Oil and Energy August 2013 - page 20

20 • OIL
&
ENERGY
Remote Monitoring
MULTIPLE STRATEGIES
Norman said Como’s initial inclination
had been to deploy monitors across half of
its propane customer base, but the company
scaled back its plans when it realized how
effectively it could schedule some types of
deliveries with degree-day monitoring and
analysis alone. “Degree-day forecasting is
doing a good enough job for half of our
scheduled delivery customers
because they are such regular
users,” Norman said.
Como has approximately
3,000 tank monitors deployed,
and most are on propane tanks
that feed primary heating systems,
according to Norman. Once Como
started monitoring customer sites,
some of its first targets were large
commercial tanks with volumes of 1,000
gallons or more. “Before we started moni-
toring, we had our drivers stopping by and
getting out of the trucks to read the gauges
and topping off,” Norman said. Monitoring
enabled Como to greatly reduce its number
of commercial drops.
Como’s back-office software is now pro-
grammed to incorporate tank monitoring
data when generating delivery tickets.
During winter, tickets typically are gener-
ated when the tank level is 25 percent.
In summer, the delivery level is set closer
to 20 percent, according to Norman.
A secondary alert can also be set so that
the delivery is scheduled for a second date
if it is not made on the first alert date. For
example, monitors can be programmed to
send alerts when the tank is 25 percent full
and again at 15 percent.
In addition to fill-level alerts, Como also
uses adecompressionalert onpropane tanks.
If a tank’s pressure reduces significantly, the
monitor sends a notification. The
WESROC equipment itself is also
programmed to send alerts when it
requires maintenance, according to
Norman.
A BETTER WAY
The benefits of remote tank
monitoring are huge for Como.
“It’s all about changing old habits.”
Norman said. “People want to take care of
customers the way they know best, and
we’ve provided a better way. Our drivers
are extremely conscientious about making
sure customers have adequate fuel supply,
and the monitors help them do their jobs so
much more efficiently.”
Even though Como monitors fewer than
20 percent of its customer tanks, the company
was able to reduce its total number of stops
by 10 percent after deploying monitors.
Como uses three primary technology
tools to improve delivery efficiency: tank
monitoring from WESROC, E3 back-office
software from ADD Systems, and
Smart Drops routing software by
Vertrax. “The tank monitors help
eliminate stops. That is their main
benefit,” Norman said. “Good
routing helps you use vehicle
assets more effectively. We have
all our accounts geo-coded, so
when the monitors pushes a
ticket, Vertrax puts it all up on a
map that the dispatcher can use.”
Como uses Smart Drops
to generate routes, but the
dispatchers make the ultimate
decisions to account for all the
variables in the delivery equation, according
to Norman. With nine offices in two states,
Como used to run nine separate dispatching
operations. The new technology has enabled
the company to consolidate dispatch in one
central location.
“We want everything transparent,
so that when we make mistakes, we learn,”
Norman said. “We pride ourselves on our
drivers’ experience. The tools are add-ons
for them that help them do their jobs better.
Success ultimately depends on communica-
tions between drivers and dispatch and
daily feedback.”
COMPETITIVE ADVANTAGE
Como uses its remote monitoring ser-
vices to differentiate the company from the
competition. “Our customers love it. They
see it as peace of mind,” Norman said. “They
don’t want to run out of fuel.” Como does
not charge for remote monitoring, instead
describing it as a value-added service.
Como provides a new customer packet that
references the remote monitoring service.
“We advertise it, and our competitors
copy it with their own claims of remote
monitoring, but nobody in our area does
anything like we do. We want customers to
know we are doing everything in our power
to make ourselves a better choice for them.”
Customer fuel runouts have decreased by 55
percent since Como deployed the WESROC
remote monitors, according to Norman.
Every new propane customer gets a tank
monitor. If data from the first year indicates
the customer’s usage is predictable, Como
removes the monitor and deploys it elsewhere.
Como planned on a five-year return on
investment on its tank monitoring equip-
ment, but the payoff took half that time. “To
us that was huge,” Norman said. The com-
pany reduced mileage driven in the first year
of full WESROC implementation by 70,000
miles and eventually reduced the fleet size.
“We wouldn’t do what we do without
remote monitoring now,” said Norman.
“It’s
that
important.”
Como Oil & Propane maintains a fleet of 32 fuel delivery trucks.
Chief Operating
Officer Will Norman.
Como Oil & Propane has 100 employees in nine
offices across northern Minnesota and Wisconsin.
A WESROC cellular unit.
A WESROC base unit and transmitter.
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