In a recent episode of The Fleet Lead podcast, Bulk Transporter Editor Jason McDaniel sat down with Gravitate CEO Mike Scharf to discuss the digital transformation of the downstream fuel supply chain. As margins tighten, the industry is moving away from a reliance on manual spreadsheets and tribal knowledge toward data-driven decision-making and AI-powered optimization.

The “aha” moment: Connecting supply and dispatch

Scharf shared that Gravitate’s “aha moment” occurred in 2019 when they realized fuel logistics cannot be truly optimized if supply sourcing and dispatch are treated as separate problems. Traditional general-purpose trucking software often fails to account for “fuelisms” like compartment-level planning, best-buy sourcing based on real-time price volatility, and complex inventory needs. This disconnect creates a “hidden tax” for carriers—a massive cost comprised of manual work, redundant data entry across multiple systems, and communication errors that slow down operations and frustrate drivers.

From manual planning to autonomous dispatch

One of the most striking points of the discussion was the impact of autonomous dispatch. While a manual dispatch plan can take 44 minutes to build, Gravitate’s AI can evaluate and recommend a plan in 90 seconds. Scharf emphasized that this technology is not intended to replace humans but to create “super-powered” dispatchers. By automating the heavy lifting—like evaluating trade-offs between thousands of sourcing and routing options—dispatchers can focus on managing exceptions, building relationships, and making higher-level judgment calls during market disruptions or weather events.

Crossroads: An open “Android-style” network

To solve the industry’s “integration burden,” Scharf detailed the vision for Crossroads, a common connectivity layer designed to eliminate the need for expensive one-to-one custom data links between retailers and carriers. Unlike closed systems, Scharf described Crossroads as an open network—more analogous to Android than Apple—where any carrier can connect their preferred TMS to share real-time data, BOLs, and invoices with their customers.

The risk of staying put

With major fuel retailers like 7-Eleven, Sheetz, Love’s, and Casey’s already leveraging these digital tools, the competitive landscape is shifting rapidly. Scharf warned that the greatest risk for carriers today is not just aging software, but falling behind rapidly increasing customer expectations for real-time visibility and data quality. “Technology in today’s world is really becoming a competitive advantage,” Scharf noted, urging carriers to embrace these tools now rather than waiting for the market to flip.

To hear the full discussion on how AI is removing waste from the fuel supply chain, listen to the podcast episode above.

Time stamps:

• 01:55 — Gravitate’s market footprint: Jason McDaniel lists the industry leaders currently using the platform, including 7-Eleven, Love’s Gemini, and Casey’s.
• 02:35 — The origin story: Mike Scharf discusses the transition from refinery consulting to solving “below-the-rack” fuel logistics by accident in 2019.
• 04:40 — Data-driven decisions: The shift from relying on “tribal knowledge” to using real-time data to manage price volatility and operational complexity.
• 08:14 — The “aha” moment: Why generic freight tools fail the fuel industry and why supply sourcing must be integrated with dispatch.
• 10:30 — The hidden tax: A breakdown of the invisible costs carriers pay in manual rework, phone calls, and system disconnects.
• 12:45 — Understanding fuelisms: A deep dive into the complexities of compartment-level planning and best-buy sourcing.
• 14:44 — Autonomous dispatch: Defining AI’s role in the industry—not as a replacement for dispatchers, but as a “superpower” for managing exceptions.
• 18:20 — The 90-second plan: The operational value of being able to re-optimize an entire fleet’s route in under 2 minutes.
• 21:50 — Leveling the playing field: How specialized technology allows mid-sized and smaller fleets to compete with giants by meeting high data expectations.
• 26:15 — The Crossroads vision: Addressing the “integration burden” with an open, “Android-style” connectivity network for the whole industry.
• 30:27 — Debunking AI misconceptions: Reality vs. hype—why AI is a tool for practical constraint-solving rather than a “black box.”
• 34:30 — The risk of staying put: Why falling behind customer expectations for real-time visibility is the greatest threat to carriers today.

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