Improve Margins with MyTankInfo’s Fuel Inventory Forecasting Program
A potential annual cost savings of over $20,000 is possible with the installation of MyTankInfo at just one fuel site! As a savings example, let’s look at the largest opportunity; Increasing Fuel Margins, and how YOU can accomplish this…
Recently it was published that daily fuel price volatility prior to 2004 had swings of 3 cents or more only 6% of the time, while 5 cent swings were 1.5% of the time. From 2004 to today, 3 cent swings have been occurring nearly 50% of the time and 5 cent ones just over 25% of the time. Fuel buyers that rely on manual processes, spreadsheets, and sub-standard industry practices risk buying loads on the high end of a price change. These swing amounts can make even the best supplier negotiation seem meaningless, at least in terms of margins.
Whether you manage your fuel replenishment personally or it is managed by a trusted jobber/supplier is a business decision everyone must make. Regardless of which method you choose, there is technology available today from MyTankInfo to measure your/their effectiveness. No offense to my jobber/supplier friends but too many times I’ve seen owners sitting on 20+ days of premium inventory. It’s important to note that there can sometimes be a rub between an owner’s need to optimize their fuel inventory and a jobber’s need to optimize his fleet.
Software for monitoring fuel inventories, measuring you site’s fuel demands, coupled with understanding the timing required to receive a load and lastly, and likely most importantly, visibility to market dynamics are all factors that need to be considered when managing volatility. MyTankInfo’s solution was specifically designed to give visibility to all of these challenges in one place.