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tfm The journal of total fuel management

Remote control:
online tank
management
page 4

Is there an alternative to oil? page 2

Are card locks worth the drive? page 3

How not to buy


business insurance page 6

Lower emissions,
greater control with FMO page 7
www.4Refuel.com vol.10 no.1 the journal of total fuel management 1

Vol.10 No.1
INSIDE: inside this issue START: from the editor ADVICE: ask the fuel expert
Tanks –
2 Start: From the editor Time to take control
Where did the time go? The latest industry study shows that it’s taking longer to
2A
 nalysis: These
fuel at card locks. How much longer? Up to an hour in the city. No wonder more
fuelish things
CFOs say they’re increasingly trying to centralize fuel purchases and create a bet-
3A
 dvice: Ask the expert ter system for resource management and inventory control. With more money
tied up in fuel, there’s never been more interest in managing and protecting it.

Driving to card locks?


4F
 eature: Tank fuel This issue is all about using technology to manage fuel inventory and protect
management investments. We went to the experts and had them weigh in on their own best
practices and experiences. Dairy giant Saputo discusses an online approach to
6 Expertise: Federated

Time well wasted!


managing fuel that has driven up productivity and efficiency.
insurance
We also took a hard look at fuel storage tanks and delved into the convenience
7 In Action: Lower vs. liability debate. In addition to information on remote monitoring systems that
emissions, greater control control dispensing, lock out theft and automatically order fuel there are also things
you should know about insuring them.
7 FMO Pro:
Speaking of insurance, how do you know when you’re paying too much or not
Get to know your FMO getting enough? We spoke with industry leader, Federated Insurance, on how to
Bill Bishop, Editor/Vice choose the right insurer and even discussed the risk and reward of different fuel-
President Marketing & ling methods. The results might surprise you.
Communications
There’s a lot in this issue. Hope you enjoy.
Remember when corporate card locks were the best way to fuel your fleet?
bbishop@4Refuel.com
Sure, there was time spent driving, the waiting in line and the occasional
personal fill up, but where was the alternative? So, while not perfect,
Analysis: these fuelish things
card locks were once a good solution. My, how times have changed.

