Companies with fleets are collectively haemorrhaging hundreds of millions of rands a year in fuel fraud and theft. Avis Fleet has already saved 118 of its clients R16,6-million in the last three months, with a projected savings for 2015 set at R66-million.
Fleet drivers are the main culprits of forecourt theft, as they abuse their fuel cards. Here’s how to save millions by clamping down on fuel card fraud.
Understand the top forecourt theft tactics and prevent them.
Hein Crocker, head of Intelligent Fuel Management at Avis Fleet, advises that there are six major causes of theft and fraud: cloned fuel cards, side fuelling (fleet drivers take fuel out and sell it at lower prices than they initially purchased it for, then refuel again), multiple pump transactions, inflated fuel card transactions and continuous pump activity.
Often fleet drivers and petrol pump attendants collude in forecourt theft. In mitigating the major financial losses due to fuel card fraud, a system should be in place.
A fuel monitoring report should include better accuracy on fuel consumption.
Fleet managers have access to fuel monitoring reports but what’s missing is a comprehensive and accurate monitoring of fuel consumption, because there is more than one source of fuel data. This fuel data comes from sources like an onsite facility, more than one fleet card service provider, or accounts with specific retailers.</p
Crocker as quoted in Engineering News, explains:
“Litres supplied to a fleet from more than one source distort fuel usage figures if they are not consolidated in one single database. This means that a driver intent on fraud can partially fill a vehicle tank and complete the process at a retail outlet. Readings supplied are therefore irrelevant.”
Use Avis’s Intelligent Fuel Management product for superior analytics which provide a true picture of fuel use.
Avis Fleet developed its Intelligent Fuel Management product to tackle fuel card fraud. Fleet operating clients send their fuel usage data to Avis Fleet, which is then consolidated, examined and integrated into a single report. In addition, Avis Fleet has set up a system to detect theft and fraud in real time which allows you to investigate within the first three days of a transaction taking place. Previously, fleet operating clients could only receive a monthly deviation report.
Get a report that quantifies potential losses by percentage, litres and rand value.
Traditionally, fuel consumption figures were given in a fuel monitoring report. With intelligent fuel management, fleet managers can work with quantifiable losses in rand value. An analysis of three months of fuel data can identify where losses are occurring, what the financial implications are and even identify individuals who appear to be thieving.
Get your fleet drivers on board with fuel-card management.
Research by Standard Bank shows that in 2014, less than 2% (about R4.64-million) of fuel card fraud was committed by third parties. The remaining 98% was committed by fleet drivers. Fleet drivers should be given guidelines:
- Fuel cards must only be used for fuel, oil, maintenance and tyres.
- Fuel tanks must be filled to the maximum.
- Drivers must ensure the petrol pump attendant has the correct pump reading and odometer reading of the vehicle.
Use Intelligent Fuel Management to achieve bottom-line savings.
Effective use of Intelligent Fuel Management provides the fleet manager with the necessary tools to achieve bottom-line savings. Intelligent Fuel Management saves up to 14% of a fleet operating client’s fuel consumption.