While many of us merely associate ‘fuel loss’ with ‘fuel fraud’, this is often not the case. There, in fact, many different types of fuel loss and they come from a variety of sources.
How we measure fuel loss
All fuel loss is measured by ‘fuel variance’: the difference between the amount of fuel that should be available in a tank versus the actual amount of fuel available in the tank. There can either be not enough fuel or too much fuel.
For smaller businesses especially, the disparity between alleged fuel and fuel storage cannot be too distinct, because there are tighter margins to adhere to. In large businesses, this fuel loss can often be accepted as a minimal cost of business. However, it shouldn’t have to be.
There are a variety of causes of fuel loss. For example, physical fuel loss can include:
- Discrepancy in fuel delivered
- Reckless driving
- Fuel fraud and/or theft
- Temperature loss or fuel tank leaks
Adjusted loss generally includes:
- Accidental issues in fuel recording
- Issues or discrepancies that lie with the software
How can we mitigate lost fuel?
We can take a variety of different measures to mitigate fuel loss in our companies. This could include:reporting should be done correctly
Incorrect reporting can often be tied to fuel fraud when, in fact, it’s often accidental. Companies should ensure that employees are taught comprehensive fuel reporting processes. They should also implement policies that ensure there is a chain of command and powers that verify and enforce fuel recording procedures.
Implementing practices, technologies, and corporate policies to prevent fuel fraud, whether internal or external
Implementing professional platforms and technologies that ensure organised methods of data tracking can ensure that fuel fraud is detected early. Fuel fraud not only includes internal fraud but also external, such as card skimming, outright fuel theft, or other fraudulent processes by somebody outside of the company.
Policies to identify fuel fraud are an absolute necessity. However, data tracking platforms back up these policies, to ensure that fuel loss, whether intentional or accidental, can be explained. This saves companies massive fuel costs in both the long and short term.
Enact regular checks to pinpoint temperature or fuel tank leakage issues
Machinery is often temperamental, and fuel may be loss due to high temperatures in transport or potential leakage. In this case, the issue needs to be identified in the data and dealt with before it becomes a larger problem.
Data platforms enable us to not only identify fuel loss but also where it’s coming from and whether the cause is a physical issue or related to a person. Blockhead Technologies’ platform STAMP Fuel is blockchain-enabled and allows companies to track and analyse their fuel, as well as provide comprehensive forecasting.
A user follows fuel loss down to the cost code, identifying the truck that the fuel loss was related to and in many cases the person who was driving at the time. This helps businesses to see a correlation, for example, between a specific vehicle and lost fuel, in a case where there may be a leakage or issue with the vehicle.
STAMP Fuel is blockchain-enabled and therefore is traceable, transparent, and ultimately secure. It can integrate with any pre-existing hardware or software and doesn’t require companies to overturn their existing processes to innovate.
Innovation is at the core of identifying fuel loss and fuel fraud in global companies. STAMP Fuel implements new technologies such as machine learning and blockchain to identify anomalies and enable forecasting. You can find out more about STAMP Fuel here or contact us here for a demo or more information.