Years ago, companies were hesitant to direct drivers to fuel stop networks. They were fearful drivers would get upset and leave. Today we are facing the same issues we did back then. “Driver Shortage” But, a lot has changed since then. The need for a company to manage their fuel cost has become a necessity and drivers understand this more than they have in the past. Drivers have become accustomed to working at companies that lock down their fuel network. Many companies are using optimizers that give a fuel solution with each load dispatched.

Setting up a fuel network can be done in a few steps that lessens the impact it has on drivers and will ultimately result in better compliance to your network.

1. Consolidate your gallons to a truck stop chain that is willing to give additional discounts for more gallons you do with them. Implement the new network with your drivers. Send memos telling the drivers to use this truck stop chain whenever possible.
2. Measure the compliance and add additional communication where needed.
3. Determine if there is a need for one-off locations where they may be a gap in coverage.
4. Use your fuel card to lock out locations that are not on the network. (you have the ability to keep the card open for these stops but limit the gallons they can purchase. i.e. 50 gal maximum)
5. Continue to counsel drivers not adhering to the network.
6. Implement network compliance into your safety bonus program.
7. Within 6 months, you can lock your cards down to the network.

Figuring out a fuel network isn’t easy. There’s many things to consider. You need data to make the decision. You need reporting to measure compliance. Most importantly you need to monitor the network regularly to ensure its still providing the most cost effective fueling for your fleet.

Wouldn’t it be a perfect world if you could open your inbox and get weekly updates on compliance? Savings, and updates when needed?

It really is that simple. Let us do all the work. That’s what Sokolis Group does on a regular basis for many companies across the US. Give us 20 minutes on the phone along with some fuel data and we can start the process of determining the most cost effective fuel program for your fleet.

I recently attended the Truckload Carriers Association (TCA) annual conference in Dallas less than two weeks ago.  This was the first time Sokolis Group had participated.  It was also the first time I’ve ever been in Texas and what they say about everything being bigger held true.  The conference had a pretty good turnout.  It wasn’t the biggest I’ve been to in terms of attendees, but it wasn’t the smallest either.  The venue on the other hand was definitely gigantic!

I’ve always felt along with many others I’m sure, that the economy starts with trucking.  If business picks up there, it usually has a trickledown effect to other industries, eventually causing an upward trending economy.  Just remember how everything we use on a daily basis gets to us.  In some part of the process a truck is involved.  Talking to industry leaders who stopped by our booth at the TCA, it seemed that their companies were doing very well.  They’re as profitable now as they’ve ever been.  That was encouraging to hear.  With the winter most of the U.S. recently endured we could use some good news.

I’m not saying that I expect the economy to start booming, but maybe things are slowly heading in the right direction.  I think with the recession trucking companies were forced to reevaluate how they were doing everything.  They needed to stretch their dollars and become more efficient, and that was transparent when I was talking to attendees.  They were focused on buying fuel better, getting better MPG’s, and eliminating out of route miles.  The ones who were able tighten up are now benefiting and forcing others to keep up, now that we’re no longer in a recession.

Another topic that was a popular discussion at this conference was the lack of drivers; not anything earthshattering new to hear in the world of trucking.  There were sessions on driver pay and other recruiting tactics to incentivize in this driver shortage.  One possible solution was to recruit veterans into trucking.  The challenging factor here is that driving is not an easy job.  Besides the fact that it’s labor intensive, asking men and women to be on the road away from their families so often is also problematic.  It’s not an easy sell, but obviously something has to be done to try to turn it around.  I will say that knowing that drivers are the blood of their business, companies, vendors, and industry leaders appreciate drivers greatly.  It was shown at the TCA as there were many award winners walking along the exhibition floor.

If you’d like to visit us at our next conference, we’ll be in Cincinnati for the National Private Trucking Council’s (NPTC) annual conference.  Stop by booth 421 and talk to us.  Otherwise feel free to reach out to me and discuss how we can help tighten up your fuel program.

Time is money… how many times have we all heard that?  We all know it’s true, particularly when it comes to fleet management.  The recent changes to the Hours of Service (HOS) regulations have definitely created some challenges for companies that need to maximize their drivers’ productivity.

It’s more important than ever to take a hard look at how your drivers are allocating their time and using every minute possible for getting your, or your customers’, products delivered.  Complying with HOS regulations means inefficiencies are potentially translated into the need for more drivers and vehicles to deliver the same amount of freight.  That’s an expensive consideration for any business, especially for the ones that run on very thin profit margins.

