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Solution Overview: Reducing Variance with Insite360 Advanced Variance Analysis and the TLS-450PLUS ATG

[fa icon="calendar"] Dec 21, 2016 9:05:00 AM / by Veeder-Root

Veeder-Root

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A large c-store and fuel retailer with hundreds of sites was facing increased competition as other retailers opened locations in close proximity to key sites. To jumpstart business and build a foundation for growth, new leadership was brought in to streamline processes and eliminate waste throughout the organization’s fueling operations.


Challenge

The c-store was running variances of 2.4% of sales, management was not currently investigating the variances nor taking action against them. It wasn’t clear to management what the next steps should be because primary sources of the variance could not be uncovered. Adding to the confusion, the chain had a variety of aging automatic tank gauges (ATGs) that were installed at different times within the last 25 years and did not have a standardized software version or site configuration. With each site configured differently, it was difficult to validate information remotely, even in situations where no variance was reported.

Solution

The new c-store leadership turned to Veeder-Root to help get a handle on its fuel variance issues. After consulting with the c-store’s team, reviewing their current data, and understanding the needs of their business, the Veeder-Root product team proposed a solution of upgrading their network to the
TLS-450PLUS ATG and implementing Insite360 Advanced Variance Analysis (AVA) serviceAVA_Implementation_Process.png

Installing the TLS-450PLUS at sites across their network allowed them to standardize on the most advanced ATG available. With its industry leading algorithms and proven reputation for monitoring site compliance information, the TLS-450PLUS allowed them to accurately communicate uniform data to remote managers in real time.

Results

Once implemented, the team of Insite360 Advanced Variance Analysis experts began reviewing high frequency data fed through tailored algorithms, as well as, monitoring for sudden fuel loss events. When a fuel variance was identified, the team drilled in to pinpoint where and why it occurred, and were able to provide action items so that the retailer could mitigate the risk. This included steps that the analysts were able to implement immediately and recommended actions that the company executed.

With the upgrade to the TLS-450PLUS and Insite360 AVA, the retailer was able to reduce its variance from a reported 2.4% to less than 0.5% across all sites. If they sold an average of 1.3 million gallons annually, at a cost of $2.25 per gallon, then they would have removed $60,000 of expense write-offs per year at each site—representing over $12 million dollars in savings annually across their network.


See how much money you could save your business by reducing your variance. Learn more about AVA and request a consultation here.

Topics: Insite360, ATG, Solution Overview

Veeder-Root

Written by Veeder-Root