tfm the journal of total fuel management

Managing Fuel Costs for

Trucking Companies
page 4

Ask the Fuel Expert:

Fight Fuel Theft page 3
Fuel prices going up? page 2
How to choose a banker
page 6

Where did your fuel go?

page 7

www.4refuel.com vol.9 no.3 the journal of total fuel management 1

Vol.9 No.3
INSIDE: inside this issue
2 Start: Transport -
taking control of
fuel costs
2 Analysis: Fuel Talk
with van der Valk
3 Advice: Ask the Fuel
Expert
4 Feature: Total Fuel
Management delivers
five benefits to the
transport industry
5 Insight: Closed Loop
Technology
6 Expertise: How
Do You Choose A
Business Banker?
7 Technology:
Know Your FMO!
7 Opinion: Fuel
Management Field
Results
Fuel Management at
the touch of a button
Everyone is looking for
the latest time saver that
will make their job easier.
Have you tried 4Refuel’s
exclusive FMO button? At
the touch of a button you
could have all your critical
refuelling data at your fin-
gertips. Contact a 4Refuel
representative to get your
own FMO button, and dis-
cover all the benefits of
Fuel Management Online.
2 vol.9 no.3 the journal of total fuel management
START: from the editor
Bill Bishop, Editor/Vice
President Marketing &
Communications
bbishop@4Refuel.com
Analysis: both sides of the border
Fuel Talk with van der Valk
Bob van der Valk,
The Fuel Guru
The big holiday and vacation season
is once again upon us. Canada and
the U.S. have celebrated their respec-
tive independence days and eyes in
the industry are focused on whether
consumer confidence has re-instilled
itself. Diesel fuel is one of the most
critical commodities keeping the Ca-
nadian and U.S. economies rolling. In
the transportation and construction
industries, almost all aspects of op-
erations are fueled by diesel engines.
Rising diesel fuel prices can translate
to increased costs of products and
services for the consumer. To find
out what can be done to slow down
the increase, you as a consumer need
to be aware of its causes and actively
seek creative ways to save money on
your fuel usage.
Transport –
Taking control of fuel costs
When the economy deflated last fall, everyone was looking for ways to cut
costs. In transport, the highest operating expenses are labour and fuel – so
where do you cut first? Many businesses called us for a fuel management solu-
tion and we helped them reduce fuel costs and minimize waste. Some even
told us that fuel management was helping them reduce lay-offs.
Rewind to a few months earlier when fuel prices were stratospheric – it was
another good time to embark on fuel management. Clients told us that amid
wild price fluctuations, the system was helping them control fuel costs, man-
age budgets and improve planning.
Presently, the rise in organized theft from fuel storage tanks is spurring com-
panies to adopt fuel management systems that enhance security, automate
reporting and control dispensing.
Who knows what the next flashpoint will be? Or how much time, money and
stress business owners could have avoided had they implemented a fuel manage-
ment system sooner? To be fair, they acted as soon as they knew a solution existed.
Now you know too. (The phone number you need is on the back cover).
There are several basic elements often be the most volatile factor af-
that determine the worth of a litre fecting the value of diesel fuel.
of diesel. About fifty-five percent of
This is where the diesel fuel consum-
the cost of diesel reflects the price
ers may have a sure fire way to save
of crude oil, which is raw mate-
money on their cost for operating
rial for diesel production. Crude oil
their diesel trucks and equipment.
is brought from the oil fields to the
They can make arrangements with
refineries where the ultra-low sulfur
an on-site fueling company like
diesel, among other petroleum prod-
4Refuel headquartered in Langley
ucts, is extracted. Given that a bar-
BC, Canada. They currently pro-
rel of crude is 159 litres; the average
vide total fuel management solutions
refinery is able to produce about 30
throughout most of the Canadian
litres of diesel and jet fuel or 20 % of
market and have recently expanded
the total. About half of the barrel is
into the U.S. West Coast market with
made into gasoline while the remain-
an office in Lynnwood, Washington
der is used in low end bunker fuel
that serves the Greater Seattle area.
oils and other petroleum products.
Refining accounts for nearly fifteen Saving fuel and lowering consumption
percent of diesel fuel cost. is not only good for the environment;
it decreases demand, and ultimately
The remaining elements of diesel
your cost. The factors that affect die-
fuel costs are government taxes and
sel fuel prices seem complex, but an
the expense of advertising and deliv-
understanding of the basic principles
ery. A ten percent excise tax is levied
can empower the individual consum-
onto all fuel products that are refined
er to make the right decisions.
in Canada. Although foreign fuel can
avoid this tax, it is generally cheaper Bob van der Valk resides in Terry,
to buy locally refined fuel as import Montana and is the Fuel-pricing
taxes generally are passed along to Analyst with 4Refuel LLC in Lyn-
the consumer. Marketing and distri- nwood, Washington. He can be
bution make up about five percent contacted at 971.678.2975 or e-
of total diesel fuel cost, but this can mail: bvan@4refuel.com
www.4refuel.com
 ADVICE: ask the fuel expert

