Category: Fleet News

Drive around any town or city in the UK, and you’ll quickly notice that fuel costs vary widely. In particular, supermarket fuel is often notably cheaper than big brands such as BP or Shell.

But why is this the case? And will buying supermarket fuel make a difference in how your car performs? Read on to find out.

Why Do Supermarkets Sell Fuel?

Supermarkets have been selling fuel since the 1970s and have steadily grown their market share. According to the RAC Foundation, almost four in five UK homes now live within three miles of a petrol station run by Tesco, Asda, Morrison’s, or Sainsbury’s.

Reduced Supermarket Fuel Prices

However, most supermarkets’ main competitors aren’t the big fuel retailers but each other. These brands aggressively cut fuel prices to undercut their rivals and attract customers.

Supermarket Fuel Convenience

After all, most people will drive to a supermarket to do their big weekly shopping anyway, so offering a convenient extra incentive to opt for a particular brand over another makes sense. If the price per litre is your main deciding factor in where to buy fuel, this can also affect your decision on where to shop for groceries.

Why Is Supermarket Fuel Different In Terms Of Price?

Many factors determine the price of fuel. Global oil prices, the distance between the petrol station and the refinery, and the level of competition in the area all contribute. Yet, supermarket service stations consistently offer cheaper fuel than the big oil brands.

How Much Cheaper Is Supermarket Fuel?

On average, petrol prices in the supermarket forecourt are around 3p to 5p cheaper per litre than those for branded fuel. Sometimes, however, you can find petrol at as much as 8p or even 10p cheaper, which is more affordable than from big oil companies.

This may be especially true when supermarkets engage in price wars with each other or offer extra discounts for customers who spend a certain amount in-store.

Is There A Difference Between Supermarket Fuel And Branded Fuel?

However, many people may be wary that ‘you get what you pay for’ regarding fuel quality. So, if you buy petrol and diesel from the supermarket, are you getting the same product?

Where Does Supermarket Fuel Come From?

Fundamentally, the answer is yes. Supermarket fuel usually comes from the same refineries as the big brands and will have the same basic chemical makeup. But it’s not quite that simple.

BP, Esso and Shell usually add a wide range of special additives to their fuels to improve fuel efficiency and performance. Precisely what these additives contain are, of course, closely guarded trade secrets. However, they often include detergents and lubricants to make the engine run smoother.

Jason Lloyd, managing director at PetrolPrices.com, explains: “Many supermarkets get fuel from the same refineries as the leading brands. But it’s a bit like budget airlines – they get you to the same place, but with main national carriers, you also get more, such as in-flight food and entertainment.”

Is Supermarket Fuel Bad For My Car?

Like the own-branded cornflakes or cola you’ll find on the shelves inside, supermarket fuel is seen as a cheap, cheerful alternative to branded products. However, much like own-branded food, while some people won’t notice any difference in taste, others will insist the big brands are superior.

With fuel, unlike cornflakes, we can try to get a definite answer by measuring the difference in fuel economy and engine wear. Yet results from these fuel tests are often inconclusive.

Supermarket Fuel May Be Less Efficient Than Branded Fuel Due To Fewer Additives

Some tests suggest premium fuel can improve economy by up to four or five miles per gallon. If you’re a fleet driver doing 10,000 miles or more per year, this will offset the extra cost at the pump. However, this is not the case for more occasional drivers, while other tests have found the economic difference negligible.

However, there may be other reasons to choose branded fuel. For instance, premium fuel with a high octane rating can be beneficial.

If you’ve got a high-performance car, this fuel releases more energy when it ignites, so making the most of a quality engine will be helpful. But putting high-octane petrol in a standard compact car won’t suddenly turn into a hot hatch. Therefore, check your car’s user manual to see if you’d benefit from premium fuel.

Supermarket Fuel Quality Standards

Finally, it’s important to remember that whatever you decide, using supermarket fuel won’t be bad for your car. All fuel sold on UK forecourts has to adhere to minimum quality standards. This ensures they don’t damage your engine, and supermarkets are no exception.

If you want to use branded fuel, there are ways to get it cheaper. Some credit cards, for instance, offer cashback when used at certain brands’ filling stations. Alternatively, fleet managers and business owners can use fuel cards to save money on branded fuel.

