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.