Issue link: https://read.dmtmag.com/i/280108
WORLD FENCE NEWS • APRIL 2014 • 73 I remember when starting my working career as a kid, my employ- ers told me what I was worth. And I think it was a buck and a half an hour. As time went on, my working-worth increased until I became an entrepre- neur and then my value was directly proportional to profitability and how well I managed my growth as well as controlled costs. I had to work smarter given the limited hours I had each day. Today that challenge continues for me, our suppliers and our clients. There are some costs you can't control but they can all be managed better. For example, high labor costs can be contained, particularly when it comes to refueling. In a recent study of major transport companies across Canada, the average time to fuel at commercial stations had increased by 50% over two years. What used to take truckers 30 minutes now takes 45. I know this number is low for bigger cities where you sit in traffic longer and it's not al- ways easy to account for the drivers spending additional time making a phone call, using the restroom or stop- ping for coffee. But for the purposes of this discussion, let's stick with 45 minutes per refueling session; 15 min- utes longer than it used to take. That's a 50% increase in time, and a 50% in- crease in hourly labor costs. There's no return on paying for unproductive time. It's as simple as that! That 45 minutes considers the total time spent getting fuel per truck per day. The clock starts when the truck leaves its route to find a fueling station, waits in line, adds fuel to tanks, and completes the transaction then returns to its route. During this time, you are paying for the labor, maintenance, insurance and adminis- tration but making no deliveries, mov- ing no goods and earning no return on your considerable investment. This study was conducted by my company, 4Refuel Inc., the only firm in the world to develop systems for automatically tracking fuel trans- actions and reporting them online, through personal and telephone inter- views. They spoke with senior execu- tives, owners and fleet managers of businesses in transportation, logistics and freight operating in major urban centers in Canada. Let's do the math to show what the real cost of refueling is when you do your own fleet filling up at card- locks. For a fleet of 20 trucks you can ex- pect to spend approximately 50 hours each week devoted to refueling. And many of those hours are overtime hours costing time-and-a-half or dou- ble time rates. What do your drivers earn per hour? It adds up to tens of thousands of dollars in lost time productivity. Now, think about what you get for all those hours spent filling up, other than fuel. Nothing! Today many companies have come to the conclusion that time spent refueling can be recouped and put back into their bottom line when uti- lizing Total Fuel Management, or TFM. This solution has been pio- neered, developed and fine-tuned by 4Refuel Inc. TFM includes everything from fuel procurement, to delivery, to the measurement and management of fuel consumption data. Clients no longer have to search for fuel during shortages, and there is no more wasted driving time. Waiting time is eliminated and you get the in- formation you need to manage your fleets better available at your finger- tips. Fuel Management Online or FMO is delivered via e-mail and includes data captured from each truck. This in- formation allows you to figure out where consumption is wasted and pro- ductivity can be improved to give you better profitability for each dollar spent on fuel. Your drivers appreciate the change to this system because they are no longer responsible for main- taining fuel levels because all refuel- ing is done at your location while trucks are parked, usually outside of normal business hours. But don't take my word for it… Hugh Sanders, vice-president at Roff Logistics, the company responsi- ble for transport needs for Supply Chain Management and Walmart Canada, says, "It's about the money." Roff Logistics has 135 trucks on the road at any one time, with another 15 in their yard. "We've been using 4Refuel for the past 10 years and based on our current fuel usage it would take us 93 man- hours each day – that's right, each day – to refuel at card-locks," he said. Sanders further explained that with 4Refuel they have been able to save over $2,200 every working day. That works out to over $500,000 in Ask the fuel expert Time spent fueling increases labor costs and decreases productive work time BY JACK LEE, PRESIDENT/CEO, 4REFUEL INC. continued on next page The Williams Lowbuck ® Notcher features patented upper and lower ram supports and heat-treated tool steel cutters for long life and smooth action. Schedule 40 Notcher Now includes individual male cutters for each size . . . 1 3 ⁄8, 1 5 ⁄8, 1 7 ⁄8 Also Available Size 2 3 ⁄ 8 Cutter Made In The USA! Lowbuck Notcher with 1 3 ⁄8, 1 5 ⁄8, & 1 7 ⁄8 inches....................... $345.00 Cutter Set for 2-2 1 ⁄2 inches (2 3 ⁄8 inches) ............................ $145.00 Notch, 1 3 ⁄ 8, 1 5 ⁄ 8, 1 7 ⁄ 8 pipe or tubing up to and including Schedule 40 with one machine. The Williams Lowbuck Notcher features patented upper and lower ram supports and heat-treated tool steel cutters for long life and smooth action. 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