In the second session of our Future of Filling Up: Faster, Easier, Frictionless webinar series, Titan Cloud’s Vice President of Solutions Consulting Brent Puzak and Solutions Consultant Michael Lewis discussed the negative chain reaction of undetected fuel inventory variance, and how real-time data analytics can help fuel operators get ahead of variance factors to mitigate loss. Below are some takeaways from the conversation.

To catch a full recording of the webinar, Fuel Inventory Variance Control: Why Speed and Precision Matter, visit here.  

Traditional variance measurement systems can’t properly identify root cause 

It’s a well-established fact that fuel inventory variance causes a domino effect of problems across the entire supply chain. Early detection and quick action are key to minimizing the damage, yet traditional systems still fall short when it comes to pinpointing the source of the problem.  

“Most ERP systems have limited functionality when managing multiple concerns. They’re generating various reports, providing visibility that there’s loss, but they’re not able to identify the root cause of loss. If you can’t validate where that loss comes from, you can’t put steps in place to mitigate it. It’s decreasing the productivity of your teams,” Puzak said. 

Part of the problem, he added, is that outdated tank charts can provide an incorrect baseline that throws off the entire tracking system from the start.  

“The data that’s fed into these systems is coming from tank charts which have a lot of inaccuracies in them, and then from gauges which feed off the tank charts, so there are errors already baked in.” 

Tank imperfections and environmental factors affect variance data 

Part of the problem with traditional tank charts is that they don’t consider physical imperfections, wear and tear over time, and other factors that can cause small errors in volume calculations. Those errors compile over time. 

“These are the challenges that organizations face day in and day out, trying to reconcile a variance where you have these imperfections or deformities of the tank systems; they’re actually invoking additional variance points into the readings you’re capturing,” said Puzak. “A traditional tank chart with normal ATG programming is never going to catch that level of malformation within the structure.” 

Lewis agreed, adding that tank imperfections can be inherent or can happen as the result of outside influences.  

“Any sort of environmental factor, any sort of shift in the tank wear and tear over time, even if you’re in an area with frequent earthquake patterns,” he said. “Anything that’s going to disturb the relationship between the height and volume of your probe is a consideration.” 

Data-driven technology can pinpoint variances and improve efficiency 

When fuel operators get a handle on what variances they have, and specifically which they can control, they’re able to focus operations teams on investigating actual issues instead of relying on guesswork.  

“Many companies, no matter where they are around the world, are trying to investigate inventory loss with one arm tied behind their back. Leveraging new technology outside of what traditional ERP systems offer is like pulling off the blinders,” said Lewis. “A data-driven solution provides greater visibility and a much more granular view of what’s actually happening within your tanks and your tank systems. Whether it’s a tape leak or a meter calibration or stock probe—it can tidy out the noise within a variance audit on a day-by-day basis so you can have much more efficient workflows in fixing ongoing problems.” 

Fine grain tank charts capture more data for better fuel inventory variance control 

Traditional tank charts rely on 4-20 monitoring points to extrapolate volume information. Even the higher end of that scale leaves plenty of room for inaccuracy when you consider tank imperfections, environmental factors, human error, and other impactful elements. Fine grain tank charts far surpass these capabilities, using 40,000 – 50,000 points of measurement for pinpoint granularity. 

“A 20-point setup is going to give you more monitoring points and a shorter interpolation but at the end of the day, the challenge is still that you could have deviations between that are throwing off your overall readings,” said Lewis, explaining that fine grain tank chart technology uses tens of thousands of measurements to close that gap. “What we’re doing is we’re leveraging high- frequency data captured from inventory transactions on a continual basis. We’re counting for temperature, we’re counting for deliveries, any inputs and the outputs that are coming from the systems. This gives us a much more granular view than what you’re getting with a typical tank chart.”   

To watch a recording of the full Fuel Inventory Variance Control: Why Speed and Precision Matter conversation, visit here. 

Next up in The Future of Filling Up: Faster, Easier, Frictionless webinar series: 

From Chaos to Clarity: Demystifying Fuel Logistics | May 22 | Register Here 

An often-silent culprit, fuel inventory variance is a major concern that can wreak havoc across the entire supply chain. Ultimately, the ripple effects can lead to operational downtime, misallocated resources, unnecessary write-offs, and significant revenue loss over time. Even a one percent variance can result in a financial deficit in the millions over the course of a year.  

