A Conversation about Return on Investment
Q: We have heard that there are essentially three main areas which contribute to the effectiveness of a fuel management system. These are functionality, data handling and return on investment. Tell us more about the initial costs.
A: This is an extremely important issue and probably the most important aspect when evaluating fuel management systems. For medium and large users, the cost of designing and installing a comprehensive fuel management system tends to average between 18 and 22% of the user’s monthly fuel cost.
Q: What does that mean to potential users?
A: Typical savings are more than 7.5 % and average at around 10%. Depending on the characteristics of the operating environment, we have achieved savings of up to 28%.
Q: That is outstanding. Is this true for any size of fleet?
A: Not any fleet size. Automated fuel management systems are most cost-effective for fleets of 50 vehicles and more, where more than 300,000 litres of fuel are used per month.
Q: What about smaller fleets?
A: PetroMan provides more basic and semi-automated solutions for smaller fleets. As these systems are fully scalable, our advice to smaller fleet owners is start with a basic system, that addresses the fundamental requirements, and to upgrade as the operational needs increase.
Q: How do these options differ?
A: The differences are mainly around functionality and automation. These include Security, such as Tank to Nozzle and measurement across the value chain, Adaptability, in terms of degree of automation, configurations and applications, Data Handling regarding integration and, Serviceability aspects including maintenance and training.
Q: Tell us more about data handling across these options.
A: Data handling and integrity is vital. All PetroMan’s fuel management system options ensure that data is accurate, uncompromised, and safe. Differences across the options are found in the extent to which data can be automated, customised and integrated with ERP systems, as well as the availability of tailored reports and the provision of alerts.
Q: How does the return on investment differ across these options??
A: There are many factors that influence the degree of effectiveness of a fuel management system, such as site location, equipment differences, vehicles differences, connectivity challenges, etc. With over 150 projects completed across Africa we have observed a remarkably positive and constant return on investment profile for all our fuel management options. Pay-back periods are typically 5 – 6 months when based on the capital expense, and 8 – 10 months when the operating expenses of the more automated systems are considered.