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What is the best card setup for your fleet?

May 18th, 2009
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Establishing a fleet fueling policy makes sense. After all, fuel is usually the single largest variable expense for a fleet of any size. A fleet fueling policy–carefully planned, implemented and enforced–can be a company’s most effective tool in the battle to cut unnecessary costs.

Thanks to a revolution in the electronic capture of fueling data at the pump through the use of electronic fleet fueling cards, fleet managers now have timely, accurate data they can use to battle waste and abuse.

If a driver makes a purchase outside parameters set by the manager–e.g., the driver buys premium rather than regular gasoline–this information is recorded instantly and appears on a regular billing statement along with the individual driver and vehicle number. Through the use of tools like Exception Reporting and purchase alerts managers can enforce cost-saving policies quickly, not weeks after the fact.

Six Components of a Fleet Fueling Policy.
Here are 6 basic guidelines you can use to build an effective fueling policy:

  1. Enforce limits at the time of purchase. The most effective way to enforce a fleet fueling policy is to set limits so that purchases outside the limits are not even allowed. For example, if you restrict transactions to two per day, the third transaction will be declined at the point of purchase.
  2. Restrict non-fuel products and services. Many fleet managers find it helpful to place restrictions on the kinds of products drivers may purchase. This helps to control costs, quality and consistency.
  3. Control the location, days, and times of purchases. Frequent fuel purchases made with the company card outside of business hours are a sure sign of waste and abuse. Make sure your drivers purchase fuel only during business hours, look for fuel purchases that exceed tank capacity, and eliminate multiple purchases in a single day whenever possible.
  4. Mandate one or more fueling locations to help control quality, consistency and the cost of fuel and service your drivers purchase.
  5. Encourage drivers to fuel at locations with pay-at-the-pump. Drivers will save valuable time and get on the road faster by patronizing only pay-at-the-pump locations.
  6. Stipulate the type of fuel for each vehicle. There is no reason that your all diesel fleet should ever have the option to purchase gasoline. Get one or two cards that are good for all fuels. It is easy to track. In addition, Every time a driver fills the tank with a premium or mid-grade fuel, the company wastes as much as 10¢ to 25¢ more per gallon – or approximately $2 more per tank of gas.

Communicate the Policy.
Once you have established a good, comprehensive fleet fueling policy, the next step is to communicate the new policy clearly to every driver in the fleet. Let them know that all fuel purchases will be monitored and that all exceptions, especially repeated infractions, will need to be justified. Have them sign a Fuel Card Agreement to make sure your drivers understand you company policy.

Choose a Flexible Program.
DeWitt Petroleum can help you take a critical look at your fleet, identify the areas where you have the most problems and work with you to establish a fueling policy.

Fleet Manager Wall , , , , , , , , , ,