Fleet Management Software - Fuel Management - Article

THE biggest problem facing companies when trying to manage fuel use is the overwhelming amount of data involved. On average, a fleet driver might fill up 51 times a year. If the employer pays for all the fuel used, the fleet manager has to check about six pieces of information, ranging from fuel used to price, date, correct registration and location.

So for one driver, each year, there are at least 306 pieces of information to be checked. Multiply this across a 100-vehicle fleet and suddenly every day could simply be filled with checking fuel receipts.

But it doesn't end there, as many companies operate a pay and reclaim system instead, which provides information based on each journey and multiplies the amount of data by at least 10 times.

At this level, computing power is essential for a company to truly understand what is being spent where and by whom.

Some fuel card providers already offer online services that allow fleets to check vital data about fuel spend, but for real flexibility, fleet software offers the best chance to make a difference and identify where savings can be made.

Yet the majority of fleets do little to control fuel costs and so are being hit hard by the current rocketing price of fuel. So says cfc solutions, which has been monitoring this issue for several years and encouraging fleets to take a more proactive stance.

Sales and marketing director Andy Leech, explained: 'It is no exaggeration to say that the vast majority of car and commercial vehicle fleets simply don't appear to realise that fuel costs can be managed. 'Of all the fleets that we have dealt with over the past two years - both our customers and others - we estimate that less than a third proactively manage fuel. Rising fuel prices are simply treated as a bitter pill to be swallowed.

'Using fleet software to identify drivers who have a heavy right foot or whose vehicles are using too much fuel can pay real dividends.' So what can software do? Pretty much anything you like depending on your budget. A wide range of software providers have fleet specific products, including cfc solutions, VT Software Solutions, Chevin Fleet Solutions and Jaama.

Data inputted in the system can be analysed by car, driver, date, fuel type and economy among a range of other factors to get an exact picture of where a fleet's money is being spent on the road. Choosing the right software and software provider is a different matter. Unlike everyday computing, fleet decision-makers have a number of software choices they can make. Unfortunately, the choice isn't as simple as buying a copy of Microsoft Fleet Manager - it just doesn't exist. So where do you start?

Most importantly, fleets should have in mind exactly what they want the software to do and document. It is much easier to do this at the start than at the end of the process. According to Chevin Fleet Solutions, providing a day-to-day list of what the fleet department does helps make everyone's priorities clear.

Although fleet software can be complex, a good fleet system should be easy to operate. Key questions to ask include what the implementation service is like, what training is provided and whatthe maintenance, support and software updating procedures are like. It is important to keep track of innovations too.

Arval, a major fleet and fuel management company, has an online Mileage Capture System, which uses the 'actual' cost of fuel purchased atthe pump to calculate exactly what company drivers owe for their private fuel.

The completely automated system uses either online or phone-based reports from drivers to capture information from drivers about their business and private mileage, which is then put straight into its systems.

The cost of the privately used fuel can then be deducted from the driver's salary, ensuring that an employer is fully reimbursed for the 'true' cost of private fuel purchased.

TOP 10 TIPS FOR CHOOSING A FLEET SOFTWARE PROVIDER

• Have in mind exactly what you want the software to do and document it.

• Look closely at suppliers' credentials. Does the software functionality match your requirements?

• A good fleet system should be easy to operate - you shouldn't have to change your existing processes just because you are getting a new system.

• A data conversion from an existing system could be essential. Make sure the vendor can still supply you with regular updates and can fully support your system.

• How good is their training?

• Check that the software product comes with manuals and online help. I never buy a system that has just been demonstrated by PowerPoint. Always insist on a live demo.

• It is important that the supplier has a commitment to keep the software up to date with legislative changes and frequent services packs providing the latest functionality without additional costs.

• Don't just choose the cheapest. Always look for value for money.