Spike Training Man ual
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(541) 330-8356 Super Oversight™ Fuel Management Control (877) 277-5171 A Division of P.O. Box 7437 Bend Oil Company Bend, OR 97708 Spike Training Manual Introduction to Commercial Fleet Fueling Commercial Fleet Fueling is the process of helping businesses fuel their company owned vehicles in a highly controlled and efficient manner. A well managed fuel purchasing program will save a company in several ways. Increased Employee Efficiency – The fueling locations provided through Supervised Fuels are unattended and fully automated. This means that employees have no distractions such as c-stores or long fueling lines (as they wait for an attendant in Oregon to fuel their vehicle) that might otherwise delay them from getting their fuel and getting back out doing the work of the company. Studies have shown that drivers save on average 15 minutes when fueling in a commercial fueling location. Employers must remember that they are paying the employee for the time they spend fueling their vehicles. An employee being paid $20 per hour (including benefits), who wastes 15 minutes, is being paid $5.00 in labor costs as they wait in lines to fuel and then go inside to pay. If that employee purchases 30 gallons of fuel, the employer has increased their fuel costs by $.17 Cents per Gallon. ($5 divided by 30 gallons = $.16667) They must also consider how that wasted time is affecting their ability to produce company profits. If an electrician can get to the job site 15 minutes sooner, that means they have another 15 minutes of billable service time in the day. If that billable rate nets the company (after labor cost) $60 per hour, then they will have been able to make $15 more in profit for the day. The per gallon impact of the opportunity lost while the driver wastes time is $.50 Cents per Gallon ($15 divided by 30 gallons = $.50) In summary, an employee who gets in and out of their fueling location more quickly can actually save a company (by our example) as much as $.66 CPG. This will drop to their company’s bottom-line in the form of lower labor cost and increased productivity. Reduced Slippage – What is SLIPPAGE? Slippage is everything from unauthorized purchases to outright theft. When employees fuel in poorly controlled fueling environments there are a lot of things that can happen at the expense of the company. For example, employees often accidentally fill up with premium (costing the employer an additional .20 cents per gallon). Other things such as employees who purchase food on the company, or meet their spouses at the fueling location to share fuel, are examples of things that drive up the cost of a company’s fuel purchasing program. More catastrophic things such as substantial fraud and theft have left many small companies around the country reeling from losses due to poorly controlled fuel purchasing programs. In fact, according to the National Association of Fleet Administrators, slippage in poorly controlled fuel purchasing programs (like most of what builders typically use) is between 10 and 15%! Supervised Fuels provides a product called Super Oversight™ which all but eliminates slippage. To learn more, see the Features and Benefits section included in this document. Cost Plus Purchasing Programs - While employee efficiency and reduced slippage are substantial benefits, another important reason to work with Supervised Fuels is the cost plus purchasing program that results from the association combining their member’s fueling volume. Cost plus allows the association member to follow the cost of fuel based on a set margin to Supervised Fuels. In contrast, retail fueling locations try and maximize their margins as the cost of oil drops. The greatest window of saving is when the price has risen rapidly and then begins to fall over a sustained period of time, like what occurred between June and December 2008. During this time, members participating in the program enjoyed substantial savings over the retail street price. We would encourage you to ask any one of our customers how exciting the savings to their company’s were during this time frame. The following diagram depicts this cycle that repeats itself over and over throughout time. Product Cost As costs fall, retail prices will hold for as long as possible. Cost-Plus Pricing It’s this period of time where cost plus will save a business Retail Price substantial dollars. As costs rise, so does both the retail and cost-plus price For brief periods of time, retail stations will sell at or near cost based on market conditions. At this point cost-plus pricing will actually be higher than street. In order to support the concept outlined above, the following is a real graph comparing the prices charged at a retail stations in Oregon to that of Supervised Fuels from January to November 2008: $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Supervised Fuels Shell Savings Over Shell Rules of Engagement Supervised Fuels can do business with almost any member with the following exceptions: 1) Offer does not apply to SOME existing Pacific Pride cardholders. If you learn that the member has an existing Pacific Pride card, find out who has issued the card and then contact Supervised Fuels with the information to determine if they are a candidate for the program. This is a delicate area that we at Supervised Fuels must handle. 2) All customers must pass a credit approval process in order to be given fuel cards. Only Supervised Fuels can make this determination after receiving a credit application. Summary The program not only provides great benefit to the businesses who participate, it is a significant revenue generator for the association(s). In this unique instance, everyone wins; the customer, the association, and Supervised Fuels for the increased business opportunity. Make sure you look over the attached materials that will help you better understand the benefits and features of the program. Super Oversight™ (541) 330-8356 A Division of Fuel Management Control (877) 277-5171 Bend Oil Company Original Card Card New Fuel Management Feature Benefit Controls & Data Collection @ the Fuel Island User definable PIN is easier to remember and can change User Definable PIN Security ü when given to new employee for additional security. Odometer Entry ü ü Proper entry allows MPG analysis. Helps code fueling activity by anything a user needs such Misc. Key Board Entry ü ü as job number, profit center, etc. Ensures drivers purchase only the designated fuel grade Product Grade Restrictions ü ü such as diesel or regular gas. Gallon Limits Per Transaction ü ü Prevents over filling of tank resulting in potential spills. Ensures employee purchases match their fueling needs, Gallon Limits Per Day, Week, Month ü reducing potential abuse. Helps prevent unauthorized fueling when employee is not Time of Day and Day of Week Restrictions ü on the job working for your company. Unusual Fueling Activity Alerts Detect drivers purchasing fuel outside their normal hours Time of Day and Day of Week Alerts ü ü of operation (for use when employee is not restricted at time of fueling) Detect drivers purchasing outside their normal grade of Product Grade Purchase Alerts ü ü fuel (for use when employee is not restricted at time of fueling) Detect when vehicle MPG falls outside an acceptable range. Miles Per Gallon Variation ü ü Helps ensure vehicle performance and deters abuse. Excessive Transactions Per Day ü ü Identify drivers who fuel more than once per day. Management Reporting & Information Access Allows the ability to view both current transactions as well On-Line Account Activity Viewing ü ü as those from past billings, including all detail such as unusual fueling activity alerts. Quickly download transactions onto your computer in MS Excel format for personalized data manipulation and On-Line Account Activity Download ü ü integration into accounting or vehicle maintenance systems. Complete fueling activity analysis including tax accounting Comprehensive Management Reporting ü ü and driver reporting.