Inception of the intelligent fuel card
With fuel representing easily 20% to even more than 50% of a fleet’s total operating costs - depending on the type of fleet and profile of fleet drivers, it’s important its acquisition and use is well managed and controlled. Fleet Europe talked to Alan King, Group President for UK and Australasia, Fleetcor, for his views. Fleetcor is a global provider of business and payment solutions with expertise in fuel payment and fuel management.
What to look for
Firstly, where do you start when looking for an international fuel supplier? What are some of the lesser-known criteria to bear in mind?
According to Alan King, it all depends on the type of fleet operation you run. Having a clear view of the geographical coverage required is an obvious first step, followed by an understanding of the true extent of your need in each geography.
He explains: “In some countries your fleet journeys may be transitory, where you pass through from one location to a destination somewhere else. In this case, one or two fuel stops on route may be likely. Conversely, your fleet operation, a delivery company for example, may include complex routes within and around. This will define the sort of network that will work best, avoiding unnecessary diversions and creating the most efficient routes.”
Something else to bear in mind, however, is all the other costs that are vehicle-related but not necessarily fuel.
Alan King clarifies: “Costs such as tolls, parking, SMR (service, maintenance and repair) if needed, plus in some cases overnight accommodation and meals are all part of the operating costs of the fleet and need to be managed and controlled in the most efficient and effective way.”
In March 2017, Fleetcor launched the new Allstar Plus fuel card in the UK, which it believes is the first dual network card covering fuel and other business expenses (incorporating both the UK-wide Allstar Fuel Card network, plus the Visa network).
“It can be used for all these ancillary payments, not just fuel, and the system intelligently recognises when its being used at a fuel service station or not, routing the transaction through the appropriate network.” says Alan King.
Allstar Plus also addresses issues associated with open credit cards, by delivering level 3 data through the Allstar network, providing controlled access to non-fuel merchants according to the company’s need and consolidated invoicing. This enables fleet managers and finance departments to control what can be paid for with the card, helps to reduce paperwork and cash payments and ultimately deliver additional working capital thanks to improved payment terms.
Tendering for fuel suppliers
Alan King suggests giving prospective suppliers the best opportunity to demonstrate their offering and credentials. This can be done by detailing various data points in the tender such as site coverage, fuel types required, size of fleet, vehicle types, restrictions, security elements and processes, additional services (SMR) that may be required, other payment categories beyond fuel that need to be supported, service levels, their financial stability, price and overall cost of the service.
However, it’s not all about price, Alan King stresses: “There’s too much emphasis these days on fuel price and not enough given over the management information and associated controls that can be brought to the table. The power of data, and what it can do to help drive efficiency and costs savings cannot be over stressed.”
Alan King doesn’t believe there is enough understanding of the importance of having the right partner and the right data.
What started out in terms of fuel management as a convenient way to pay for and control fuel costs, it seems fuel card systems are morphing into functional data collection and categorization tools that can help with the overall efficiency aim of the whole fleet.
