This is a great time to consider implementing an RFID (radio frequency identification) fuel management system. There are three main advantages of an RFID fuel system over pen-and-paper or older technology that fuel management systems may use for reporting.
1) Eliminate Shrinkage
First, you can lock down fuel to eliminate “shrinkage” (a euphemism for theft) or mis-allocation. Industry figures estimate shrinkage at between 5 and 10 percent of a fleet’s annual consumption. If you burned a million litres last year, you may have lost between 50,000 to 100,000 litres to shrinkage. With fuel at $1.50 per litre, there is an incredible opportunity for savings through reducing shrinkage.
2) Precise Equipment Cost
Second, fuel-management systems can precisely quantify your fuel burn for individual vehicles or entire departments, resulting in more accurate equipment costing and job bidding, allowing for condition-based maintenance scheduled by fuel consumption, and facilitating decision-making when choosing new equipment. These benefits may well surpass the potential savings from eliminating shrinkage, although they are much more difficult to quantify.
3) Accurate Odometers
Third, accurate odometers or hours meters. This is the lifeblood of any well-run fleet. RFID provides cost-saving benefits and effective preventive maintenance programs. Capturing this information from the vehicle at the fuel island and not relying on the driver, due to human error, is the key to success.