleet of drivers is a task. I feel that RKA has always been one of the best in the business at doing this, but having this technology allows us to be the best! Coordinating fuel deliveries has seen the biggest improvement with this technology. Time is money, not only for our customers, but for our company as well. The better everything is coordinated, the better our customers are taken care of! Having remote access to accurate data makes it possible. 

Wrap Up

Digital transformation is key for thriving in today’s market. Technology allows you to anticipate challenges and solve them before they cost you money. Like RKA Petroleum, you’ll be able to keep an eye on your data, noticing when something is off long before it causes expensive damage. 

Technology allows you to work faster and cheaper with the confidence to say that you, too, are the best in your business.

Learn how Titan’s family of brands can make your business more effective.

Technology-driven experiences are everywhere. From iPhone to Netflix, customers buy products and order services literally with their fingertips. If you’re a Digital Native, the thought of doing anything manually–like driving to the store or going to rent an actual movie–might be foreign to you. And when it comes to business processes, manual processes seem downright archaic.

Technology helps companies in every sector automate labor-intensive backend processes and customer-facing services. Cloud technology has the power to revolutionize fuel delivery in our industry. With a commodity such as fuel, it’s nearly impossible to track workflows, vendors, tanks and leak lines, or fuel usage without some automation in place, at least with any accuracy.

While the processes you’ve been using may be good enough, the retail fuel industry is evolving faster every day. Efficiency and productivity can differentiate your business from the forecourt down the street. Fuel delivery automation is paving the way.

Innovation as a Competitive Advantage

Technology is capable of integrating into your operation’s backend systems while at the same time streamlining your operation on the front end. Here are five ways innovation can give you a competitive advantage.

1. Achieve better workflows. Using many technology systems for site management can leave you feeling like your information is scattered and difficult to access. You may have a decentralized process spread across various divisions. You may have to manually update spreadsheets. You may not have a standard operating procedure to manage compliance. You may be managing work orders haphazardly.

If so, this all translates to poor efficiency and lost revenue. Whether it’s to track maintenance orders from entry to completion or pipeline repairs, fuel delivery automation can help you run your business at peak efficiency and greatest profitability.

2. Save time. You can review past alarms, tie them to specific tanks, identify issues with theft, carriers, or leaks and analyze the time of discovery. Knowing when and why alarms are triggered represents crucial data points that can improve response time. Our software gives owners the ability to escalate workflows with custom notifications, ensuring critical tasks are taken care of immediately.

Also, when you’re operating many convenience stores, vendor management can become a critical profit (or loss) center. The ability to integrate vendors into the platform can improve efficiency dramatically. Instead of laboring over paper files that are hard to transfer and analyze, you can automate vendor data feeds, streamlining the entire process.

3. Improve outcomes. Software lets you check tanks and line leaks around the clock so a leak never goes undetected. It can also correct common ATG configuration issues, minimizing shutdowns.

No one wants to lose a customer to the competition, especially over something preventable like an unavailable or slow fueling nozzle. Automation creates frictionless fueling. Technology can monitor and prevent slow fuel and nozzle unavailability. It can simultaneously check tank levels and track fuel use to reduce the duration and frequency of tank shutdowns.

4. Mitigate risk. When you improve alarm efficiency, you’re better able to manage risk. Alarms set for overfill, high or low product inventory, will generate reports you can then analyze. You can review past alarms and tie them to specific tanks to create a fuel delivery model. This model lets you plan based on historical data and real-time forecasting for timely fuel refills. It’s not just a leak you have to be concerned about. You can lose sales if you run out of fuel.

5. Minimize errors. Automation at the pump provides the lowest possible inventory variance by correcting for common sources of error, such as the tank chart, meter drift, temperature, and vapor loss. No one wants to lose a customer to competition, especially over something preventable like an unavailable or slow fueling position.

Wrap Up

There are many reasons to automate fuel delivery. For one, the software lets you focus on the real issues rather than the process of moving paper from one point to another. Also, a robust cloud solution provides a simple one-stop-shop of actionable analytics. You can improve both the customer experience and increase fuel sales when you invest in fuel delivery software.

Stranded business travelers. Airless buildings. Silenced elevators. Rush-hour chaos. From Detroit to Toronto to Manhattan and beyond, more than 50 million people across eight northeastern U.S. states and parts of Canada were without power. 

