Archive for the ‘Fuel Management’ Category
By Conor Proud - July 28th, 2010
A lot companies set up deals with their fuel vendors through what is known as “direct billing”. With direct billing you are paying a certain vendor directly at the end of the month or biweekly instead of through your fuel card provider. The benefits of this can be a couple of things such as:
- Setting up discounts with your vendor
- Bypassing transaction fees and other charges
- Avoiding third party
If there are any negatives to direct billing it would be the confusion it may create. I’ve noticed with some of my clients they get confused between their direct billing vendors and their other vendors who they pay through the card provider. With confusion increases the possibilities of mistakes. Something I’ve come across with a client is the AP department paying the incorrect amount on the invoices. There usually is a gross amount and then the net amount on invoices. The gross amount would be what anyone would pay at their site that day. The net amount would be that amount minus whatever discounts you have agreed upon. Without knowing anything about your fuel program your AP department could be posting the gross amount and missing out on the discounts that have been created for your fleet.
Who’s checking your invoices? Call Sokolis Group at 267-482-6155 in order to have our fuel management team help manage your fuel.
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By Laura Owens - July 26th, 2010
Driving a vehicle is a huge responsibility which is why driving laws have been written to keep us safe. We all know the basic laws such as, drive on the right side of the road but what if someone told you in Alabama it is illegal to drive with a blindfold on. This law may seem like common sense but it is an actual written law in Alabama. Here are a few strange traffic laws, some out of date, but still in the books.
Arizona
Cars are not allowed to be driven in reverse in Glendale, AZ.
California
In Glendale, CA it is illegal to jump from a car at 65 mph. So make sure you refrain from car jumping when driving through this town.
If you have to go to court, for one reason or another in Los Angeles it is illegal to cry on the witness stand. So hold back your tears!
Connecticut
It is against the law to eat in your car in Bloomfield, CT. So snack up elsewhere.
Kansas
If you are passing through Derby, KS remember not to screech your tires. Screeching your tires is considered a misdemeanor and can cost you 30 days in jail!
Minnesota
In the town of Minnetonka it is illegal for your truck to leave mud, dirt, or sticky substances on any road. Wipe your tires before entering this town.
New Jersey
In Blairstow, NJ it is illegal to plant trees in the middle of the street. This is not a driving law but it sure does make driving a lot easier without trees in the way.
Ohio
It is illegal to run out of gas in Youngstown, OH. So make sure you have enough gas before driving through Youngstown.
Hopefully being aware of these strange laws will keep you out of trouble!!
Tags: driving laws, laws, traffic, traffic laws
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By John Sokolis - June 28th, 2010
At Sokolis Group, when we make initial contact with a potential client, through our research or a referral, we feel that we can be of assistance to them with their fleet fuel management program, therefore reducing diesel fuel cost. By gathering further operational information from a potential client we can make a pretty good assumption, through our experience, whether or not our fuel management service would be of value to them.
The next step is to offer a no cost, no obligation detailed fuel audit, evaluation, and analysis of their current fuel purchasing and fuel management system. This is where skepticism starts to build. Whether we are communicating with the CEO, COO, CFO, or the fleet managers, they may question the fact that a professional fleet fuel management company is offering this detailed analysis at no cost? What company does something for nothing? This is too good to be true. Why would Sokolis Group, a respected fuel management company offer something for nothing? Because more than 80% of the potential companies for which we perform this fuel analysis can significantly reduce their diesel fuel cost by engaging our services. This is not to say that 80% of companies are buying or managing fuel poorly, it just means it can be done better. Sure, some companies are basket cases, but many only need some refinement and fine tuning. A large company that can reduce its diesel fuel cost by one or two cents per gallon, can save potentially hundreds of thousands of dollars annually. The small and medium size companies, the private fleets, for which transportation is not their core business can potentially reduce their fleet fuel cost by as much as ten to twenty cents per gallon.
For those that take advantage of our no cost offer the end result can only be one of two scenarios. Either Sokolis Group has identified areas of opportunity to reduce fleet fuel cost, or the company is doing the best it can and they now have the peace of mind that their fuel management systems are effective. For those for whom we know improvements can be made we let them know what their potential savings will be by engaging our services. Once again, “too good to be true?” We can tell you this, it is good and it is true, so why not take advantage of our no cost offer. You will either gain the peace of mind that all is well with your fleet fuel management program, or your company will have a healthier bottom line by reducing your fleet fuel cost.
Tags: analysis, diesel fuel, duel audit, fleet fuel cost, fuel analysis, fuel cost, Fuel Management, Sokolis Group
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By Lisa Hermann - May 26th, 2010
When you are at your favorite beach in Florida or California, you are not at the very edge of the country.
