Managing fuel costs and fleet operations is a critical challenge for any construction company, especially when faced with fluctuating prices and administrative burdens. Managers must keep track of everything from drivers to vehicles to equipment. Finding ways to reduce spending while increasing efficiency is critical to the long-term success of any construction business — and choosing the right fuel card can transform how you handle these hurdles, helping to maximize savings while streamlining operations.
When selecting and using fuel cards or fleet cards, it’s essential to understand their features first. Then, you can turn these business tools to your advantage.
Fleet Card Basics
Ultimately, tailored spending controls increase accountability and can help keep all workers aligned with a company’s financial goals.
Before we discuss the different features of fleet cards and how they can help construction businesses, let’s first look at what these cards are. A fleet fuel card functions similarly to a credit card. However, these payment solutions have been developed with vehicle-specific needs in mind.
When a construction company adds fuel cards to its management toolbox, the cards are assigned to drivers and can be used to pay for gas, diesel, parts and services, maintenance, etc. Most fuel cards have an online user interface called a dashboard, where purchase data is housed. This dashboard can be accessed from desktops, laptops, tablets and smartphones. Essentially, fleet cards are a great way to consolidate spending, collect data and exercise greater control over one of your most significant expenditures.
Key Features and Advantages of Fuel Cards
One standout feature of many fuel cards is universal acceptance. This means a fuel card can be used at virtually any gas station. Shell Fleet Cards, for instance, can be used at nearly any location in the contiguous United States, with acceptance at 95% of U.S. fueling stations. Beyond acceptance, most fleet cards include some version of the following:
Rebates and Discounts
Many fleet cards offer rebates on fuel purchases. Sometimes, these rebates are network-specific, while others may be available at any fueling station. More significant savings tend to be network-specific. With Shell Fleet Cards, for instance, users can save up to 6¢ per gallon when they use Shell gas stations. These rebates can add up when you purchase gas and diesel for trucks, heavy equipment and more.
Beyond rebates, many fleet cards offer additional discounts on parts, services, and maintenance. Paying less for things like oil changes and tire rotations can help improve a construction company’s cash flow. Shell Fleet Cards can give users a 15% to 20% discount at all Jiffy Lube locations.
Real-time Data
Each time a driver or employee uses a fuel card, the transaction data is recorded in a fleet card dashboard. This information is collected at the time of purchase. Real-time data offers two distinct advantages — real-time monitoring and automated fuel expense tracking.
Real-time Monitoring
With real-time transaction data, construction business owners and managers have a constant pulse on spending. This is a level of transparency credit cards simply cannot provide. Whenever a driver buys fuel, the following information is immediately available:
- Date of purchase
- Time of purchase
- Amount of fuel purchased
- Dollar amount of the transaction
- Type of fuel
- Grade of fuel
- Driver ID
- Odometer reading
Imagine always knowing who spends how much, on what and where. A manager can view spending at the employee level at any time.
Automated Fuel Expense Tracking
With the details available through real-time data collection, drivers and employees no longer need to keep receipts or submit fuel expense reports. All the details are automatically recorded without the risk of human error, saving drivers time and accounting departments the headache of reviewing and approving manual reports.
Spending Controls
Another advantage of using fuel cards is the control they offer. Purchase limits or spending controls allow managers to set limits on fuel purchases. These controls are fully customizable, meaning a manager can do any or all of the following:
- Limit the days of the week or the times of day a card can be used.
- Set maximum dollar amounts or maximum volume limits for each transaction.
- Approve a card for gas vs. diesel or regular vs. premium.
- Determine the maximum number of transactions in a given window of time (day, week, month).
This capability helps maintain budgets while actively preventing unauthorized purchases. When purchase limits are programmed with spending policies in mind, drivers are set up for success because they always know what is expected.
Ultimately, tailored spending controls increase accountability and help keep all workers aligned with a company’s financial goals.
Custom Reporting
Fleet fuel cards are equipped with advanced reporting and data analytics. This capability allows managers to focus on the metrics that matter most to their operations instead of being overwhelmed by irrelevant data. For instance, construction managers can choose reporting options that enable them to monitor the metrics they consider vital — spending by project, fuel usage trends over time or even driver accountability measures.
Fleet fuel cards are equipped with advanced reporting and data analytics. This capability allows managers to focus on the metrics that matter most to their operations instead of being overwhelmed by irrelevant data.
Imagine being able to view how much fuel each vehicle consumes, the mileage associated with the usage and which drivers are responsible. This level of transparency is possible for every metric a fleet card tracks. This also means you are doing so much more than tracking expenses — you’re constantly and acutely aware of opportunities for optimization. Detailed information for individual drivers, specific vehicles and job sites is available with the click of a button.
Data-driven Construction Management Can Lead to a Bigger Bottom Line
Fuel cards offer obvious savings in the form of rebates and discounts. However, when the data these fleet cards collect is put to good use, construction companies can realize even greater savings. Real-time monitoring gives managers an accurate pulse on daily operations, while automated fuel expense tracking saves valuable time and resources. Spending controls help cut unnecessary spending and advanced reporting capabilities provide the insights necessary for strategic decision making.
When all these benefits are put together, it’s easy to see how a fuel card can increase cash flow and add to a company’s bottom line.