Bank on the Tank: 3 Biggest Cost Efficiencies for Fuel Distributors

For fuel distributors, balancing operational efficiency with customer needs is a constant challenge. Delays cost them time and money and can also create unhappy customers. In a competitive market, finding efficiencies is one of the best ways to find a competitive edge. 

The two most common methods for fuel delivery are wet hosing and on-site fuel tanks. While wet hosing can be a convenient service for customers, it is often labor-intensive for distributors and prone to downtime and delays. 

On-site fuel storage, which uses storage tanks that are designed to safely and securely store fuel on-site, offers most (if not all) of the benefits of wet hosing without the labor costs. Delivering fuel in bulk is more efficient than making multiple, smaller deliveries, allowing you to optimize routes, boost potential revenue and lower the per-gallon cost of delivery. 

It’s easy to see why the fuel tank method is growing and evolving,  with a demand for convenience and flexibility driving consumer decisions. Here are three ways that on-site fuel tanks save time and money for distributors. 

Read our full comparison guide on Wet Hosing vs Fuel Storage Tanks here. 

1. Fuel Tanks Help Free Up Distributor Resources 

Wet hosing can be extremely labor-intensive and time-consuming for distributors. Equipment and machines need to be fueled one by one, and experienced staff are needed to manage usage and forecast future needs. Equipment and machines need to be fueled one by one. 

In addition, the service is often required after hours when equipment on the site is not working or the trucks won’t be in the way of day-to-day operations, so refueling can take all night. 

For a distributor with 50 large-fleet customers, wet hosing likely requires its own fleet of drivers and trucks, resulting in a considerable amount of overhead and budgeting difficulties. Plus, the ongoing shortage of licensed commercial drivers means that relying on wet hosing for refueling can be a risk, causing delays and disruption for fuel distributors. 

In comparison, fuel tanks can be delivered ready for the customer to use at their convenience. When customers have fuel on hand, your drivers make fewer trips to the job site and spend less time there filling up multiple pieces of equipment, providing increased flexibility without impacting revenue. When time is freed up on one job, another job site can be added to the roster for fuel delivery. 

The bottom line: Using fuel tanks allows you to better balance scheduling, driver availability, and employee time.

2. Fuel Tanks Let You Maximize Route Efficiency

Route planning can be one of the most challenging tasks that fuel distributors face. They must consider customer location, fuel volume, driver schedules and delivery timeframes to effectively plan logistics and keep costs at a minimum. Likewise, driver availability and labor shortages can place added pressure on this process and disrupt the logistics planning. 

Fuel storage tanks reduce these complications, simplifying job site delivery and saving time. They can be transported already fueled; so, for distributors, it’s just a case of unloading the tank for the customer to use. It also reduces the number of pieces of equipment that need to be filled on a given job site during refueling, saving driver time. In addition, limited-access sites where wet hosing would be impossible can receive deliveries of fuel tanks at an access point and then distribute them as needed. 

Distributors can also optimize route efficiency with tank monitoring or telematics solutions. Turnkey Western Global tanks can be ordered with telematics systems installed, providing on-demand fuel level and GPS tracking capabilities among other features. 

 3.  New Tank Technology Can Provide Another Revenue Stream

Often, fuel distributors approach the tank as a free product while making a profit in the distribution of fuel. While this system may have been adequate for outdated round tanks, new technology and the demand for cube fuel tanks has led to another revenue stream for innovative distributors. 

Many distributors who recognize the value of advanced tank technology and design now provide the more advanced tank systems with no immediate cost, but rather a fuel surcharge. This billing structure provides a revenue stream that outlives the initial price of the tank. 

With new technology and equipment, fuel distributors can capitalize on the applications that truly require wet hosing service. You can efficiently and effectively serve most of your customer base with on-site tanks that allow customers to take responsibility for their own fueling demands.

Optimizing Efficiency and Revenue Streams with Fuel Tanks

Shifting to on-site fuel tanks allows distributors to save time and money by saving driver time and resources, optimizing their schedules and routes and expanding new potential revenue streams. Offering fuel storage to your customers ensures that you’re providing them with a reliable fuel source while reducing your time, labor and costs. 

Western Global has a range of fuel tanks that are popular with fuel distributors. Learn more about how Western Global tanks and fuel monitoring solutions can help fuel distributors reduce route planning challenges, or get in touch with our expert team today.