Although it might seem like the ocean is the border of the United States, the border is actually 200 miles out from the land. This 200-mile-wide band around the country is called the Exclusive Economic Zone (EEZ).
In 1983, President Reagan claimed the area of the EEZ in the name of the United States. In 1994, all countries were granted an EEZ of 200 miles from their coastline according to the International Law of the Sea.
There is a lot of activity just beyond the beach. The beach extends from the shore into the ocean on a continental shelf that gradually descends to a sharp drop, called the continental slope. This continental shelf can be as narrow as 20 kilometers or as wide as 400 kilometers. The water on the continental shelf is shallow, rarely more than 150 to 200 meters deep. The EEZ is part of the United States. The Federal government manages the land under the sea on behalf of the American people.
The continental shelf drops off at the continental slope, ending in abyssal plains that are three to five kilometers below sea level. Many of the plains are flat, while others have jagged mountain ridge, deep canyons, and valleys. The tops of some of these mountain ridges form islands where they extend above the water.
Most of the energy we get from the ocean is extracted from the ground. Oil, natural gas, and minerals all come from the ocean floor.
People are working on other new ways to use the ocean. Solar and wind energy have been used on land, and now they are also being used at sea.
Though this BP oil spill is terrible, we believe if more precautions are taken, the ocean is wonderful place for us to increase our own energy resources and not have to worry about foreign oil to supply us. Don’t we want to control our own diesel fuel prices? Having a good supply of fleet fuel, sure does make it a little easier for your fuel management needs.
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By Conor Proud - May 24th, 2010
Anyone in the oil or fuel management business has most certainly heard of the oil spill in the Gulf of Mexico. The enormous explosion that caused the spill from a BP offshore drilling rig in the Gulf of Mexico was said by BP to be releasing 5,000 barrels of oil per day. Some experts believe it’s somewhere closer to 25,000 barrels a day after looking further into it. It’s already the worst oil spill in history, even more devastating than the spill in 1989 by Exxon’s Valdez tanker that spilled 11 million gallons of oil. The BP rig is tapped into an underwater oil well and will continue to pump more oil into the ocean until the leak is plugged.
This obviously effects more than just the oil business as now it is a problem for wildlife fisherman, seafood business and many other jobs in the Louisiana area. The pictures and images are miraculous. If you visit www.bp.com you can actually see a live webcam of the riser flow. Bp is using new technology known as the riser insertion tube tool to try to collect the oil. This remains uncertain as there are still various efforts by the government and other parties to determine a more educated flow rate. Even film star Kevin Costner is joining scientists and engineers to figure out a way to clean up this mess. BP is considering his idea. At this point what do they have to lose? The diesel fuel prices have not gone up because of the spill, isn’t that strange?
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By Lisa Hermann - May 5th, 2010
Sponsored by Sears Auto Center
When a fleet vehicle needs a tire replacement, occasionally you may find that only two tires need replacement rather than all four. Most people believe that the tires with the best tread should go on the front of the vehicle, especially for vehicles with front-wheel drive. Actually, the best tires should always go on the rear of front-wheel drive, rear-wheel drive and all-wheel drive vehicles. Why? The tires with best tread will naturally grip the road better and resist hydroplaning compared to a tire that has some miles on it.
Say you are driving on a curvy road in a summer thunderstorm and while you are in the middle of the curve your car enters a large area of standing water. If the best tires are on the rear of the vehicle, they will grip the pavement longer than the front tires. You will feel the front tires begin to lose traction and for most people, the natural instinct is to take your foot off the gas pedal to gain control by allowing the vehicle to slow. Unfortunately, if the best tires are on the front, the rear tires will lose traction first causing the rear of the vehicle to slide. In this situation, many people will not turn into the skid to regain control but turn against the skid. This causes the vehicle to spin out.
Good tires on your vehicle will help with your fuel usage. It will decrease how often you need to fuel your vehicle within your fleet. For more information and fuel savings, reach out to Sokolis Group at 267-482-6155 or via website at www.sokolisgroup.com.
Tags: diesel fuel, fleet fuel, fleet fueling, Fuel Management, Sokoils Group
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By Laura Owens - May 3rd, 2010
When we think of saving money on fuel we automatically think of cheaper fuel prices; but there are other ways to save money on fuel before even hitting the pump.
- Keep tires inflated properly
- Underinflated tires waste fuel. You should check tires on a regular basis. This is simple and a potential lifesaver.
- A well tuned engine burns less gas.
