FleetWatch Online - 37-Tracking your fuel

There are as many ways to cut operating expenses as there are trucks on the road and as such, no fleet management system on offer today can address such a broad range of needs. However, operators can identify the 'mission critical' areas of their operations and acquire a technology-driven system to streamline that aspect of their business. Of all the bugbears gnawing away at transport operators today, the hike in the price of diesel has to rank #1. As a result, the management of diesel consumption has become so important that technology vendors are seeing huge orders for their fuel management solutions pouring in. It is obvious that tracking your fuel usage has become as important as tracking your vehicles' usage. The AFS Group is one such vendor with its 'eFuel' solution.

According to Robert Dalgleish, chief sales officer for the AFS Group, following a recommendation by the Auditor General, large government fleets have had the eFuel automated refuelling system installed in their vehicles. "As a direct result, six provincial governments have saved more than R200-million in the last three-and-a-half years," he says.

"The remaining provinces, national departments, municipalities and parastatals are now following the lead taken by the six provincial governments. Correctional Services in Gauteng and the Free State, eager to achieve the cost-saving benefits experienced by Correctional Services in the Western and Eastern Cape provinces, have signed contracts for almost 1 000 vehicles. Fitment of the system started in July this year."

ROBERT DALGLEISH... "eFuel prevents irregularities before they occur."

When government jumps in to this degree, one surmises two things: pinpointing diesel use is a major issue and eFuel has proved itself over time to deliver savings. "The Department of Health and the National Treasury have also welcomed the opportunity for improved control over their fuel costs. Transnet, Eskom, Sita and Arivia are also exploring applications incorporating the eFuel system," adds Dalgleish.

THE ‘HARDWARE’ looks simple but it packs a big punch.

The eFuel system is essentially a risk management solution that prevents any unauthorised or fraudulent transactions and provides fleet managers with useful information on all aspects of refuelling transactions.

Dalgleish says about 40 000 vehicles in South Africa are fitted with eFuel and over 800 petrol stations provide the service. He adds that oil companies Caltex, Afric Oil, Engen, Exel, Sasol, Total and Zenex actively endorse eFuel.

Tightens controls
"The benefits of eFuel are that it tightens controls not only over the actual fuel transaction at the pump but also in the quality of information fed to management for monitoring and action where necessary," he explains. "Too often, information is only relayed to fleet managers after the transaction - often too late to deal with fraud or other misuse."

There is no question that removing human intervention in the payment process of diesel (between driver and pump jockey) reduces the risk of fraud. "eFuel prevents irregularities before they occur, while providing management with full information, including accurate odometer readings and the amount of fuel dispensed," Dalgleish says, adding that in order to control risk, you need to get the cards out of the refuelling process.

"By giving the responsibility for authorising payment to the vehicle, all opportunity for deliberate abuse or finger error is eliminated," says Dalgleish.

AFS GROUP CEO David Froman on an Engen forecourt where eFuel technology is being used.

Data gathered from a pilot project involving 200 Department of Transport vehicles, shows a high degree of accuracy in odometer readings, substantial improvement in risk control and significant fuel savings. As the cost of fuel continues to rise, the conversion to eFuel makes more financial sense and almost becomes a necessity for any fleet managers attempting to better control their fuel spend."

Private sector companies are also realising the benefits of using eFuel. Engen is marketing the EDC tagging solution to clients and Caltex is promoting the Caltex Access tagging solution. Both these systems make use of the eFuel technology application.

WIAAN BURGER, sales executive with the AFS Group (left) chats to Johnny van der Merwe from Liebentrans which uses eFuel technology to track its fuel usage.

In August this year, in what was Clover Logistics' first pilot project, AFS installed automated and secure refuelling systems for 160 on-road and home-based vehicles belonging to Clover. According to Dalgleish, to ensure even greater control over fuel management, Clover Logistics in Boksburg is also installing advanced Veeder-Root electronic storage tank gauging.

"This ensures that the quantity of fuel shown on the fuel tanker meter matches the actual amount of fuel in the tank. Any leaks in the tank would be identified and the information passed on to management for action. Changes in the level of fuel in the tank are also reconciled with fuel received and dispensed."

Electronic tank monitoring is required by law in most of the modern world and the Veeder-Root system promoted by AFS is in operation in over 1 million storage tanks around the globe. With the growing risk of environmental cleanup costs, transport operators would be wise to thoroughly investigate tank monitoring technology sooner rather than later.

PETER MUDOGWA, owner of Fleet Data Technologies, a company subcontracted by the AFS Group to install and provide support services for the eFuel automated refuelling system.

Mines catching on
An area where, according to AFS, fuel management is starting to get the right level of attention is in the mining environment. Large mines can spend up to R500-million a year on fuel and lubricants and the service offered by the AFS Group enables mine operators to electronically monitor every litre of fuel consumed in its operations. Here the outsource solution of AFS Business Intelligence services, where every transaction is reviewed and delivered to management in up to date meaningful reports, has proved to be the critical element in ensuring management achieves real control.

"Management want an accurate view of divisional fuel costs that help them get a handle on bottom line. After nine years of honing our skills in this specialised area, we are now able to offer our services with confidence," says Sean McQuade, chief intelligence officer of the AFS Group. "The mines are able to claim enormous incentive rebates from the Department of Mineral and Energy but only if they have access to accurate information. We ensure a claim is never missed" says McQuade.

The numbers speak for themselves; eFuel is making a serious impact on the commercial fleet market and Lisa Esch, business unit head at the AFS Group sums it up nicely: "The fuel price may not be within an organisation's control but fuel management is." Indeed!