Millions lived again with uncertainty during the largest blackout in North American history almost 20 years ago. At the time, the suspicion was that the blackout represented a cyberattack on the U.S. power grid.

Thankfully, the cause was much more benign. A cascading series of events: human error, software issues, and equipment failures caused what the media called the Northeast Blackout.

But human suffering and business losses were significant

Make no mistake. The threat of cyberattacks is real. U.S. support of Ukraine as it wards off Russian aggression has invoked hostilities toward NATO and especially the United States, according to evolving intelligence.

As Putin’s military invasion of Ukraine wears on, his back is against the wall, said President Joe Biden. He recently warned of Russian cyberattacks against the U.S. Putin’s frustration grows as his suppression of Ukraine falters; some speculate that a cyberattack could be the next step.

Brian Harrell, a former assistant secretary for infrastructure protection at DHS, said “the most logical enemy avenue approach is through vulnerable 3rd parties and the critical supply chain.”

This points directly at critical infrastructure and the U.S. retail fuel supply. The threat to web-connected fuel tanks is no small matter.

Tank Monitors Susceptible to Cyber Risk

The vulnerability of the gauges used to monitor gasoline tanks is the latest security issue challenging industrial devices which are increasingly being connected to the Internet of Things (IoT). Automated tank gauges (ATGs) are used by nearly every fueling station in the United States and tens of thousands of systems internationally. 

While ATGs are typically accessed to monitor fuel inventories, attackers could easily alter the settings. Imagine if hackers concentrated their efforts to make changes to hundreds of systems simultaneously, locking out access which would lead to a host of problems.

Frequent run outs and loss of alarm notifications could result in ATG alarms being missed. A security breach on ATGs could raise issues with fuel compliance, fuel theft, and even terrorism.

Many independent operators connect to the Internet with an off-the-shelf home router and use a public IP address. They haven’t given much thought to security or firewall protection. Tank monitors that are connected remotely using public IP addresses are highly susceptible to cyberattacks. 

As a leader in data security, we factor security into every decision we make. From our IoT hardware to our Web platform, we strive to optimize security and minimize the risks associated with sensitive data. Here’s what we recommend to protect your convenience store operation.

5 Ways to Guard Against Cyberattacks

1. Close the system

Unlike the TCP/IP method of monitoring automatic tank gauges, which leaves multiple ports exposed to third parties for manipulation, the Titan cellular-based system is closed and entirely proprietary. It has no physical or digital “open ports” that expose a client’s network to potential unknown attack vectors.

2. Limit application access

Canary’s system is the only application running on our hardware, limiting the number of potential security holes from third parties. A site connected via TCP/IP can be connected to many applications, increasing risk exposure.

3. Encrypt communications

All communications between our device and the cloud are encrypted to ensure confidentiality; APIs are accessible only via HTTPS and use a 2048-bit TLS certificate.

4. Leverage trusted partners

We exclusively use best-in-class hosting via established and trusted hosting companies like Amazon Web Services, using ISO 27001, 27010, and 27018 physical security and risk management.

5. Manage user access and security

Canary employs strong password requirements, and access control lists to prevent users from controlling applications or devices that are not theirs.

Wrap Up

Being proactive and cyber aware is the first line of defense for every owner/operator connected to the Web. Using a secure, encrypted cell modem like a Canary box is a guaranteed way to eliminate the risk of a cyberattack to your network via your tank gauge by taking it off-network. 

While cybercriminals exist, you can protect yourself from rogue agents. You can limit the applications you use, manage user access, encrypt communications, and work with partners you trust.

What are you doing to ensure your ATG, a vulnerable network endpoint, is properly secured from increasing online threats to fueling infrastructure?

Learn more about Titan Cloud’s Canary today.

As the leaders in fuel and fluid handling equipment, PEI is uniquely qualified to provide direction on the best way to manage and maintain your underground storage tanks. Since rules and regulations are constantly evolving, it’s a good business practice to stay on top of inspection tasks.

