Many companies have determined that locating a bulk fuel tank in their own yard provides the most cost-effective method for their fleet fueling requirements.  Bulk tanks certainly come with insurance and environmental challenges, but they can be overcome with careful planning.  It’s also costly to purchase and install a bulk tank, but significant net savings may be achieved compared to alternative fleet fueling options assuming your tank doesn’t “leak.”

When I say “leak,” I don’t mean fuel seeping into the ground.  I’m referring to a tank that lacks a fully integrated inventory tracking process, including a card reader.  Without it, fuel will be dispensed from the tank and it will be difficult, if not impossible, to know where it all went.  Misuse and theft can easily go undetected without strong inventory controls.  The loss of fuel will quickly wipe out any cost advantage of having the tank in the first place.

One of the worst inventory control scenarios would allow anyone in the yard to drive up to the tank and dispense fuel without tracking the driver AND vehicle.  A small improvement, although primitive by today’s standards, would involve placing a clipboard and pen near the tank (in a weather proof location) for someone to note their fueling activity.  That might work if everyone followed the rules and the clipboard didn’t get misplaced.  Also, the back office staff will need to spend the time to rekey all the information accurately assuming they could read the writing on the clipboard.

A better scenario is a tank with a card reader system, but we often see companies with old equipment that cannot transmit information.  Fueling transaction data is actually trapped inside the reader until someone physically downloads it.  “Memory full” error?  Let’s hope it doesn’t result in fuel being pumped without being recorded or we’re back to the worst case scenario.

The preferred solution is to equip the tank with a card reader system that provides fueling data in real-time, whether it be through a wired or wireless connection.  In addition, the data should be in a format that is easily integrated into an inventory control system with robust reporting, possibly using a company’s G/L system for full cost accounting and P&L tracking.  Modern card readers offer those capabilities as basic features.

If you’re concerned about the cost of investing in a new bulk tank inventory control system, it’s worth noting that there are major fleet fuel card providers in the market that are willing to absorb most of the cost, including installation expenses, in exchange for earning transaction fees over an extended period of time.  These arrangements can be very attractive for companies with limited cap-ex budgets.  Avoiding the up-front cash outlay can help quickly provide financial returns from improved inventory controls, even net of transaction fees.

If you are interested in learning more about improving your inventory controls and plugging the “leak” in your bulk tank, contact the experts at Sokolis Group Fuel Management.

What is more economical for your fleet, a purchasing card (P-card) or a fuel card?  It depends on the situation and the makeup of your fleet.  Are you purchasing gas or diesel, or perhaps both?  Are you a local fleet or traveling over-the-road?  Class 8 tractors or pickup trucks?  Do you need to report information to IFTA or track transactions for other reasons?

For a sizeable fleet of tractors or straight trucks, it’s an easy answer: fuel card.  It gives you the ability to look at detailed transactions within seconds after your driver makes a purchase.  There is potential to negotiate deals and you have much more control of what your drivers are buying.  The fuel card will be the best all-around solution offering savings along with all the data you’ll need to keep tabs on your fuel program.

The question becomes more difficult when you have a smaller fleet of trucks or cars (let’s use 20 or less diesel trucks/50 or less gas units).  In this instance, you want to consider what is most important to your company.  If your fleet’s main concern is saving the most amount of money on fuel, then the P-card is the better choice in most cases.  You most likely have a business relationship with a bank and you are using them in a couple different facets.  Therefore, they will be willing to offer a P-card with a bigger rebate then you can typically get through a fuel card company.  However, this does open the door for potential theft.  How do you track purchases when you don’t have all the essential information such as odometer, gallons, and PPG?

Of course, there is more to consider.  Accessibility, transaction fees, rebate vs. point of sale discounts, and even customer service.  There just isn’t enough time or space to fit it in this blog!  Reach out to me if you find yourself in this position.  We have the tools and knowledge to analyze the best option for your fleet.