Reduce Fuel Costs With A Fuel Card From Fuel Card Services

We offer a wide range of fuel cards from all the UK’s biggest brands, including Esso, Texaco, BP and Shell. What’s more, some cards can also be used on supermarket forecourts. Check out our selection of fuel cards today to find one that’s right for you.

If your firm relies on vehicles, good fleet management software is a must-have. Without these systems, it will be much harder to ensure your fleet operations are working well. This means you’ll be losing both time and money.

Keeping your fleet operations under control ensures you’re not overspending on fuel, repairs or replacement vehicles.

But this is not all. Effective fleet management is essential to keeping your business operations running smoothly and ensuring you’re providing good customer service. After all, if your employees can’t get where they need to be because their vehicle is in for maintenance again, this reflects poorly on you.

To do this effectively, you’ll need the right tools. And this is where fleet management software comes in.

What is fleet management software?

Fleet management software is a set of tools to make the day-to-day running of your vehicles easier. A good solution will include a range of elements that work together to give you total control of your fleet. Typical services that may be part of these include:

• GPS trackers
• Vehicle sensors
• Mileage tracking tools
• Maintenance alerts
• Routing tools
• Fuel management solutions

Effective systems will wrap all these features together into one package with an easy-to-understand user interface. This provides a single platform that offers you full visibility and insight into every aspect of your fleet.

This includes your vehicles and drivers, as well as routes, expenses and other operations, all under one roof.

5 ways fleet management solutions help your business

There are a wide range of fleet management systems available for businesses. Not all of these may offer the same features, so it’s important to do your research carefully.

In general, however, there are a few key services that every good software solution can provide. Here are five benefits you can’t afford to do without.

1. Cut costs

There are several ways in which fleet management software can help reduce spending. One of the main tools is to optimise your route planning. GPS telematics tools can easily determine if your drivers are taking the most efficient routes and make suggestions for improvements.

Elsewhere, these tools can help reduce the total cost of ownership for your vehicles by reducing the risk of breakdowns or unplanned maintenance. It also keeps track of mileage claims for expense purposes, as well as ensuring you don’t exceed limitations of any vehicles leases.

2. Improve efficiency

Route planning isn’t just about reducing fuel usage. It also ensures your drivers spend less time sitting in traffic and are going from point A to point B as directly as possible. This ensures they spend more time bringing value to the business rather than travelling.

These tools can also automate many day-to-day processes, such as filling in expenses forms. They also help the fleet manager by getting rid of complex paperwork. In turn, this means less time hunting for information and other tedious activities.

3. Increase safety

Vehicle sensors are another increasingly important part of a good fleet management system. These can keep track of employee inputs to the accelerator, brakes and steering and keep a record of how they’re driving. According to one study, companies that have these tools see 42 per cent fewer safety incidents in their fleet.

This is partly down to the fact drivers who know they’re being monitored will be more careful. But it also means if you see an individual is taking risks, speeding or braking aggressively, you can step in. Whether it’s to give advice or a warning, this can help you improve driver behaviour and keep them – and others – safe.

4. Improve maintenance

The new generation of vehicle sensors aren’t just limited to watching your employees. They can also monitor the vehicle itself in real time for any telltale signs of potential problems. This allows you to be more proactive with your maintenance and step in before an issue results in an expensive breakdown.

Aside from this, fleet management software tools allow you to take better control of your vehicles’ everyday needs. They can ensure you’re up-to-date on MOTs, services and other routine maintenance and automatically highlight any actions you need to take.

5. Keep up with regulations

Finally, these solutions can also help you navigate your legal requirements, from licensing issues to tax requirements. Mileage trackers, for example, can be connected directly with accountancy software to instantly calculate a driver’s expenses.

Meanwhile, driver management services can keep an eye on everything from what kind of license an individual has to how many penalty points they’ve picked up, ensuring that everything you do is in compliance with all relevant laws.

Want to learn more about fleet management software? Then get in touch with our experts to see what these tools and technologies can bring to your business.

As the end of autumn approaches, it may be a good time to take a look at your winter vehicle checks and prepare your fleet for winter. Winter weather means an increase in rain, sleet, snow and ice, all factors that could make driving in the colder months of the year that much more dangerous. Research suggests that accident rates increase as much as 20 per cent on average during these winter months. But there are a number of checks and practises that can be undertaken to help ensure your fleet don’t become a part of the statistics.

Here is a checklist we have compiled to ensure your vehicles and drivers are well prepared for what the winter brings.

