Case Study:

Fuel Management

Customer Challenge:

The customer operates a complex and demanding business requiring high value and high volume of fuel to be managed from initial tank purchase to the plant item, via mobile delivery tanks.

The system of fuel cards and mobile tank fuel level dips was proving to be unreliable and inaccurate, as well as frustrating for the operators.

As fuel costs begin to soar the need for accurate and error free data capture became increasingly more pressing.

Solution:

Fuel-IT technology combines the fuel card and mobile tank transactions capturing the flow of fuel from the initial purchase to dispensing into the plant item.

All data flows into the on-line system and fuel tracking and analysis is now available at the touch of a keyboard.

Rundown:

The customer has several locations spread across New Zealand where the plant and equipment operate in remote locations. Transport of fuel to the operating site is via specially built trucks which replenish their on board fuel using fuel cards.

Compounding the data capture is the requirement for the fuel used by the vehicle itself to be captured and recorded separately.

Fuel-IT produced an innovative solution using data capture technology and APP software to record all truck to plant transactions. Using APP technology meant that the transactions are automatically captured and then transmitted once the device is back in range of 3/4G wireless.

The operator is only required to ensure that the devices are connected via BLE at the start of the operating day. This is achieved by opening the unique APP, logging in and tapping the OK button showing the devices have paired.

Results:

By implementing Fuel-IT technology all fuel transactions and transfers are being captured and providing clear and concise data for the customer to manage their fuel use from purchase tank to plant item.

The policy in relation to tank stock being held in mobile tanks has changed. Through lack of monitoring capability, the mobile tanks were used on a ‘full-to-full’ basis. This meant that after every operational use the mobile tank was required to be filled, even if there was no scheduled operation in the following few days.

Fuel-IT systems showed the average daily volume being consumed and the projected number of days available in each mobile tank, this resulted in the operator being able to plan refills for their mobile tank eliminating the daily return to base for filling requirement.

Benefits:

A number of benefits have been put in place by the Customer as part of the on-going use of Fuel-IT technology:

  • The reduction in Admin time for the operators has improved productivity on operations and reduced overtime by staff
  • Has saved hours of paper based data recording reducing cumbersome and unwieldy reporting processes in the business.
  • A joint working group of Operators and Managers has seen more effective planning of fuel in mobile tanks and Operators more comfortable managing the operational fuel requirement.
  • This has resulted in;
    • Operational productivity is up by 5.5%
    • Operational overall fuel cost is down by 11.2%
  • Accurate recording of fuel used per operation has resulted in re-pricing of operations to the customer with the benefit of increased sales of operations.
  • An additional benefit to the introduction of Fuel-IT technology is reduced mileage, and therefore fuel use, for the vehicle the tanks are situated on. This has also been introduced into the sales calculation assisting the customer in increasing their competitiveness in a very competitive market.

Cost Benefit:

By reducing overall fuel use – despite increased operations – and managing fuel stock more closely the customer has seen a fuel based financial benefit saving in excess of $ 500,000 per annum

Operational costs have been reduced by less overtime and more planning resulting in competitive pricing, leading to increased sales and revenues.

General Comment:

Operators are now more comfortable in managing their fuel use both in their mobile tanks and for their trucks. The SmartMeter™ technology removes the area of human error around recording of data – or even forgetting to record transactions. Operators find using the APP technology quick and effortless.

The Smart Technology captures all transactions individually during the operational window, at the end of the day the operator simply checks the APP for transactions captured and clicks end.

Data is uploaded automatically when the device reconnects with the 3/4G network.

Fuel-IT Smart technology also captures, in this instance, out of hours transactions reducing the potential for fraudulent transactions from the mobile tank.

Outcome:

The Customer has been able to increase business and reduce cost through using the Fuel-IT Smart Technology system.

In addition, staff are more engaged in the business and providing more input as they can now participate actively in managing fuel use and cost.

The Customer has now moved forward to implement Fuel-IT systems throughout their nationwide business.