Temperature-based reconciliation delivering up to $2.1M savings
- Location
- Nevada, USA
- Year
- 2016
- Engagement
- Profitability Improvement: Supply Chain & Logistics
Non-hub airport in tourism-heavy city, servicing both commercial and private flights. Large temperature swings in JET A created significant variability in conversion from dispersed pounds to net standard volume (barrels, $). Airline flight schedules led to significant differences in effective cost of fuel.
Our team identified gaps to best practices for fueling, temperature measurement, accounting and reconciliation. We developed 20-week improvement roadmap to capture and utilize temperature data for more accurate conversions. We created tools to monitor temperature collection and proper cost allocations.
Measurable impact
$2.1M
USD $1.3m-$2.1m annualized savings upon implementation
Aviation
Measurable impact
$4
Corrected misallocations of fuel costs by up to $4/flight
Aviation
Case snapshot
Improved relations between 4 major carriers and third-party fuel services vendor
Aviation