They have scoured published and unpublished information from manufacturers, contractors, petroleum marketers, and regulatory agencies to provide the most up-to-date recommendations to promote the safety, health, and compliance of your business. Instead of forcing you to scour the internet and archives to find the information you need, PEI keeps it all together in one place. Having one centralized source-of-truth is not just good for your data, but it’s also good for you. 

PEI’s goal (and ours) is to be proactive by identifying potential equipment problems and reducing liability associated with operating underground storage systems.

A quick summary

The biggest changes in the RP900 are all about inspections, who and how they are to be performed in 2022 and beyond. 

As we mentioned before, inspection requirements have changed this year, and these changes have had a trickle down effect to also cause shifts in other areas of the RP900. In addition to noting the changes required by monthly and daily inspections, the RP900 has also changed to reflect the new inspection processes affected by the monthly and daily inspection requirements (or lack thereof). There’s also been a change to the specific language around who can perform inspections to clarify who exactly is qualified and what qualification entails.

This is not to say that all changes are a result of the inspection requirements. However, many of the changes (outlined in more detail below) are a direct result of new processes and requirements from the inspections. 

Recommended Inspection Practices for USTs

Many of the 2021 revisions include updates, modified language, and clarifications. The biggest change is the removal of daily inspections, making them optional and updating monthly and annual inspections requirements to mirror EPA requirements.

The 2021 version includes the following revisions:

• Updated monthly and annual inspections requirements to mirror EPA requirements
• Removed requirement for daily inspection (Chapter 6) and made optional
• Modified monthly inspection process to reflect removal of daily inspection
• Modified daily inspection to an optional periodic operational inspection and moved to Appendix
• Added language that the optional periodic operational inspection is a possible method that can be used to comply with monthly inspection
• Modified language on who should complete monthly and annual inspections by revising the definition for qualified person and removed requirements for Level I and II designation
• Updated periodic, monthly and annual checklists
• Reordered Appendix to reflect changes for monthly, annual and optional periodic operational inspections
• Clarified use of electronics sensors for leak detection
• Clarified use of statistical inventory reconciliation for tank and line leak detection

What hasn’t changed is the amount of data you need for accurate recordkeeping. 

Checklists are designed to help you get things done. When you’re managing monthly and yearly maintenance tasks, keeping track of all that data manually can bog you down. On the PEI website, there are 10 Appendixes alone available to download! When you multiply the number of checklists by 10s or 100s of tanks, your recordkeeping can spiral out of control.

Wrap Up

With Titan, you can store all your documents and comprehensive data in one place. You’ll get more done in less time with automated reports at your fingertips. Best of all, you can stop worrying about delayed reporting, missing paperwork, or losing critical compliance documents.

Those in the business of storing and dispensing fuel can use advanced technology to streamline their UST inspection tasks. 

Learn how Titan can keep your fuel operation efficient and profitable. Schedule a demo today.

What do convenience store owners, fleet directors and bus terminal managers all have in common?

These are the folks who manage the fuel inventory for their company. Cars, trucks, and buses all need gas. As you know, there is plenty of risk and loss involved in managing a retail fuel supply. Poor fuel management can translate to less profit for the company which the company passes onto the customer.

Fuel is the number one expense for your facility. Fuel inventory variance adds a layer of complexity. You may be thinking, “How can a gallon of fuel change? A gallon is a gallon, right?”

Well, no.

Trust us when we say that there’s a lot of science behind fuel inventory variance. Suffice it to say that the volume calculation of fuel within its container represents an imperfect science. This results in reading errors. 

To make matters worse, many Fuel Directors (we’ve been told) still track their inventory the analog way with spreadsheets. Not only is this cumbersome but also represents a huge waste of time, energy, and money. If you transfer imperfect data to your accounting system on top of flawed fuel readings, then it will be impossible to determine the true cost of your company’s fuel inventory.

But wait, here are a few more surprises.

Other factors, like weather, theft, leaks, and global uncertainty all affect fuel supply.

Know the Importance of Fuel Inventory Variance 

1. How Weather Affects the Retail Fuel Supply

Americans from coast to coast saw or experienced many extreme weather events these past several months. From raging fires in the West to a standstill on I-95 that kept drivers snow-trapped overnight. Nashville, home to Titan Cloud Software, was immobilized for two days after six inches of heavy snow fell and below-freezing temperatures made a surprise appearance.