Alternatives to oil? Careful what you wish for Four years ago, the average time to There’s no investment return for unproductive time. It’s that simple.
President Obama is using his admin- Biodiesel’s final blow fell at the end reach a card lock, get in line, fill up
When it comes to saving money by managing fuel, there are only a few
istration’s political sway to advance of 2009 with the cancellation of the and return to work was 20 minutes.
variables: labour to get fuel, amount consumed and fuel efficiency. Since the
the case for clean nuclear power. But Blenders’ Credit and closure of many It’s now double. In a study amongst
price of fuel is determined by the big producers, most businesses focus on the
the World Bank has presented power- production plants. The National senior executives, owners and fleet
variables within their control such as time and labour, fuel consumption by
ful research showing that natural gas Biodiesel Board reports that the managers of national transport com-
vehicle and fuel efficiency.
is the more economical source of industry now operates at 15 percent panies, it was found that 45 minutes
electricity in the United States. And capacity. So, what does the future was the new average, but within cities Tracking data manually can be challenging and prone to human error, but
back and forth it goes in a search for hold for alternative fuels? it was closer to an hour. automated systems not only improve accuracy, they’re faster and they reduce
Bob van der Valk, alternatives to oil. administration. 4Refuel is a leader in automated fuel management systems that
The Fuel Guru There is little chance that the U.S. will Drivers now spend 45-60 minutes
help businesses collect detailed records however fuel is delivered. The system is
Remember BioFuels? Biodiesel never reach its alternative fuel production filling at card locks – does anyone
called Total Fuel Management and it is powered by Fuel Management Online.
quite recovered from the disastrous goal of 36 billion gallons per year by find this acceptable?
Can alternative fuels write an alterna- Using the FMO data tracking application, managers can view fuel consumption
PR it received during the food-for- 2022. In early 2009, the Department Jack Lee, The Fuel Expert
tive ending to the End of Oil? While When you use a card lock to
fuel debate. Clumsy damage control of Energy announced $600 million in 4Refuel President and CEO by unit, measure efficiency, control budgets and forecast trends. Combined with
Onsite fuel supply big oil debates the merits of improving
weakened Biodiesel’s effort to expand federal funding for BioFuels, but this
refuel you’re paying for the labour,
4Refuel’s national fleet of tankers, businesses save time with fuel delivery direct
it just makes sense extraction methods versus developing
its market share during oil’s huge will require continued political favour,
fuel, maintenance, insurance and
to vehicles even during the most severe shortages.
new energy sources, consumers may administration costs. But you’re also making no deliveries, moving no goods
Whether you manage a price spike in 2008 and the European public opinion and lobbyist influence. Combining direct fuel service with online data means fleet managers can organize
rejoice in choice while environmen- and earning no return on your equipment and labour. So, why do so many
fleet of trucks, equipment Union didn’t help. The E.U. initiated more deliveries, increase productivity per hour and drive higher revenue with
talists lament that the new fuels are Back in crude’s corner, the high price businesses still use card locks?
or use onsite storage punitive tariffs on biodiesel imported the same amount of labour.
really fossil fuels in sheep’s clothing. of oil means oilsands extraction is still Many companies have found that fuel delivery direct to equipment saves time
tanks, it makes sense to from the U.S. causing American
profitable in Alberta. $70 per barrel is and money. According to Hugh Sanders, Vice President at Roff Logistics, the Fuel management is a huge boost to management efficiency and productivity.
have them fuelled when it’s It is estimated that recoverable producers to lose roughly 95% of
the magic number that keeps the End carrier for Wal-Mart Canada and Supply Chain Management, “based on our Wheel to wheel delivery reduces time wasted and improves productivity. In
most convenient for you. By natural gas reserves in the U.S. are 83 their sales. The tariff was a reaction
of Oil at bay. While the end still looms, the words of one driver, “The only thing I miss less than waiting in lines at the
taking advantage of a 24/7 percent higher than was estimated in to what Europeans viewed as an current fuel usage it would take us 93 man-hours each day to refuel at card
the power of procrastination is strong card lock is spilling fuel and smelling like diesel all day!”
wheel-to-wheel supplier 1990. Seizing on this domestic, low unfair price advantage; specifically, locks. That works out to over $2,200 every working day in labour costs.” With
and why sink money into alternative
you stay in control of carbon windfall, ExxonMobil moved the Blenders’ Credit which gave U.S. 135 trucks on the road and another 15 in the yard, Mr. Sanders adds, “each
fuels until you absolutely have to? Ask the Fuel Expert
supply and save time, and to secure its position in the natural gas biodiesel producers a $1 federal tax year it works out to over $500,000 in saved labour costs. We’re full and ready
money. Contact a 4Refuel play by buying producer XTO for credit for every gallon of production. Bob van der Valk resides in Terry, Mon- to roll every morning and service is available 24/7. Years ago we realized the Want to learn more ways to utilize fuel management in your
Fuel Consultant to find out $41 billion in stock. Clearly, Exxon At the time, Europe consumed 92% tana and is the Fuel-pricing Analyst with importance of having 4Refuel look after us. That was when we were paying organization? Subscribe to the Ask The Fuel Expert Blog and
4Refuel LLC in Lynnwood, Washington. drivers $12 per hour. Today our costs are well over $20 an hour. Wait times, never miss a column by noted Fuel Management expert Jack Lee.
how much you could save. is betting big on future prospects for of the world’s biodiesel production
Visit www.askthefuelexpert.com/follow to follow the fuel expert,
natural gas, running contrary to the while in the U.S., biodiesel had yet to He can be contacted at 406.853.4251 or drive times have all increased, in addition to wages.” Mr. Sanders concludes,
and discover other helpful tools like our weekly fuel price bulletins.
wisdom in Washington. find a niche. e-mail:bvan@4Refuel.com “So, who doesn’t want to save money?”

