There are two ways to strengthen the bottom line – earn more or save more. Many companies focus their fleet savings efforts on negotiating the best overall spend rebate. Yet that approach often represents the lowest comparable savings opportunity.

Why Fleet Spending is Not Your Best Source of Savings

12.4.15

Truck Receiving FuelThere are two ways to strengthen the bottom line – earn more or save more. Many companies focus their fleet savings efforts on negotiating the best overall spend rebate. Yet that approach often represents the lowest comparable savings opportunity.

Comdata recommends an inclusive cost strategy that combines direct cost reductions along with specific functions and controls. Ultimately, this approach has been proven to be the most reliable way to drive down operational fees and positively benefit your bottom line.

Fuel Types

Make sure your drivers are making smart fuel choices. Picking the wrong fuel type (like choosing to fill with premium rather than regular unleaded) can end up costing more than 20 cents extra per gallon. By using a card that provides Level 3 product data, you can easily track fuel types to make sure your drivers are selecting the most economical options.

Choosing the Wrong Station

Fuel prices can vary by as much as 20 to 30 cents within a three-digit zip code area. If your drivers are opting to fuel at an expensive site, it can add almost 30 cents per gallon to your fuel spend – the same as paying 10% more for your fuel.

Cash Retail and Credit Pricing

If your drivers use truck stops, make sure their card is equipped for cash retail rather than credit pricing. The designation can save you more than five cents per gallon. 

Driver Behavior Efficiencies

Consider who your drivers are and what their fueling habits look like. If your business relies on skilled, highly paid employees (such as service business employees), and an average fuel stop takes 30 minutes, refueling can get unnecessarily expensive. Consider having your fleet refueled on-site. You may discover that your labor cost savings will outweigh the cost of mobile fueling.  Additionally, review transactions regularly to make sure drivers aren’t stopping for partial fill-ups, extra, or out-of-the-way stops, which can be inefficient and costly.

Building intelligence about needs, behaviors, and resources by driver represents a giant step in building an optimally cost efficient fleet. Comdata offers the most comprehensive suite of fleet management and spending services. The behaviors and benchmarks for each fleet driver are set and monitored in real time, ensuring you are able to keep your drivers equipped to work efficiently and that they are operating at the lowest possible fueling costs – positively impacting your bottom line both in earnings and savings.