We don’t think about fuel supply until the demand exceeds it, and then we rush out to top off our tanks and fill our generators. But, what if your local retail fuel outlet didn’t plan ahead of the weather report? What if you bought a bus ticket to visit friends and the depot didn’t factor in weather conditions? What if your area loses power and the local electric or cable company didn’t gas up its fleet?

This is a potential worst-case scenario awaiting your business when you have no weather contingency plan that makes fuel inventory planning a priority.

On the flip side, fuel delivery during bad weather is often hampered. Does your fuel distributor have enough deliveries scheduled? How large is their fleet? Where are their distribution centers and who’s in their network of local distributors? Can they guarantee efficient fuel management? This is when custom automated workflows can become a lifesaver.

2. How Small Leaks Affect Fuel Supply

Leaks in your fuel storage tanks and containers impact more than the environment. Although rigorous compliance is reason enough to take charge of your fuel inventory, leaks also represent revenue loss.

Leakage won’t be found on your spreadsheets. Thanks to innovative technology there’s a way to analyze the changes in height and volume within the tank that allows for rapid and sensitive leak detection. Even tiny leaks can be spotted fast whereas in the past it would have taken days or weeks to solve the problem. When retail margins are slim, every drop matters.

3. What Faceless Fuel Theft Looks Like

Back in the 70s during the oil embargo, when gas was in short supply and car lines were long, it was common to read stories of thieves siphoning gas from a car parked in a homeowner’s driveway. Today, theft often happens in a less obvious way.

Vendors or carriers may “steal” through inaccuracies. Siphoning fuel this way happens through an inaccurate fuel drop. If you’re monitoring your automatic tank gauge (ATG), you should be able to catch this. Titan’s ATG management system will alert you to discrepancies between your tank amount and fuel sales.

We don’t want to sound alarmist. Fuel inventory variance could be inadvertent and no fault of the carrier. Because fuel is a liquid, it expands and contracts based on temperature. Liquid contracts when it’s cold, so the actual fuel delivery and the bill of lading may differ. A cold tanker could be the cause of the variance.

Below ground, the variance may happen for a different reason. Fuel can contract inside the tank when the outside temperature is warmer than the below-ground temperature. There would appear to be an inventory variance even though you received the right amount of fuel.

You can see why the technology protects both the retail fuel stop and the vendor.

4. How Global Uncertainty Shakes Things Up

High gas prices tend to have a ripple effect on consumers’ pockets and businesses’ profits. Gas prices in the U.S. typically increase in the Spring and then decrease in the Fall mainly because demand declines following the warm summer months. But, for the past several months, gas prices have been rising. 

The cost of crude oil worldwide is affecting gas prices at the pump and softening demand. The economics of low demand/high supply is off-kilter because the cost of crude oil accounts for more than half the price of a gallon of gas. Couple that with European natural gas prices going crazy due to the harsh words traded between Russia and the West and panic-buying hit the market sending prices through the roof. Demand for heating oil is also strong, allowing for crude oil prices to remain high.

As long as global uncertainty continues, fuel inventory planning is more important than ever.

Wrap Up

There are many ways convenience store owners and operators can lose money through fuel inventory variance. The good news is that technology exists that can improve your fuel planning. You can manage risk despite extreme weather events, global uncertainty, or fraudsters. 

Learn more about how Titan can perfect your retail fuel management.

A shift towards SaaS 

There are vendors that will help companies do just about everything these days. From compliance management and fuel reconciliation to ATG alarm management and tank monitoring, retailers around the world are outsourcing services to third-party vendors to streamline their processes. But what if there’s a more efficient way to manage these services without having to relinquish control over your data? 

That’s where Software as a Service, or SaaS, platforms come in. These solutions allow retailers to manage their work in the cloud, access it anywhere, and receive regular software updates. We’re seeing a huge industry shift to these solutions from third-party managed services as companies automate processes that used to require large teams of experts. Moving onto one SaaS platform isn’t just more efficient, but it also gives greater data visibility, reduces costs, and provides more security. 