Today’s fuel retailers operate in an extremely competitive industry where they can be fighting off stiff competition or positioning for merger activity on any given day. Dealing with the domino effects of inventory variance takes focus away from business enhancements and growth opportunities, as operators are forced to divert funds and labor toward addressing problems. 

With multiple sites, thousands of sensors to monitor, and a complex fuel supply chain to manage, retail fuel operators using outdated, legacy systems don’t stand a chance. To get ahead of fuel inventory variance factors, integrating industry-specific technology is the only way to monitor systems in real-time, gathering granular data to make better, faster business decisions. End-to-end platforms like Titan Cloud’s provide: 

• High-frequency data capture for near real-time inventory status 
• Granular measurement capabilities for precision and accuracy 
• Root cause analysis functions to streamline resolution planning 

Learn more about the hidden profit killer: Fuel inventory variance. Our 3-part webinar series, The Future of Filling Up, explores how automated technology empowers operators to identify, fix, and prevent these issues Register below for part 2: Fuel Inventory Variance Control, and learn how to take action that can significantly impact your bottom line.  

Session Two: Fuel Inventory Variance Control: Why Speed and Precision Matter  

April 24, 2024 @ 2:00pm EDT  

Titan Cloud’s Vice President of Solutions Consulting Brent Puzak and Solutions Consultant Michael Lewis will discuss: 

• The negative chain reaction of undetected fuel inventory variance, from throughput to write-offs 
• How real-time data analytics empower fuel retailers to quickly and accurately respond to issues triggering inventory variance 
• What fuel retailers need to know about the advantage of connective technology in optimizing fuel logistics and increasing revenue 

Save your spot here! 

In the first post in our 3-part series, we explored the domino effect of fuel variance throughout the supply chain, and the factors that can introduce its costly inaccuracies. But how can fuel retailers get ahead of such disruptions? One vital tool in the effort to avoid fuel inventory variance is the fine grain tank chart.  

Along the intricate path of the fuel supply chain, efficiency and accuracy are paramount. Fuel retailers rely heavily on precise monitoring of their inventory to ensure seamless operations and to prevent discrepancies that can cost time and money. In fact, variances can spark revenue loss from the retail site all the way up the corporate chain in the form of excessive write-offs. 

And yet, many operators are still using traditional tank charts that depend on manual measurements and periodic automated ATG readings, only capturing fuel levels at specific, limited points in the supply chain. Manufacturer charts can also vary by losing accuracy during installation. Finally, some operators continue to engage tank strapping technology to calculate volume, which can require over-purchasing of inventory.  

In a market where success is dependent on fewer gallons and competition is increasing year after year today’s fuel retailers need more. Outdated methods simply don’t keep up when inherent variance in tank charts can reach 7% or greater. The fine grain tank chart is a sophisticated tool that offers several advantages over traditional manufacturer tank charts.  

What is a fine grain tank chart?  

A fine grain tank chart provides a highly detailed and granular view of fuel levels within storage tanks using advanced algorithms and near real-time polling data to track levels and detect anomalies. While traditional tank charts typically provide measurements at fixed intervals, fine grain tank charts go further by providing high frequency data capture to detect minute fuel inventory changes within a tank system.  

This unprecedented granularity enables a system view that quickly surfaces anomalies such as Bill of Lading (BOL) reconciliation errors, theft events, and meter drift, providing operators with a precise, real-time understanding of their fuel inventory. As a result, fuel retailers are provided with critical data to detect sudden fluctuations or adverse events promptly, enhancing their ability to respond to potential issues in a timely manner. Responding to problems quickly means minimizing fuel loss, ensuring regulatory compliance and reducing revenue deficit.  

Under the hood: What are the specifics of a fine grain tank chart?   

At its core, a tank chart provides a method for determining the volume of liquid in a tank based on its height. While this sounds straightforward, the devil lies in the details. Tanks come in various shapes and sizes, including cylindrical or capsule-like models with hemispherical end caps. As such, each presents unique challenges for volume calculation. Traditional tank charts that rely on geometric formulas assume a uniform cylindrical shape. But fuel tanks often deviate from this ideal due to irregularities, structural components, deformations, and environmental conditions.  

