Posts Tagged ‘Fuel Management’
By Sokolis Group - January 27th, 2011
No a client of ours needed a fuel management solution 3 years ago, so they came to us for fuel savings, fuel card programs and fueling controls. What they didn’t know was costing them a large amount of fuel saving. This is a major company with a very familiar name but they didn’t understand fleet management for fuel. Our fuel management team overhauled the client’s total fueling program. We switch out fuel cards and put an additional fuel card in place for added fuel saving.
It’s usually difficult for fleet companies operations to have two different fuel cards for the fear of fueling theft but with our fuel management system we are able to do this. They were receiving bulk fueling from a long time vendor and relationships are great but fuel savings is better.
We were able to achieve both with the fuel companies concessions on diesel fuel prices. Our client has been happy with our fuel management program but like most things in life, if you can’t see or feel it daily you wonder if you are really getting what you are paying for.
Late last year when we were doing our normal fuel auditing of invoices that had already been paid by our client, we discover an issue within their diesel fuel prices for their bulk delivery. After more research and review, we were able to get our client a very large 4 digit refund. The fuel companies billing staff had made a mistake; if our fueling audits didn’t catch it, our client’s fuel budget and fuel saving would have been lost. Are you losing money and don’t even know it. Call 267-482-6160
Tags: fuel audit, fuel card, fuel companies, Fuel Management, fuel savings
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By Glen Sokolis - January 19th, 2011
Diesel fuel prices rose for a seventh straight week, jumping 7.4 cents to $3.407 a gallon according the Department of Energy (DOE). The last time fleet companies paid this much for fleet fueling was
$3.482 on Oct. 20, 2008. Of course this is the national average for diesel fuel prices if you live in anywhere west of the Mississippi or you are buying your fleet fuel at a local gas station your fueling prices are way beyond this weeks numbers. Gasoline also rose, increasing 1.5 cents to $3.104 a gallon, also its seventh straight increase. It is at its highest level since it was $3.152 on Oct. 13, 2008. Do we see a trend on these fueling prices going up? I think we do. I would not expect diesel fuel prices to make as big as gains next week because crude oil has been hanging around $91 a barrel on the New York Mercantile Exchange. There is always a lag between what crude oil prices do and what gas prices and diesel fuel prices do at the retail fueling level.
This is a questions that I have been getting a lot lately where is the fueling prices going to go. I think its pretty straight forward and its higher. The DOE and the projections of $3.40 for the year could happen for diesel fuel prices but I wouldn’t bet on it. The question I ask back to our non clients is what are you doing for your fuel management? Do you have a strategy or are you going to blow your fleet management budget in the first couple of months of the year.
What we do for our outsource fuel management clients is we keep them in the game. We have strategies for the fuel management system as part of the fleet management. Most of you reading this article are probably a VP, Director, Fleet Manager or Fuel Manager. You have been around fleet companies for more than 10 years and you’re between 45-55 years old. An outsourced fuel management solution might not be something that you have done before. It’s understandable why you might have concerns that your not going to get the fuel savings that you hope for or may need. Restasured that you won’t be the first private, public or fleet companies that uses us.
We are moving into times that are very different when all of our careers were younger. Technology, global economy, China will all play a part in fleet management program. Your fuel savings will be best achieved by having a fuel management system put together to ensure your fuel card, fleet card, mobile fueling is giving your company what it should be providing, fuel savings. Like most companies fleet management or just thoughts in general is your doing it well when it comes to fueling. You might be. You might not be. Isn’t worth a discussion about fuel management now at $3.40 before it’s $3.80 for diesel fuel. We have had clients come on in October when it was $3.00 for fleet fueling. There fleet fueling cost has increase over the last 3 months but not by 40 cents per gallon. We made sure they were given fleet management solutions to lower costs. Fueling audits so they were being overcharge, just be charged a fair fueling rate with their fuel cards, fleet card or mobile fueling.
