In an industry where where every dollar counts, efficiency is essential for survival. Petroleum marketers who prioritize addressing these internal inefficiencies will find themselves better positioned for success. In this blog – we talk about the ways petroleum marketers can fix these inefficiencies.
Let’s talk about something that’s been hiding in plain sight within the petroleum industry for years: inefficiency.
Ann Pitts, who transitioned from the banking world to the heart of the petroleum industry, noticed this immediately. Here’s what caught her eye—massive amounts of money tied up in receivables. “Twenty years ago, it wasn’t uncommon to see $10 million in receivables.
Today, that figure has ballooned to $30 or $40 million,” Pitts explained. That’s a colossal sum of money just sitting there, waiting to be collected.
Pavan, CEO of FleetPanda sat with Ann to unpack why this internal inefficiency is such a problem. Let’s dive in.
The Real Culprit: Internal Inefficiencies
What’s shocking is that this isn’t due to external factors, like economic downturns or uncooperative customers. It’s internal. According to Pitts, “67% of past-due invoices are caused by problems within a company’s own systems.” Let that sink in for a moment.
More than half of these payment delays come from avoidable internal errors—issues like miscommunication between departments, outdated processes, and human error.
Think about it: sales makes a promise, dispatch doesn’t follow through on time, billing gets the wrong numbers. This cascade of errors creates a real problem. It’s not just a minor inconvenience—it's hurting cash flow, profitability, and growth.
“If your departments aren’t aligned,” Pitts adds, “you end up with invoices that aren’t right. And guess what? Customers won’t pay them.”
That’s not just inefficient. That’s deadly for a business that relies on precision.
The Opportunity in Inefficiency
Now, here’s the twist. While inefficiency is plaguing the industry, it’s also the biggest opportunity for growth. Pavan looks at these inefficiencies and sees a gold mine of potential.
“This industry has been around for over a hundred years,” Pavan says, “and while it’s robust, it’s also riddled with inefficiencies. The potential for improvement is massive.”
Pavan is particularly excited about digital transformation. Many petroleum marketers still use paper-based systems and manual processes—things that might have worked in the 1970s but are woefully outdated today.
According to him, the answer lies in automating workflows—syncing dispatch, billing, and inventory in real time. It’s not just about reducing human error; it’s about completely rethinking how these businesses operate.
How to Fix What’s Broken
So, what exactly is broken, and how can it be fixed?
Manual Processes – Dispatchers are spending hours on paperwork, which leads to errors. Automating this cuts down on mistakes and frees up valuable time.
Lack of Real-Time Visibility – Without a clear view of where drivers are, what orders they’re delivering, and the status of deliveries, it’s impossible to maintain control over operations. As Pitts points out, “There’s always a question mark on where your drivers are... and that puts you in a position where you have no control over your operations.” Real-time tracking solves this problem.
Disconnected Departments – Sales, dispatch, and billing often don’t communicate effectively. That’s where errors are born. By integrating these systems, companies can ensure everyone has access to the same information at the same time.
Routing and Scheduling – Planning routes manually means lost time and money. Automating routing ensures efficiency, reduces costs, and gets more deliveries done in less time.
“Companies are missing opportunities to reduce costs and improve customer experience simply because they’re stuck in the old way of doing things,” adds Pavan.
The Bigger Picture
Both Ann and Pavan agree on one thing: the petroleum industry has a lot of room for improvement, and the companies that address these internal inefficiencies will be the ones that thrive.
As Pitts puts it, “Fuel distributors who prioritize addressing these internal inefficiencies will find themselves better positioned for success.”
Pavan adds, “In an industry where every dollar counts, efficiency isn’t just an advantage—it’s essential for survival.”
The Path Forward
So, what’s the path forward? It’s clear. Companies need to stop relying on outdated processes and start embracing automation and digital tools.
Yes, the petroleum industry is one of the most established sectors, but it’s also one where small changes can lead to massive gains. The opportunity for growth and efficiency is huge, but only if companies are willing to evolve.
The road ahead isn’t just about surviving—it’s about thriving. And for those willing to make the change, the future looks very bright.
