Red-Flag Accounts for Unprofitability

Fuel Delivery Efficiency Analysis Series: Red Flag Accounts

This article is part of our series on fuel delivery efficiency. Tank Utility offers every customer our detailed Delivery Efficiency Analysis Report using their delivery history data. The report helps fuel suppliers to benchmark their performance and find ways to improve efficiency and reduce costs.

Fuel Delivery Efficiency Series:

  1. Fuel Delivery Efficiency Analysis Overview
  2. Average Drop Size – Actual vs. Ideal
  3. Avoidable Delivery Costs
  4. Accounts Where Heating Degree Days Don’t Work
  5. Run-Out Review
  6. Red-Flag Accounts
  7. New Customer Check-Up

Red Flag Accounts

The opposite of a run-out is a zero-fill stop. While run-outs have their own negative consequences, most notably decreasing customer satisfaction, zero-fill stops lurk silently – the expense of a delivery without any benefit.

Zero-fill stops can happen when a customer refuses delivery or when there is a problem getting to a tank to fill it or most commonly, when the tank is still too full to fill (or take less than 5-10% of tank capacity).

Red-Flag Accounts for Unprofitability

In the chart shown above, these 10 accounts were flagged for zero-fills or small-fills (less than 10% of capacity) with the estimated costs of those deliveries rolled up. These 10 accounts alone potentially have net losses of over $300 each, but over 200 accounts in total from the analysis were flagged to be at risk of not being profitable. Using a tank monitor would help eliminate any attempts to deliver to a tank that is too full.

Delivery Efficiency Analysis