It’s 2024. We shouldn’t even be talking about needing modern software to run a complex business like fuel distribution. But one glance around, and it’s clear that we need to.
The fuel distribution industry has been surviving on tools that are in maintenance mode or overpriced, leaving many of us operating on under-equipped networks masquerading as comprehensive platforms; however, I believe the industry is on the cusp of a significant transformation, catalyzed by software.
Defining the Challenges
Fuel distributors are facing a tough landscape, and here are the four big hurdles we see them dealing with:
- Rising costs: Expenses are at an all-time high—everything from driver salaries to fuel prices is going up. So, businesses need to be smarter and do more with less.
- Market fluctuations: The market's always shifting, and that means distributors need to stay on their toes and be able to easily test new strategies and adapt to changes fast. Got a price update? Your drivers should get it, too, in real-time.
- Fierce competition: Customers are one quick search away from switching competition. The key to loyalty is outstanding service--think Amazon with its easy ordering, online payments, real-time status updates and punctual deliveries.
- Outdated Systems: Lengthy setups, poor support and inflexible systems can cost you big time, not just in cash but in lost opportunities. So, instead of being stuck in the past, you need future-proof technology that can help you run your business your way.
To counter these challenges, fuel marketers are moving away from old-school paperwork and clunky tech to smarter dispatch systems. It’s a move that's becoming essential to keep up in a market that’s always changing and where competition is fierce.
I often cite Perry Taylor, the former president of fuel and lubricants distributor 3L Energy Solutions, who said, “If we don’t automate, we're risking a lot as we try to up our game and grow our company.”
Modern (Cloud) vs. Legacy Solutions
In the pursuit of operational efficiency, the choice between cloud-based and legacy software systems is pivotal. Here’s a breakdown of the key differences:
Now, how should you evaluate modern dispatch software? Get it wrong, and you end up with messed-up operations and spend way too much right out of the gate. Trust me, anyone stuck with old systems knows what I’m talking about.
Here are the top 12 things you need to think about before making your choice:
- Multi-business line support: Your software should seamlessly accommodate growth, managing various services like lubricants, transportation and wet hosing under one umbrella.
- Customization and adaptability: Your unique business demands a system that molds to your operations, not the other way around.
- Assessing the full costs: Always look beyond initial costs and account for maintenance, support and additional infrastructure costs.
- Speed of deployment: Seek out cloud solutions that are quick to implement.
- Reliable customer service: Post-sale support is paramount. Inquire about the team's reputation for responsiveness and ensure they’re just a phone call away for any issues.
- Smooth integration: Your dispatch software should enhance operational synergy, interfacing effortlessly with other systems like back-office/accounting tools, tank monitors and LCR meters.
- Modern interface: With today's tech-savvy workforce, outdated interfaces won’t cut it. Your software should meet the high usability standards set by consumer apps.
- Ongoing development: Investigate the frequency and quality of updates. A commitment to continuous improvement indicates a solution that grows with your needs.
- The makers behind the machine: The strength and focus of the leadership team matter. A strong engineering core suggests a product built to last and evolve.
- Independence matters: An independent provider often aligns more closely with your needs compared to a company absorbed by a larger conglomerate with different priorities.
- Engineering expertise: A robust software company typically boasts a significant proportion of engineers. A LinkedIn reconnaissance can be quite telling of the company’s true focus.
- Length of commitment: You’re not just buying software; you’re partnering for the future. Choose a system with a clear vision for the next decade, not something that’s stuck in the past.
Despite some clinging to outdated legacy systems, the industry is shifting toward smarter, more efficient dispatch solutions that help tackle everything from sky-high costs and changing markets to tough competition and outdated tech.
Picking the right software isn’t just a small decision; it’s a game-changer in pushing your business forward.
Pavan Maheshwari is the founder and CEO of FleetPanda, a San Mateo, California-based company dedicated to driving innovative fuel dispatch software solutions for fuel distributors.
Reach him at pavan@fleetpanda.com.