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Corporate managers responsible for multiple fuel tank locations need remote technology applications to maximize their information use and increase the reach of their resources. Success when planning new remote technology projects can be measured in terms of increased profitability or ROI if the planners adequately address the build vs. buy decisions required when choosing the necessary hardware, software, deployment and integration strategy. In-house or assembled solutions from different hardware and software vendors contain too many variables to accurately predict the ROI. The cost of research and development, needed skill sets and specialized labor are already built into the cost of a seamless, integrated approach from a single-source vendor with an end-to-end solution, thus assuring confidence in ROI predictions.
Introduction
Many tank operators limit themselves to site-specific gauging systems for tank level and fuel monitoring information. Because of this, crucial operational information either remains at the site level or requires effort by personnel to make it available at a central location where purchasing and dispatch decisions are made. Managers responsible for operations, logistics and environmental risk mitigation often lack the information they need to make the best decisions. A remote tank monitoring system can meet this need. Implementing a remote monitoring system is a complex and difficult task. To accurately predict return on investment for such an endeavor, planners must eliminate as much cost uncertainty as possible. The best way to achieve this goal is by purchasing an end-to-end solution from a single provider.
Quantify the ROI
Multiple business goals such as precise inventory control, cost reduction and business growth support result in a more complicated ROI prediction. Complexity is also affected by the types of assets (ASTs, USTs, cardlock facilities) and the type of tank data needed (inventory level, product temperature, delivery notification, overfill and leak detection, etc.) Accurate prediction of return on investment depends on a high level of knowledge concerning the needs of the business and the available options for achieving these needs.
The challenge, when estimating ROI on a remote tank monitoring project, is to accurately predict hardware, deployment, software and integration costs. An end-to-end solution, which provides an off-the-shelf product with an up-front cost estimation is the best approach for removing cost uncertainty in these areas.
Compare Build vs. Buy Decision Elements Planners can choose to "build" their own remote tank monitoring solution that utilizes multiple vendors, products and services. A more effective and less complicated alternative is for project managers to "buy" an end-to-end solution from a single source, which combines all necessary components into a complete off-the-shelf outcome.
Hardware/Network
When deciding on hardware requirements for a remote tank monitoring solution, managers should keep in mind the main functions of their core business. These could include measuring and protecting assets in a retail situation, operating a truck distribution fleet or storing chemicals. The functions of the business impact the level of required information, which determines hardware requirements necessary to the system. Planners are faced with a number of questions concerning hardware:
Which hardware provides the needed information? What hardware is compatible with multiple tank types? Must the hardware be intrinsically safe in the needed applications? What certification standards must hardware meet? What back-up systems are needed? Mere knowledge of available hardware capability is usually insufficient when predicting ROI. Comparing hardware integrity to required tank asset functionality is a necessary component of ROI prediction and requires specialized experience to assure accuracy. A single-source vendor offering an end-to-end solution can provide a proven hardware network that takes data and asset needs into consideration and provides a reliable estimation of the necessary network costs.
Deployment
Once functionality and features are finalized, deployment of the new application is the next element in the actual ROI cost determination. If planners choose the "build" method, they must, at this point, hire an additional vendor to perform physical installation of the purchased hardware. The "buy" approach, however, requires the original vendor to perform the deployment as part of the purchase agreement.
An end-to-end provider likely maintains a nation-wide network of certified installers. This makes the deployment fast and easy, while maintaining high quality standards. Because the cost of this installation is included in the original purchase agreement, the result is a cost that is pre-determined, allowing for an easily predicted ROI.
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