Effective fleet management is all about keeping close tabs on fuel spend, vehicle usage and drivers. Few tools can help with it all quite like fuel cards, yet many businesses use fleet fuel cards strictly as a payment method for purchasing fuel, failing to maximize their potential.
Beyond being a great way to consolidate fleet-related expenses, fleet cards are loaded with features that contribute to a better-managed fleet.
Fuel cards are more than a payment solution; they offer robust tools that can transform how you track expenses and handle daily operations, potentially saving your business thousands annually. This means contracting companies like HVAC, plumbing or construction businesses are ideally suited to benefit from adding fuel cards to their fleet management toolbox.
Fuel Card Features
Beyond being a great way to consolidate fleet-related expenses, fleet cards are loaded with features that contribute to a better-managed fleet. Some provide direct savings, others offer more control and all can help lead to a bigger bottom line.
Rebates and Discounts
The majority of fleet fuel cards offer fuel rebates. Some even include discounts on parts and services. In the case of Shell Fleet Cards, users can get up to 6¢ per gallon rebates at over 12,000 Shell stations and save up to 20% on preventative maintenance at Jiffy Lube locations.
Real-time Data Tracking
Most fuel cards track purchases in real time. This information is recorded in a fleet card dashboard and is accessible from computers and smart devices such as mobile phones or tablets. Common data points include:
- Date
- Time
- Location
- Dollar amount
- Volume of fuel
- Driver ID
- Odometer reading
- Fuel type
- Fuel grade
Security
Fleet cards offer enhanced security features compared to credit cards, such as protecting PINs (personal identification numbers) and tracking of unauthorized spending. Some fleet card providers offer even more security measures. Shell Fleet Cards function with a proprietary, closed-loop network for greater control over purchases and reduced risk of fraud or misuse. They also require driver IDs and odometer readings. Managers can even monitor credit and purchasing activities on their smart phone with the Fleet SmartHub app.
Purchase Controls
Beyond rebates and data collection, fuel cards are equipped with purchase controls. This means a fleet manager or business owner can set parameters for fuel purchases. Some typical limits include:
- Fuel volume
- Purchase amount
- Number of transactions per day, week or month
- Hours of the day or days of the week a card can be used
Reporting
With all purchase data housed within a fleet card dashboard, it only makes sense that fleet cards would include robust reporting capabilities. The comprehensive reporting is great for HVAC, plumbing and construction contractors. Reports can be run for the entire business, specific drivers or certain vehicles.
Fleet Cards for Maximizing Benefits and Savings
Effectively using Shell Fleet Cards is critical to maximizing their benefits and savings. When used appropriately, fuel cards can provide direct savings, increase transparency, limit misuse and automate fuel expense tracking and reporting.
Direct Savings
The fuel rebates and discounts offered by fleet card providers only make a difference if you put them to good use. By planning fill-ups at in-network stations, you can maximize the savings at the pump. Utilizing discounts on parts and services can really add up. A little planning goes a long way in increasing savings.
Transparency
Real-time data tracking gives managers and business owners transparency regarding fuel spending. The data collected by fuel cards is only beneficial if you view it. When viewed, you have a clear look at who is spending what, when and where. Since the data is real-time, you’re able to address concerns in the moment as opposed to after the fact.
For example, if you notice an employee purchasing fuel outside regular routes or times, you can investigate further before the losses become significant.
Limiting Misuse
Having real-time data at your fingertips can help reduce card misuse. Just the fact that drivers know transactions are monitored helps with accountability. However, two additional features of fleet cards provide enhanced security when compared to credit cards.
Having real-time data at your fingertips can help reduce card misuse. Just the fact that drivers know transactions are monitored helps with accountability.
Fuel Card Security features
Requiring PINs, odometer readings and driver IDs at the pump makes buying fuel with a fleet card much more secure than using a credit card. These requirements prevent someone from using a card unless they have access to that information.
Customized Spending Limits
Using purchase controls to customize spending limits can greatly enhance security and help reduce misuse. By setting limits that align with company policies, contracting companies can help employees spend wisely and alert them whenever a purchase exceeds the set parameters.
Automating Fuel Expense Reporting
The time saved through real-time data capture can’t be overstated. With every transaction detail logged in a fleet card’s dashboard, companies can eliminate manual fuel expense reporting. All the details an employee would typically include in a fuel expense report are just a few clicks away. No more collecting receipts, no more risk of human errors on fuel reports and just think of the many accounting hours saved for other tasks. All that time can be redirected towards more pressing tasks, such as improving fleet management strategies or training staff.
Assessing the Financial Impact of Fleet Cards
A business should never assume they are reducing spending just because they have implemented fuel cards. As with any change in business operations, you should continually assess the financial impact of the fuel cards you are using.
Detailed Financial Reports
One effective method of assessing financial impact is through the detailed reports generated by fuel cards. These reports don’t just show you how much you’ve spent—they reveal spending trends over time, helping you identify recurring patterns that might go unnoticed.
For instance, analyzing data from multiple months can reveal when certain vehicles incur the highest fuel expenses or highlight potential inefficiencies in driving habits. With this knowledge, businesses can implement targeted strategies to cut fuel costs in identified areas.
Once you have these insights, it’s crucial to turn them into actionable changes to affect actual savings.
Set Up Your Contracting Businesses for Success
Incorporating fuel cards effectively can help position businesses to achieve not only immediate savings but also long-term financial health. This strategic investment can significantly enhance operational efficiencies across HVAC, plumbing and construction fleets.