Accounting, General, Inventory Management, Point of Sales/POS, Software

How Analytic Tools in Petrol Pump Management Can Enhance Stock Management

By | 5 Min Read

Petrol Pump Management SoftwareStock management for petrol pump is a tricky task. Fuel like petrol, diesel and CNG are easily evaporable and volatile, making it difficult to store. Consequently, the fuel stock has to be constantly monitored to track both the existing stock and the quantity that is wasted because of poor handling.

Fortunately, all these challenges can be handled efficiently by embracing technology. One such automation tool is petrol pump management software. It is a useful tool to have when it comes to stock management. This software can generate reports for item-wise closing stock, slow-moving stock, and items that need to be re-ordered from distributors. In-built analytics tools of petrol pump management software make it so easy to handle stock efficiently.

Here’s how analytics and stock management go hand in hand.

Analytic tools help petrol pump staff manage stock, plan inventory, improve fuel price risk management, and increase sales and accounting. Overall, analytical tools make petrol pumps capable of staying ahead of the curve and making informed decisions that yield positive results, from a financial and an operational perspective.

Let’s delve into the details of how analytics can enhance stock management.

 

Stock Reports and Inventory Planning

Image Credit Deccan ChronicleImage Credit: Deccan Chronicle


Petrol pump management software is capable of generating accurate stock reports which are specific to individual petrol pump requirements. If you want to observe the opening and closing stock of particular days or of days with unusually high or low number of customers, the stock report can be modified accordingly. Such reports not only help in knowing current stock volumes but also in inventory planning, studying profit margins and determining cash flow.

Inventory planning helps create better strategies for fuel handling, right from acquisition until it is sold to the consumer. It helps figure out steps at which fuel is wasted, and accordingly preventive measures can be taken. Moreover, profits can also be increased as inventory planning allows for expenditure to be set, maximise stock in demand for more supply and avoid overbuying/underbuying of fuel.

Get Assistance on Fuel Price Risk Management
Fuel price risk management is a cyclic process of decision making and implementing risk controls. It’s a mix of both financial risk management and oil price analysis. The assessment of risk is done through analysis of financial reports, fuel consumption and fuel cost calculations, among others.

Managing fuel price risk is of utmost importance for a petrol pump, as it helps them predict fuel costs changes and react to market change for negating any financial loss and stabilising the cash flow. Analytical tools of a petrol pump management software can help in assessing fuel price risk through analysis and reporting. A petrol pump can use this assessment to form strategies and defuse fuel price risk.

 

Procure Accurate Sale Report
Looking at the title above, you might be questioning what possible correlation does sale report have with stock management? It’s a valid question and the answer is, a lot. Accurate sale reports generated by a petrol pump management software can help a petrol pump analyse fuel demand and supply, the most important vertical of sales.

Analytical tools of a petrol pump management software can track and report the total fuel purchased by customers. Such information helps petrol pumps use predictive analysis to place fuel orders, based on the purchase pattern of customers. This in turn will allow petrol pumps place adequate orders and minimise excess purchasing. Since fuel can easily dissipate, having excess quantities could lead to fuel loss for the pumps, costing them financially.

Sale reports are also useful to keep a track of challan payments, maintain sales register and purchase register. These are important aspects of petrol pump operations and not doing so would adversely affect the pump profits.

Advanced Accounting with Analytics

Image Credit The BalanceImage Credit: The Balance


Accounting, the most important aspect of any organisation is improved by using analytical tools. Analytics helps in accounting by providing insights to boost competitive advantage, enhance financial reporting and manage risk. For a petrol pump, the competitive advantage comes from predicting market trends based on financial information. This enables petrol pump owners to anticipate and react more quickly to market trends that would otherwise be difficult to foresee. Financial reporting for petrol pumps is enhanced by analytics through the use of “Integrated Reporting”. Integrated reporting seeks to create “concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value in the short, medium and long term,” as per the International Integrated Reporting Council.

Integrated reporting allows petrol pumps to link diverse financial and non-financial datasets and provide more comprehensive and rigorous reporting of their performance. For a petrol pump, cross-linking of various datasets leads to a more diverse analysis of performance through sale reports, stock reports, fuel delivery reports, etc.

All set to use a petrol pump management software with analytical tools? Great move! Just remember to ask for the free demo of LePetro. This user-friendly and flexible system will provide an end-to-end solution to all your stock management needs. It’s stock management module can assess and report stock levels. Additionally, it will inform when stock needs to be reordered, and handle all the accounting needs that arise out of stock management.

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