Fine grain tank charts continuously monitor fluid inflow and outflow over time while recording corresponding height measurements. As an example, Titan Cloud’s fine grain technology has pioneered micro-level accuracy, leveraging high frequency data capture and fractional measurement points, far and away surpassing the level of accuracy of traditional tank charts and tank strapping capabilities. Consider: 

• Traditional tank charts measure using 1/8-inch increments 
• ATG charts rely on 4 – 20 input points to extrapolate a chart   
• Fine grain tank charts use 40,000 – 50,000 points of measurement for unsurpassed granularity 

Given its pinpoint accuracy, fine grain technology accounts for factors like evaporation and temperature variations to track precise height volume. The technology also facilitates pinpoint calibration of dispenser meters and provides analytically calculated meter drift. Additionally, fine grain tank charts offer enhanced security measures, providing visibility to help to deter theft and drive additional operational efficiencies across teams.  

How does this impact fuel variance tracking?  

The accuracy of volume calculations directly impacts various aspects of fuel retail operations. Traditional tank charts that approximate calculations may suffice for general bookkeeping, but they fall short when it comes to critical tasks such as fuel delivery measurement, leak detection, and environmental compliance. In the fuel industry, every discrepancy matters, as even minor errors can translate into significant fuel and revenue losses over time.  

By providing near real-time data and automated monitoring, fine grain tank charts: 

• Streamline the inventory reconciliation processes and reduce the need for manual intervention  
• Improve operational efficiency, lowering instances of meter drift 
• Automate outdated, siloed systems, saving fuel retailers time and money 

As demonstrated, fine grain tank charts extend beyond inventory management, enabling c-store owners to minimize fuel variances, achieve near-perfect delivery measurements, and detect even the smallest leaks in a fraction of the time previously required.   

Adopting this modern technology is a strategic investment in operational excellence and profitability. To speak with a Titan Cloud expert on how our fine grain tank chart innovation can help you decrease fuel loss and increase revenue, visit us here.  

In our third and final blog post in this series, we’ll take a deeper dive into anomaly detection, root cause analysis, and how data-informed business decisions can reduce write-offs.  

In the first session of our latest webinar series, The Future of Filling Up: Faster, Easier, Frictionless, Titan Cloud’s Vice Presidents of Solutions Consulting Brent Puzak and Jeff Sexten discussed the most common issues affecting fuel customers, and how data-driven connectivity can greatly reduce pain at the pump.

Here are some takeaways from the conversation on frictionless fueling. To see a full recording of the Eliminating Pain Points at the Pump for Your Customers webinar, visit here.

Outdated monitoring systems can’t keep up with the needs of today’s customers. 

In one webinar poll, most attendees reported that they routinely identify equipment issues in less than a day, or at most within five days. But resolving those issues takes much longer. Time to detect is one measurement, time to resolve is another; it’s that additional downtime that can frustrate customers at the pump who are faced with slow flow or a nozzle down.  

Using the angry customer method is far too common in these scenarios. Fuel retailers often rely on a customer to arrive, find a bagged nozzle, or a slow flow dispenser, walk inside the store and complain to the clerks.  Sexton recounted a recent experience in which his own frictionless fueling experience was impacted.

“Recently, I was one of those angered customers. I went to two different locations of the same brand, and both had over half their dispensers bagged out. I couldn’t wait, so I went to a different brand,” he said. “I’m a big brand loyalty person, and I went somewhere I never would have thought about going before. I had a good experience, the store was clean, I bought some things. That new brand just got a new customer because their dispensers were all up and running. It just grows from there.”  

Real-time monitoring technology can break the cycle. 

Titan Cloud research has found that reducing frequency and duration of system downtime can improve throughput by 3-4% with real-time visibility. By continuously processing data to detect anomalies minute to minute, fuel asset optimization technology can not only offer customers a frictionless fueling experience, but also provide notifications to retailers so they can address these issues significantly more quickly than waiting on that angry customer. 

“As we’ve mentioned, there can be events where it takes a while for a customer to come into the store and actually report it. What we were seeing in the data is that average downtime is about six consecutive days of nozzle downtime,” Sexten said. “You have to think about how to reduce that duration. What would it look like if we could cut that down to three days, or two and a half? How would that lessen the burden on the customer and the loss of revenue?” 

Long wait times turn away customers…and revenue.  

If customers are filling up faster, they’re happier. They also make room for more people to fill up at any given time. With an average customer transaction time of 15 minutes, the question becomes: Can a better flow rate lessen the time between transactions? Could it boost the volume of those transactions? 