Or provided they with better locations to for fueling that didn’t take their trucks out of route. Mobile fueling so they could lower drivers cost if they couldn’t totally control diesel fuel prices. Integration of fuel management data so no fraud, theft could take place and as important fuel budgeting could take place more easily because after all, if fleet fueling prices keep going up, revised budgets to management will be a bigger priority. Until next time, give me a call 267 482 6160, your fuel management system budget will love you for it.
Tags: diesel fuel prices, Fleet Management, fuel analysis, fuel audit, Fuel Management
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By Glen Sokolis - January 15th, 2011
Future Fuel Saving Might Be Bleak Without Fuel Management
Crude oil finished the week higher which means diesel fuel prices will go up causing a continued strain on fleet management. Many believe the news for 2011 we be diesel fuel prices and gas prices and what thereincreasing fueling cost will do to the economy. This week strong factory data lead diesel fuel prices higher, making some fleet companies question how their fuel management system will for controlling fuel savings stand up with increasing fueling costs.
Several fleet companies expressed concerns to Sokolis Group staff on what fuel management strategies we will be using to control fleet fueling costs. We were able to talk to fleet manager that their fleet management solutions were in very good hands. The continued communications we have with fuel companies, fleet cards, fuel cards, mobile fueling companies and fleet credit card services helps us position our clients with fuel savings or diesel fuel prices cost controls that might not otherwise be available to most fleet management programs.
Several new fleet companies have been calling inquiring about how they use their fleet card – fuel cards and is there potential to have more fuel savings if they switch fuel cards, fleet cards or fleet credit cards. As our fuel consulting team will explain those fuel savings depend on what fuel card or fleet cards they are using today. We try to provide fleet managers a clearer understanding just what their fuel management system could be up against and fuel cards or fleet cards alone might not be the full answer. With their fleet management programs they might need to consider mobile fueling, truck stop fuel, card lock fueling and frank conversation with their current fuel companies, fleet fueling, fuel card provider in efforts to reduce increasing fueling cost.
Until next time, think about your fuel management knowledge and ask yourself do you and your company has the right tools to be able to handle possible $4.00 diesel fuel prices? Listen if you don’t its ok. If you’re a fleet manager you don’t have the time or fuel management system tools. If your a Vice President or Director you need to step in now before your fueling budget is lost for the year and it’s only January.
Tags: diesel fuel prices, fleet fuel, fleet managers, Fuel Management, fuel prices, Sokoils Group
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By Sokolis Group - January 12th, 2011
The Department of Energy continued to boost its projected price of diesel fuel prices, saying it will average $3.40 this year — a jump of 17 cents from its forecast last month. We know or at least we should know by now that the DOE projections on fleet fueling costs are always lower and sometimes much lower than what our fueling expectation are for diesel fuel prices. The $3.40 projection is an increase from $2.99 average last year, DOE said in its monthly short-term energy outlook released Tuesday. The price will climb to an average $3.52 for diesel fuel prices in 2012, DOE said.
Gasoline also will increase, to an average $3.17 this year, also up 17 cents from last month’s forecast. That’s up from a $2.78 average last year, DOE said, and the motor fueling will rise to average $3.29 next year. “Rising crude oil prices are the primary reason for higher retail prices, but higher gasoline and distillate refining margins are also expected to contribute to higher retail prices,” the report said. Most fleet management budgets will be shocked by the $3.40 diesel fuel prices but I think the DOE could be off 10% for fleet fueling raising that number closer to the $3.70 range. Taking the right steps now with your fuel management system will help your fuel savings and fleet management concerns later.