Protecting your Liquid Assets:

Preventing Fuel Theft

There used to be a time when a few tanks of fuel went missing and nobody really cared.
Helping yourself to company fuel was considered a perk. But times have changed. Fuel is
now an asset that can be measured for a return on the investment and every drop of fuel that
doesn’t fit into the equation drives profits down. Companies of all sizes have had to ratchet up
security, protecting themselves against fuel thieves from outside and inside their businesses.
And it’s not just about building a better fence; it’s about taking control of an escalating problem.

In a recent issue of Truck News
Magazine, one company reported
tens of thousands of litres in die-
sel fuel was stolen over only a few
weeks. The thieves had carefully
planned their robberies using elec-
tric pumps, a generator and large
plastic fuel tanks. The other more
common form of fuel theft is from
within your own company, when
employees sometimes feel entitled to
free fill-ups. Both types of theft can
The benefits of Total Fuel Management for companies using onsite tanks to
store fuel are even greater and are the perfect candidates for tank monitoring.
Here’s how 4Refuel takes security to the next level on your site.
•F
 uel Tanks are linked to online software that is activated each time the tank
is opened. An alert text message or email can be set up to let you know when
each refuelling happens. In addition each fuel tank can have an alarm and
warning beacon attached which activates if there is an attempted theft.
•D
 ata capture software at point of refuelling streamlines your account-
ing 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.

Jack Lee, The Fuel Expert cost you harmful amounts of mon-
4Refuel President and CEO ey, but thanks to Total Fuel Man-
agement solutions you can breathe
a sigh of relief, you are protected.
Track your fuel accurately and theft will disappear.
TFM helps you to eliminate theft, increase accountability and minimize
other risks associated with refuelling. Because refuelling is done by certi-
fied professionals wheel to wheel, your employees are no longer part of the
refuelling process. You know when and exactly how much fuel went into
each tank. In fact fuel management software can tell you which vehicle,
tank, or piece of equipment was filled. You can track each drop of fuel,
so you are guaranteed that there will be no unauthorised fill ups and no
unexpected delays in production.
Fuel theft is certainly always going to be a problem and until you can securely
measure each refuelling you will continue to pay for the losses each month.
For many companies fuel is the second largest cost next to labour, so you
simply must pay extra attention to even the slightest sign of theft. Fortunately
using TFM, your new and more stringent fuel management policies will send
the message that theft of any kind is not tolerated.
Ask the Fuel Expert
Want to learn more ways to utilize fuel management in your
organization? Subscribe to the Ask The Fuel Expert Blog and
never miss a column by noted Fuel Management expert Jack Lee.
Visit www.askthefuelexpert.com to get on the mailing list, and
discover other helpful tools like our weekly fuel price bulletins.

www.4refuel.com vol.9 no.3 the journal of total fuel management 3

feature: fuel management

Total Fuel
Management Delivers
Five Benefits
to the Transport
Industry

If you manage a fleet you’re

under a lot of pressure.
The list of demands is often
long and the last thing you
need is problems associated
with fuel and refuelling.