“At 15 minutes between these transactions, you’re getting four transactions an hour. Multiply that over your hours of operations. The question becomes, how can we get more transactions inside of that timeframe with a faster flow rate? Being able to have more data to analyze this over the course of time is going to provide you with better results,” Puzak said. “There’s value to having that visibility, to be able to act on that data to improve flow rate and total gallons to drive up revenue at your locations.” 

Slow flow issues can be eliminated with data-driven, proactive maintenance.  

Highlighting slow flow as a particularly prevalent pump frustration that prohibits frictionless fueling, Puzak and Sexton used the example of filter maintenance to demonstrate how early anomaly detection can make an immediate and tangible difference. While well over half of webinar attendees reported managing filter changes via reoccurring schedules, they learned that data analytics generated by fuel asset optimization technology can optimize those schedules to pinpoint which dispensers need attention. 

“We know flow rate decreases over time without proper filter maintenance. Real-time monitoring provides data to identify precisely when the flow rate starts to drop off, and what filter needs to be changed so you’re not going out and changing all the filters at once if you don’t need it,” Puzak said. “Technology can also give you that visibility to know which ones are trending—that you may need to change out in the future—and if you’re sending a tech out there to fix something, you know exactly what fueling positions are down. That shortens your downtime because they’re not spending as much time on site trying to figure out what’s wrong.” 

Hear the full Eliminating Pain Points at the Pump for Your Customers conversation here.

Next up in The Future of Filling Up: Faster, Easier, Frictionless webinar series: 

Fuel Inventory Variance Control: Why Speed and Precision Matter | April 24 | Register Here 

From Chaos to Clarity: Demystifying Fuel Logistics | May 22 | Register Here 

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.

Searching for Complete Visibility 

It’s safe to say technology adoption is having a major moment in the retail and commercial petroleum industry as retailers and logistics experts search for ways to streamline their current processes. Large retailers in particular are leading the shift from managed services to SaaS platforms in an effort to automate their processes while still maintaining control over their data.  

Companies that outsource their services or have multiple platforms for each workflow are finding that these platforms don’t speak to each other, leaving their data siloed. Unintegrated data and platforms can create gaps in information and even hide inefficiencies and warning signs. While consolidating multiple solutions onto one platform can give greater data visibility, many managers find themselves wondering what gaps they should be looking for. So what do you do when you don’t know what you don’t know? You conduct a gap analysis.  

Finding Your Blind Spots 

A gap analysis helps companies and department managers identify holes in their processes and establish a plan to solve for those blind spots. By engaging with a partner such as Titan Cloud to conduct a gap analysis, companies get an outside perspective, which helps spot inefficiencies or concerning trends more easily than managers who are closest to the projects. Titan’s Professional Services team has conducted numerous gap analyses for our customers, ranging from release detection to fuel management projects. Partnering with Titan gives our customers confidence in their processes and results, so they know for sure that nothing is slipping through the cracks.  

A Timeline for Success 

When customers come to us with specific projects or problems they need help solving, our Professional Services team immediately begins working with them to gather information and coordinate an action plan. Every customer receives an Account Manager (or two depending on the scope of the project) who will act as your point person throughout the process. We give our customers the flexibility to choose their level of involvement, so they can be as hands-on as they want. Typically, customers begin with weekly calls with their Account Manager, which can taper off to semimonthly or monthly as time progresses.  

The gap analysis itself takes around one month to complete, giving the Professional Services team time to identify issues, determine scope, and create a plan to solve the problem. By the second or third month our customers start seeing their gaps close and improvements in their processes and department.  

For example, one of the U.S.’s leading fleet and logistics companies was experiencing problems with facility inspections but couldn’t identify the root cause of the issues. They came to us looking for answers, so our Professional Services team worked with their third-party vendors to pinpoint the issue, gather missing information, and bring resolution within a few months. Overall, the gap analysis approach is a much faster and easier path to positive results than if customers tried to solve the problems on their own. 

Move Forward with Confidence 

As retailers consolidate their tech platforms and shift towards SaaS solutions, they may miss critical gaps in their processes.

“Many managers do a fantastic job of keeping up with changes, but some things do fall through the cracks. A gap analysis can uncover some things you just didn’t think of,” stated Jon Marinas, Titan’s SVP of Compliance Services. 

That’s why Titan Cloud is proud to offer Professional Services that help our customers find solutions to problems, so they can run more efficient, profitable businesses.

Interested in Getting a Gap Analysis for Your Company? 

Get in touch with your account manager and one of our specialists will reach out to discuss how we can help.