Listen, if you didn’t do a fueling hedge a couple of months ago, you still can but most fleet companies won’t because they feel they are complex and a risk. With that said, we don’t necessary agree that having some of your fueling in a hedge or a fueling collar or call is bad. If you don’t have them in place as part of your fleet management solutions or aren’t going to put them in place, then your diesel fuel prices will be going up. The question is by how much? Does your fleet manager understand the fueling market? Do you think your company has full control of your fleet fueling or do you need some fleet fuel management help? If you think you need help, think of it this way. If you boat has a leak, you would get it fixed, you wouldn’t wait until you had to pull out the life preservers. Would you really want to do that same sort of thing with your fueling budget that for most fleet companies represents one of the largest expenses on the profit and loss statement?
The answer is no of course you don’t want your fleet management budget or fuel management waiting after the fact. Will you? Will you? Fuel cards, fleet cards, mobile fueling, fuel audits do you have the staff, the time to make sure when your diesel fuel prices go up they are being watched and helping your control the increases.
With these diesel fuel prices going higher, it can certainly hurt the economic recovery that the country is currently happening. Upcoming blogs. Is OPEC the bad guy? Do you need diesel fuel additives in cold weather?
Tags: diesel fuel prices, fleet fueling, Fuel Management, Sokoils Group
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By Sokolis Group - January 11th, 2011
This time last year you were sitting at your desk thinking my diesel fuel prices aren’t that bad, if it stays this way my fleet fueling cost for the year should be good. The fueling price at the time was $2.879 nationally. Let your fleet companies operation roll forward to January 10, 2011 now all of a sudden you wake up and realize your diesel fuel prices have jumped to $3.333 a gallon, your fleet fueling price is up it just was at $3.00 on October 4, 2010 what is happening to my fleet management, every fleet manager or fuel manager or Director is saying. You don’t need to just be talking about it, act on it with Sokolis Group. Your fleet companies trucks were pulling into a truck stop and fueling up with 100 gallons of diesel fuel on your fleet card 3 months ago. The same fleet card is being used today, you are fueling 100 gallons and its costing your fuel management system an additional $33.30 per truck. Wow, does your fleet fueling need help. Real fuel consulting and fuel management help.
In addition if you have a fueling going on in cold weather states, you are paying for diesel fuel additives so your trucks tanks or lines don’t gel. As a fleet manager, your running up against bad weather which is making your delivery times take longer. The year is only 10 days old and you already feel like your whole fleet management program and fuel saving program you put on the budget just a couple of months ago has blown up. Well it probably has blown up, I don’t see your diesel fuel prices going lower this year. What I do see is taking the opportunity to try to really get a better plan of fuel management in place.
Here is what I mean by that. You’re not going to get fuel savings of 33.3 cents per gallon. Your fleet management with the right help maybe able to provide overall fuel savings other ways. As a fleet manager have you been able to spend a lot of time on your fuel management system, like 50 hours or more a week. Of course not you have many other hats to where besides fuel card, diesel fuel additives, negotiator, fueling auditor from your fuel companies or truck stops that you are using.
Take a step back. Let a fuel management person help you with the following in a road to fuel savings or I should maybe say not fleet management budget busting.
- Is your company using the best fuel card, fleet card, fleet credit card or fleet credit card service or whatever fueling tool to save you the most money
- Could your fuel management system, fuel manager, office person doing a solid fuel audit on each and every fueling transaction? If not you could be getting double billed, invoicing errors, wrong diesel fuel prices or diesel fuel additives cost, fuel theft. This stuff alone could save your fleet management budget bill dollars
- Mobile fueling. That is the operation where a fuel companies truck comes out to your fleet companies trucks and provides fueling for each truck right where it is parked. You might say how is mobile fueling going to save me money? Maybe it doesn’t provide fuel saving but it provides labor saving. At the end of the day, if your company is a paying a driver for fueling and the cost for the diesel fuel is almost the same and now your companies operation can take labor savings, your company’s bottom line is much better off. Look bigger scope then just the fleet management department.
Until next time, get help you can still save your fleet fueling budget for 2011.
