Fleet Management, Are fuel storage tanks good?
All fleet managers are never really sure if it’s nice to have fuel tanks on site or if it’s a real pain in the ass. Let’s be honest; The convenience of having fleet fuel right outside your door makes your fuel management system so much easier, right? Well, not so fast. Let’s take a look at the pros and cons that fleets have to deal with having diesel fuel tanks on site.
Let’s start with the advantages of fuel management with diesel tanks. You have the convenience of having a fleet fuel source nearby that never shuts down. Most fleet managers and business executives believe that having the bulk tank will always lower diesel fuel prices. Fuel managers say their drivers don’t have to spend time waiting to fill up. Others say the hassle of fleet fuel cards goes away because the tank is right outside. These and others are all valid points for wanting a tank in your garden.
We believe that some companies need this in order to have a solid fuel management system. There are hidden problems behind having your own tanks. It’s always important to know what they are before you jump two feet forward on bulk diesel or replace your current tank with another because that’s what you’ve always done in the past for your fleet fuel needs. Let’s look at some of the potential fleet management issues with a tank.
Environmental
Federal, state and local governments are not easing fuel tank inventory requirements. Most require daily fuel readings. If your fuel system is fully automated, that won’t be a problem. The problem occurs when you’re not and someone is hitting a tank with a fuel pole and getting a stick reading. Then they write the information on a piece of paper. As long as your records are kept up to date on a daily basis, your fleet management should be in good shape. Your biggest concern will be fleet fuel spills due to inattentive drivers or a faulty nozzle. A spill can cause huge environmental headaches and costly damage.
Diesel fuel prices
With this tank, you think you are going to have lower diesel fuel prices. Figures that’s what the big trucking companies do, so it must be the right thing to do for my fuel management program. Are you considering what your diesel costs plus what it costs you to fill your fleet of trucks? What usually happens is that you can’t buy diesel as cheap as the big truck company. Heck, a lot of the time, fleet managers aren’t even sure they’re competitively priced with all the other jobs they have. Your fuel island can only hold two trucks and perhaps all your drivers start at the same time and finish at the same time, leaving half a dozen waiting in a fuel line at your own location. This adds costs to diesel fuel prices if you are considering the overall cost of fueling the fleet.
fuel cards
Most fleet management people don’t think much about fuel cards. They assume that the driver goes to the fuel island and will record how many gallons of diesel go into his truck. If you haven’t figured it out yet and I’m the first to tell you, fuel theft is big business. If you don’t have that locked diesel tank, so the only way the driver can get fuel out of there is with his fuel card, chances are they are stealing diesel from your company. If your fleet fuel is gasoline and you don’t have fuel cards now you are really stealing fuel. 1.5% of a company’s diesel budget is stolen and over 3% is lost due to theft from gasoline-powered fleets. No, in most cases, this is not the guy next door with a funnel sucking up the profit from managing your fleet. They are your own loyal employees 81% of the time. Your company needs a fuel management system for fleet fuel card controls and fuel inventory controls.
With most things in life and fleet management solutions, there are many pros and cons. We just wanted to point out that when refuelling, it’s more than low diesel fuel prices in your tank to be successful. You need a solid fuel management system that involves fuel cards, fuel inventory management, fleet fuel audits, and a fleet manager who can make sure diesel fuel prices are low and in line when you shop. These things will help make your fueling much easier and your fleet management successful.