Routine maintenance checks

Maintenance of your fleet vehicles should be constantly managed in any fleet business. But as winter approaches, it is crucial to ensure your vehicles are prepared.

MyService.Expert is a great tool that can help you to manage the maintenance schedule and costs for your fleet. Not only does MyService.Expert help to organise costs and bookings, we have also negotiated a range of competitive rates from garages around the country to help cut the costs.

Tyre checks

Tyres are key to both good steering and safe braking. Consider utilising winter tyres for all of your fleet vehicles, particularly if your vehicles tend to visit remote areas. Winter tyres have tread that gets harder as weather gets colder, allowing the vehicle to drive over ice or snow easier than general tyres

Check the tyre tread more frequently. The recommendation is that treads are 3mm minimum to manage slippery conditions.

Inspect engines

Inspect all engines often, especially before long haul journeys. For added protection, anti-freeze should be replenished when possible.

Replace old batteries

Minimise the possibility for battery failure by ensuring no batteries are older than 5 years. Older batteries may struggle to hold their charge in the cold, and this can lead to fleet vehicles not turning on. For the efficient operation of your fleet, consider checking the health of and even replacing batteries that are older than three years.

Screen Wash

Lastly, check the screen wash levels and ensure your fleet are using a screen wash fluid with a suitable freezing point. It’s always important that screen wash is topped up so that drivers can clear their line of sight when driving, and should the screen wash freeze it could hinder visibility and safety.

Emergency packs for drivers

Ensure that all vehicles carry an emergency kit. If your driver breaks down, the emergency kit will provide some essentials to help the situation. Items may include:

• High visibility jacket
• Torch
• Batteries
• Screen wash
• Ice scraper
• De-icer
• Emergency contact information

Make sure all of your drivers are aware of the emergency kits, so they are prepared if anything were to happen due to winter conditions.

Safety tips for winter driving

Keep your drivers updated of the possibilities of harsh weather. You may want to advise drivers to adapt their driver behaviour in line with severe road conditions.

Keep a constant speed

Keeping a constant speed when driving in winter weather helps to improve the grip of the vehicle to the road. Drivers should also move to higher gears quickly when driving on icy roads.

Leave plenty of room

Wet, icy and snowy roads can present an obvious risk of collision if not driven properly. Breaking distance is significantly impacted by winter weather, and as such fleet drivers should be reminded to always keep a generous distance between themselves and other drivers.

Avoid harsh acceleration

Accelerating harshly can cause vehicles to skid and trigger wheel spin. Whilst these are sometimes inevitable when driving in particularly cold and icy weather, not breaking too harshly can help to avoid it.

Use headlights in heavy snow

If faced with a journey in heavy snow, headlights should be used. Dense snow fall can seriously obscure driver vision, and driving in such conditions should often be avoided. However, when driving in snow is necessary, taking every measure to improve vision is vital to avoid accidents.

Use second gear to pull off

Using second gear and gently accelerating to pull off reduces the risk of wheel spin and skidding, allowing for a smoother and more efficient start to the journey.

Monitor driver safety with telematics

To add another layer of security, consider installing telematics in your vehicles. If your driver breaks down for whatever reason, you can locate your driver in a matter of seconds as opposed to relying on your driver’s describing where they are.

Tele-Gence is our advanced telematics service designed to improve driver safety and reduce costs with the best of market technology. Offering fully customisable software with a range of great tracking tools that can help fleet managers to monitor driver habits and safety, Tele-Gence is a invaluable addition to fleet management tools as we head into the colder months.

We hope our top tips on how to prepare your fleet for winter is useful to you and your drivers. To discuss vehicle tracking options, our Tele-Gence team are on hand to talk through the best fit for your business.

Making a decision on leasing versus buying vehicles is one of the most important parts of a fleet manager’s job. But it’s never a simple choice, and there’s no easy answer about which is best.

It’s not only about the costs. Every firm will have its own needs and limitations that must be taken into account. For example, how much mileage do you expect to do? How flexible will you need to be?

Understanding what the specific demands of your firm will be is crucial in making the right decision. Get it wrong and you could find yourself locked into an expensive contract, or struggling to offload unsuitable vehicles.

The factors affecting your decisions

Both leasing and purchasing vehicles have their own pros and cons. It’s therefore important to have a clear picture of your company’s situation and needs before making a decision. Here are some of the key factors you should be looking at.