4 vol.9 no.3 the journal of total fuel management www.4refuel.com

 Total Fuel
Management solutions
start with a calculation
of your true cost of
fuel, and we’re not just
talking about the price
you pay at the pump.
It includes the cost of
travel time, labour, fuel
price, insurance and
lost productivity, that
make your true cost of
fuel substantially higher.
For more on this and to
calculate your true cost
of fuel please visit
www.truecostoffuel.com
More and more
clients are turning to
TFM including Roff
Logistics, Tim Hortons,
CN Rail, The City of
Vancouver, The City of
Calgary, Coca-Cola and
thousands more.
The reason is simple.
insight: closed loop technology
in yard onsite
onsite fuel direct onsite
storage tanks refueling
onboard offsite
client fuel fuel data uploaded
trucks from filling
stations
www.4refuel.com
TFM delivers five time and money saving benefits:
1
No Fuel Shortages: When you run out of fuel your business stops. Over the years we’ve seen that
regional fuel shortages are a reality and a problem. Oil refineries have had to cut production because of
unpredictable accidents, leaving clients high and dry. With TFM solutions you will never be short of fuel
because 4Refuel don’t just work with just one refinery. We stand behind our service guarantees and with our network
of suppliers across the country we‘ll deliver the fuel you need every week at competitive prices. When fuel shortages
crippled transport companies in southern Ontario and Alberta, our team worked round the clock to bring fuel in
from other regions. Our clients were not affected and not a single delivery was missed.
2
Improved Productivity: Each refuelling takes about 30 minutes. 4Refuel’s Certified Refuelling
Professionals deliver fuel directly to each vehicle, while they are idle. This results in a double benefit. First
we give you back the time it takes to refuel. Instead of taking time to travel to and from the refuelling
station, your drivers are on the road working. Second, we eliminate the labour costs that are also associated with
refuelling. How big is your fleet? Whether you operate 10 or 210 trucks the savings add up quickly. On average
you will recapture 15% to 20% of your total cost of refuelling. We can provide you a customized analysis of your
refuelling needs and show you exactly what you can expect to save.
3
An easy way to Measure, Manage and Control Fuel ROI: With our Closed Loop Technology,
4Refuels proprietary software measures each drop of fuel pumped and can record key operating
data so you can better manage your fleet and accurately calculate ROI. Each refuelling gives you a
detailed docket with the unit, date, time and fuel pumped. This data is available so you can quickly see where
fuel is being used so you can measure consumption unit by unit. In addition our reporting can include engine
performance data such as idling, speeding, fast starts and engine maintenance service indicators. This gives you
the information you need to better train your drivers and maximize the return on your fuel investment. When
you eliminate fuel waste your ROI improves.
4
Increased Fuel Security: When you use 4Refuel’s team of Certified Refuelling Professionals
(CRPs) every litre of fuel is accounted for so there are no unauthorized fill-ups. (For more on this see
the article on Page 3.)
5
Lowered Emissions: According to The Government of Canada’s Department of Transport 2.7
kilograms in greenhouse gases are released with each litre of diesel fuel burned. 4Refuel’s sophisticated
Closed Loop Technology measures all refuelling data from the pump to the tailpipe, including GHGs.
In fact our clients have combined to eliminate 17 million kg in emissions this year alone. The reduction in toxic
emissions is due to better refuelling and operating practices. When you consume less fuel, pollutants are reduced.
And 4Refuel eliminates the risk of fuel spills. Our best practices policies are the lowest in the industry with just 1 in
10,000 refuellings. If a rare spill does occur, it’s reported to you and we handle the clean-up at our own cost.
The Key: 4Refuel’s Closed Loop Technology
TFM systems improve productivity, cut waste and reduce toxic emissions by putting you in control of the entire fuel
cycle. From 24/7 access to fuel, to onsite delivery and from measurement and management of your fuel assets, to
improving the return on your fuel investment; our enhanced technology is the complete solution.
Whatever your needs are 4Refuel can deliver
Onsite: Fuel is delivered directly to your trucks, wheel to wheel, during off-hours so your work is not
interrupted. Our systems include Positive ID for each unit and fuel pumped.
In yard: Your storage tanks are kept full and our monitoring systems lock out theft. Each refuelling
is recorded.
Off Site: If you use Card-Locks you can record all refuelling data to improve your fuel management.
Onboard: Each vehicle is equipped with an RFID chip to integrate fuel records and engine data.
Fuel Consumption data helps make decisions…
Data is made available online through Fuel Management Online (FMO) or delivered via email. This
technology makes it easy for you to measure fuel consumption by piece of equipment so you can compare
performance period by period and see where you have saved fuel and cut pollution. Each litre of fuel creates
kilograms of CO2-equivalents, so cutting consumption is the key to being a part of a “green solution”. In addition,
management of your fuel improves productivity because you are able to better manage your people. With detailed
information, you can deal with problems head on.
vol.9 no.3 the journal of total fuel management 5
expertise: show me the money