Tags: diesel fuel prices, Fleet Management, Fuel Management, fuel savings, mobile fueling
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By Lisa Hermann - January 7th, 2011
Do you know of any company raising their prices 16% in 2011? Are you kidding me? Most fleet companies are fighting to keep prices flat so they can retain their ever dwindling customer base. If gas prices keep soaring out of control, how is it going to be possible to make a profit in 2011?
According to AAA, average gas prices nationally topped $3 a gallon late last week, up 16 percent from $2.58 a year ago. In 2008, a gallon averaged just $1.60. The average price for a gallon of regular gasoline has jumped more than 30 cents since Labor Day!
If your business relies on rubber hitting the road, whether it’s fleet management, simple fuel companies delivery service or a mobile fueling service company ROI is important to you.
TOP 5 REASONS TO HAVE SOKOLIS GROUP, FUEL MANAGEMENT & FUEL CONSULTING ON YOUR TEAM IN 2011:
1. Reduce Fleet Fueling Costs: Have Sokolis Group negotiate fueling deals with your fuel card or fleet card program for either your over the road purchases or truck to truck mobile fueling vendors. Then we will continue to track your drivers to make sure they are utilizing your “network” providers for greater fuel savings.
2. Reduce Operating Costs: Allow Sokolis Group to handle your fuel cards, fleet cards, fleet credit card program and maintenance to reduce your back office expense. Let us streamline your purchases for your fleet fueling program and track down credits when owed.
3. Reduce Fuel Theft Costs: Sokolis Group will continue to fueling audits on your fleet fueling purchases to make sure there are no fuel theft purchases occurring no matter what means of fueling. Reporting this to your managers for follow up procedures. Reporting same day deliveries along with tracking your MPG per unit.
4. Increase Confidence: Sokolis Group will coordinate and get fueling when you need it when you need it, freeing you from scheduling hassles and fueling related overtime. This will be done by our outstanding account managers, who will make sure all of your mobile fueling, fleet cards, fuel cards and fleet fuel cards are working for you
5. On Going Fleet Fuel Support: Sokolis Group is able for all of your fueling needs. Continuous fuel planning, monitoring and reporting. On-going communication with your team along with monthly reporting.
Wouldn’t it be nice to know when it comes to your fuel management, you have a staff of people working for you and montioring diesel fuel prices, mobile fueling costs, fuel cards, fleet cards and providing you fuel savings.
Tags: fleet fueling, Fuel Management, Sokoils Group
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By Glen Sokolis - December 29th, 2010
As we have been saying for weeks hold on to your hats because diesel fuel prices will be going higher. Fleet companies main source of fueling is going higher for fuel companies and everyone. Diesel fuel prices will finish the year at $3.294 a gallon based on the DOE records. We believe diesel fuel prices will start 2011 even higher. Right now your fleet manager and fuel manager should be going to executives and say, we are worried that we under forecasted diesel fuel prices for 2011. I know 2011 didn’t even start yet but when I hear a good friend of mine Joe Petrowski, CEO of Gulf Oil on CNBC the other day saying by sometime in January he believe crude oil will be over $100 a barrel and that there is a 25% chance that crude oil will trade over $150 a barrel by Memorial Day. You better stand up and listen. Joe is very smart and just like he said in the interview, higher gas prices or diesel fuel prices does not serve his company or the country any good.
We recall 2008 when crude oil reached $147 a barrel. DOE national diesel fuel prices $4.76 a gallon and gas prices were way over $4.00 it stunk for fleet companies, consumers, fuel management, fleet managers, fleet management services, fleet fueling and just about anything that had to do with fueling except fuel cards. Fuel card, fleet card, fleet fuel cards, fleet credit card services they cleaned up during that time. Higher diesel fuel prices and gas prices are great for fuel cards because they make their money off of interchange fees on the cost of fueling, therefore the higher fuel companies are charging you the more money they are making. There is risk, clearly higher fueling prices and higher prices for diesel fuel additives mean more of a chance of a company paying slow or going out of business.
