1. Oil Pilferage:
Oil pilferage is one of the primary concerns for all oil companies. If we believe the reports given by government officials, a significant percentage (about 40) of kerosene is diverted out of the PDS and sold at higher prices. In spite of various measures taken by oil companies, the pilferage/ sabotage incidents could not be controlled. Oil companies are facing a major concern due to increased pilferage/sabotage incidents.
2. Route Deviation:
One of the most important challenges that oil companies face are to keep monitoring the route covered by drivers while taking oil from oil storage locations to wholesalers. The existing manual information and control system to keep diversions and leakages in check is completely ineffective. These companies need a solution which can inform them about movement of the tanker in real time to help them find out where the leakage is happening.
3. Sub-Optimal fuel mix:
The indirect losses from use of sub-optimal fuel mix are very large and may harm the economy significantly in the long run. The kerosene oil intended for the poor, is in fact not reaching them in a proper way and sometimes they are forced to buy the same kerosene allotted to them at a higher price from retailers.
4. Unauthorized Stoppage:
All oil companies face a variety of transport related issues including late deliveries due to unauthorized stoppages and route deviations, growing number of road accidents mainly due to over speeding which results in a great financial losses. Without a good monitoring device, transport owners who run tankers never know where the tanker is at a given point of time. In case a tanker loses track, there is no way to reach the driver.
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Tanker drivers, especially in Asian countries are generally irrational and only a monitoring machine mounted on the vehicle can make them follow speed and route instructions very honestly.
5. Lack of transparency:
Lack of transparency in the whole operation is one of the major concerns which can only be possible if oil companies has central database where users would be able to see the status of vehicles on digital maps, along with MIS reports and receive real-time alerts on mobile devices whenever required.