Tank Utilization: Turning Insight Into Action
Introduction
In the last issue, we talked about tank utilization as one of the most overlooked profit drivers in propane operations.
We challenged operators to take a closer look at their tank performance—and to consider launching a tank audit.
The question now is:
Where do you start?
Step 1: Define What You’re Measuring
A tank audit is not just counting assets.
It’s about understanding performance.
Start by identifying:
Fill frequency
Average gallons per delivery
Tank size vs. actual usage
Delivery patterns (seasonal vs. steady use)
👉 The goal is simple:
Which tanks are performing—and which are not?
Step 2: Identify Underperforming Tanks
Not every tank is creating value.
Look for:
Low fill frequency
Small delivery volumes
Long gaps between deliveries
Repeated partial fills
These are your hidden cost drivers.
They increase:
Delivery costs
Labor time
Fleet wear
Without generating enough return.
Step 3: Segment Your Tank Base
Once you have the data, group your tanks:
High-performing → efficient, consistent usage
Moderate → opportunity for improvement
Low-performing → candidates for action
This step gives you visibility and control.
Step 4: Take Action
This is where most operations stop—but this is where value is created.
Options include:
Re-sizing tanks to match usage
Adjusting delivery frequency
Improving routing alignment
Engaging customers on usage patterns
Removing or relocating underperforming tanks
👉 Small changes here create real impact.
Step 5: Build It Into Your Operation
A tank audit should not be a one-time event.
Make it part of your operation:
Quarterly reviews
Ongoing tracking
Integration with routing decisions
This turns tank utilization into a managed performance lever, not a guess.
What This Means
Improving tank utilization doesn’t require new assets. It requires:
Visibility
Discipline
Execution
Operations that manage their tank base effectively:
Reduce delivery costs
Improve efficiency
Increase overall profitability
Conclusion
The opportunity is already in your system.
The difference is whether you act on it.
Because in propane operations, profitability isn’t just about how much product you move.
It’s about how effectively your assets are working for you.
Routing Efficiency: The Hidden Profit Lever
Routing Is Not Just Dispatch
Most propane companies treat routing as a daily scheduling task.
In reality, routing is one of the clearest profit levers in the business. Better route planning affects labor, fuel, vehicle wear, customer service, and even safety.
Where Efficiency Gets Lost
Small problems add up fast:
· extra windshield time between stops
· avoidable out-of-route miles
· poor tank forecasting
· rushed deliveries late in the day
· inconsistent communication between dispatch and drivers
What Better Looks Like
A better routing system should help you:
· reduce deadhead miles
· improve gallons delivered per hour
· increase driver consistency
· reduce stress on dispatch
· create a better customer experience
The Big Picture
Routing is not only an operations issue. It is a margin issue.
If your propane operation feels busy but not as profitable as it should be, you're not alone
Work With Me
If your propane operation feels busy but not as profitable as it should be, you're not alone.
Most companies lose profit in small, unnoticed gaps:
· routing inefficiencies
· underutilized drivers
· inconsistent dispatch communication
· avoidable miles and time
I work directly with propane companies to identify these gaps and turn them into measurable improvements.
What I Help With
· Route optimization and dispatch strategy
· Bulk plant and delivery flow improvements
· Safety and compliance alignment
· Leadership and team execution
Where Efficiency Is Lost Every Day
In most propane operations, inefficiency doesn’t come from major failures.
It comes from small, repeated breakdowns in execution.
A few extra minutes at the rack.
Unoptimized routing decisions.
Equipment that isn’t performing at its best.
Processes that vary from one location to another.
Individually, these issues seem minor. But over time, they add up—impacting cost, reliability, and overall performance.
The problem is not visibility. Most operators know where the issues are.
The problem is consistency.
Strong operations are built on repeatable processes and disciplined execution. When teams follow clear standards and equipment is used effectively, performance improves without major disruption.
Efficiency is not about doing more—it’s about doing things better, every day.
That starts with asking the right questions:
Where is time being lost?
Are processes consistent across locations?
Is equipment being fully utilized?
Are teams aligned on expectations?
Small improvements in these areas can drive significant results over time.
That’s the focus of The 30,000-Gallon View—identifying where operations can improve and applying practical, real-world solutions that make a measurable difference.
Because in this industry, performance isn’t built in big moments.
It’s built in the details.
Tank Utilization - The silent profit killer
April 16, 2026
Tank Utilization — The Silent Profit Killer
For the inaugural deep dive, we're going after one of the most overlooked margins destroyers in the propane business: tank utilization.
Most propane companies don't know their true utilization rate — and the ones that do are often surprised by how much iron is sitting idle. The numbers tell a stark story:
1st Edition — Key Findings Preview
Idle Tank Capacity (Industry Average) 30–40% of total tank fleet
Annual Cost of Underused Iron $50,000 – $150,000+
Excess Dispatches vs. Optimized Operations 2–3x higher than necessary
Typical Payback Period for Tank Audit 60–90 days
That idle capacity isn't just sitting there passively — it's actively costing you money. Every tank that's out in the field but underperforming represents capital that could be redeployed, maintenance that didn't need to happen, and dispatches that didn't need to roll.
What This Edition Delivers
A complete breakdown of where tank utilization fails, what top operators do differently to maximize every gallon of capacity, and a concrete 30-day information — it's a call to action. tank audit you can launch this month to start reclaiming margin. This isn't just information – is a call to action.
Across the industry, thousands of tanks are underperforming—delivering low annual volume while still carrying the full cost of installation, service, routing, and maintenance.
That’s not a sales problem. That’s an operational gap.
• Where Operations Break Down -Tanks are set without clear long-term volume expectations - Annual usage is not consistently reviewed - Routes are built around geography instead of profitability - Low-performing assets remain in place too long
• What Strong Operators Do Differently - Track annual gallons per tank and review it consistently - Identify underperforming tanks early - Align tank size with actual consumption - Make clear decisions: grow it, fix it, or remove it
• KPI Spotlight: Tank Utilization - Below 300 gallons/year → Underperforming asset - 400–600 gallons/year → Average - 700+ gallons/year → Strong performance If you’re not measuring this, you’re managing blind.
• Field Tactic: Immediate Action Run a report on your bottom 20% of tanks by annual usage. Assign each one a decision this month: - Increase volume - Resize the tank - Remove the asset No exceptions.
• Industry Reality Check Adding more tanks without improving utilization is not growth. It’s just adding cost.
• Final Thought The best operations don’t just move propane. They manage assets with discipline. Details separate a good operation from an excellent one.
Launch this month a tank audit following the guidelines for 30 days and reclaim your margins.
More to come…….
— The 30,000-Gallon View By: Marco C. Perez