Fuel prices will go up significantly at the end of the year. Small businesses need to plan now to reduce their bottom line impact, says cfc solutions’ Andy Leech.Oil prices are on the rise.
How will that affect your bottom line?
Well it won’t now, because there’s not an immediate problem: diesel and petrol pump prices remain relatively low.
But they look set to increase significantly towards the end of this year.
Because of this, now is the ideal time to start controlling your fuel costs.
Companies of all sizes tend to believe that there is little they can do to fight rising expenditure in this area.
But the truth is very different.
We have worked with many small fleets who have made a genuine impact on fuel costs by introducing a few simple measures.
Most small fleets operate a “pay and reclaim” system. Drivers are reimbursed for the fuel they have used by producing receipts.
However, this system provides few or no controls. It is administratively unwieldy and almost begs for fraud – fuelling a spouse’s car for instance – to be committed.
So, what measures should you put in place?
- Identify wasteful drivers
- Check which vehicles use most fuel
- Control of fuel buying: steer drivers towards cheaper outlets
- And ensure that your fleet drivers only cover necessary miles
The easiest and most effective way of putting this strategy into action is by using a fuel card linked to fleet software.
These tools are as important and easy to use for the smallest fleets as for the very largest. Indeed, we have a special software package for smaller fleets, FleetOutlook, that can be downloaded from our web site. The sub-10 vehicle version is free.
By issuing fuel cards, you will immediately cut out simple fraud. And ensure your drivers are buying fuel only at the outlets you designate.
The data produced by the fuel card company can then be automatically loaded into your fleet software and problems much more easily identified. For example, you’ll be able to see which drivers have the heaviest right feet, which vehicles perhaps have a mechanical problem that means they are using more fuel, and take management action where you believe it is necessary.
In that way you can have control over fuel expenditure, even though you can’t control the rising price of oil.
Further information
- cfc solutions is the market leader in the supply of fleet, contract hire and workshop management solutions. Its client base numbers 3000 across more than 40 countries. Click here for further information: www.cfcsolutions.co.uk.
