All logistics and warehouse managers have one major need in common: the need to control costs. When your responsibilities include a van or truck fleet, fuel will be a major cost item. In a perfect world, you would always be able to find discount fuel anywhere in the country, delaying payment with interest-free credit. Now, if you spend £500 monthly on fuel, and can pass a credit check, you could enjoy these benefits and more with a fuel card.
It works like this. You apply for a fuel card, requesting enough cards for all your drivers. Each card comes with a guide to the sites where it is valid – 1,400 or more filling stations nationwide in some cases. Your supplier then faxes or emails you every Friday of your fixed national price for the coming week. This is normally around 2p to 3p below national average pump prices, with savings of up to 10p per litre on motorway prices.
When a driver needs to refuel, they check the guide, fill up as normal at the nearest site and present the fuel card. That is all there is to it. Each week, a single invoice covers all of your vehicles. This is paid automatically by direct debit, with the gap between refuelling and payment meaning up to a fortnight of free credit. You should be offered both reports customised to meet your needs and 24/7 Internet access to your account information. You should also be able to telephone with any account queries.
Apart from immediate savings, replacing piles of receipts with one invoice means less administration and tighter cost control. As for security, your fuel card is useless if stolen, being valid only for authorised purchases and restricted to the driver or the vehicle. You should also be offered fast notification of unusual transactions. So, how do you go about getting a fuel card?
Find out how much you spend on fuel: ask whoever reconciles all those receipts. It is probably more than you realise. Then, your challenge is finding the right fuel card. If a supplier offers only one type of fuel card, they will want to persuade you that they have the answer, regardless of your circumstances. The trouble with fuel cards is that people think of them as discount cards. This can be right: a particular card’s benefits can begin and end with cheaper fuel. Not all cards are the same, however – some do not even offer discounts – and one size does not fit all. The more fuel cards a supplier offers, the better your chance of finding the right one for your needs.
Expect suppliers to ask questions, including whether you use diesel, petrol or both. Consider coverage. If your drivers only cover the local area, ignore networks which focus on motorway refuelling. These are perfect, though, if you are moving materials around the country. Look for benefits beyond pump savings: not all fuel cards cover lubricants. One advantage derives from direct invoicing, rather than reimbursing drivers. If you have the right fuel card – “EU 6th Directive compliant” – you can quickly and easily reclaim the VAT, so check.
A fuel card should save you money and management time. The fuel management headaches will linger, though, if you have difficulty keeping track of your spending. Look into the service levels on offer. Can you access your up-to-date account details 24/7, including the very latest transactions, via the Internet? If not, consider what that tells you about the supplier. Whichever fuel card you pick, you will want to talk to somebody sooner or later, so find out who it will be. Will you be ringing a random anonymous voice in a call centre, or talking to the dedicated account manager who knows all about you? It makes a difference.
Examine the various fuel card options available and pick the one that most suits your particular circumstances. If you are unsure, any reputable fuel card provider will be able to answer all of your questions within a single telephone conversation. You should normally be able to apply for your chosen fuel card at the same time, or on-line via the Internet. Do remember that in either case – as you are applying for free credit – you will then be sent a standard application form for your signature. It is much the same sort of process as applying for a credit card, only much simpler and faster.
The key thing to remember when considering fuel cards is that they are not all the same. So, ask about savings, ask about service, ask about security. Ask lots of questions. Pick a fuel card – but don’t pick just any card.
The Fuelcard People
Tel: 0871 598 0230
www.thefuelcardpeople.co.uk
Comments are closed.