RFID Prevents Fuel Theft

RFIDSwitchboard.com recently published a story on RFID in the fuel industry. It’s no wonder fuel thieves have gotten more brazen, with gas prices well over $4 per gallon.

Theft, or “shrinkage” in the industry, usually accounts for about 6 percent of the costs for companies like Exxon, according to the article. This was the figure when gas was $2 per gallon, and the chunk of revenue to cover shrinkage in the supply chain is expected to increase accordingly.

As author Erik Wood points out, “If you consider that ExxonMobil alone took in a cool $347 billion in revenue last year, 6% of that is a pretty big number.”

With active RFID technology being introduced into the equation, shrinkage is greatly reduced and billions of dollars are saved.

How does this work?

Jeff Schaengold explains in a 2006 article, that: “The same sensor-based technology used in refineries and chemical facilities to measure and monitor flow of liquids is applied to monitoring truck fuel consumption.

“RFID coupled with GPS provides real-time tracking of the truck movements as well as idle time when the engine consumes fuel instead of shutting down.”

RFID tracking has also had indirect benefits in the industry, including fewer transportation vehicles and drivers required to carry the extra supply, and prevention of grade mixing – both costly concerns.

See the original article for more information.

Would an RFID tracking solution save costs in your company?

Dynamic Computer is a great source for RFID information and can help you evaluate how RFID could enhance your operation. We provide comprehensive and customized RFID solutions from concept, through testing, to implementation!

Visit the Dynamic Computer Corporation Web site or call 248-473-2200. We offer an RFID Demo tour where you can experience the technology in action! You can visit us and request a tour of our facility at 23400 Industrial Park Court, Farmington Hills, MI 48335.