2 vol.10 no.1 the journal of total fuel management www.4Refuel.com www.4Refuel.com vol.10 no.1 the journal of total fuel management 3
Feature: tank fuel management

Convenience or liability?
Fuel storage tanks go
under the microscope

Fuel storage tanks give you the convenience of having a fuel source nearby that never closes.
You’re probably thinking less time spent refueling, means more time spent on the job, right?
Maybe not if you take a closer look at the risks and liabilities involved in managing those tanks.

Okay, you got some friendly advice and a decent quote and now you’ve decided However, online systems for recording tanks levels improve both accuracy and Use fuel islands for total control Fuel spills around tanks happen when fuel is delivered to the tank and when
to install fuel storage tanks on your site for all your trucks and equipment. You’re convenience. Automatically date-stamped and easy to access, a web-based tank The biggest risk with fuel tanks is petty theft. In fact, the majority of fuel theft drivers fill their equipment from it. A properly constructed ground pad is
looking forward to the convenience of having a fuel source nearby that never dip system really makes sense. is in small amounts of fuel taken by employees. All these small amounts add essential but so is a professional delivery service that specifically trains its per-
closes. But have you taken a close look at the risks and liabilities involved in man- up to a significant loss – as much as 20 per cent of annual fuel purchases. sonnel to avoid fuel spills and correctly handle them when they happen. Make
Use automated tank monitoring
aging these shiny new tanks? However, dispensing controls eliminate this problem completely. sure you check with your fuel supplier about their training methods – some
One step better is remote tank monitoring. An automated dipping system
Make sure you have reliable delivery keeps a regular and accurate record online. You can have it send a report can even provide training to your drivers.
The latest dispensing systems – or fuel islands – use positive ID to establish
First, you need someone to keep your tanks full. A fuel provider should ensure to your computer each day or when a specific level is reached. And instead
user identity and vehicle number. Then the system permits fuelling within set Making your choice easy
consistent supply without interruption to your work. Ideally, a remote sensing of playing the guessing game about when to call for a top up, you can set a
limits and records all details of the transaction. Choosing the right fuel delivery company is an important decision whether
system will automatically re-order fuel when your tanks get low. level that the system alerts you at or have the system call automatically so you
never run dry. Access to fuel can be changed at any time using web-interface or a mobile you consume 10,000 litres or 10 million litres. Whether your operations span
In the event of a fuel shortage, your supplier should have a back-up plan to keep
device. As both fuel costs and fuel theft rise, these high tech fuel islands the city or the country, 4Refuel serves all industries, coast to coast, 24/7. And,
you running. Some fuel suppliers have a network of sources they can leverage Equip tanks with a security system
provide security and savings. as the leader in fuel management, we have a national team of Fuel Consul-
during supply crises. This comes with them not being tied to a single oil company Fuel theft is big business. Thieves are well-organized and plan their attacks
tants who can help you determine the best fuel solution for your business
but connected to many. Rare is the fuel supplier that manages this arrangement, so expertly, they regularly drain tanks small and large in broad daylight. You Avoid costly environmental clean ups
but one is 4Refuel. don’t have to hire a team of security guards. You just need automation. – whether that involves tanks, fuel islands, remote monitoring or something
Unlike going to fuel at card locks, having storage tanks brings increased
entirely different.
Stay legal and stay full Tank security systems can alert you of sudden drops in volume or unauthor- environmental risk right to your property. And along with it, exposure to
Most municipalities require daily dips of fuel tanks and detailed recording of those ized access. The system will send a warning to you by email or text. Some higher insurance costs. Fuel spills, even small ones, add to the contamination Interested in learning more? Visit us online at www.4Refuel.com
levels. Too often, this important data is written on slips of paper that are easily lost systems activate horns and lights and alert the monitoring centre so they can of the ground around your tank and government-required environmental to learn more about our tank services or reach 4Refuel by phone at
or in a book that’s not kept up to date. This is a problem when the inspector visits. call you directly. clean-ups run into the hundreds of thousands of dollars. 1 888 4Refuel.

