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Posted by Graeme Corner

In the fleet management industry, the cost of fuel is undoubtedly one of the biggest outgoings. It’s necessary to keep vehicles on the road, but that doesn’t mean that measures can’t be taken to reduce fuel costs for your fleet.

Before coming on board with Movolytics, most of our customers managed their fuel through:

  1. Fuel cards
  2. Bunker facility
  3. Cash receipts

As you’ll have noticed, all of these fuel transaction methods require a two-person process. Firstly, they rely on the driver to gather information, and do so accurately. Then, this information needs to be correctly processed by the office team. Unfortunately, there are a number of reasons why this process may not go perfectly to plan.

Driver Challenges

All of the above processes rely on the driver being in charge of providing the vehicle’s mileage. However, when dealing with large numbers, it’s common for people to round up or down to an easier to manage figure, such as a multiple of 10 or 100. This same issue could be happening with drivers. If 10 drivers round up their mileage by 10 miles, your mileage is then 100 miles out! Even smaller discrepancies can accumulate over time, resulting in a hugely inaccurate figure for fuel spend.

What’s more, by making the driver solely responsible for reporting fuel usage, it’s possible that they’re taking advantage of the system. Fuel cards could be given to friends or family members to also use, or the vehicle itself could be used for personal trips after hours. With the process of fuel costs managed by the driver, you’re forced to take your drivers at their word that they’re not taking advantage of the fuel management process.

Admin Challenges

If you were worried that your drivers were providing inaccurate information for personal gain, this would require a hefty amount of admin work to cross reference mileage and analyse the data. This could be particularly difficult if the issue has been taking place for a long period of time, as the data would look similar to that of previous months.

Even if you’re not suspicious of your drivers or don’t mind that they use the vehicles for personal use on the rare occasion, the information that they’re then providing could skew any reports on mileage costs.

So, how do you avoid incorrectly reported fuel costs?

The solution is to implement the use of fleet management software, such as Movolytics. Here’s why:

  • The real-flow fuel technology pulls information straight into the software, providing accurate information directly from the engine. This eliminates the danger of drivers rounding up mileage use, while also removing the risk of human error.
  • In addition to recording fuel use, the software can also identify driving behaviour that is leading to wasteful fuel habits. These can then be corrected, and the fuel costs will reduce.
  • Thanks to the software’s driver profiles, you can keep track of how much each bad driving event is costing the business, and pinpoint which member of the team is responsible. This information can be used to reward good driving behaviour and to set goals for repeat offenders.
  • If drivers also use their vehicles for personal use, the Movolytics fleet management system can easily separate the employee’s business and private mileage thus ensuring your business stays compliant and that your fuel is being used in the correct manner.
  • Movolytics’ vehicle tracking system gives you all the data you need to record your company’s carbon footprint to help you maintain a green fleet.
  • All this information is collected and presented to the admin team automatically, saving them a lot of time and effort.

For more information about how fleet management software can assist with fuel management, check out our fuel management pages.

 

 

graeme's picture
Graeme Corner

The majority of my time is spent ensuring that our team delivers simple and cost-effective solutions to our customers that face the challenges of running a fleet of vehicles.
Occasionally I manage to sneak away to enjoy time with family and friends or a quick game of golf ….