- The right parts and fresh oil keep your engine running smoothly which requires less fuel. Get regular tune-ups and inspections.
- Get the junk out of the trunk.
- Did you know that for every 250 pounds your engine carries the car loses about one mile per gallon? So remove all the unnecessary items and carry only what you need.
- Find the cheapest fuel
- Ok so this one is at the pump. Finding the cheapest fuel in your area can save you hundreds of dollars a year.
- Don’t top off the tank
- We should all listen to this advice. Too much gas will just slosh or seep out so why waste the extra pennies? Those pennies do add up.
- Drive intelligently and slower
- By making fast starts or sudden stops you are just overexerting your engine which burns extra fuel. Driving 55 mph instead of 65 mph can improve your fuel economy by two miles per gallon.
- Avoid long warm-ups/cool downs.
- On cold winter mornings or hot summer afternoons your car doesn’t take more than a minute to get ready to go, so don’t waste the extra fuel by letting it run for five minutes.
- Combine errands into one trip
- Before heading out you should plan your trip. Come up with the most efficient route and combine errands into one trip if possible.
- Tighten up the gas cap
- Gas easily evaporates from the tank if it has a way to escape. Make sure your gas cap is on tight and if it is loose buy a new one.
- Buy a fuel efficient car
- There are plenty of good options out there right now. If you are in the market for a new car factor in long term fuel costs.
To find out more ways to save money on fuel contact Sokolis Group at 267-482-6155 and talk with one of your fuel specialist today.
Tags: diesel fuel, fleet fuel, fleet fueling, fuel consulting, Fuel Management, fuel; fuel audit; goals; pricing errors; fuel pricing; save money, Sokoils Group
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By Conor Proud - April 20th, 2010
The National on-highway average price for diesel fuel was $3.069 at the end of April 12th. That’s the highest average since November 2008 and I don’t think any of us will forget what those months were like in 2008. Most reports indicate that prices are only on the rise even into 2011. Diesel will average somewhere around $2.98 this year, and $3.12 in 2011. In 2009 diesel prices averaged $2.46 per gallon!
If you like paying these high prices then just sit back and relax, because you’ll be paying them as far as you can see. However, if your company has fuel as one of its top three costs and you want your company to be successful and survive whatever the oil industry throws at them, you should talk with one of us at Sokolis Group.
We help companies of all sizes manage their fleet fuel program, but the difference is we treat them all the same. No matter if you have 30 trucks or 300 trucks, if you’re buying diesel fuel you’re going to get the lowest prices possible. We have different methods and we customize for each company/client we have or receive.
If you’re worried about your fleet’s fuel costs or even if you’re just intrigued by the thought of saving money (which is my favorite thing to do) then call myself at 267-482-6159. I’ll be happy to talk with you about your company’s fuel plan.
Tags: diesel fuel, fleet fuel
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By Glen Sokolis - April 9th, 2010
In fleet fueling there are many ways your employees can steal fuel from you. Most companies truly believe, it can’t happen to me. There theory is we have someone that spot checks that information sometimes. Our drivers make good money they would never risk losing their jobs. Why would anyone want to steal from us, we take care of our employees. When it comes to fleet fuel the fuel is liquid cash when it comes to stealing. Everyone would like to believe they know their employees well enough to think that person won’t steal but it happens.
Below is an article from the Baltimore Sun. The article is in black print, comments from the Sokolis Group are in red print.
Theft of city fuel admitted
Public works driver resold more than 100,000 gallons of diesel
By Robbie Whelan Baltimore Sun reporter
April 1, 2010
A former Baltimore public works employee has pleaded guilty to stealing more than 100,000 gallons of diesel fuel from the city and reselling it as part of a scheme that went unnoticed for a year and a half. (I can assure you that if they had a good fuel inventory control process in place this would have been caught within 2 months)
Maurice Boone, 45, was found out Jan. 5, 2009, by a Baltimore County police officer who saw Boone filling several 250-gallon storage tanks with city-purchased diesel at a warehouse on Sparrows Point Road. The officer observed Boone while investigating a car-theft ring.
According to court records, Boone told police and an investigator from the city inspector general’s office that the plot had been going on since 2007. The tractor-trailer operator would fill a city tanker from a pump at a landfill on Quarantine Road; make several rounds filling city vehicles as part of his job, then sell the remaining fuel for $1 a gallon to an associate named Jimmy, who would leave money for him at the warehouse rendezvous point. The associate was identified in court documents as James Wright, who is a co-defendant in the case. (At this point in time diesel fuel was selling for over $4.00 a gallon at retail locations. I believe they were selling the fuel for more like $2.00 a gallon.)
