Managing fuel expenses can be challenging for construction fleet managers, especially when gas and diesel account for a large portion of a construction company’s budget. According to a 2023 American Transportation Research Institute survey, fuel costs account for about 21% of a fleet’s total operating expenses. With fuel being almost a quarter of operating costs, it’s no wonder every construction manager or owner is concerned with how to trim those numbers while maintaining efficiency.
Effective fuel expense management is about so much more than spending less at the pump. When done right, it directly influences the profitability of a construction business through many avenues.
For many, the answer to efficient fuel expense management comes in the form of a fleet fuel card.
The Importance of Fleet Cards in Fuel Expense Management
Effective fuel expense management is about so much more than spending less at the pump. When done right, it directly influences the profitability of a construction business through many avenues. Fleet fuel cards are an effective cost-management tool with several features that can help reduce fuel costs. Most fleet cards provide savings through fuel rebates. Shell Fleet Cards, for example, provides rebates up to 6¢ per gallon with a tiered rebate structure. This means the more you fuel, the more you save.
Beyond the rebates, many fuel cards, including Shell Fleet Cards, offer discounts on vehicle services like oil changes. Fuel rebates and discounts on parts and services can help increase cash flow. Fleet cards also help track expenses and can help reduce costs in many other ways.
Key Features of Fuel Cards
When choosing a fuel card, certain features stand out as essential components for maximizing savings and enhancing operational efficiency. Four of the most vital aspects are real-time transaction monitoring, customizable spending controls, mobile access and reporting. Each feature provides construction companies with ways to help manage fuel expenses better while reducing costs.
Real-time Transaction Monitoring
Any time a fleet card is used, the transaction details are recorded in a dashboard. The information is collected in real time, giving fleet managers instant visibility into every transaction. Real-time monitoring promotes accountability and helps managers swiftly identify discrepancies or signs of suspicious activity. For instance, if a transaction raises a red flag — perhaps an unusually high amount for a single purchase — managers can intervene quickly to investigate further.
With cash or credit cards, transaction data is only available after receipts have been gathered and logged or a monthly statement has been exported into accounting software. With fleet cards, there is no delay.
Customizable Spending Controls
Most construction companies have fuel spending policies or guidelines. While such a policy is essential, it’s only valuable if you can enforce it effectively. Fleet cards are equipped with customizable spending controls. This feature allows a fleet manager to set a variety of purchase limits. For instance, daily or per-transaction limits offer a strong defense against fuel card misuse.
Being able to check the status of cards, adjust spending limits, block specific cards from unauthorized use and cancel compromised cards directly from a smartphone adds an extra layer of flexibility and security.
By restricting how much a driver can spend within specific time frames, companies can ensure budgets are adhered to while empowering drivers to make responsible choices. A manager can even approve card use for certain days of the week or hours of the day. When a construction company sets limits that align with its fuel spending policy, drivers always know what is expected, and managers can foster a culture of accountability.
Mobile Access
Mobile access represents a modern convenience that is difficult to overlook. Many fuel card providers now offer mobile applications that enable fleet managers to monitor transactions on-the-go. Being able to check the status of cards, adjust spending limits, block specific cards from unauthorized use and cancel compromised cards directly from a smartphone adds an extra layer of flexibility and security.
Picture this: you’re out meeting clients when a driver calls about a lost card. With mobile access at your fingertips, you can assess the situation and act without needing to rush back to the office. This saves valuable time, which equates to saving valuable money.
Detailed Reporting
Fleet cards offer incredible benefits, such as the ability to track purchases as they happen, control those transactions and access your account from anywhere. However, these features are all about immediate control. Making long-term plans for a construction company, such as planning for growth, forecasting, etc., requires information over time. Managers and owners need access to data in order to view trends and evaluate company health. Fortunately, fleet fuel cards excel in this area.
Most fleet card dashboards are equipped with a host of standard reports that allow you to view data over time. These comprehensive reports can reveal insights about which vehicles are most efficient, identify trends related to specific routes and highlight whether any drivers consistently exceed expected usage levels. Using a data-driven approach to construction management facilitates informed decision-making. Let’s look at three specific advantages fuel card reports offer.
Standard Reporting
We’ve already discussed how fuel cards automate fuel expense tracking. The same data can be easily compiled into fuel usage reports, which allow you to view details for your entire fleet, including fuel usage by fleet, vehicle grouping, individual vehicle or driver. You can see where every gallon goes and how those costs accumulate over time.
Beyond fuel usage, you can view fuel economy reports to see which vehicles or drivers are your top performers. Knowing when to address poorly performing vehicles or educate drivers can significantly reduce the amount of fuel purchased and add to cash flow.
Custom Reporting
Fleet cards like Shell Fleet Cards have custom reporting capabilities beyond standard reporting. Custom reports allow companies to focus on the metrics most important to them. Fleet managers can analyze usage patterns during specific periods—like peak construction seasons—to identify opportunities for cost savings. By examining average MPG, they can pinpoint whether certain routes, vehicles or driving behaviors contribute to inefficiencies.
Integration with Accounting Systems
Perhaps one of the most significant features of fleet cards is their impact on accounting. Fleet card dashboards seamlessly communicate with most accounting and bookkeeping platforms. Every report can be sent to your accounting department with the click of a button — no data entry is required, and there is no risk of human error. Such integration ensures financial records remain accurate while saving valuable time.
By harnessing the power of sophisticated reporting tools, construction companies can streamline their expense-tracking processes while enhancing their ability to make informed business decisions.
Streamlined Expense Management is Key
When a construction company uses the power of a fleet card, expense management becomes much less of a burden. Fleet managers have access to real-time fleet data from anywhere and total control over how purchases are made at the pump. These two benefits are game-changing, but when you add fuel card reporting and analytic capabilities, using them for fleet fuel expense management can be revolutionary. For many, fleet cards are key drivers of cost savings and streamlined operations.