One single source of truth 

As convenience retailers have invested more heavily in technology, many have found themselves with multiple vendors per project or business function. Not only is it tedious to have multiple platforms, but many managed services platforms don’t speak to each other, keeping your data siloed. With comprehensive SaaS solutions, retailers can integrate their internal systems for company-wide visibility into data and processes. With all your data in one place, it’s easy to identify inefficiencies or warning signs that were once concealed between gaps in service platforms and providers. With all the consolidation happening, it’s more important now than ever to maximize technology efficiencies by streamlining your services on one single source of truth.  

Stretch your budget 

Large retailers cite many reasons for moving from managed services to SaaS solutions, but cost efficiency is always one of them. Managed services can cost more than $100 per site per month, and if you have multiple vendors and hundreds of sites…well you get the picture. While the original intent might have been to outsource services to save on staffing costs, the truth is that consolidation of services to one platform is often the most cost-effective option.  

If you’re a smaller retailer with fewer sites, then managed services may be the cheaper option, but you should run the numbers for yourself. Hiring someone to head up the services in-house may still be cheaper than outsourcing your services, especially if you move to a SaaS platform with support teams available that can alleviate work for internal teams. Regardless, smaller retailers will have to decide which choice is most cost effective for their company, and if a lower price for managed services is worth the risks.  

Be Prepared 

Everyone’s heard about the recent cyber-attacks on businesses large and small, including breaches at Colonial Pipeline and JBS. No one is immune from these hacking attempts (not even the ferry to Martha’s Vineyard) so once-cautious retailers are being urged by internal IT departments to adopt more secure platforms for their data. As cyberattacks become more prevalent, retailers are eager to eliminate any vulnerabilities in their processes starting with availability of their data. 

By moving to SaaS solutions, retailers can eliminate multiple logins by third parties, which introduces a higher risk for human error. Removing any unnecessary vulnerabilities such as this can increase security over customer and payment systems data. When it comes to cybersecurity, the best way to mitigate risk is by consolidating the number of platforms and companies that have access to your data. 

Going the distance 

When faced with a lack of forecourt visibility, cost inefficiencies, and the threat of a cybersecurity attack, retailers need to make changes to how they manage their sites and forecourt data. By switching to a SaaS platform, you can take control of your data, allowing you to streamline your processes and save money too. And if you work with a company like Titan Cloud, you won’t have to make these changes alone and can get the support you need to make a seamless transition.  

Interested in learning more about SaaS solutions? 

Contact us.

by Kurt Gutzmann, Chief Scientist

What exactly is a “tank chart” and why do we want it to be “perfect”?  A tank chart tells us how much liquid is in a tank based on the height of the liquid. It sounds simple. Tanks might be cylindrical, or they might be ‘capsules’, cylinders with hemispherical end caps (see Figure 1). Still, there are some formulas from analytical geometry that will give us the volume of liquid for a given. The tank might be tilted a bit, perhaps 1 inch (25 mm) from one end to the other, so the liquid will pool at one end as it gets low. 

Figure 1. Ideal Tilted Cylinder 

This problem was solved over 350 years ago when Euclidean geometry met Newton and Leibniz calculus. However, the “solution” makes the very big assumption that our tank is “perfect”, i.e. it is well and truly a cylinder. The reality is the tank only looks like a cylinder at a coarse level of resolution. If we zoom in on the tank, we will find all kinds of irregularities, deformations, and internal volume-occupying structures (gussets, pipes, pumps, welds, and more). These cause the tank’s shape to depart significantly from the ‘ideal cylinder’ or ‘ideal capsule’. So, the volume calculation above will produce errors by overstating the volume here and understating it elsewhere in an unknown manner. 

Is the calculation good enough? That depends on what we are doing with the volume. For bookkeeping purposes, it might be sufficient. For measuring how much fuel we just received in a delivery, it might be close (+/- 3%) but probably not. For leak detection, it is not nearly good enough. For precision and accuracy of inventory variance for environmental compliance purposes (+/- 1% US, +/-0.5% Canada) the calculation will fail most of the time. 

If we have a more perfect calculation, one that accurately and precisely (see Figure 2) gives us volume from height, we can use that ‘perfect tank chart’ with confidence that the numbers are correct.

