Service Organization Saves $150,000 on Fuel Costs
A service organization was challenged by volatile diesel fuel costs and a lack of controls on their fuel spend. More importantly, if diesel fuel prices spiked, this client was required to reimburse their service providers penny-for-penny for anything over a certain fuel price per gallon. This jeopardized their ability to make a profit whenever fuel prices increased.
“Sokolis Group introduced us to a way we could insulate our company from fuel price spikes,” the group's director said. He was referring to a fuel savings instrument known as a "paper hedge."
The paper hedge allowed the client to own fuel on paper, like a stock, and provided them with a price cap for a certain amount of gallons. It’s basically like buying an insurance policy to protect against prices that increase above the cap. This makes the fuel budgeting process more reliable by reducing the risk associated with rising prices.
“Sokolis Group's knowledge and experience put several other fueling programs in place to enable our company to save over $150,000 a year," the client said.
Those programs included a new fuel card program, card readers for bulk fuel tanks, mobile fueling, and card lock fueling. These changes tied together all of their information and provided diesel fuel savings, plus time was saved for drivers and office staff.
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