“Now is time to take control of fleet fuel” says CFC as prices set to rise during 2010

Fleet managers currently have an unprecedented opportunity to take control of fuel costs thanks to the impetus provided by the recession and likely future price rises, says fleet software market leader CFC Solutions.

The company says that, with the Petrol Retailers' Association forecasting that motorists can expect to be paying 123p for a litre of unleaded by the end of 2010 up from a current price of 108p, genuine momentum for action could be created.

Neville Briggs, managing director at CFC, said: “We have been advising fleet managers for years that fuel is a key area where costs can be reduced. However, it has always been a difficult ‘sell’ for them within their organisations thanks to lack of understanding about how petrol and diesel buying and use can be managed, so take up has been low.

“However, now could be the time when they can push for genuine change. The fuel price increases being forecast are considerable and, combined with the pressure for cost cutting created by the recession, they may finally win director level backing.”

Briggs explained that the key difficulty surrounding perception of fuel costs was that senior managers believed that there was nothing that could be done to control them and that price increases simply had to be accepted and suffered.

He said: “In fact, our experience is that the opposite is true. Fuel is a major expenditure for most fleets and responds very well to managerial control. Savings in expenditure of 5-10% are reasonably common.”

The tools recommended by CFC to take control of fuel expenditure are to issue fuel cards and link them to fleet software, providing a system of control and analysis.

Briggs said: “Fuel cards bring control at the pump – you can stipulate where fuel is bought and choose cheaper suppliers, stop fraud such as filling up non-fleet cars, and gain the data on expenditure provided by the fuel card company.”

This data can be effectively mined to provide a complete picture of fuel use across your fleets, putting in place measures such as fuel consumption exceptions, where the fleet software will automatically indicate where MPG targets are not being met.

He said: “We see instances where poor drivers use 20% more fuel that their peers in identical cars over similar journeys. Fleet software gives you the ability to identify these drivers – or their vehicles if there is a fault on the car or van – and take action.”

Briggs added that having a detailed analysis of your fuel expenditure also provided clear financial justifications for better fleet utilisation through measures such as car sharing or alternatives to travelling such as video conferencing.

“If you can show that sales team members can save a definite amount by car sharing to destinations, then you are presenting your argument from a firm footing,” he said.