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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.

						
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