With fuel expenses being one of the most costly operating expenses for trucking companies, finding ways to maximize savings is critical. Trucking fuel cards are an excellent solution. They work like credit cards, allowing drivers to purchase fuel with a line of credit and pay for it later. Moreover, they enable fleets to monitor and control driver spending while reducing costs by eliminating unnecessary expenses.
Time-Saving Convenience
With diesel fuel making up a significant chunk of many trucking company’s operating expenses and profits, it makes sense to find ways to make this large-ticket item more cost-effective. Implementing a fleet fuel card solution is a simple way to do so, and it offers several additional benefits that can further boost bottom-line results. A fuel card is a payment system that functions similarly to a credit card and can be used to purchase fuel at gas stations. However, trucking fuel cards are designed with features that cater specifically to the industry and can offer much more convenience for both drivers and fleet managers.
For example, some fuel cards for trucking companies can restrict card purchases based on location and type of fuel purchased. This provides an extra layer of security and control over what truckers can purchase while eliminating the need to document purchases in a spreadsheet or paper notebook manually. Additionally, some card programs are integrated with roadside assistance providers, allowing drivers to save on retreads and towing services along their routes.
Moreover, some fuel cards can be linked to trucking companies’ existing accounting systems, enabling them to upload transaction data automatically and reduce the need for manual entry into other software tools.
Reduced Per-Gallon Costs
Trucking fuel cards offer significant savings and improved fleet management for owner-operators, private fleets, or large trucking companies. Since diesel fuel is one of the largest operating costs for freight transportation, maximizing savings in this area can significantly improve profit margins for trucking businesses.
A fleet fuel card program provides valuable information when a driver swipes the card at the pump, including the date, time, location, and purchase amount. This level of detail helps with IFTA functions and provides a powerful tool for monitoring driver and vehicle performance.
Many fuel card programs also feature access to discounts at a select number of partnered gas stations and truck stops, which can further reduce per-gallon prices for the company. Additionally, these fleet cards typically include spending controls like transaction limits, daily gallon restrictions, and postal code restrictions (to prevent unauthorized purchasing).
These features are often combined with advanced fleet management tools that provide in-depth reporting on fuel purchases. Trucking business owners can use these reports to analyze trends, make strategic decisions, and identify areas of improvement for the operation. Some trucking fuel card providers even bundle these features with additional financial services to maximize accessibility to working capital and help support fleets in need. These additional financing tools may include freight factoring and flexible lines of credit to increase cash flow and deliver a comprehensive solution for improving profitability.
Reduced Internal Theft and Fraud
According to a third-party study, fleets lose an estimated $500 million annually due to fuel fraud. This can include employees using fleet cards for personal purchases, inflating recorded miles, and tampering with a pump or hose to siphon fuel from the tank. The right card program can help reduce internal theft and fraud by offering several key security features, such as transaction limits, PIN protection, and real-time tracking and monitoring to detect suspicious activity.
Additionally, many fuel cards allow fleet managers to set spending controls based on the day and time of purchase. This way, employees won’t be able to buy fuel or other products outside of work hours or on the weekends. In addition, some cards offer fuel-only restrictions, ensuring that drivers only purchase the fuel they need for their route.
In addition to fuel savings and improved internal security, fuel cards can also streamline back-office tasks. By eliminating the need for receipts, trucking companies save valuable time and hassle that can be better spent on driving.
Enhanced Security
For owner-operators, fuel is a major expense, accounting for about 23% of operating costs. Protecting this expense is vital to fleet profitability. Using a trucking fuel card eliminates the need to carry wads of cash, which can be vulnerable to theft on the road and creates unnecessary accounting headaches for an already hectic job. Plus, many of the best cards feature exclusive perks like discounts on maintenance and emergency repairs at select locations across North America. Regardless of the card type, fleet managers should prioritize providers with strong security features to minimize fraud risk. For instance, the best cards offer PIN protection that limits unauthorized usage and real-time monitoring to catch suspicious activity quickly. They should also include telematics integration that leverages the card’s built-in odometer to monitor fueling activity and alert you when it has been tampered with or skimmed. There’s no doubt that trucking fuel cards can significantly impact fleet efficiency and profitability. However, it’s essential to choose the right card for your business. Consider a provider with an extensive network, significant fuel discounts, and spending controls to help you maximize savings and improve operations.