How Do You Choose A Business Banker?

4Refuel has established strategic part- 2. Your bank’s representative should take the position of an advisor, rather
nerships with a number of high pro- than an order taker. You need advice on how to use your credit and your
file companies, including the Royal banker should be able to give you all the facts, positive and negative.
Bank of Canada and we would like They will help you make the right decisions. Do you need a fixed rate,
to share some of their advice. or a floating rate? Should you open a US Dollar account? These are
only a few questions – each business is unique.
Is your Banker your Buddy?
Now there’s a delicate question. Popu- How do Banks decide to lend you money?
lar culture paints an ugly picture of
Once you have chosen the right banker, you can talk about getting cash
bankers, but in reality your banker can
to help your business grow. Mr. Pohl explains how your bank decides to
be one of your strongest allies. They
Dave Pohl, Vice President, lend you money. “First we look at the management of the company. This
have the know-how and financial prod-
Royal Bank of Canada helps build confidence in you as a client. Then we look at your cash flow
ucts to help you accomplish your goals.
or EBIDA…your earnings before interest, depreciation and amortization.
Bankers can advise your management team as they write a step by step financial road
We also look carefully at the historical cash flow of your company. It is
map that is easy to follow and will help to avoid problems and unexpected risk.
important to keep your financial information current.”
Dave Pohl has been in the banking business for decades and says team work
Mr. Pohl adds, “We then look at the asset values in your company. Things
is the key to a successful business relationship, “First of all we both have to
like equipment, machinery and real estate. Owners have to remember a
understand your goals. We look ahead 6 months, one year and five years
business is an entity and everything within it should be used to contribute
into the future so we can collectively understand from a financial perspec-
to its economic value. Owners should prioritize the importance of their
tive where the company is heading.”
assets, shedding those that do not add value.”
Mr. Pohl suggests these first steps when finding a bank
In conclusion he says, “All of the above are used to mitigate our risks and help
1. Look for a bank that has knowledge in your industry. They should under- us make a sound business decision to lend you the money you need.”
stand your industry and the key issues. Do they have Account Managers
Dave Pohl is Vice-President, Commercial Financing Services with RBC
who are industry specialists and have worked with other companies in your
Financial Services.
industry? The right people will make you feel comfortable and can add a
fresh perspective while working with your management team. He can be reached at dave.pohl@rbc.com

Look for a bank that has knowledge in your

industry. They should understand your
industry and the key issues. Do they
have Account Managers who are industry
specialists and have worked with other
companies in your industry?

6 vol.9 no.3 the journal of total fuel management www.4refuel.com

 TECHNOLOGY: leaner & greener

Know your FMO!

(Fuel Management Online, that is…)

FMO is an online-based reporting tool that gives clients secure 24/7 access • Online Within 24 hours Through A Secure Site
to comprehensive fuel consumption and account information. Fleet Manag- Online through a password-protected site
ers are more effective, productive and profitable! Features include: • Multiple Report Formats
• Fuel Consumption Information Choose HTML, PDF, Excel, CSV, TIFF, or XML formats allowing maxi-
data for each piece of equipment is summarized by year, month, day, time, mum flexibility for viewing, printing, or integrating this data into other
transaction, cost center or purchase order number financial systems
• Customer Account Information • Customized Export Tools
Historical & daily pricing, account statements, invoices, delivery dockets Create a customized export template for easy transfer of fueling data from FMO
• Full Drill-down Capabilities to other software applications or simply customize your own report formats
View reports online then drill-down from summary information to transac- •G
 reen House Gas (GHG) Reporting
tion detail using the web browser Reports GHG savings and can be further facilitated by using biodiesel from 4Refuel

