The client was a large telecommunications provider within the automotive industry. Their organisation had a sizeable fleet of cars and light commercial vehicles, used by their sales and support teams.
Due to their national presence, their spend on road fuel by way of fuel cards was considerable!
However, it was an area that was being under managed and had never been reviewed our challenged. Nearly 20% of our clients fuel was being drawn from premium (motorway/toll roads) locations, representing an on cost of between 11ppl – 13ppl (roughly 10%)!
Our client asked Oculus to review this area of expenditure, traditionally known for being low-margin; having high price-volatility in terms of market prices and geography.
Our strategy was to take a holistic view as to what drives fuel cost. Not just the unit rate itself.
Pre-tender, our approach saw Oculus take a thorough and comprehensive review of the fueling behaviour to understand fuel purchase patterns; routes; transaction and card fees.
From there, to utilise the data to drive tactical changes to fueling behaviour along and support a comprehensive tender process.
Now possessing an intimate understanding of the clients fueling behaviours, a two stage process was undertaken;
Stage 1 – Based on our deep dive review, Oculus presented a range of changes that could be made to reduce fuel cost whilst not restricting or complicating travel.
Stage 2 – A competitive tender process, involving market leading fuel card providers and selected fuel card brokers.
- A commercial negotiated national rate providing an attractive saving against pump price.
- Improved credit terms for our client
- Dramatically changed fuelling behaviours, enforced through policy, that greatly reduced the use of premium fuelling locations that was previously unknown to our client.