There is no real fuel savings as part of your fleet management when prices get that high. Sure with fuel management system and fleet management solutions you can cut some fueling costs but if your fueling budget was $3.25 and diesel fuel prices are $4.75 as a fleet manager you have clearly missed your mark. This is not a panic and run article, this is a wake up and listen to someone that knows about fuel management and might be able to help your fleet management programs. Yes, we are talking about mobile fueling, fleet cards, fleet fueling, fleet card services, fuel cards but we are also talking about market fundamentals.
Market fundamentals like why every major commodity has grown leaps and bounds this year but not crude oil. China has 1.4 billion people consuming more fuel each day. The U.S. demand for gas is flat but diesel fuel usage is growing. Now is the time to review not March when it could start to be too late to have a solid fuel management program in place.
Tags: diesel fuel prices, fleet fueling, fuel card, Fuel Management
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By Sokolis Group - December 27th, 2010
If you live in almost anywhere in the East/Northeast your fleet companies trucks better had its fueling done before Sunday night for good fuel management. I was fueling my car on Sunday. Why? Everything takes longer in the snow when it comes to fleet fueling or fuel companies delivering. The roads are a mess, the fueling islands are a mess, let’s just say everything is a mess when it comes to heavy snow.
As diesel fuel prices continue to increase, I am sure we will see DOE National diesel fuel prices increase when the numbers come out later today; you need to have your fleet fueling game face on with this snow. The last thing a fleet companies truck want to do is slide or get stuck going into a fueling spot. This is all part of your fleet management code blue prep plan isn’t it. High diesel fuel prices, who cares your truck need fueling before the snow, so fill it up. Make sure everything is ready to go. Your fleet management solutions need a lot more things to worry about besides fueling so check that off the list.
It’s very cold. Remember your fleet fueling of diesel fuel only cares about the temperature; wind chill of minus 5 has no effect on the fuel or your truck. Wind chill is a measurement of what the temperature and wind feel on a persons skin not a truck or your diesel. Hopefully as part of your fuel management system you had a good diesel fuel additives program put in place. Your fleet fueling will freeze in this type of temperature if you have water within your fleet fueling system or if you have no diesel fuel additives in your fueling operation.
Diesel fuel prices are one thing, the one thing you don’t want to be today nor should I say tonight is a fuel companies, mobile fueling operation. When it comes to mobile fueling in this type of weather it is brutal out there while fleet fueling. Even worse is the fact that parking lots are much smaller because of the snow mounds so your mobile fueling supplier had his hands full. Climbing mounds of snow to get to truck to do is fleet fueling job. No room between one truck and another truck so they have to squeeze between trucks to do mobile fueling. If they don’t you can be sure that fleet managers will be calling the next day and wonder out loud why fueling didn’t take place on their trucks from the night before. Fleet managers understand the difficulties of fueling but they also know that they don’t want their drivers to stuff additional delays by having to use their fleet cards – fuel cards to stop as part of the fleet management solutions. The fleet managers know their drivers have a hard enough time to make deliveries in the snow and can’t afford higher diesel fuel prices, fueling not taking place as part of their mobile fueling service and now to worry if they will get any fuel savings when their drivers are using fuel cards, fleet cards or fuel credit credits at places that might not be familiar to the drivers.
Most important for thing everyone during this snowy holiday season is to Be Safe. The snow will go away, diesel fuel prices will do what they will, your mobile fueling company will do their best and your fuel management in this weather will do its best.
Tags: diesel fuel additives, diesel fuel prices, fleet managers, Fuel Management, mobile fueling
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By Sokolis Group - December 23rd, 2010
Fleet cards, fuel cards and mobile fueling have become increasingly popular over the past few years for a vast array of reasons. They quickly and easily fleet companies employees to fueling up quickly or having their fuel savings come from a fuel companies, mobile fueling operation fueling.