Boone pleaded guilty Monday and will receive a suspended eight-year sentence and five years’ probation, records show. He must also pay the city $187,000 in restitution, but Baltimore Circuit Judge Lynn K. Stewart delayed sentencing until July, a month after Wright’s scheduled trial. (The Sokolis Group has nothing against Mr. Boone except you won’t find us hiring him what we are confused about is 100,000 gallons at even $2.00 a gallon is over $200,000. The average price per gallon of fuel over this time period had to be close to $3.00.)
Boone’s lawyer, Marc Minkove, said his client – who was fired from his city job in March 2009 – will testify against Wright “if he’s summoned.”
A charging document pegs the total amount of diesel that Boone stole at 101,305.4 gallons, but public works officials said they weren’t sure of the precise number. A spokesperson for the state’s attorney’s office said that the losses may have totaled as much as $1 million, but that prosecutors were unable to document the extent of the theft because of insufficient paperwork. (If public works officials don’t know what the amount is as stated they don’t, it is much higher than 101,305.4. How did they come up with the 101,305.4? They say the extent may have been close to $1 million so even at $3.00 a gallon for diesel fuel like we said above that would be a theft of at least 333,333 gallons. As a fuel management company, we would believe that number of 333,333 is more like the real number of fleet fuel stolen. As a fuel manager someone should have had some fuel inventory records to catch this amount of fleet fuel leaving the fuel tanks.)
“From our end, we never knew how much fuel the guy was actually stealing,” said Robert Murrow, a DPW spokesman.
Murrow added that fuel prices were rising, so the agency did not notice the high cost of diesel invoices being charged to its office. (Sokolis Group agrees fleet fuel prices were rising but that has nothing to do with your fuel inventory and fuel management. Fuel inventory is just like any other inventory, goods come in and goods go out. If you have 500 gallons of fleet fuel delivered, you need to know which vehicles your fleet fuel went. If it only comes out to 450 gallons of fleet fuel and you don’t have 50 gallons of fuel still left in the fuel tank, you have a problem. The fleet fuel pricing going higher is a matter of fuel auditing to make sure you paid the correct fuel price for what you bought. Most fuel managers at companies since that job is just part of many jobs don’t do a very good job at it because they don’t have access to the proper data to be able to understand the fuel market trends.)
Diesel hit a historic high of $4.76 per gallon the week of July 14, 2008, before dropping to $2.01 six months later, according to Department of Energy statistics.
The City should be ashamed of this. When there are fuel management companies out there that can manage all of your fleet fuel buying, fuel auditing, and fleet fuel pricing and checking for a whole lot less than $1 million dollars. For a couple of thousand dollars of month they could have been well service in fuel management by Sokolis Group or some other fleet fuel management company. Who knows who else is or was stealing fleet fuel from them? They don’t track their fuel inventory, so it could be millions of gallons of diesel fuel that has been stolen. Maybe before Boone started to steal fleet fuel from them there was someone else that told Boone how to do it. Do you have someone stealing fleet fuel from you? Are you sure? Do you have solid fuel inventory records? How about the prices of fleet fuel are you paying what you should be or are your fuel prices higher than they should be? Do you know?
Tags: diesel fuel, fleet fuel, fleet fueling, free fuel audit, fuel analysis, fuel audit, fuel card, Fuel Management, fuel planning, Sokoils Group
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By Glen Sokolis - April 7th, 2010
The U.S. Environmental Protection Agency (EPA) revised its vehicle testing procedures in 2006 to help better reflect how people really drive in current conditions. The way you drive any vehicle affects how much fleet fuel you use, if you didn’t know. These new testing methods – whose results took effect with the 2008 model year – include factors such as high speeds, quick accelerations, air conditioning use and driving in cold temperatures. All of these items done incorrectly will cause your fuel management program havoc.
These revisions to EPA mileage estimates came after extensive real-world fuel economy testing by groups such as Consumers Union found that ratings were inaccurate, sometimes significantly. The old testing on fuel economy and fuel usage was taken place in ideal conditions in a simulated driving and not on the real street. Consumer Reports notes, however, that today’s mileage ratings are “more realistic”, although some drivers may notice they get a tad fewer miles per gallon than they may have anticipated. Still, noted Consumer Reports’ editor, the numbers are more accurate than they were previously.
Today’s EPA tests are designed to reflect typical driving conditions and driver behavior, but several factors can affect your own vehicle’s miles per gallon (MPG), including how and where you drive, the condition and maintenance of your vehicle, variations in the fleet fuel you buy, engine break-in and more. To be sure, the EPA ratings absolutely are a useful tool for comparing the fleet fuel economies of different vehicles, but do keep in mind they may not accurately predict the average MPG that you in particular will get every single day. Each day has different driving conditions for each driver, leading to different results in your fuel program.