Figure 2. Precision and Accuracy 

So how do we get such a perfect chart? One way might be to pour known amounts of liquid into the tank, check the height, and record it as we gradually fill the tank. This might get us some accuracy, but if we want precision, we will have to use little tiny amounts at a time which is not feasible. The tank manufacturer uses this procedure to ‘calibrate the chart’ for the tank (the ‘strapping chart’), but it is only at a very coarse level and lacks precision. Another way to perfect the tank chart might be to put a laser rangefinder inside the tank and measure it for various distances in every direction and then use that data to build up a finite element model. This process works best on a truly empty tank, which is rare, so while the method is precise, it could also be inaccurate. 

A third way would be to measure the amounts of fluid going in and out of the tank over time and record the corresponding heights. The inventory going into the tank must equal the fuel exiting the tank, unless there is some evaporation, breathing loss, or temperature-based shrinkage or expansion. This is close to perfect since we can account for the latter factors and record precise height measurements. The height measurements do not have be accurate for most purposes except for run-out estimates.  

We are mainly interested in the changes in volume for changes in height (the differential domain). It does not matter much whether our ruler is on the bottom of the tank or 10 feet below the tank (see Figure 3) in order find height differentials. 

Figure 3. Height Difference Measurement

From Perfect Chart to High ROI

Titan has developed novel and innovative methods for analyzing the changes in height and volume that produce a tank chart that is much closer to perfection now than any prior methods in the industry. The Titan Cloud Perfect Chart is accurate and precise (the units of volume are micro-liters, and the height is measured in micrometers) which allows Titan to provide its customers with: 

• Inventory variances close to zero (0.8%) 
• Delivery measurement within 0.7% (+/- 3.4 gallons on a 5,000-gallon delivery) 
• Rapid and sensitive leak detection – even tiny leaks can be detected within hours instead of days or weeks
• Measurement of dispenser meter drift – meters can be properly re-calibrated to ensure that correct revenue is received for fuel sold, and weights and measures compliance risk is eliminated

The Perfect Chart serves as the foundation for Frictionless Fueling, Titan Cloud’s wetstock management solution that leverages your existing forecourt equipment for a greater return on your software investment. By starting with a precise and accurate tank chart, Frictionless Fueling helps convenience store owners and operators minimize inventory variance and increase profits at every site monthly. 

Want to know how Frictionless Fueling can help you boost profitability? 

Contact one of our specialists, so you can start managing your wetstock with confidence. 

It looks like Americans just can’t wait to get on the road again.

After months of shuttered doors and few travelers on the road, convenience store owners are beginning to see an increase in traffic as states continue lifting quarantine measures following the COVID-19 outbreak. The most recent NACS and PDI reports show that the number of workweek trips has increased to almost the same level as 2019. As states continue to open their cities one thing has become apparent: this will be the summer of road trips.

July and August are the most popular months for travel, but with most people still feeling uncertain about travelling by plane, many are altering their vacation plans to stay closer to home. In fact, Service Management Group found that 71% of people are less likely to travel by plane this summer. Instead, one-third of Americans will be taking a road trip in place of airline travel according to Gasbuddy’s 2020 Summer Travel Study. This is great news for convenience stores across the nation, but after weeks of waiting for more forecourt traffic, owners and operators need to ask themselves if they’re prepared for this sudden increase in customers.

If there was ever a time to take control of forecourt maintenance, it’s now. Even though customers’ main concern is cleanliness, they’re still expecting fast and convenient service instore and in the forecourt. To maximize uptime for each fueling asset, many owners and operators are turning to software solutions to help streamline their maintenance processes. Titan Cloud’s  maintenance platform offers a work order dispatch feature to expedite the process and manage tickets for better performance and fewer go-backs. With the addition of root-cause analysis, this solution provides the transparency that owners and operators need to improve their assets and processes before crowds of vacationers start showing up.

Preparing for lots of customers also means preparing to give them a frictionless fueling experience. Now more than ever, owners and operators need to prioritize minimizing nozzle downs, runouts, and flow rates. ATG monitoring systems can solve these and other problems by providing data and analytics that help make inventory management easier. With Titan’s advanced fuel analytics solution, owners and operators can even pinpoint when to replenish inventory (and by how much) so their fueling positions  stay open and ready for customers.

With most summer vacations just around the corner, owners and operators need to use this time to prepare for the road trippers by streamlining inventory and maintenance processes.

To talk to someone about the Titan Cloud solutions that can help do just that.