Fleet managers are under constant pressure to control expenses, and fuel is consistently one of the largest costs of their transportation spend. With market volatility and operational complexities, managing this spend effectively can feel like an uphill battle. Many organizations struggle with a fragmented approach to fuel procurement and driver compliance, leaving significant savings on the table without even realizing it.

The solution lies in a strategic, data-driven approach to fleet optimization. By implementing a comprehensive fleet fuel management program, you can move from reacting to market shifts to proactively controlling your costs, improving efficiency, and protecting your bottom line.

Key takeaways

Data drives efficient fleet management. A centralized view of your fuel procurement process is the first step toward identifying real savings opportunities.
Fuel margins are expanding. The gap between wholesale and retail fuel prices has grown from around $0.18 to nearly $0.50 per gallon, creating a major opportunity for savings through negotiated discounts.
Driver compliance is critical. A discount network is only valuable if your drivers use it. Monitoring and improving compliance is key to capturing the full value of your fuel program.
A multi-faceted strategy delivers results. Combining fuel card discounts, bulk fuel supply, and mobile fueling allows you to build a resilient and cost-effective fuel procurement strategy tailored to your fleet's unique needs.

The hidden opportunity in fleet fuel management

Twenty years ago, the margin between wholesale and retail diesel was about $0.18 per gallon. Today, that gap has widened to nearly $0.50 per gallon, and in some cases, even more. This expanding margin between the wholesale cost of fuel and the price at the pump represents a significant, often overlooked, opportunity for fleets.

What does this mean for your business? It means the value of a negotiated fuel discount has never been higher. Fleets that rely on paying the posted retail price are leaving a substantial amount of money on the table. This is where a strategic approach to fleet optimization becomes a powerful tool for cost reduction.

The power of discounts and driver compliance

Securing a discount is only half the battle. The savings are only realized if your drivers consistently purchase fuel from locations within your pre-negotiated network.

Consider a real-world example. A fleet with a negotiated cost-plus-10-cents deal fueled up at a partner truck stop. On that day, the difference between the wholesale and retail price was $0.60 per gallon. Thanks to their discount, the fleet saved $0.50 per gallon. On a single 80-gallon transaction, that translated to $40 in savings. Now, multiply that by hundreds or thousands of transactions per year. The savings potential is significant. Improving driver compliance is fundamental to any successful fuel procurement strategy.

Real-world fleet optimization stories

A tailored approach through Breakthrough's Fleet Solutions is essential because no two fleets are the same. Here’s how different fleet optimization strategies have delivered measurable results for our clients.

1. Improving driver compliance for a nationwide fleet

A nationwide distribution fleet with 2,200 discount locations was only achieving 35% compliance, meaning the majority of its fuel was purchased without a discount.

By implementing a program focused on driver scorecards, route optimization, and discount compliance strategies, we helped them increase visibility and accountability. Fleet managers received actionable reports to coach drivers and make corrective actions.

The Result: Within a year, compliance rose to nearly 60%. Weekly savings grew from approximately $10,000 to over $33,000, adding $700,000 to the fleet’s bottom line annually. The next goal is to reach 75% compliance, which would unlock an estimated $1.2 million in total annual savings.

2. Strategic sourcing for a bulk fuel-only fleet

A fleet operating across 30 locations in the U.S. relied solely on bulk fuel, as their vehicles always returned to base for refueling. They had numerous vendors, complex payable terms, and no visibility into whether their pricing was competitive.

The solution was to run a comprehensive RFP and leverage our network of nearly 420 rack locations across the United States to source 5.2 million gallons of fuel strategically.

The Result: We successfully consolidated vendors and negotiated based on volume, creating a more streamlined and cost-effective supply chain for the client. This led to $1.2 million in annual savings by identifying and capturing small, stackable fleet optimization wins at each location that aggregated into a major financial impact.

3. Managing complexity for a growing fleet

A large, complex fleet that had grown rapidly through mergers and acquisitions operated with a mix of mobile fueling, fuel cards, and bulk fuel supply. This created significant operational challenges and missed savings opportunities across their 146 locations.

We deployed a three-tiered procurement strategy to meet the unique needs of each site, whether it had five or over 100 vehicles. This involved running procurement events for mobile fueling, optimizing the fuel card program, and securing competitive bulk supply.

The Result: Despite the complexity, the holistic fleet optimization approach delivered $627,000 in annual savings while bringing structure and efficiency to a previously fragmented fuel strategy.

Building a comprehensive fleet optimization program

Effective fleet optimization goes beyond just one tactic. It involves a suite of solutions that work together to reduce costs, improve fleet performance, and build resilience. A holistic program should empower you to:

Reduce Costs: Leverage a strategic transportation partner to secure competitive pricing.
Enhance Performance: Gain visibility into fuel consumption, cost trends, and driver behavior to streamline operations and make data-driven decisions.
Build Resilience: Navigate market volatility with confidence by future-proofing your fleet against shifting industry dynamics.

By partnering with Breakthrough, you can build a fleet optimization program that addresses all these areas.

Take control of your fleet's fuel strategy

Managing fleet fuel costs in a dynamic energy market is a significant challenge, but it also presents a major opportunity. The widening gap between wholesale and retail fuel prices means that strategic fleet optimization approach can deliver significant savings.

By focusing on strategic fuel procurement, improving driver compliance, and adopting a comprehensive management program, you can gain control over your fleet's second-largest expense. In fact, Breakthrough’s Fleet Solutions, help fleet managers save an average of 8.5% on fuel spend. To learn more about how Breakthrough can drive savings and efficiency for your fleet, explore our Fleet Solutions today.

Frequently asked questions about fleet optimization

What is fleet optimization?

Fleet optimization is the process of using data and technology to improve the efficiency and performance of a fleet. This includes managing fuel procurement, monitoring driver compliance, and streamlining administrative processes to reduce costs and enhance productivity.

How can I optimize my fleet's fuel costs?

Optimizing fuel costs involves a multi-pronged strategy. Key actions include negotiating fuel card discounts, leveraging bulk fuel and mobile fueling where appropriate, and monitoring driver compliance to ensure all negotiated savings are captured.

Why should I use a transportation partner to support my fleet optimization strategy?

Working with a transportation partner can deliver substantial benefits by addressing key challenges such as rising fuel costs and operational inefficiencies. By leveraging their industry expertise and integrated tools, you can secure competitive contracts, ensure compliance, and consolidate vendor partnerships for fair costs and reliable supply. Ultimately, this partnership will allow you to focus on core business objectives while achieving measurable savings and enhanced operational performance.

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