FUEL CONTROL, WHAT ARE YOUR CURRENT CHALLENGES?
Three key points to keep in mind:
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June 2021
Can you imagine risking the logistics of an operation that invests 22 million dollars in diesel, per year, due to ineffectiveness in controlling the use of fuel? It happened in Colombia, where a company had several administrative processes and dozens of employees, including coordinators, supervisors, and directors, on top of the transportation of its raw materials. There was mistrust in the way the activity was being carried out and a great need to improve control.
In this story, the coronavirus pandemic changed their plans.
Concentration of functions with few staff members
If the Covid-19 pandemic taught humanity something, it is that any plan can change and must adapt. Many companies started 2020 with high expectations and ended with profound changes in their organizations to guarantee stability. Only in Latin America and the Caribbean, the International Labor Organization, ILO, estimated that 34 million people lost their jobs in 2020. In the world, according to the same ILO, the record reached 114 million people. This harsh reality forced companies from various economic sectors to lay off dozens of their collaborators, concentrate and simplify tasks and processes. In the fuel supply chain, it was observed how the same person had to assume: the control of the fuel dispensing, the tracking and logging of vehicle working routes, the monitoring of inventories, and a long list of additional functions. For example, the station manager’s position is abolished, and those tasks pass to the warehouse manager, who now must be responsible. A single person doing the work of three.
Behavior of some of the team members
There is no doubt that the pandemic also affected various human needs to unimaginable extremes. The shortages increased and, in a few cases, some employees were tempted to balance their situation with the sale of fuel. For this reason, businessmen from various sectors recognized that in their operations, theft of fuel or improper manipulation of records of fuel dispensed were recorded. Although the amount of fuel stolen or out of order from inventories is impossible to quantify in companies around the world, it is a reality that this is experienced daily.
Robust and effective technologies
Fuel control systems need to be incorruptible, easy to operate, with easy-to-understand indicators and reasonable prices for the number of resources to protect. Fuel is between 40 and 60% of a company’s operating costs, depending on the activity it carries out. Therefore, it is necessary to invest cents to take care of millions. The challenge is to create inexpensive, easy-to-install technologies with a long service life of no less than 10 years; with centralized control that facilitates its monitoring in real-time anywhere in the world. At Control IMS LLC, after 12 years of experience, we are sure that fuel management automation generates about 3% savings after installation.
How was the company situation resolved?
Back at the company that we told you about at the beginning of this blog, the situation of the Colombian company changed with a decision: to go from manual information to automatic information, keeping the process in few hands. Administrative processes were optimized and delays were removed from manual operations. In the first four months of the project, the company determined that 30 people were involved in this misconduct and were sanctioned or released from employment. The human resource improved, and the statistics and information of the processes became real. Another important collateral result: the reduction in the cost of the diesel operation: it fell by 16%, that is, US $ 3,520,000.
Conclusions:
While the pandemic reduced staff at companies, it boosted automation processes and efficiency. For the current challenges faced by companies in fuel control, there are effective solutions at reasonable costs for the rate of return they generate. Now the challenge is to find the option that best suits the needs of your company: Do you accept the challenge?
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Efficiency in fuel control. To invest cents to win dollars
To experts in this matter, fuel control demands an investment that can change depending on the country, the customer’s needs, and the company hired to make it.
Our team of professionals will help you solve complex problems with automation technologies that will guarantee the reliability, efficiency, and safety of your operation.
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