Enterprise Fleet Fuel Inventory Management

Automatic Inventory Management

SM2 Fuel Inventory Management Module

The recurring task of reliably reconciling fuel and fluid inventories is both a primary objective and a difficult challenge, especially in the context of geographically distributed multiple fuel tanks or multiple fueling sites.

The challenge: Any fuel inventory management practice that involves human intervention for the capture of the data that is needed, will end up failing. Most of the time the reports are tampered with, do not really reflect the reality, and defeat their purpose.

For instance, measuring the tank level and recording the dispenser totalizers every 24 hours is an impossible task if performed by humans. Week-ends, holidays, sick days, or simply forgetfulness are among many of the reasons reading will not be taken every day of the year.

The only way to guarantee an accurate inventory tracking and inventory management is through an automated fuel management solution that is able not only to produce the necessary inventory reconciliation and daily inventory reports automatically, but also is able to read pump totalizers, fuel tank levels and fuel delivery volumes without any human intervention. Additionally, other integrated fuel dispensing and inventory management functions such as period closures, predicting when to reorder fuel etc.. would be highly desirable. Please refer to the features listed below.

This is where we come in with SM2Fuel, the fuel management module of Coencorp’s SM2 fleet and fuel management platform. SM2Fuel practically trivializes this usually arduous task by automatically capturing the information snapshots required for accurate inventory reconciliation:

Automatic measurement of volume in each tank: SM2 Fuel periodically and automatically measures and records the volume of product physically present in each bulk storage tank. Inventory measurement is highly accurate thanks to electronic probes. No human intervention is required.

Automatic measurement of product deliveries in each tank: Every product delivery is recorded and time stamped by SM2 Fuel using the same highly accurate electronic probes. Again, no human intervention is needed.

Automatic reading of dispenser totalizers: All fuel dispensers sold in North America come with a built-in readout that tallies the total lifetime volume of product pumped.

SM2 Fuel records each dispenser’s totalizer value periodically, at the same time that it records the fuel tank level. Here too, human intervention is unnecessary.

SM2 Fuel stores these inventory snapshots in the central database, where reconciliation of storage tank inventories is obtained by a single-click report covering each fueling site over arbitrary time periods (see the attached sample report).

Because the effort involved is vastly reduced, inventory managers may reconcile inventories with consumptions as often as daily, an unthinkable chore if performed manually. Thus, SM2 Fuel enables swift detection and elimination of slippage, leaks, equipment calibration drift or failure, etc.

Last but not least, SM2 Fuel also provides a single-click monthly reconciliation report in the exact format mandated by government environmental agencies (please see the attached report sample).

Operating your fueling facilities comes with the responsibility of accurately managing and reconciling your fuel inventories against fuel dispensed to detect fuel leaks, theft of abnormal inventory shrinkage.

SM2’s fuel inventory management will not only guarantee that you will always order fuel before you run out, but will generate the appropriate alarms and reports with data captured automatically and with accuracy.

Features include:

• Monthly reports with daily inventory variations vs pump totalizers

• Tank level gauging listing for tanks and generator tanks.

• Automatic log of pump totalizers transactions

• Remote tank alarms (e.g. leak, water, fuel level etc.).

• Automatic alarm notification via email or SMS text messages.

• Automatic tank level gauging and fuel delivery for tanks and generator tanks.

• Inventory reconciliation and monthly tracking of daily inventory variations.

• Remote tank alarms (e.g. leak, water, fuel level, I/O, etc.).

• Listing of inventory activity.

• Period closures.

• Total quantity of each type of fuel on hand at each location

• Total quantity of each type of fuel on hand throughout the organization

• Automatic bootstrapping function to recalibrate out of calibration tanks

• And much more ...

Typical sources of inaccuracy

In spite of all the automation to increase inventory management accuracy, there are several steps that fleet owners may take in order to maintain the best accuracy possible. The target should always be a reconciliation difference of less than 1%. Below are some suggestions that will help improving inventory reconciliation:

Pulsars/meter drift: Electronic pulsars and meters will drift gradually resulting in loss of accuracy over time. Meter inaccuracy may be compensated by proofing and running regular tests as part of your fuel dispenser preventive maintenance (every six month is a good frequency). The pulse per volume ratio can be readjusted in the fuel management system to bring the volume of fuel dispensed accuracy back.

Storage tank deformation and tilt: With time, due to seasonal weather changes, (especially in our country’s extreme temperature swings), fuel storage tanks deform, tilt or both, and introduce an error in the level measurement of the electronic probe which in turn, will have an impact on the inventory reconciliation. Traditional solutions are expensive and most of the time, disruptive to the fleet’s operation.

Fortunately, Coencorp SM2Fuel offers a non-disruptive software solution that computes and applies the compensation necessary to reduce the probe’s inaccuracy to a level that has no significant impact on reconciliation.

Compensated or non-compensated? that is the question. The answer is just a couple of simple, common sense rules:

• If the fuel dispensed is temperature compensated, then it is preferable that gauging and deliveries are also recorded temperature compensated.

• If the fuel dispensed is not temperature compensated, then it is preferable that tank gauging and fuel deliveries are also recorded not temperature compensated. The warmer and the colder period in a year will cancel most of the error due to temperature when annual reconciliations are performed.

Each have their advantages. For private fleet operators who operate fueling facilities, I recommend to perform a simple cost-benefit analysis based on their needs and objectives before making a decision as there is difference in price between the two types of equipment.

Remember: Cleaning up a fuel spill is not only more expensive than automatic inventory management, but much more importantly, it has a significant impact on the enviroment. Our planet is a unique and beautifl gift and it belongs to us! Lets cherrish it and take care of it!

Note: These recommendations based on Coencorp's accumulated experiences of nearly 30 years providing technological fleet and fuel management solutions to a variety of sectors including municipalities, mining, transportation, airports, construction oil and gas and public transits.