Petroleum marketers are taking advantage of technology to automate or otherwise streamline several aspects of their business. So it is not surprising they are welcoming the electronic Bill of Lading (BOL) for accurate invoice processing. The BOL supersedes the delivery receipt used in verifying where a delivery was made and how much commodity was dropped, as well as providing the information needed for inventory adjustments. The manually prepared delivery receipt too often has errors that result in significant rework. For example, incorrect identification of the supplier likely results in error in the cost or price of the delivery and necessitates time-intensive correction. The BOL reliably reports the supplier, products purchased, quantity of gallons pulled and terminal — all vital data in determining how much is owed to which supplier and the value of the fuel involved. Electronic BOLs — often accessible within minutes of the load being lifted at the terminal — further improve business by automating and streamlining accounting processes. They make possible justification of the quantity invoiced with that delivered, as well as capture of correct valuation, all in real time. This capability eliminates errors common in manual processes and results in faster, accurate invoicing that ultimately improves the marketer’s cash flow and profitability.

1. Speed and Accuracy
Deliver on the Promise
August 2011 / White paper
by Cathy Duncan
Make the most of your energy
SM

2. Summary
Executive summary ..................................................................................... p 1
Introduction ................................................................................................. p 2
Delivery receipt ............................................................................................ p 3
Bill of lading ................................................................................................. p 4
Conclusion .................................................................................................. p 5

3. Improved cash flow via electronic bills of lading
Executive summary
Petroleum marketers are taking advantage of technology to automate or otherwise
streamline several aspects of their business. So it is not surprising they are
welcoming the electronic Bill of Lading (BOL) for accurate invoice processing.
The BOL supersedes the delivery receipt used in verifying where a delivery
was made and how much commodity was dropped, as well as providing the
information needed for inventory adjustments. The manually prepared delivery
receipt too often has errors that result in significant rework. For example, incorrect
identification of the supplier likely results in error in the cost or price of the delivery
and necessitates time-intensive correction.
The BOL reliably reports the supplier, products purchased, quantity of gallons
pulled and terminal — all vital data in determining how much is owed to which
­­
supplier and the value of the fuel involved. Electronic BOLs — often accessible
within minutes of the load being lifted at the terminal — further improve business
by automating and streamlining accounting processes. They make possible
justification of the quantity invoiced with that delivered, as well as capture of
correct valuation, all in real time. This capability eliminates errors common in
manual processes and results in faster, accurate invoicing that ultimately improves
the marketer’s cash flow and profitability.
Improved cash flow via
electronic bills of lading
White paper on Invoicing Speed and Accuracy | 01

4. Improved cash flow via electronic bills of lading
Introduction
Over the past year, a number of petroleum marketers have spent significant effort
improving the logistics side of their business. A fair majority now monitor inventory
levels through automated processes to determine the optimum time to deliver fuel
and avoid run-out. Others have invested in sophisticated on-board truck hardware
and software for communication, optimizing drivers, trucks or common carriers.
When deployed correctly, both areas have shown some real return on investment.
But the heavy lifting isn’t over when the fuel is delivered and “post delivery”
improvements are drawing some real attention as marketers are making a real
push to gain greater efficiency.
Marketers looking for the next big wave of improving profitability are drilling down
now on getting the details right in the final phases of their fuel transactions.
Processing an invoice may sound simple, but if the details aren’t perfect, there can
be a cascading impact on all concerned parties. Two key documents control the
accuracy of those details: the delivery receipt and the bill of lading.
White paper on Invoicing Speed and Accuracy | 02

5. Improved cash flow via electronic bills of lading
Delivery receipt
Delivery documents are generated by the driver or
Marketers are discovering that equally important
carrier and enable billing and accounting staff to
(perhaps more so), is the bill of lading. The Bill of
verify where a delivery was made and the number
Lading (BOL) is the only document that can be
of gallons that were dropped. Now they know
reliably used to determine the accurate gallons
who and what to invoice. If it is a company-owned
pulled, the supplier, terminal and actual products
retail outlet, they know how many gallons to add
that were purchased. It’s the real driver of what
to that location’s inventory and reconcile that all is
is owed to the supplier, the price of fuel for the
in balance.
invoice and the value of the fuel being placed in
the tanks at a retail location.
Unfortunately, the driver doesn’t always get the
details correct. While the chance of error on
where the delivery was made is low, the chance of
transposed gallons, incorrect products, the wrong
supplier or terminal on a delivery document is too
often at an unacceptable rate. When any of these
go wrong, the true amount of re-work to correct
these transactions can be surprising.
In a simple example, driver paperwork is processed
but the wrong supplier is on the paperwork.
Perhaps it is the original supplier the driver was
supposed to use, but they were out of product
and he had to use a different one. When
accounting processes the paperwork using an
incorrect supplier, it is highly likely that the price
is not the same. This results in either a customer
billed at the wrong price or inventory at the
store being costed at the wrong value. This
error often doesn’t come to light until the real
supplier invoices your company and the mistake
is uncovered. Hours of research and correction
time later, the transaction is finally right but with
a delay in collecting from the customer — which
impacts cash flow.
White paper on Invoicing Speed and Accuracy | 03

6. Improved cash flow via electronic bills of lading
Bills of Lading
Marketers are discovering that equally important
(perhaps more so), is the bill of lading. The Bill of
Lading (BOL) is the only document that can be
reliably used to determine the accurate gallons
pulled, the supplier, terminal and actual products
that were purchased. It’s the real driver of what
is owed to the supplier, the price of fuel for the
invoice and the value of the fuel being placed in
the tanks at a retail location.
The availability of electronic bill of lading data has
more than tripled over the past few years and is
often accessible within minutes of the load being
lifted at the terminal. These electronic BOLs help
automate and streamline manual processes, while
improving cash flow and profitability. Marketers
are using them to eliminate the errors in delivery
info, shorten the time it takes to accurately
invoice customers and speed collection of their
receivables. Common carriers are also using them
to ensure that the information collected for their
drivers is accurate as well. Finally, retailers are using
them to validate not only that what they are being
billed was actually delivered to their stores but
also to capture the right valuation improving store
reporting and profitability. And even better, each
are using them to present more understandable
documentation to their staff, their customers or to
archive for when the outside auditors need instant
access. This new wave may be just the one you’ve
been waiting for.
White paper on Invoicing Speed and Accuracy | 04

7. Improved cash flow via electronic bills of lading
Conclusion
Utilizing an information management system or service that creates electronic
Bill of Lading documents reduces the manual linking between suppliers and
downstream marketers and retailers; as such, it is the logical next wave in
improving the supply chain. Electronic BOLs eliminate costly paper handling and
inevitable errors associated with manual re-entry. As a result, hours a day are
shaved from accounting processes, invoicing is faster and profitability is improved.
White paper on Energy Efficiency | 05

8. ©2012 Schneider Electric. All rights reserved.
Schneider Electric USA
9110 West Dodge Road
Omaha, NE 68114
Phone: 1-800-391-1175
Fax: 1-402-255-8125
http://www.schneider-electric.com
August 2012