Digitisation in the Fuel Logistics Sector

As the fuel logistics market continually looks at ways to improve operational and financial performance, we talk to Gordon Hyland, Sales Director (TouchStar Technologies – Fuel Logistics Division) to discuss how a move to digitisation helps with that.  

Gordon has decades of industry experience and with his specialism in mobile computing solutions, he brings a keen technical perspective to our fuel logistics division.  

This interview is an extension to the previously published article THE FUTURE OF DOWNSTREAM:DECARBONISATION, COLLABORATION AND DIGITALISATION    

Can you give us three key issues, currently facing the fuel logistics sector and how does digitisation help to address them?  

There are a number of issues that our industry is facing, some are longstanding, while others are newer to us. Collectively, these challenges require us to constantly look at ways to improve our methods of working and the way we use data to drive better decision making.  

Picking three issues, I would say that top of the list is, changing buying habits, maintaining great customer relationships, and getting the most out of your data.  

Digitisation helps us to address all of these diverse challenges by creating new or improved operational systems and processes that are proven to impact the bottom line.  

1          Changing buying habits:  

The cost-of-living crisis has hit hard. We are seeing a big trend towards customers placing more frequent, but lower volume orders. This of course, means more deliveries to make with the same resource levels and potentially, making fewer pence per litre. So, we have to be as smart as possible in order to keep squeezing those margins. 

Using good digital data, we can make assessments about how much customers may have left in their tanks. Thus, if we get requests to deliver to one village, we can make good estimates about who else may soon needs deliveries. Sales teams can hit the phones and build up the number of deliveries to be made in an area, thus making the delivery run more efficient, with more drops per village than would otherwise be possible.  

Taking this a step further. Good visibility of customer stock levels and their buying patterns can be used to build regional and seasonal views of potential needs. Thus we can plan accordingly. Perhaps it is possible to offer better rates for warmer periods, thus reducing fleet loading during the colder times. Customers could be encouraged to order earlier, if they felt they were getting a better deal. That might be possible if you take into account factors, like reduced overtime and weekend deliveries, If they can be made at a time when the fleet is not completely maxed out during the winter peak.   

2          Customer relationships:  

When distributors receive an order, it is typical to give an expected delivery day, perhaps specifying AM or PM. Meeting these expectations are a critical element of keeping customers happy.  

With the introduction of digital geo-fences, it is possible to refine the delivery window expectations to “you are our next call” for example. Once geofences are set up in your back-office system, the Driver can automatically send messages to the person receiving the delivery, giving them an accurate estimated time of arrival. There is a saying that people don’t mind waiting, as long as they have visibility of the arrival. Uber uses this to great effect. So, clear expectation setting, good visibility and of course a follow through with meeting these criteria mean, more informed and happier customers, who feel a better sense of control over their deliveries. Additionally, this saves time for the delivery as once messaged, the person receiving the delivery can make sure they are available, gates are open, and the dog is put away.  

Similarly, we can use data to know our customer better. Key notes can be included within the delivery instructions for the Drivers. Things like, if they prefer to pay cash or card, rather than on account, or a note to remind drivers that they have previously bought additional products, and they might be upsold during the delivery process. All these things can greatly influence the perception of good customer service.    

3          Mining data to improve performance:  

There is lots of data already being collected. It is just that often it is on paper forms, tickets or even if it is digital in nature, it remains unconnected or difficult to interpret in a meaningful and quick enough way. FuelStar can show you, graphically, where your trucks are, what available product is left on board and how they are progressing through their daily schedule.  All on one screen and in real time. This allows schedulers to immediately react to any issues, reallocating jobs, or creating new ones, based on which truck has capacity, is nearest and can fulfil late or last-minute deliveries. As a result, fleet utilisation can be greatly improved. 

One customer has told us that, with their big fleet, they were driving thousands of litres of fuel in big circles, only to have to pump it off again at the end of day due to a percentage of deliveries not being competed for various reasons. They now use the insights that FuelStar can offer and by swapping delivery tasks across the fleet, again, in real time, they have significantly reduced the volumes being returned to base. So, smart data has helped them make smart decisions and create new productivity gains.  

It is thanks to data management that routes can be optimised in real-time based on traffic data, weather conditions, and other variables, ensuring timely deliveries and reduced fuel consumption. These more efficient transportation routes enhance supply chain performance, reduce delivery times, and decrease carbon emissions.    

Does AI play a big role in fuel logistics digitisation?  

AI is playing a part in nearly every technological advance now and the effective management and manipulation of data is also part of what we’re seeing here. Thanks to that, the fuel logistics sector can predict demand patterns more accurately. It is through intelligently analysing historical data and patterns that digital systems can anticipate demand fluctuations, enable better inventory management and plan more efficient transportation routes.    

What is the future of data and digitisation in the fuel logistics sector? Where do we go from here?  

I see several key identifiable trends. We are already seeing increasing Integration of Internet of Things (IoT) Devices. IoT devices such as smart meters, tank level monitors, and fleet tracking systems are becoming increasingly prevalent in the fuel logistics sector. These devices provide real-time data on fuel levels, consumption patterns, and vehicle locations, enabling better inventory management and operational efficiency.  

Secondly, as the demand for renewable energy sources grows, data and digitization will play a crucial role in the integration of biofuels, hydrogen, and other alternative fuels into the existing fuel supply chain. This includes optimizing production processes, monitoring environmental impact, and ensuring compatibility with existing infrastructure.  

Finally, digital technologies can streamline regulatory compliance processes by automating data collection, analysis, and reporting. This helps companies ensure adherence to safety standards, quality control measures and environmental regulations. The latter will continue to be a major driver of technology adoption in the business sector generally, not just in fuel.  

We have Customers who have integrated pre- and post-delivery safety processes into the Drivers workflow. This gives clear accountability and traceability on decision making in the field, ensures consistency of safety standards being applied and, again, that real time view back at base.  

How can TouchStar help me with the digitisation of my fuel delivery process?  

At TouchStar, we digitise the Drivers’ workflow for the day.  Removing the paper trail all the way from the initial order hitting the system, to dispatch and delivery at the customer, with every process of the job captured, stored and made available via search, Mapping or Dashboard.  

We have the longest established partnerships with all the ERP providers (like CDS, CODAS and FuelSoft).  So mobile data collected can be viewed either in FuelStar Back Office or any of the main back-office systems commonly found in our industry. Our systems are also innovative and based on real experience of the fuel logistics sector. They have been developed with the application of our practical knowledge on the nuances of fuel delivery and what it requires, gained from over 38 years of putting mobile computers in the cabs of fuel trucks.  

We have customers involved in Heating Fuels, Retails Fuels, Biomass and LPG distribution.  Sometimes we can learn something in one sector that can be deployed to the benefit of others. FuelStar, being a common platform across all these sectors make it a powerful and progressive toolset, which we continue to grow and enhance all the time.   Our Fuelstar solution will not only help you to digitise now, but it can also future proof your system through our innovative work and continuous investment in the solution.      

About the author – Gordon Hyland  

Gordon (54) has almost thirty years’ experience supporting customers with complex, field based, technology solutions. He has been with Touchstar Group for over seven years and became head of the Fuels Division in 2019. In his spare time he enjoys family life and his main passions are travel and skiing whenever possible.  

Contact Gordon at Gordon.hyland@touchstar.co.uk