For the last 40 years, the transportation industry has utilized the DOE index – a national average price calculation – to determine the cost of diesel fuel reimbursements between shippers and carriers. Reimbursing based on an average index price creates an inability to accurately manage diesel fuel costs in transportation. Fuel Recovery changed all of that. Breakthrough enables shippers to leverage real-time, lane-level data to reduce the fuel cost, consumption, and emissions in their supply chains.
Unlike an Index-based surcharge program, Fuel Recovery moves beyond one average price and accounts for the time, tax, price, and geography specific to each shipper’s individual freight movements. Fuel Recovery calculates the exact cost of fuel used to move goods to market, bringing transparency and fairness to diesel fuel reimbursements between shippers and carriers.
With Fuel Recovery, shippers’ transportation fuel expenses are reflective of the expenses their carriers incur when purchasing fuel. With a transportation energy management strategy in place, you will gain visibility into your true consumption and costs in real-time and at the lane-level. Managing and reimbursing for fuel with a market-based approach, not a retail index, will lower your overall transportation fuel spend immediately. After your true consumption and costs are aligned with your freight movements, further improvements can be made to achieve continued savings.
Get our exclusive eBook on the value of a market-based approach over an index-based fuel surcharge program to discover even more about the benefits of adjusting your strategy with Fuel Recovery.