OPINION: effective fuel management

Fuel management field results

4Refuel’s Total Fuel Management systems continually evolve because of our strategic partnerships with industry leaders who provide us with their feed-
back and guidance. As your business changes, so does our product offerings, but the delivery of benefits to you remains constant year after year.
Here are some welcome comments from a few of our valued clients

“Our company has been using 4Refu-
el’s Fuel Management service several
years. They have provided on site fuel
delivery to our fleet with professional
service that has helped our company
by eliminating the usual time spent
re-filling our trucks.  This has given
us  back extra time for productivity
and taken the hassle of refuelling
away from our drivers. Also, 4Refuel
has responded quickly and profes-
sionally to any special requests. I
would recommend 4Refuel’s service
to other fleet managers.”
– Mark Mostacci – TDL (Tim Hortons)
Transports supplies for Tim Hortons, and
relies on the power of FMO. Equipment
includes 108 trucks, 22 reefers, 65 tractors,
and 12 yard trucks.
“4Refuel has helped our compa-
ny grow  by adjusting to our fuel
needs. This spring we took on a new
client and needed extra trucks/equip-
ment to service this new contract
and 4Refuel responded immediately
by increasing our  service schedule,
without interrupting our business.  CRPs have shown us that each
You understand our business and it
shows. Your Territory Manager stays
in touch with us to help plan for any
further changes in our needs. Your
invoicing is always prompt and accu-
rate which helps us with our monthly
financial reporting.”
– Craig Cottrell – CSI Logistics
Delivers for Walmart, FMO enthusiast.
Equipment includes 100 reefers, 197 heaters,
21 trucks, and 49 tractors.
“I ’d like to take this opportunity
to thank everyone at 4Refuel
for your excellent professional
service. Your fuel delivery is
always prompt and on time so
that our fleet is always refuelled
and ready for our drivers. Your
fill up is done professionally
and that there is no risk to our
workers or  the environment.
You take extra care to make
sure no fuel is spilled or
wasted.  Thanks for the great
service and follow up!”
– Keith Grant – Simcoe Parts
Hauls parts for Honda, avid FMO user.
Equipment includes 18 Day Cabs, 35
trucks, 6 cube vans.   tractors, 20 shunt trucks, 15 reefers.
“4Refuel has been  a key  supplier
for 10+ years and in that time we
have  found your company to be
professional and prompt.  I would
especially like to say that your fuel
reporting data (FMO) is a valuable
tool for us and helps us to quickly
and accurately calculate the invest-
ment we have made in fuel for our
fleet.  The reports arrive quickly
and are user friendly.  Your admin-
istration team is very supportive
and answers any concerns with-
out any problems.  Thanks for the
great service!”
– Hugh Sanders – Roff Logistics
Transport for Walmart, dedicated FMO
user. Equipment includes 162 trucks, 124

www.4refuel.com vol.9 no.3 the journal of total fuel management 7

 4Refuel is coast to coast

Providing convenient, reliable fuel

management across Canada and in the USA
British Columbia Prairies Ontario Quebec
604 881 4445 403 262 4945 905 501 0922 450 967 3107
Lower Mainland Banff Barrie Montréal métropolitain
Kamloops Greater Calgary Belleville Rive sud de Montréal
Okanagan Greater Edmonton Cornwall (South shore)
Prince George Fort McMurray Greater Toronto Area Rive Nord de Montréal
Vancouver Island Winnipeg Kingston (North shore)
Sherwood Park Ottawa région de Québec
Washington Spruce Grove Sault Ste. Marie Trois-Rivières
425 949 4480 St. Albert Southern Ontario Abitibi
Northwest Stony Plain Sudbury Gatineau
Puget Sound Nisku
Leduc Atlantic
Fort Saskatchewan 302 835 6608
Halifax Regional Municipality (HRM)
Moncton and Dartmouth

Canada 888 4Refuel | USA 877 US Fuels

International 1 604 513 0386 | Online 4Refuel.com