Do you accept theft in your company? This may seem like a silly question, but let me explain. Let's look at a small construction company, for example. Over the years, the business has grown from a friendly partnership to a thriving enterprise, managing millions of dollars in annual projects. At first it was no big deal for the boys to help themselves to some materials or even fuel. The occasional fill-up on the company was viewed as an employee perk and part of the cost of doing business. As business grew and more staff was added, new policies took over. It was no longer acceptable for fuel to be taken by employees, but guess what? It hasn't stopped. Old habits die hard, entitlement lives on, and it's always been easier to turn a blind eye. Regardless of how you justify it-as waste, spillage, shrinkage, or a perk-it is still theft.
| Jack Lee is the President and CEO of 4Refuel Inc., a leader in fuel management. If you have any questions or comments about this article, Jack can be reached at 604/513-0386 or online at asktheexpert@4refuel.com.
Fuel theft costs companies hundreds of thousands of dollars. In a recent issue of Truck News magazine, one company reported tens of thousands of gallons in diesel fuel stolen over only a few weeks. The thieves had carefully planned their robberies with electric pumps, a generator, and large, plastic fuel tanks. They drove off with thousands of gallons of fuel three separate times-their hauls valued $18,000, $27,000, and $50,000! Imagine the impact on the businesses affected.
Whether it's your staff casually helping themselves to your fuel or organized thieves stealing fuel to resell it-it's a problem. But it's not beyond your control.
The first situation is more common than you may want to admit. Sure, some fuel goes missing, but it's not huge, so you write it off. But when it's stolen in bulk, the police are notified and you beef up security. But is one situation really any different from the other? In most cases, they add up to the same over time. Look at it this way: Every dollar spent on fuel should provide a return on investment. You can actually calculate that return if you track your fuel consumption. But consider that every gallon of fuel that disappears due to theft has to be replaced-effectively doubling your cost and halving your return. 4Refuel Inc. has the answer to fuel theft.
Track your fuel accurately and theft will disappear
Total Fuel Management is a concept that can help you eliminate theft, increase accountability, and minimize other risks associated with refueling. Its greatest benefit is helping you to measure the return on your fuel investment.
TFM gives you the tools to control fuel costs while helping you measure and manage profitability from one project to the next. Fuel theft affects your bottom line. It is part of your total cost of refueling, just like the cost of labor, the time spent refueling, insurance, etc. Because refueling is done by certified professionals wheel-to-wheel, your employees are no longer part of the refueling process. When your vehicles and equipment are refueled by an independent company, you know when and exactly how much fuel went into each tank. In fact, positive identification software can tell you which vehicle, tank, or piece of equipment was filled. You can measure and manage each drop of fuel, so you are guaranteed there will be no unauthorized fill-ups.
A complete TFM system includes proven software that allows you to set operating thresholds for each machine, and you quickly see where the most fuel is being used or wasted. Once you have that, you can manage your people, and your fuel better. Fuel theft is history. It is not impossible to cut refueling expenses by 15 percent or more.
Do you use your own fuel storage tanks? Total Fuel Management takes fuel tank monitoring to the next level. Remote tank monitoring and prevention devices are attached, which advise managers when a theft occurs. Fuel Tanks are equipped with digital software that is activated each time the tank is open. An alert text message or email can be set up to let you know when each refueling occurs. In addition, each fuel tank can have an alarm and warning beacon attached, which activates if there are any after-hours or unauthorized fill-ups. Both systems have proven to eliminate fuel theft.
Remote tank monitoring also has other benefits. Each fill-up measures to the exact amount along with a date and time stamp. Positive identification of equipment and vehicles work in tandem to give you exact refueling information by piece of equipment, so you can gauge efficiency and productivity. Data-capture software at the point of refueling streamlines your accounting, too-with instant accurate data for simple reconciliation. For multi-location users, all this information can be delivered to one office via email for immediate reporting.
Fuel theft is a problem and until you can measure each refueling, you will continue to pay for losses every month. For many companies, fuel is the second largest cost next to labor, so you must pay attention to even the slightest fuel theft. With new, more stringent fuel management policies, you will send a message that theft-of any kind-is not acceptable.
