Fuel prices have been relatively stable over the last several months as supply isn’t diminishing enough and demand isn’t exactly booming either. However, as time has shown, fuel prices are extremely unpredictable. It just takes one event or change, and prices can spike or plummet. Volatility will continue in the fuel market as much as it does in the stock market, which can keep whoever is managing your fleet’s fuel program up at night.
Unfortunately, fuel price volatility is not the only problem for companies with fleets. Driver retention and driver shortage issues continue to plague the industry and are anticipated to continue getting worse. Fleet’s may be dealing with aging vehicles that require more attention and maintenance compared to fleets that have had vehicles replaced within the standard timeframe. On top of that fleet’s are also dealing with the Elog mandate.
Fleet Managers/Logistic professionals might feel like they are on their own when it comes to solving the various problems they face on a daily basis. However, when it comes to fuel management, outsourcing is a solution that merits attention because of its potential to drive significant value to a company’s bottom line.
When compared with other expenditures, fuel costs are second only to payroll for most transport companies. Therefore, it is vital that these firms manage fuel costs proactively, as it is the only way to manage them effectively. Because the savings potential is so large, but the time required can be significant, many fleets recognize the value of outsourcing.
Simply put, the knowledge, experience and technology employed by outsourced fuel management experts can yield more savings than most Fleet Managers could ever achieve on their own. Outsourced fuel management experts are also able to leverage their industry network to negotiate advantageous supply contracts while also helping to minimize the impact of price volatility. In addition to better, and less volatile pricing, outsourced fuel management provides invoice price verification and reconciliation at the individual transaction level.
Outsourcing fuel management also helps Fleet Managers get their arms around the other problems they regularly face. With an outside team of experts handling fuel management, more time and energy (and some of the money saved) can be spent on increasing driver retention. The happier the drivers are, the greater the retention, which in turn improves overall operations.
Some of the savings made possible by fuel management outsourcing can also be used to reinvest in the fleet itself or used for infrastructure investment in other areas. When invested back in the fleet, it can also yield benefits such as reduced maintenance costs for the fleet’s vehicles. Newer and upgraded vehicles will also help improve driver retention and overall operations. This makes fuel management a win-win situation for Fleet Managers and their companies.
Sokolis provides outsourced fuel management with numerous Top 500 fleets that understand the importance of having a team of fueling experts working for them. We have the ability to negotiate fueling supply contracts and fuel card fees, audit every price on your fuel invoices down to the individual transaction, evaluate the best fueling method for each of your locations, and provide customized reporting for Fleet Managers and CFOs, while accommodating any special needs and conditions for your company. The result is a tightly managed program that provides fuel savings beyond what almost any company can achieve on its own.
Find out for yourself how outsourcing fuel management can lower your costs and save you time. Call Sokolis at 267-482-6155 or reach out directly to Conor Proud at 267-482-6159, e-mail at cproud@SokolisGroup.com.
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