Achieve Predictable Return on Investment with an End-to-End Tank Monitoring Solution

F U E L I N G B E T T E R D E C I S I O N S
Achieve Predictable Return on
Investment with an End-to-End
Tank Monitoring Solution
Oscar Rodriguez, Chief Financial OfficerWorld Telemetry, Inc.
W H I T E P A P E R
AbstractCorporate managers responsible for multiple fuel decisions. A remote tank monitoring system cantank locations need remote technology applica- meet this need. Implementing a remote monitor-tions to maximize their information use and ing system is a complex and difficult task. Toincrease the reach of their resources. Success accurately predict return on investment for suchwhen planning new remote technology projects an endeavor, planners must eliminate as muchcan be measured in terms of increased profitabili- cost uncertainty as possible. The best way toty or ROI if the planners adequately address the achieve this goal is by purchasing an end-to-endbuild vs. buy decisions required when choosing solution from a single provider.the necessary hardware, software, deploymentand integration strategy. In-house or assembled Quantify the ROIsolutions from different hardware and software Multiple business goals such as precise inventorypage vendors contain too many variables to accurately control, cost reduction and business growth sup-1predict the ROI. The cost of research and devel- port result in a more complicated ROI prediction.opment, needed skill sets and specialized labor Complexity is also affected by the types of assetsare already built into the cost of a seamless, inte- (ASTs, USTs, cardlock facilities) and the type ofgrated approach from a single-source vendor with tank data needed (inventory level, product tem-an end-to-end solution, thus assuring confidence perature, delivery notification, overfill and leakin ROI predictions. detection, etc.) Accurate prediction of return oninvestment depends on a high level of knowledgeIntroduction concerning the needs of the business and theMany tank operators limit themselves to site-spe- available options for achieving these needs.cific gauging systems for tank level and fuel mon-itoring information. Because of this, crucial oper- The challenge, when estimating ROI on a remoteational information either remains at the site level tank monitoring project, is to accurately predictor requires effort by personnel to make it avail- hardware, deployment, software and integrationable at a central location where purchasing and costs. An end-to-end solution, which provides andispatch decisions are made. Managers responsi- off-the-shelf product with an up-front cost esti-ble for operations, logistics and environmental mation is the best approach for removing costrisk mitigation often lack the information they uncertainty in these areas.need to make the best F U E L I N G B E T T E R D E C I S I O N S
Compare Build vs. Buy Decision DeploymentElements Once functionality and features are finalized,Planners can choose to "build" their own remote deployment of the new application is the nexttank monitoring solution that utilizes multiple element in the actual ROI cost determination.vendors, products and services. A more effective If planners choose the "build" method, theyand less complicated alternative is for project must, at this point, hire an additional vendormanagers to "buy" an end-to-end solution from a to perform physical installation of the pur-single source, which combines all necessary com- chased hardware. The "buy" approach, howev-ponents into a complete off-the-shelf outcome. er, requires the original vendor to perform thedeployment as part of the purchase agreement. Hardware/NetworkWhen deciding on hardware requirements for An end-to-end provider likely maintains aa remote tank monitoring solution, managers nation-wide network of certified installers.should keep in mind the main functions of This makes the deployment fast and easy,their core business. These could include meas- while maintaining high quality standards.uring and protecting assets in a retail situation, Because the cost of this installation is includedoperating a truck distribution fleet or storing in the original purchase agreement, the resultchemicals. The functions of the business is a cost that is pre-determined, allowing for animpact the level of required information, easily predicted ROI.which determines hardware requirements nec-essary to the system. Planners are faced with a Softwarenumber of questions concerning ha... [download for more]