4 vol.10 no.1 the journal of total fuel management www.4Refuel.com www.4Refuel.com vol.10 no.1 the journal of total fuel management 5
Expertise: federated insurance IN ACTION: lower emissions, greater control

How much is enough? A primer on business insurance The mouse, the milkman and the greener fleet
Among leading business insurers is We also look at the attitude the management has about loss prevention and if they You could be wasting a lot of time managing your fuel if you’re doing it the wrong When I am planning budgets it is a huge project, except when it comes to fuel. 
Federated Insurance Company of are conscientious of the inherent risks in their business and that they are doing way. Collecting receipts, typing in all the data, printing it all off and faxing it to head Compared to the days it takes to plan my labour expenses, costing fuel only
Canada and supporting their loss everything possible to prevent these risks from happening. Are they receptive office. The cost of administration time alone could be greater than your savings. takes minutes. With FMO all the information is right there.  It is extremely easy
prevention division is Richard Frost to loss prevention suggestions? And we look at the frequency and severity of to access.  Before we started using the application all this was done manually,
With a click of the mouse, Tony Hollett connects detailed fuel data with automated
with some valuable advice on the past losses and claims. gathering expense and mileage reports and trying to merge them.  Now all the
reporting. As a super-user of 4Refuel’s Fuel Management Online (FMO) system,
right way to buy business insurance. data we need is easily exported into an XL Spreadsheet.”
What are the top risk factors you consider? and Saputo Dairy Product’s Director of Operations for BC, Mr. Hollett is reducing
All insurers are not the same. “Many greenhouse gas emissions, lowering fuel consumption and increasing productivity.
We consider a number of areas including property, and liability. We look at “Saputo Dairy Products of Canada has a green initiative to
try to be all things to all people, and we
the client’s property to ensure it is adequate for their operation and we check In just two years, Saputo (BC Region) has cut fuel consumption over 60,000 litres by
know how well that usually works out,” minimize its carbon footprint by reducing fuel waste.”
their building maintenance. Is the client qualified and able to do their work using web-based reports and management tools on Fuel Management Online.
says Mr. Frost. It’s common among
Richard Frost, Federated properly? Another point is their current level of crime prevention relative to “Our corporate green initiative is to reduce emissions and save money,” says
businesses to appeal to too wide an “FMO has taken us to the next level of managing our fuel. It
Insurance Company of Canada the building and its contents. We also look at the procedures and policies they Mr. Hollett. He adds “when costs are increasing everywhere we’re proud to say
audience and lose their specialty – and
have in place to provide controls for the client’s drivers and vehicles. All these lets us measure our consumption and control our budgets.” we’ve actually cut emissions, reduced consumption and lowered fuel costs. With
it’s no different with insurers. Accord-
points are important. – Tony Hollett, Saputo Dairy Products of Canada FMO we get usage and pricing in our four areas of responsibility, by each truck
ing to Mr. Frost, business owners should seek a niche insurer who specializes in a
How does a client know they have enough insurance? and trailer.  We can see where the waste is and then make changes to reduce
few classes of business related to their own. “Saputo started using FMO more than five years ago,” Mr. Hollett said from
consumption and toxic emissions.”
“This alone creates a higher probability for the best rates, proper coverage and a This really depends on the company’s operations. Every industry and even his office in Burnaby, BC.  Saputo serves over 1,000 customers each day from its
successful relationship,” reports Mr. Frost. “For example,” he adds, “our relation- sub-industries have different exposures and different insurance needs. Reliable three plants located in Abbotsford, Burnaby and Courtney, on Vancouver Island.  The online application also gives Saputo the tools it needs to apply for tax
ship with 4Refuel makes sense because we specialize in bulk fuel dealers, services insurers will analyze risk exposure and claim rates according to industrial sub- Mr. Hollett points out, “We are in the budget process now and with the help of credits accurately and quickly.  “FMO’s exportability gives us daily and monthly
stations, repair garages, etc.” groups and determine the correct level of insurance for a business depending 4Refuel’s FMO we can confidently plan our year.  We are able to cut fuel costs reports showing consumption to the exact litre, so our rebates come back from
on how it relates to it peers. because it gives us the information we need to better understand our business and the government without any questions.”
What should clients keep in mind when choosing an insurer?
Specific to each business, the insurer will examine its operations, past insurance make improvements that boost productivity and eliminate wasted fuel.” Mr. Hollett has some advice for companies who are looking at improving efficien-
First you should look at the insurer’s expertise and understanding of the client’s
requirements and measure their largest areas of risk to establish a starting point Mr. Hollett uses FMO everyday to check fuel prices, his fleet’s average consump- cies, “Fuel Management Online gives you the information you need quickly so
business. Have they done extensive work in your business category? Next pay
for their insurance needs. tion, forecasting and planning.  The company has 9 trucks and 39 trailers serving you can understand and manage your business better.  If you’re not using FMO
attention to how and how quickly the insurer resolves its claims. Check their
How often should clients update their insurance policies and why? customers in BC. He adds, “Fuel is our second largest expense after labour. you’re wasting a lot of time.”
track record. Financial stability of the company is an important factor too…
how many years have they been in business? The price of your policy should We suggest clients review their policies annually as there can be changes to the
not be the only factor influencing your decision. business, insurance needs or requirements. If there is a major change to their FMO Pro: get to know your FMO
How is risk determined when assessing clients’ insurance needs? business model we recommend a quick review to ensure new operating areas
are adequately covered. If your current insurer is not meeting all of your needs
Risk is determined by all of the characteristics present when considering a
new client. Most importantly, we look at the stability of the company and if
you should consider changing companies. Required by law – Made easy by FMO
they are prone to accidents. Does the company use methods that are safe Richard Frost is an integral member of the Loss Prevention Division of
A daily record of tank dips is required by law in most jurisdictions. But did you
and are their staff well trained? If the company does work off-site are there Federated Insurance Company of Canada.
know that 4Refuel makes this process simple? You can use FMO to track your
other hazards to consider? He can be reached at richard.frost@federated.ca tank dips online and then adjust volume settings so that it can automatically
re-order fuel based on your dips and specifications.

