In the diesel fuel business, it is all about pennies.  Fifteen, twenty years ago a price increase of a penny was a big jump and there were sequences of days when fuel prices did not change.  So, when I saw the video on the link below about the National budget it really struck a chord.  I get pennies and often spend time on the far right side of the decimal but when you get up in the millions, billions and trillions frankly it is harder for me to conceptualize.  I thought this would be a great way for my kids and their friends, not to mention my coworkers, to understand the numbers we are hearing about in the news.

What I did not expect is one of the responses I got back from a friend of mine.  She requested that I not send her any more political emails. Now, I admit, I can get on my dad’s soap box and rant a bit with the occasional unsolicited opinion about the current world order.  What a scary realization- I did not even notice a political bend to the video.  If you click on the link it does show the President pledging to reduce the National budget by $100,000,000. My first response was applause and frankly, so was my last response.  (Again I like pennies, so saving even a $0.0025 is good by me!)  What my friend, who tends to lean a little more left then I do, saw in the first 15 seconds was an attack on the President and that framed her opinion of the video, not the remaining minute, twenty three seconds.

I have watched it a number of times and if it were done 3 years ago and the President at that time was featured in the first 15 seconds, I realize that I would have considered it political too.  This would have been compounded by the fact that my leftward leaning brother-in-law is the one who shared it with me!  It really is just a great learning tool.  I am a huge fan of learning, but realize my genetic skepticism would have made me miss this opportunity too.  What a great lesson for me about education.   Information is good, regardless of who shares it with you.  I still applaud budget cuts wherever we can get them, especially since we just sent in our latest donation to the state and federal government…. don’t even get me started….

 http://www.wimp.com/budgetcuts/

My Best, Mary

Mary Fleet Manager Wall DeWitt, diesel, economic recovery, fleet, fuel price increases, petroleum, policy

1. The use of a fleet card eliminates the need to carry cash

Increasing the level of security felt by fleet drivers. Aid’s in the elimination of fraudulent transactions from occurring at a fleet owner or manager’s expense. If you use credit cards that’s great except for the fact that your drivers can purchase non-fuel items  i.e. coffee, soda, etc. Hopefully, you don’t carry a balance otherwise you’re paying at least 8% – 21% in interest.

2. Control

Superior controls such as; product controls, Gallon limits, Setting the number of transactions per day/week and e-receipt functionality. Suppose you have a fleet of diesel trucks, you know your fleet needs to fuel up (3) times per week, approximately 50 gallons per transaction.

If you use credit cards or cash your not accounting for the “extras” that get thrown on to the bill. i.e. candy bar, coffee, etc. If you’re like some companies you ask for receipts, which is great! However, now you need someone in the office to go through each receipt to reimburse your driver for the expense.

With fleet cards you can set the parameters to ensure that your employees only purchase diesel fuel a maximum of 3 times per week, up-to 50 gallons per transaction.

3. Consolidated reporting

Which do you prefer 1000 fuel receipts to review or two pages of all your transactions for the past week itemized out and broken down by department or cost center. Tough choice.

4. Commercial locations

DeWitt Petroleum also operates a couple retail locations and every couple of months we hear a report that “someone” drove their truck into a pole, canopy or backed into another consumer filling up. For this reason, came “Commercial fueling locations”. Of which, the benefit is a large location that offer plenty of space for large diesel trucks to pull in and out of. Not to mention faster pumps and better coffee.

5. Volume discount programs

Monthly volume is key. Consolidate all of your fueling to one vendor to maximize your volume and buying potential. On another note equally important, if you can’t pay according to the terms under which the volume discount is given then don’t expect a discount.

Jonathan Fleet Manager Wall cards, commercial locations, control, fleet, reporting, volume

Our Fleet

Every few weeks I meet individually with the managers at DeWitt. Topics vary from personnel to personal. On Friday, I met with Scott our Transportation manager. He is responsible for all things fleet, which right now happens to include planning our compliance with the California Air Resource Board (CARB) Statewide Truck and Bus Regulations. Like many of our customers, we have a fleet of vehicles that need to meet the first level of compliance by December 2010. As Scott and I reviewed the rule and the “age” of our fleet, my frustration level rose. (If you haven’t calculated the age of your fleet – here is the link – On-Road Trucks Average Calculator.)

Now in our business, we deal with pennies, so if we can suck one more day, week, month or year out of a paid for asset, we will. What these new rules mean is that we will have to “retire” some of our fleet before their useful life is up in order to be in compliance.

Last month at the California Petroleum Conference put on by CIOMA (www.cioma.com), James E. Enstrom, Ph.D, M.P.H. and Dr. John Dale Dunn, M.D.,J.D. spoke during lunch. The title: Junk Science: The Politicization of Science for Regulatory Overkill. It is the contention of these two gentlemen, that the public health research that is the foundation of this regulation has severe scientific deficiencies. While I climb onto the soap box I borrowed from my dad, I have a disclaimer. I like clean air. I have two kids, who love being outdoors. I want clean air. But I also want to feed them, clothe them and put a roof over their heads, none of which can happen without trucks getting products to market. The environmental community, in their zealous pursuit of clean air has resorted to suing states and regulatory agencies based on the Clean Air Act of 1990. This act has the noble idea of cleaning the air with no consideration of economic consequences. Bad science with no concern for the economic consequences is a very bad combination.

I had to cancel my attendance at the CIOMA meeting, but there is another opportunity to hear Drs. Enstrom and Dunn coming up in a few weeks. (California Dump Truck Owners Association – CDTOA Flyer). I know we are not likely to avoid this train wreck – the Diesel Fleet Rules, but if we all just spend a little energy, we may make this state better for our kids. A clean one yes, but a financially viable one as well.

My Best,

Mary

Mary Fleet Manager Wall CARB, CIOMA, clean air, fleet, Truck and Bus Regulations

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.

Bobby Fleet Manager Wall costs, cut, driver, enforce purchase limits, fleet, Fleet Cards, flexible, fuel, policy, program, unnecessary