How to Avoid Fuel Theft and Increase Profitability
Reading Time: 3 mins
For any company that sits on logistics as its major source of business, fuel is considered to be the nutrition for the vehicle. As you are aware of the fact that the crude oil is volatile in nature and the prices are never stagnant, when such is the character of the oil industry, fuel theft is a major concern which impacts the overall logistics costs and thereby increasing the cost to the company to manage and run the fleet at a regular pace.
Fuel amounts to 30 percent of the total logistics cost which is 1/3rd the cost of the total delivery cycle (from the loading site to the customer/client location). It has been observed that the industry average for fuel theft is close to 10 liters/day/vehicle. So for an individual who owns a fleet of 100+ vehicles, the loss incurred due to fuel pilferage/theft would be in 9 figures annually.
Most of the transport firms have come up with alternate solutions to address this concern, currently the logistics companies have adopted this approach wherein they shall be paying the driver on the number of kilometers he has traveled for that particular day, the companies shell out money by hiring manpower just to keep a check on the fuel expenses and manually take the odometer readings during the start and end of the trip on a daily basis. This method being an alternative is still ineffective and would not give you the exact numbers on the amount spent on fuel and how much of the fuel has been utilized.
Looking for a solution rather than an alternative? Wherein you do not require manpower but still have a check on the fuel expenses? Well, then I would suggest you to keep reading!
There are 2 main reasons for fuel pilferage/theft:
- Fuel oozing out of the tank due to a puncture.
- Fuel being stolen by the driver.
The latter being the primary reason as per the prevalent trends in the industry.
Currently, there are a very few sensors in the market that can tap the amount of pilferage/theft from the vehicle but most of them only provide you with an accuracy of 85 percent which still is better when you do not have any monitoring practice.
Did you know that curbing fuel pilferage would have a significant impact on your bottom-line and thereby increasing the profitability by at least 10-15 percent? We at IoT Research Labs have taken this up as a challenge and have come up with a state of the art technology to measure the quantity of fuel stolen/filled which gives you up to 99 percent accuracy in moving vehicles and 100 percent in stationary tanks.
So basically you would have all the information of the fuel going into the tank & coming out of the tank at any given point in time.
These are some of the benefits:
- Increased profitability by 10-15 percent
- Savings on fuel expense
- Real-time data
- Cost of manpower would be saved
- Complete information on fuel expenditure
Want to have a cerebral understanding of the solution? Do not hesitate! Just drop us a message.