1.  Cost

Your firm’s financial position may dictate some of your decision-making. Buying a vehicle outright will naturally incur higher upfront costs. But this is not the only expense you have to think about.

You also need to take into account the total cost of ownership (TCO), such as maintenance bills and monthly payments. In the long term, this can work out more expensive for a leasing agreement than a purchase.

Some of the financial pros of buying a vehicle include:

• Cheaper long-term costs – If you plan on keeping a vehicle for many years, the TCO is likely to work out cheaper than for leasing.
• Company asset – Once paid off, the vehicle will appear as an asset on your balance sheet, although outstanding finance will show as a liability.
• Insurance – Leasing agreements may require a higher level of coverage, which can push the price of insurance up.

Leasing a car, however, can also have its financial advantages. Some of the cost benefits of leasing over buying vehicles include:

• Fewer upfront costs – If cash flow is an issue, the lower initial payments and fixed monthly fees can make leasing an attractive short-term option.
• Predictable expenses – Having a single fixed monthly cost makes financial planning easier. With a full service lease, issues such as maintenance, repairs and insurance are also all included.
• Depreciation – You won’t have to worry about having to sell on a vehicle that is losing value.

2.  Your usage needs

Another major factor in your decision will be how you expect to use your vehicles. If you’re buying a car or van, you will obviously have complete freedom to do whatever you wish with it.

This means not worrying about mileage restrictions or wear and tear limits that often come with leased vehicles. Mileage limits in particular can require close attention when leasing vehicles.

Choosing a deal with lower restrictions will be cheaper, but will require careful management to ensure you don’t exceed your allowance, which can lead to additional fees. You can handle this using mileage tracking tools to take control, but it’s always something to be aware of.

Of course, this is not an issue when buying, other than considering how high mileage may affect the later resale value.

Buying vehicles outright also means you’re not tied into a contract. Therefore, if your needs change, you can react quickly to replace them, or make any necessary modifications. Again, this is not something that’s typically available with leased vehicles.

On the other hand, if you expect to replace your vehicles on a regular basis anyway, a lease can offer many benefits. If you’re upgrading to the newest vehicle every three to five years, leasing gives you many options.

For example, this can ensure you’re always opting for the most fuel-efficient equipment. This not only cuts down on your fuel bills, but also improves your firm’s carbon footprint.

3.  Maintenance

Keeping your vehicles in good working order is essential whether you’re buying or leasing. However, there are a few different factors to consider in for leasing versus buying fleet vehicles.

If you’re leasing, the chances are you’ll be working with the most up-to-date, low-mileage vehicles. This means, in theory, they’ll need to spend less time in the garage.

However, depending on the terms of your contract, your leasing provider may insist on a thorough maintenance regime in order to keep them this way.

If you are leasing, you’ll still be responsible for regular issues such as servicing and oil changes. You may also consider a maintenance agreement that will cover areas like parts, especially if you’re doing higher mileage.

Be aware these can differ however. For example, some agreements will cover tyres while others won’t. Each provider will also have their own policies for what counts as reasonable usage.

Maintenance costs also need to be factored in when you’re buying. This may be especially true if you’re planning on keeping vehicles for a long period or running high mileage. While you won’t have to worry about keeping within agreed wear and tear limits, costs can quickly climb as vehicles age.

4.  Management

Finally, you’ll also have to think about how to keep control of your fleet. There are a wide range of things to think about in this area, and leasing can help take some of them off your hands.

For large fleets in particular, this can be a vital time-saver. You do, however, have to pay close attention to the terms of your lease.

If you are looking for a leasing provider, there are several things to keep in mind. You’ll need a company that’s fully authorised and regulated by the Financial Conduct Authority, for example. You also need to be familiar with the various types of lease that are available.

Having the right tools and technologies can make the management of your fleet easy, whether you’re leasing or buying. From telematics tools to service checks, find out how Fuel Card Services can help you stay in control.

If your firm runs commercial vehicles of any kind, you need a fleet management solution. Whether you have hundreds of vans or just a couple of company cars, a clear plan for keeping these running smoothly is a must.

But what is fleet management? And what tools can you use to make this task as easy as possible? Read on to find out.

The basics of fleet management

Fleet management is an approach to looking after your company’s vehicles across every stage of their lifecycle. It starts with purchasing or leasing and covers maintenance, driver tracking and fuel management. At the end of a car or van’s life, it also ensures there’s a clear replacement and disposal plan.

