On-Site's Construction Forum
10 ways to prevent fuel theft
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Fuel theft costs companies hundreds of thousands of dollars. Recently reported incidents in Ontario, professional fuel thieves drove away with tens of thousands of litres in stolen diesel fuel. The thieves had carefully planned their robberies and were ready with electric pumps, a generator and large plastic fuel tanks. In three separate incidents, their haul is estimated at $18,000, $27,000 and $50,000. Imagine the impact on the businesses affected!
“These thefts could have been prevented,” said Jack Lee, President/CEO of 4REFUEL Ltd. “And all you need is a system to track the fuel you’re buying against the fuel you’re using,” he adds. The good news is that systems exist that automate tracking and make detailed fuel records viewable online. Whether the tracking starts at procurement, tank dispensing or wheel to wheel fuel delivery, each drop of fuel can be measured and managed. This is called Total Fuel Management and it is changing the way fuel is being used across Canada.
“Total Fuel Management streamlines logistics and automates tracking, so you can actually see where every drop of fuel goes and you know where and when your equipment is being refuelled. It locks out theft, simple as that. But that’s just the start”, says Lee.
But not all fuel theft is done by organized thugs. A more common situation is when fuel is pumped illegally by workers for their own private use. It is a growing problem says Lee. “Spillage is on the increase. The price of fuel has increased to where it is the largest operating expense for many companies, so every litre of fuel that is not used for productivity effects your bottom line. Years ago it was no big deal for the boys to help themselves to some fuel. The occasional fill up on the company was viewed as an employee perk and part of the cost of doing business. But not any more. Fuel prices have gone up and new anti-theft policies were put in place. But guess what? Old habits die hard, entitlement lives on and it’s always been easy to turn a blind eye. Regardless of how you justify it – as waste, spillage, shrinkage or a perk – it is still theft. Before starting with us, one client had been writing off 10% to 15% of his fuel costs, every month, because of identifiable theft.”
Whether it’s your staff casually helping themselves to your fuel or organized thieves stealing fuel to re-sell it – it’s a problem. But it’s not beyond your control.
10 WAYS TO ELIMINATE FUEL THEFT
- DEFINE YOUR COMPANY FUEL POLICY – post it where everyone can see it and talk to your staff about it and talk about the penalties for theft.
- GET A FUEL NEEDS ASSESSMENT DONE – to reveal where you can increase savings and efficiency and reduce supply threats.
- CONSIDER WHEEL-TO-WHEEL REFUELLING – it eliminates theft and increases productivity by 10 hours a day for a fleet of 30.
- CALCULATE YOUR FUEL ROI – measure how much each litre contributes to your bottom line – it’s easy with an automated fuel data system.
- USE POSITIVE ID ON TANKS – the fuel doesn’t flow until the system identifies vehicle and user – easily installed on fuel storage tanks, fuel islands, etc.
- MEASURE WHERE YOUR FUEL IS ACTUALLY GOING – an online fuel management system shows you who, where, when and how much.
- MANAGE YOUR FUEL CONSUMPTION – measure volumes, control costs and improve efficiency – you’ll leave no room for theft.
- ADD SECURITY TO FUEL STORAGE TANKS – remote monitoring systems alert you of sudden drops in volume and can sound alarms, even activate warning beacons.
- TRAIN FLEET MANAGERS TO MANAGE FUEL – with online reporting and automated records, it only takes minutes a day to make a significant difference in your fuel management.
- TALK TO A FUEL MANAGEMENT EXPERT– the fuel management experts at 4Refuel can help you save money and lock out theft.
Because refuelling is done by certified 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 positive identification software can tell you which vehicle, tank, or piece of equipment was filled. You can measure and manage each drop of fuel, so you are guaranteed that there will be no unauthorized fill ups.
“One of the most important advances to help curb fuel theft is 4Refuel’s Total Fuel Management system featuring Advanced Mobile Fuel Management Technology,” says Lee from his Langley, BC office. “This records details of each fuelling, matches data to vehicle numbers and uploads it to our online reporting system. It’s simple to identify discrepancies, isolate any problems and take swift action.”
“Helping stop fuel theft is only one benefit of TFM, adds Lee. “Its greatest benefit is helping you to measure the return on your fuel investment. TFM gives you the tools to measure and manage profitability from one project to the next. Fuel theft affects your bottom line. It is part of your total cost of refuelling just like the cost of labour, the time spent refuelling, insurance etc.,” says Lee.
A complete TFM system includes proven software that allows you to set operating thresholds for each machine and you quickly see where the most fuel is being used, or wasted. Once you have that you can manage your people, and your fuel better. Fuel theft is history. It is not impossible to cut refuelling expenses by 15% or more.
Do you use your own fuel storage tanks? Total Fuel Management takes fuel tank monitoring to the next level. Remote tank monitoring and prevention devices are attached which advise managers when a theft occurs. Here is how it works. Fuel Tanks are equipped with digital software that is activated each time the tank is open. 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 are any after-hours or unauthorized fill-ups. Both systems have proven to eliminate fuel theft.
Remote tank monitoring also has other benefits. Each fill up measures to the exact amount along with a date and time stamp. Positive identification of equipment and vehicles work in tandem to give you exact refuelling information by piece of equipment so you can gauge efficiency and productivity. Data capture software at point of refuelling streamlines your accounting 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.
Lee concludes, “Fuel theft is your problem and until you can measure each refuelling you will continue to pay for losses every month. For many companies, fuel is the second largest cost next to labour, so you must pay attention to even the slightest fuel theft. With new more stringent fuel management policies you will send a message that theft, of any kind, is not acceptable.”
4Refuel is the leading provider of total fuel management solutions. Combining professional fuel handling with automated tracking and online reporting, 4Refuel saves thousands of clients millions of dollars every year by helping them manage their fuel better.