Satellite shots add to GPS security


to fuel deliveries
FMO not only provides information about how much fuel was delivered, but
shows you exactly where with a GPS screenshot!  This enhanced technology is
perfect for helping construction companies determine exactly which projects fuel
should be allocated to for enhanced job-costing capabilities.

Within the Client Login area, simply bring up the Fuel Consumption report and
click on the Map Docket link to see delivery details for the docket. Then review
date and time, fuelling location, purchase order number and volume delivered

Learn more about these tips and other FMO features at the newly re-built website
at: www.4FMO.com. The web-based reporting site gives you complete access to
fuelling history, price information, consumption by unit, delivery by date, etc.

For more information on how FMO can put you in control, call your
Fuel Consultant at 1 888 4Refuel and for FMO Support please reach
Diana Place at 604 513 0386 or at DPlace@4Refuel.com

6 vol.10 no.1 the journal of total fuel management www.4Refuel.com www.4Refuel.com vol.10 no.1 the journal of total fuel management 7
Can you spot the fuel thief?

If you aren’t tracking it, someone is taking it.

Fuel is the highest operating cost after labour for companies in construction and
transport. To combat high fuel costs and rising theft, leading businesses are using
automated fuel management by 4Refuel to improve security and maximize control.

Only 4Refuel provides professional onsite delivery to equipment, tanks,


and trucks as well as powerful online tracking and reporting features.
It’s time to take control of your fuel. Call 4Refuel today.

Canada 888 4Refuel | USA 877 US Fuels | Twitter @4Refuel | Online 4Refuel.com

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