HOW AI HAS TRANSFORMED FUEL MANAGEMENT TO SAVE FLEETS ON FUEL COSTS AND ADMINISTRATIVE TASKS
Managing fuel costs is a big deal for vocational fleets; affecting their budget. In the past, dealing with fuel was tricky because of fuel theft and lots of paperwork. However, Artificial Intelligence (AI) is changing the game by helping to manage these costs better, saving fleets more than 11 percent on fuel and cutting down over 20 hours of paperwork every month.
Let’s explores how AI has become an essential tool for fleets by reducing costs, preventing fraud, and making paperwork easier.
COMMON PROBLEMS WITH OLD FUEL CARDS
For vocational fleets, where every penny matters, fuel is one of the biggest expenses. Legacy fuel cards aren’t great, they don’t stop fraud well, don’t track expenses in real-time, and aren’t able to turn the data they collected into useful information.
This has caused a lot of problems for fleet managers.
Fuel Theft and Misuse: Fuel fraud, like stolen cards or buying more fuel than needed, can take up 10 to 15 percent of a fleet’s fuel budget.
Too Much Paperwork: Fleet managers waste a lot of time on tasks like matching receipts with expenses, which keeps them from doing more important work.
Unexpected Costs: Legacy fuel cards often have hidden fees that can suddenly increase expenses.
THE ROLE OF AI IN FUEL RISK MANAGEMENT
AI is making a big difference in managing fuel risks by providing more precise control and monitoring, which helps reduce the risks linked to fuel use and fraud. These AI systems are easy to set up and use, and they offer several big advantages.
Preventing Fraud: AI systems are really good at spotting unusual transactions in real time, like if someone tries to buy more fuel than a vehicle can hold or at strange times and stops them right away.
Less Paperwork: These systems automate reports and data analysis, freeing up about 33 hours a month for fleet managers and accountants to focus on bigger things.
Better Cost Management: AI analyzes how fuel is used and finds ways to use it more efficiently.
ADVANCED FEATURES OF MODERN FUEL MANAGEMENT PLATFORMS
Telematics Integration: By integrating with telematics devices, fuel platforms cross-verify vehicle location, fuel levels, and tank capacity with purchase data. This three-point authentication system minimizes fraud and makes sure fuel is purchased for work vehicles only. For example, if a vehicle’s tank holds 15 gallons, the platform will reject any transaction exceeding that limit.
Real-Time Transaction Monitoring: Legacy fuel cards often do not send alerts for suspicious transactions, leaving fraud undetected for days or even weeks. On the other hand, modern fuel risk management platforms alert managers right away about any suspicious purchases, allowing them to stop fraud as it happens. For instance, if a vehicle’s card is used at a location more than 100 meters away from the authorized vehicle, the transaction is automatically flagged and declined.
Automated Reporting and Tax Documentation: Modern platforms simplify expense management by automating reporting and reconciliation. Fleet managers can access detailed analytics on fuel usage, driver behavior, and cost-saving opportunities. Additionally, these platforms generate fuel tax documentation, such as IFTA reports, straight from the online portal with just a few clicks.
Advanced Analytics Tools: AI helps fleets spot trends and predict future needs. For example: it can spot steady increases in a vehicle’s fuel consumption patterns, which indicates that the vehicle needs maintenance. By helping address issues proactively, fleets can avoid bigger problems later.
Comprehensive Security Features: Fleets can set spending limits and other controls to prevent unauthorized purchases and quickly shut down stolen cards to reduce losses. These controls prevent unauthorized purchases, such as non-business fuel or items bought at gas stations. Additionally, stolen cards can be deactivated instantly to avoid any fraudulent activity.
REAL-WORLD SUCCESS STORIES
Appalachian Utility Services, a multi-state vocational fleet, saved over $12,000 from fraudulent activities in just the first month of using an AI platform, trimming their fuel costs by over 12 percent.
Lawrence Logistics, which manages 240 heavy-duty vehicles, cut down the time spent on reconciling fuel expenses from over 60 hours to less than seven hours per month, reallocating that time to strategic tasks like route optimization and driver training.
These are just a few of the many benefits that fuel risk management platforms offer to fleet operators and finance teams. These improvements show how vital AI-driven fuel risk management platforms are in today’s fleet operations. They not only help save money and reduce paperwork but also make fleet management more efficient. In a time of rising fuel prices and tough demands, using these modern technologies is essential for fleets that want to succeed.
about the author
Rush Akin is an experienced veteran in the fleet industry, with over 28 years of experience in fleet management. Before joining RoadFlex, Akin served as the SVP of sales for Solera, where he oversaw fleet sales and business development in North America. Prior to Solera, Akin worked with well-known brands in the industry, such as Rand McNally, Lytx and Syntech Systems FuelMaster. Akin has a strong background in fleet and fuel management, as well as customer success.