So when it comes to fueling your vehicles, how much time are your drivers sacrificing rather than making additional deliveries on their route?  I often hear it takes an average of 30 minutes for a driver to get through a truck stop.  Maybe your driver’s fuel out of a bulk tank in your yard, but that could still take at least 15 minutes.  Even if you’re not constrained by HOS, is this the best use of your drivers’ time?

There are good fleet fueling options to consider which can free up more of your drivers’ time.  Mobile on-site fueling is one of them, although some concerns are often raised about it.  Local environmental regulations must be reviewed, but reputable and safe mobile fueling companies are operating in a large number of areas throughout the country with success.

Another issue is the relatively high price of the fuel that a mobile fueler charges.  When looking at the price, it’s important to consider the additional time available for your driver and the value generated by the increased productivity.  After crunching the numbers through a properly designed financial model, mobile fueling can be a very attractive option.

If you have concerns about the time it takes for your drivers to obtain fuel and want to evaluate options, let Sokolis Group help you.  You can confidently determine the best choice by relying on our knowledge, experience and trusted supplier network.

Diesel fuel prices have been rising steadily over the past month.  Most of us are accustomed to volatility in fuel prices, but they have actually been relatively stable over the past 10 months.  About a year ago, diesel fuel prices were approximately 15 cents higher than where they are now.  Then, the price fell rapidly during March 2013 and hovered around an average of $3.90 per gallon across the U.S. until a few weeks ago.

Based on what I’ve been reading, it looks like the increase in prices will continue, at least for the next few months.  Supply and demand forces will both be in effect.  Although the anticipated end of the harsh winter will help ease demand for fuel oil, as warmer weather approaches, more drivers will be out on the roads increasing fuel consumption.   In addition, supply production will be tighter as scheduled maintenance at some refineries gets underway.  Mixing in some political turmoil certainly won’t help the situation either.

There are many possible reasons for why fuel prices go up or down.  Anytime you see larger changes happening in either direction, keep in mind that it creates a potential opportunity for less reputable fuel suppliers to maximize their margins.  When prices are rising quickly, suppliers may be tempted to tack on an extra penny or two thinking it won’t get noticed since everyone “knows” the market is rising.  Conversely, as prices fall rapidly, suppliers might be slow to lower their prices (a.k.a the “sticky down”) and grab a few extra pennies of profit along the way.

It’s always important to closely monitor fleet fueling transactions to detect billing errors or potential theft regardless of price volatility.  In addition, the same process should continually be used to audit the invoiced price of fuel to be sure it can be reconciled with negotiated deals and validated by industry benchmarks like OPIS.

If you don’t have the time or the tools to follow-through on the details, you could easily wind up overpaying for fuel.  Otherwise, you should consider hiring an expert like Sokolis Group Fuel Management to review everything and make sure your company does not get taken advantage of.  Then you can be confident that your fuel supplier is only smiling because they are happy to have your business at a fair price.

A good friend used to always say “Don’t make things so complicated. It’s not rocket surgery.”

When it comes to fuel cost management, that same thought holds true. I try to keep current by reading anything and everything I can on fuel management.  While reading a fuel management article on an industry website recently, I noted it had some great ideas on how to lower fuel costs. However, every idea they presented involved huge capital cost and time consuming implementations. There were suggestions for buying lighter vehicles, Alt-Fuel vehicles, onboard recorders to measure driving habits and idle time reduction.

All of those ideas are valid but come with additional cost to your fleet budget. One of the only recommendations I saw that’s an easy implementation was tire inflation.

What I didn’t see in anything I read is the most cost-effective way to lower your fuel spend and bring bottom line savings to your origination.  Buy your fuel cheaper. What would $.02, $.04, $.05 cents per gallon save on your monthly fuel usage?  On a 100,000 gallon per month fleet, it’s $2,000 per month or $25,000 annually. Will the ROI on an Alt-Fuel vehicle or an EOBR show you that kind of savings? Reducing your fuel cost is the fastest and easiest way to impact your fuel budget.

When making decisions of this nature, you need the data to tell when you’re getting the right price.  You can’t just tell your supplier I need a better price. They’re going to respond with “Oh you’re getting the best price.”  Does this sound familiar? How do you verify that? You need the data to verify you you’re getting the best price possible.

Another way you can reduce fuel cost is to buy fuel where it’s cheaper. In many cases, you could buy fuel 20 miles down the road or across a state line and save on taxes.  Again the need for data to help make that decision is paramount. There are controls you can put into place on your fuel cards to lock them down to a network. Leaving the fuel buying decision to a driver in this day and age is not a sound business idea.

Don’t step over dollars to pick up pennies. Request a free, no obligation analysis and review of your fuel program by calling me today.