Reduce your fleet fuel bill with expert advice
Purchasing fuel would be the main expense of running a vehicle and when you have a fleet of 80-100 vehicles it becomes an expense worth monitoring. But as topical as fuel is, it is still only one piece of the fleet management puzzle. Successful fleet management is an art and you need to be a specialist in all areas to ensure you achieve the lowest overall cost during ownership of your fleet.
To manage fuel expenses most companies with five or more vehicles decide to use a fuel card. This is because once you have more than five vehicles, trying to track your fuel costs on a credit card becomes very time consuming and you can justify the additional cost of a dedicated fuel card. Once you make this decision there are two types to choose from - a single brand card from one of the oil companies; or an independent card that can be used at multiple brands.
With an oil company single branded fuel card you can only make purchases at the locations for that company. Ten years ago this was adequate because there was a service station on every corner. But with the reduction of locations by the oil companies over this period you may find that some drivers in your fleet cannot access, especially in regional areas, the brand you have chosen.
The alternative is an independent fuel card that is accepted at a larger number of locations. These card providers have negotiated acceptance at the service stations with the individual operators. They provide convenience for drivers because they are not locked into one brand. Unfortunately for the fleet operator convenience equals cost. The monthly administration fees are higher (four times as much) with an independent card and because you are spreading the volume around you generally don’t receive any discount on your purchases.
If being a successful fleet manager means reducing the overall running cost of your fleet, then the best option for fuel purchases would allow your drivers to have a choice of locations, provide a fuel discount off the pump price and have low administration fees.
Derrick Ginger, General Manager Sales and Marketing at SGFLEETNZ, believes that a solution is available if you choose the right fleet management provider. “SGFLEETNZ can provide it’s customers with the right card solution to suit their needs. Using the right combination of single branded cards is cheaper than an independent card and can achieve discounts with every purchase.” He continues, “This is where the art of fleet management becomes a benefit to our clients. We have the industry knowledge and the resources to analyse their purchases to provide the lowest cost strategy.
Since fuel is only one component of fleet management it appears that expertise is a vital ingredient to achieving lowest overall cost.
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