This isn’t just for firms with large numbers of vehicles. It also applies even if you’re only running a small number of cars or vans, and if you’re using a ‘grey fleet’, where employees use their personal vehicles for work purposes.

The goal of this is to improve efficiency, cut fuel costs, keep your drivers safe and maintain compliance with the rules. This covers everything from monitoring driver behaviour and tracking routes to having up-to-date MOTs and insurance and meeting working time regulations.

Effective fleet management ensures there’s a single hub that covers all aspects of your vehicles’ operations. This is also where the fleet manager comes in.

The role of the fleet manager

The job of the fleet manager is to oversee the day-to-day operation of the firm’s cars, vans or trucks. They have a wide range of responsibilities and so need a good mix of skills, from accountancy to strong communications and the ability to multitask.

In general, a fleet manager’s roles will include the following:

• Controlling costs. Ensuring operating costs are kept as low as possible is a primary task of the fleet manager. This can include getting a good deal on initial purchases or rentals, as well as keeping ongoing costs down. This can be done by improving fuel efficiency or managing the use of services like fuel cards.
• Vehicle maintenance. Keeping your fleet on the road is vital to the success of any business. This means ensuring cars and vans are regularly serviced and checked for any faults.
  
  The latest smart technology can alert you to any potential issues before they become a problem, allowing you to plan your schedule and reduce the risk of a breakdown.

• Ensuring driver safety. As well as ensuring your fleet is mechanically sound, a good fleet manager should also be keeping an eye on driver behaviour. Tools like telematics can keep a full log of their actions. It can show you if they were speeding, for instance, or if any harsh inputs have been made on the steering or brakes. This lets you step in with training or advice where necessary.

• Tracking vehicles. It’s essential that you know where your vehicles are at all times. GPS tracking tools give you a complete picture of your current situation and let you make changes. For instance, it can show you if drivers are taking inefficient routes between jobs and therefore help better plan your operations. What’s more, it can quickly alert you to any unauthorised vehicle use or track down a stolen car.

• Ensuring compliance. It’s also up to the fleet management team to ensure their vehicles are road legal and that drivers are meeting their requirements. However, this doesn’t just include keeping MOTs and insurance valid. You should also be tracking any mileage claims for expenses and tax purposes and ensuring drivers aren’t breaching working time rules. This also covers ensuring your drivers are fully licensed for the vehicles they operate. And, you’re keeping a record of any issues such as penalty points.

How does fleet management work?

This can seem like a lot of plates to keep spinning, especially if you’re managing a large fleet. However, there are a range of tools and technologies that can make life easier.

Telematics systems are an important part of this, and are used by around 86% of fleets. What’s more, mileage tracking tools, servicing and maintenance schedulers and vehicle checking apps all have their role to play.

These all fall under the banner of fleet management software – something no professional can do without.

Understanding fleet management software

Fleet management software solutions are vital for cutting through the data and giving you a clear picture of what’s going on in your business.

Having all the relevant information at your fingertips means you can make better decisions about all aspects of your operations. This applies both in the day-to-day management of your fleet and for longer-term strategy, such as which fuel card to go for or how often to replace vehicles.

Fleet management software typically covers several key areas, including:

• Driver management – Records, expenses, driving behaviour etc.
• Vehicle management – Inventory, maintenance and repair, licensing, disposal etc.
• Operations management – GPS tracking, route planning, fuel usage reports etc.
• Regulation management – Expenses, tax, working hours, emissions, etc.

The benefits of effective fleet management

It should be clear how good fleet management can improve every aspect of your operations. But what can this translate to in real terms? Here are some of the proven benefits of these tools.

• Reduced fuel costs. Smart telematic solutions can reduce the MPG of your fleet by as much as 20%, while a fuel card can offer significant savings every time you fill up.
• Improved safety. Companies that monitor driver behaviour can see a 42% reduction in the number of safety incidents, according to figures from Teletrac Navman.
• Less downtime. A predictive maintenance schedule reduces the time your vehicles spend in the garage or broken down at the roadside. It can cost firms up to £800 a day for a van to be off the road, so this also saves you money.
• Better insight. Fleet management tools let you know exactly what your drivers are doing whenever they’re on the road. This means you can plan your vehicle usage more carefully and ensure you’re meeting your duty of care to your drivers.

To learn more about fleet management, get in touch with our experts to see what tools and technologies can benefit your business.