Ask the Fuel Expert

I get asked that a lot. Over the years we have served thousands of clients in many industries including transport, construction, earthmoving, power generation, marine and rail. They all want the same thing, control of what seems to be an uncontrollable cost. Hopefully this will help. When you have the information you need, broken down into six easy to read reports you can minimize your fuel costs and improve productivity.

The key to control is FMO, 4Refuel’s Fuel Management Online. We have invested hundreds of thousands of dollars to give you a complete software suite for fuel consumption analysis that is easy to learn and operate.

Here are those six reports:

1. Fuel Economy. This is the number one report you need to help you manage and control the profitability of each unit in your fleet. Get the mileage and fuel consumption by unit, calculate their efficiencies and compare each unit and find out which are the fuel wasters and fix it.

2. IFTA Reporting. If you are in the long haul transport business crossing between provincial and state borders creates a huge work load. Add to that currency exchange rates that vary day to day and you’ve got a full time job, but you got to know. Keep a daily log, by unit and the job will be a bit easier, saving you some time. And that saves you money. (Check the IFTA overview in this edition for more)

3. Monthly Fuel Budgets. Budgeting can be a pain particularly if you leave it to the end of each fiscal year, so reconcile your monthly fuel consumption and build the file as you go. If you have a number of people in outlying regions that are a part of the process, even more reason to keep regular track of your fuel expenditures. Track performance vs. budget, comparing distance, pricing and fuel consumption. The more variables you measure the better.

4. Invoice Management. Ever had an invoice that had to be reviewed? Deal with it quickly otherwise the problem will grow. Staying on top of your payables is an important element of fuel management.

5. Asset Utilization/Monthly Consumption Reports. Check historic reports and calculate trends based on weekly or monthly fuel reports. Gather this information by equipment grouping, by region and by project. With this bird’s-eye view of your fuel expenses it is easy to figure out where and when your peak consumption periods are and more importantly how to plan your cash flow relative to fuel usage.

6. Fuel Reports by Location. If you refuel from a number of different sources including on site, or your own centrally located fuel tanks and/or card-locks, gather these inputs and measure efficiencies by unit and by location.

Once you have set up these six reports and include them as part of your weekly management duties they are easy to master and if you need help we will give you full support and in-office training too.

Jack Lee