Save on fuel with a choice of savings or convenience
Fuel cards are a no-brainer for mobile businesses but the big question is which option do you choose?
Fuel is critical for many mobile businesses. It often represents a significant cost that can often be hard to manage. Especially if you own or hire a lot of vehicles. This category provides many businesses with an opportunity to streamline and save.
There are many different ways to handle this as a business. Do you utilise a fuel card program tailored to your business needs or do you allow staff to claim on a per use basis? Do you use bulk fuel? While there are pros and cons for each, fuel cards provide a simple solution for most businesses.
The key decision for businesses to make is whether to choose the convenience of choice through a broad range of fuel outlets or lock in savings through a single supplier. Convenience cards allow staff to use a broad variety of petrol stations with detailed consolidated reporting. Savings cards tend to be locked into one brand of fuel, with consequently less choice of stations to utilise.
Transparency Creates Accountability.
Supply Clusters provides transparent reporting on either of our Standing Offer Arrangements through our member portal. Simply sign up to either card program and your data will be available 24/7. Members have access to all of their data including detail on every single transaction. Join today, start saving on Fuel and see all the detail you need to manage your business fuel needs through a Fuel Card program:
- The total quantity of fuel purchased by each card
- How much each card or user spent on fuel
- Identify any non-compliant users filling up another car
So which is the best option for my business – a convenience card or savings card?
Choosing between the two can be a difficult decision for any business and needs to be considered in the broader consideration of the organisation. As much as we wish that staff would treat company money as their own – the fact is they will always choose convenience over savings.
If you have a compliant organisation and culture, it might be easier to choose a savings card but for the majority of businesses we work with a convenience card delivers the best outcome. It also avoids staff wasting time searching for the right station which is a cost in itself and that wasted time negates any per litre savings very quickly.
The key questions you need to think about before choosing a business fuel card
- Hidden fees and charges. Some cards levy administrative charges on top of already excessive card charges. This can negate any discounts provided on fuel.
- Surcharges at some operators. Some fuel stations apply a surcharge for using certain fuel cards. While not always large, these surcharges can add up fast.
- Opportunistic staff behaviour. Without good controls the opportunity exists for employees to fill up non-work vehicles. Buying of non fuel products such as drinks and groceries on company cards is also a common challenge.
- Limited time offers. To attract new customers fuel card providers often offer discounts off the fuel price for a limited time. While this may be initially attractive, consider the cost in the longer term. These discounts often revert to zero discount after a limited time. Further, the offer often applies to your local station only.
- Kickbacks from operators. For vehicle maintenance, ask whether the charges are passed on at cost. Some of the most popular fuel cards charge full cost to the customer. The card supplier then receives a kickback from the service location.
If they are not sure, contact us for a discussion on the right path for you. Contact us to discuss more.
Supply Clusters Standing Offer
Because every business is different and needs flexibility – Supply Clusters offers two cards so you no longer have to choose between convenience and savings.
Supply Clusters members receive the following benefits through Fleet Card:
- Low capped monthly card fees with no other administration fees.
- Competitive cashbacks that do not timeout on fuel purchases from Shell or Coles Express Fuel Outlets.
- Preferential contract terms including managed price increases and increased cashbacks over time.
Supply Clusters members receive the following benefits through Caltex:
- Low capped monthly card fees with no other administration fees
- Competitive cashbacks that do not timeout on diesel and petrol from Caltex Outlets
- Preferential contract terms including managed price increases and increased cashbacks over time