Fleet management, are fuel storage tanks good?

All fleet managers are never really sure if it’s a good thing to have fuel tanks on site or if it’s a real headache. Let’s be honest; The convenience of having fleet fuel right outside your door makes your fuel management system that much easier, right? Well, not so fast. Let’s take a look at the positives and negatives that fleets face when having diesel fuel tanks on site.

Let’s start with the advantages of fuel management with diesel tanks. You have the convenience of having a fleet fuel source nearby that never shuts off. Most fleet managers and business executives believe that having the bulk tank will always lower diesel fuel prices. Fuel managers say their drivers don’t have to waste time waiting to refuel. Others say the hassle of fleet fuel cards goes away because the tank is right outside. These and others are all valid points for wanting a tank in your garden.

We believe that some companies need this in order to have a solid fuel management system. There are hidden problems behind having your own tanks. It’s always important to know what they are before jumping two feet forward on bulk diesel or replacing your current tank with another because that’s what you’ve always done in the past for your fleet’s fuel needs. Let’s look at some of the possible fleet management issues with a tank.

Environmental

Federal, state, and local governments are not easing fuel tank inventory requirements. Most require daily fuel readings. If your fuel system is fully automated, that won’t be a problem. The problem occurs when you’re not and someone is hitting a tank with a fuel pole and getting a stick reading. Then they write the information on a piece of paper. As long as your records are kept up to date on a daily basis, your fleet management should be in good standing. Your biggest concern will be fleet fuel spills due to inattentive drivers or a faulty nozzle. A spill can cause huge environmental headaches and costly damage.

diesel fuel prices

With this tank, you think you’re going to have lower diesel fuel prices. You figure that’s what the big trucking companies do, so it must be the right thing for my fuel management program. Are you considering what your diesel costs plus what it costs you to fill your fleet of trucks? What usually happens is that you can’t buy diesel as cheap as the big trucking company. Heck, a lot of times, fleet managers aren’t even sure they’re priced competitively with all the other jobs they have. Your fuel island can only hold two trucks and maybe all of your drivers start at the same time and finish at the same time, leaving half a dozen waiting in a fuel line at their own location. This adds cost to diesel fuel prices if you are considering the overall cost of fueling the fleet.

fuel cards

Most people in fleet management don’t think much about fuel cards. They assume that the driver goes to the fuel island and will write down how many gallons of diesel go into his truck. If you haven’t figured it out yet and I’m the first to tell you, fuel theft is big business. If you don’t have that diesel tank locked, so the only way the driver can get fuel from there is with his fuel card, chances are they’re stealing diesel from your business. If your fleet fuel is gasoline and you don’t have fuel cards now you are really stealing fuel. 1.5% of a company’s diesel budget is stolen and more than 3% is lost due to theft of gasoline fleets. No, in most cases, this is not the guy next door with a funnel soaking up your fleet management profits. They are their own loyal employees 81% of the time. Your business needs a fuel management system for fleet fuel card checks and fuel inventory checks.

With most things in life and fleet management solutions, there are many pros and cons. We just wanted to point out that when you refuel, it’s more than low diesel prices in your tank to be successful. A solid fuel management system is needed that involves fuel cards, fuel inventory management, fleet fuel audits, and a fleet manager who can make sure diesel fuel prices are low and in line when you shop. These things will help make your fueling much easier and your fleet management successful.