How to Save Money with an Automated Fuel Management System

QUICK GUIDE
How to Save Money with an
Automated Fuel Management System

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How to Save Money with an Automated Fuel Management System

How to Save Money with an Automated Fuel

Management System

O ne of the more challenging tasks that fleet organizations encounter is managing

rising fuel costs. Finding ways to manage this operational cost can significantly
impact a company’s bottom line. This includes monitoring and understanding all levels
of fuel activity such as consumption; shrinkage and waste; cost reporting; odometer
readings and security for fuel dispensing.

An automated fuel management system This Quick Guide will:

• Explore how an automated fuel
that supports continuous, real-time fuel
system works
can not only lower overall fuel expendi-
• Discuss the benefits of an
tures, but also provides fleet managers automated fuel system
with access to more accurate information
• Review how a fuel management
and improved efficiency. system improves preventive
maintenance programs

• Provide real world examples of how

organizations can cut fuel costs

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How to Save Money with an Automated Fuel Management System

How an Automated Fuel Management System Works

A n automated fuel management system gives fleet organizations a much higher

level of accountability that can yield up to 15% in fuel consumption savings and
10-20% in the reduction of ‘shrinkage’ or wasted fuel.

In most cases, additional hardware that communicates with existing fuel pumps is in-
stalled at each fuel site to manage the dispensing of fuel. When a driver stops for gas,
they can use a keypad to enter the required information, swipe a magnetic card, or an
RFID device located on the vehicle can automatically transfer the information to the
controller. Precise odometer readings, engine diagnostics, fuel cost, location and other
data can be automatically transmitted via RFID guaranteeing data accuracy, whereas
the keypad approach depends on the driver to enter accurate data.

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How to Save Money with an Automated Fuel Management System

Benefits of an Automated Fuel Management System

Greater Efficiency Fraud Prevention Precise Billing

All fuel management data can be integrat- Security tools, such as requiring operator With all fuel and meter information input
ed with a fleet management system and identification or limiting the amount of through an automated, real-time valida-
kept in a single database, eliminating the fuel dispensed in a set time frame, can tion process, the risk of inaccurate data
need for fleets to rely on manual or dupli- help reduce fraud or waste from unautho- and human error is removed and a fleet
cate entry into multiple databases. rized use. can track billing with pinpoint accuracy.

Cost Savings Improved Data Accuracy Greater Information Access

Fuel management systems give manag- Meter readings are validated and updated in Fuel consumption data can be accessed
ers the technology to set fuel dispensing real-time, therefore information regarding from any authorized workstation in real-
limits for drivers, vehicles or timeframes. work orders, fuel transactions, motor pool time. Select vehicle maintenance data can
Specific fuel types can also be assigned and usage tickets are always up-to-date. also be communicated to operators while
so that the wrong type of fuel is not dis- fueling via the fuel management hard-
pensed into a vehicle reducing unfore- ware on the fuel island.
seen maintenance expenses.

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How to Save Money with an Automated Fuel Management System

Preventive Maintenance Improvements

K eeping up with maintenance can extend the life-cycle of fleet assets and free up
budget dollars to be used as managers see fit. Scheduling preventive maintenance
based on time alone can be a simple approach, but it may not be the most cost-effec-
tive. An automated fuel solution can be instrumental in developing preventive mainte-
nance schedules that are based on time, fuel consumption and mileage—whichever
comes first. A more sophisticated preventive maintenance schedule can provide both
immediate and long-term savings for fleets.

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How to Save Money with an Automated Fuel Management System

PM Comparison
Reactive Time Interval Model
50 patrol cars have maintenance performed every four months. This means that 150
preventive maintenance (PM) appointments (50 vehicles x 3 times per year) are per-
formed each year.

Automated Preventive Model

In this model, PMs are scheduled when a vehicle has used 425 gallons of fuel, driven
4,000 miles or nine months time has passed—whichever comes first. This allows PMs to
be scheduled based on actual, documented usage. AssetWorks customers have report-
ed that this preventive model reduced the average number of PMs per patrol car from
3 per year to 2.5 per year. It’s worth noting that they also documented that the reduced
number of PMs did not increase the amount of unscheduled maintenance.

Result
In the above example, an organization performed 25 less PMs per year. This allows
money and labor hours to be used elsewhere. PMs will be scheduled to reflect the ac-
tual use of the vehicles—so that vehicles with lower mileage are not over-maintained
and vehicles with higher mileage are not under-maintained—leading to cost savings
and improved vehicle lifespan.
6

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How to Save Money with an Automated Fuel Management System

City of Austin, TX
Since moving to an automated system
for all 32 of its fuel facilities, the City of
Austin has noted increased productivity
“ Fuel is the single biggest improvement we have
made at the City of Austin. [Using an automated fuel
through the automatic, real-time cap- management system] gives us the added security and
ture of fuel data and meter readings.
controls that we need to improve the process. We
Bruce Kilmer, Business Systems Analyst
Supervisor for the City of Austin recalls have controls down to the unit level. We are able to
the cost-saving implications of optimally
get real-time meter updates. Everything is stored in a
managing the maintenance and fuel op-
erations of his organization. single database, using a single program, which makes
it a seamless process.
”

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How to Save Money with an Automated Fuel Management System

City of Calgary, AB
The City of Calgary currently operates 16
fueling sites. In the harsh climate of Cal- “ The [fuel system] data helps us smooth out our
PM program and identify errors quickly so we can

”
gary, where temperatures can dip to -30°C
(-22°F), the fuel management system take corrective action.
helps fleet services maintain a watchful
eye over fuel tanks. Besides monitoring - Gordon Martin, manager of fleet services
for fuel leaks electronically, the system
provides a convenient method for City
employees to fuel their vehicles. Plus, the
fuel system is fully integrated with the
City’s fleet management solution, which
eliminates the need for double data entry
and ensures all fueling transactions get
automatically recorded to the proper unit.

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How to Save Money with an Automated Fuel Management System

FuelFocus Automated Fuel Management System

F uelFocus offers a complete and flexible real-time automated fuel management solu-
tion that can be integrated with fleet management operations. FuelFocus processes
the issue, receipt, and transfer of all fuel and fluid consumables, including commercial-
ly purchased fuel. Greater efficiency, cost savings, and more accurate and consistent
information are just some areas in which FuelFocus can yield a return on investment.

For more information on how AssetWorks FuelFocus can save your fleet time and
money, click here.

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