Where to go for data
The U.S. Department of Energy (DOE) offers on its Web site a helpful list of mileage ratings for just about all of today’s vehicles. Visit: www.fueleconomy.gov/feg/findacar.htm. On the site you can do side-by-side comparisons of vehicle EPA mileage ratings, and narrow your search by car class, vehicle manufacturer, and MPG. No, they don’t really have anything for truck fleets because now we are throwing a lot more into the mix with loads and other variables. These tips will still help your fuel management program and certainly help your fleet fueling.
10 tips
The DOE’s Web site also offers the following tips to help you get maximum fleet fuel efficiency out of your vehicle.
- By resisting the urge to drive aggressively (e.g., speeding, rapid acceleration and braking), you can lower your gas or diesel mileage by an impressive 33 percent at highway speeds and by 5 percent around town. That will help all fleet fuel programs.
- While each vehicle reaches its optimal fuel economy at a different speed, mileage per gallon usually decreases rapidly at speeds of more than 60 mph. Notes the DOE, “You can assume that each 5 mph you drive over 60 mph is like paying an additional $0.24 per gallon for gas that costs $2.67 per gallon.”
- Don’t keep unnecessary items in your vehicle or on your roof rack. This is especially true of heavy items. Here’s why: An extra 100 pounds in your car or on your roof rack could reduce your MPG by 2 to 5 percent. This is especially important if you drive a small car, because the reduction is based on the percentage of extra weight relative to the vehicle’s weight. Heavy loads on your roof rack also will reduce the aerodynamic capability of your car. Whenever possible, use your vehicle’s interior cargo space. This is the truck with truck fleets too. The heavier the load the fewer miles per gallon you are going to get in your fleet fueling program.
- Don’t idle too long. Cars with larger engines typically waste more gas when idling than do vehicles with smaller engines, note DOE officials. This has become commonplace in the trucking world since diesel fuel prices went over $3.50 a gallon a couple of years ago. As a fuel consulting company, we have seen some companies go back to their old habits of letting idling happen. This is not good for your fleet fueling program, the environment increasing more CO2 into the air and your company’s bottom line.
- Using cruise control and your overdrive gears also saves gas and diesel fuel, as well as reduces wear on your engine.
- Combining your errands into one trip can save both time and gas. Several short trips started when your engine is cold may use twice as much fuel as a longer, multipurpose trip covering the same distance when the engine is warm. Proper routing of truck fleets can save a company over 25% on its fleet fuel and maybe more. As a fuel consulting company we have seen many companies that don’t properly route or control where their drivers go.
- Tuning you engine according to the specifications outlined in your owner’s manual can increase gas mileage by an average of 4 percent.
- Keep your tires properly inflated and aligned, thereby increasing mileage up to 3 percent. This also reduces your fleet fuel cost.
- Routinely check and replace your filters. Clogged air and fuel filters can decrease your diesel fuel and gas mileage by up to 10 percent. Seems simple and logical but some companies think by delaying routine maintenance they are saving money. They might be saving money in one pocket but it’s going right out their fleet fueling pocket.
- Driving in cold weather will reduce your gas and diesel mileage. It will also cost you more money in your diesel fuel trucks because of having to add fuel additive to your tank. Ah, unfortunately this one you can’t control… unless you move to a warmer climate.
The key to making all fleet fuel programs successful is making sure everyone with your company is on the same page. Layout the ground rules on every area that you want to see happen. Make sure everyone understands the rules and what the results will mean to your company. Include in their buying fleet fuel at the truck stops or locations that you have determined to be in your fuel network. As a company you will always be able to get a better deal if you buy more than one of something from any supplier. The same hold truck in fleet fuel, send your drivers to the same spot. Call a fuel consultant like Sokolis Group to help you negotiate the best deals for you and create win/win situation with the fuel vendors you are buying.
If you follow these keys your fuel management program will be successful and your company will be spending less money on fleet fuel. Good luck.
Sokolis Group is a fuel management company that helps companies reduce their fuel spend by reviewing, analyzing, auditing, negotiating and creating fleet fuel programs that create value and success from their clients. got fuel? We have fleet fueling solutions for you! www.sokolisgroup.com or 267-482-6155.
Tags: diesel fuel, fleet fuel, fleet fueling, free fuel audit, fuel analysis, fuel consulting, Fuel Management, fuel planning, fuel; fuel audit; goals; pricing errors; fuel pricing; save money, Sokoils Group
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