On top of that, the use of fuel cards, fleet cards or fleet fuel cards can ensure that fleet companies drivers do not have to carry around cash or worry about receipts. With diesel fuel prices getting higher it becomes even better to have a fuel card then cash. That alone makes it easy to see why so many business owners are now turning to fleet cards, fleet management, fleet credit card services to manage their expenses and resources. In order to really prove the value and convenience offered by mobile fueling, fleet fuel cards, fleet credit card, let’s take an even closer look at the benefits they can bring to any fleet manager or fuel manager.
Improved cash flow is one of the first benefits to note for anyone looking into choosing a specific form of payment for fleet fueling. The best fuel card, fleet card packages will allow a fleet manager to make constant and regular payments on diesel fuel prices which gives far more certainty to the process and makes it much easier for fleet management budget and a fuel management plan. More of your capital will be on hand and usable. Fuels card, fleet card, fuel credit card are normally going to save fleet companies a little bit of money on diesel fuel prices. Mobile fueling will help these same fleet companies save on labor cost as well as other fleet management services that go along with labor.
Fuel card, fleet fuel cards and fleet cards allow a fleet manager to really take control of the business and monitor all fueling transactions and process which is not as good as a fuel management system but it helps with fuel savings. The fleet credit cards allow you to easily look at and take note of how much diesel fuel prices were and was used, when and where, and allows you to avoid chasing after receipts, keeping track of cash. It also makes your fuel auditing process easier to tie in with that is the fact that these fuel cards eliminate the need for cash overall. This provides more safety for the fleet fueling, fleet companies drivers and alleviates any concern in regard to lost, stolen, misplaced, or misused cash. You still need to be very concerned about fuel theft, lost fuel cards, fleet cards as part of these fleet management solutions.
The amount of control that a fleet credit card, fuel card, fuel credit card can give you is something that you will note from the moment you begin to use them. The same is very true about mobile fueling. The convenience your fuel management system and staff have by a mobile fueling company showing up to do fleet fueling is heaven even if diesel fuel prices are high. This is due to the fact that unlike other payment forms, fuel cards allow you to set and specify what type of purchases can be made, where they can be made, and how often. Thus, it really gives the fleet manager control over how much money is spent on fueling and hopefully fuel savings.
Tags: diesel fuel prices, fuel audit, fuel card, Fuel Management, mobile fueling
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By Sokolis Group - December 21st, 2010
If you are a Fleet Manager, CFO, President, Owner or Purchasing Department you must have a comprehensive approach to fuel management. Yes, fuel costs are lower now than 2 years ago but they won’t always be and even if they are lower, doesn’t your company deserve a program that provides security of supply and improved economics of your fuel buying? Don’t spend your fleet companies money on extra diesel fuel prices that your fuel companies might be charging you.
Six keys areas should be examined.
- Spend analysis – determine market by market, site by site
- Benchmarking – baseline and compare to published market metrics and establish industry best practices
- Supply strategy – a proper balance of supply security with cost, margin and service contracting- coordinate operations, accounting, legal and safety teams to maximize opportunity.
- Execution – having a playbook is one thing but making sure the plays actually get made is another.
- Audit – all bills, invoices and transactions need to be completely reviewed. Companies make mistakes sometimes. Also, industry statistics say 81% of all fuel stolen is from within your own company.
Now that you have the basics go ahead and save your company money. Need more help? Don’t understand or have the time to dig into this kind of project?
Let Sokolis Group’s fuel management and fuel consulting team help. We have saved companies tens of thousands of dollars a year to over a million dollars a year. We are professional in fuel management, negotiations, auditing, fuel card maintenance and determining what type of fleet fueling program will save your company the most money. Is it better bulk fuel buying? Fuel cards, truck stop or card lock rates or mobile fueling? Lower your diesel fuel prices today!
Visit us on the web at www.SokolisGroup.com or call (267) 482-6160
Tags: diesel fuel prices, fleet companies, fleet fueling, fuel card, fuel companies, Fuel Management, mobile fueling
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