Total Fuel Management Program

How Secure is your Total Fuel Management Program?

As fuel costs are rising due to instability in the global market, now is the perfect time to look at your TFMP, Total Fuel Management Program. Securing your TFMP is about saving gallons at the pump and putting money back into your business. The financial burden a company faces when Fuel Slippage can be up to 15% is detrimental to the bottom line at sub $4.00 per gallon for fuel. We have outlined a few steps that can be taken to reduce slippage and put the control back into the Fleet Manager’s hands.

Driver Fuel Policy

Instituting a Driver Fuel Policy clearly states the expectations of your company when assigning a fuel card to a driver. These expectations show that there is true management of your company’s fuel program and leaves little doubt with your drivers. Some ideas to include in your policy:

• Clearly state who the card is issued to and state that the card is not to be used by other drivers or for personal use
• Clearly state that the driver is accountable for all transaction made on that card
• Clearly state that the driver is responsible for entering any information required by the company ie. Odometer reading, driver number and/or vehicle number
• Clearly state that fuel is only to be purchased and state the fuel(s) that are allowed
• Clearly state the actions that will be taken if the policy is not followed
• Obtain a signature and provide a copy to the driver

Review and Implement Controls

Reducing and minimizing the ability to purchase unwanted gallons protects your company’s bottom line. Establishing controls on your fuel cards is a top priority and should be done when installing your new fuel program. Downs Energy’s TFMP offers the following restrictions:

• Gallons purchased per transaction
• Gallons per day, week, or month
• Transactions per day
• Authorized fueling times and days
• Fuel only or Fuel and DEF
• Driver IDs

When establishing your controls, understand your driver or equipment needs. Gallon limits should be placed based on the usage and tank size of the equipment. Understand the routes and usage of that equipment. Times should be set to when the driver will be on shift. We strongly suggest not allowing purchases to be made when the driver or equipment is off shift, especially weekends. Adjustments can always be made and in real time without replacing the card.

Monitor Your TFMP

The biggest mistake of having a fuel program installed is not following through by monitoring your drivers’ behaviors. With a TFMP, follow up on the controls established to insure your bottom line is being protected. These additional tools will ease the ability to control and monitor your fuel program:

• E-receipts- electronic notification of purchase made as soon as driver completes the transaction
• Online access- real time transaction review
• Custom Reporting- reporting that can be separated by driver or vehicle to determine consumption patterns
• Real Time Alerts- receive notifications of any unauthorized or irregular purchases.

If your purchase controls are too tight, you can adjust as necessary without having to reissue cards or interrupt service. If a driver makes unauthorized purchase, refer to your driver fuel policy. Use this time to show that your company has a strict fueling policy.

Fuel Slippage

Fuel Slippage is the loss resulting from hidden, unauthorized purchase activity. Areas to be concerned with while looking for fuel slippage are; fuel type other than assigned or non-fuel purchases such as food, beverage, car washes, etc. Companies are increasingly at risk for fuel theft especially with the rising cost of fuel. Fuel theft and unauthorized fuel purchases can be minimized with a TFMP.

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