In these harsh economic times, fleet managers are always on the lookout for ways in which they can ensure their budgets stay on the right track, and every dollar is spent wisely.
Deciding to do a fuel reconciliation is one of the best things a manager can do to ensure their operations run smoothly and that your company gets what it has paid for. In addition to performing fuel reconciliation, managers must employ the use of the best gas cards to manage their fleets fuel needs.
If you have no idea what a fuel reconciliation is, and why it is essential, read on.
A fuel reconciliation is an activity that is undertaken to compare fuel sales with the actual tank stocks from tank detectors and the measuring stick readings. A fuel reconciliation is crucial because it helps managers to ensure that what they pay for is thoroughly utilized by the company.
Some of the benefits of doing regular fuel reconciliation are that they help to minimize shrinkage, they enhance the observation of environmental compliance, and they reduce the amount of administration that is needed to regularly harmonize fuel sales to the current fuel inventory.
If you are looking to perform a fuel reconciliation, here are the steps you should take.
- Determine Real Fuel Costs
This is a crucial step when taking inventory of your fuel. Managers will strive to work out the actual cost of fuel per gallon by ensuring that they perform a thorough investigation of the fuel expenditure analysis. As a manager, you will apply your current functions to the standard operations set by the industry.
- Develop An Effective Supply Game Plan
Building an effective supply policy will require you to ensure your supply contracts merge well with all of your organization departments. These departments include accounting, operations, and even your legal team. The purpose of streamlining all these departments is so that you can effectively have a great fuel management programme by following all regulations concerned.
- Document Data Differences
As a manager, you will have to note down differences you find in the whole reconciliation process. Variations such as fuel consumption, prices, change of contractor, distances covered and even times are essential to note down while performing a fuel reconciliation.
Note down the reasons for these differences. For example, fuel consumption within a particular period may have been affected by longer distances covered by your fleet. Prices may vary because of unexpected price changes or using different stations.
- Outsource A Service To Appraise Your Fuel Operations
After some time of having your managers do fuel reconciliations, it is advisable to enlist the help of external services to do the reconciliations for you. This is crucial because your managers may change workstations quite frequently, and new ones may not adhere to set rules and regulations.
This may, in turn, create unnecessary gaps in your fleet operations. An external fuel management service may help you to realize such inconsistencies and help you to recover from costly mistakes.