Fuel management system: what it is and how it works

Types of fuel management systems

Fuel management system software applications can be classified into SaaS and custom-made systems. The key features and differences between the two are discussed herewith:

SaaS fleet fuel management systems

The main features of a SaaS fuel management system for fleet operations are as follows:

• Deployment: These are generally cloud-based systems. The fuel monitoring system can be accessed through web browsers.
• Accessibility: You can access these FMS’s from anywhere with an internet connection. So, these systems are perfect for businesses with multiple locations.
• Implementation: These systems can be installed quickly and you can start using them right after subscribing.
• Cost: This type of vehicle fuel management system mostly follows a subscription model. 
• Scalability: These systems are highly scalable and can easily accommodate new user accounts and expand as per your business’ needs.
• Maintenance: The SaaS provider is responsible for handling maintenance, updates, and security. 

Custom fuel management systems

Some of the key features of a custom stand alone fuel management system are as follows:

• Deployment: These FMS involve on-premise deployment. Some providers also offer a hybrid deployment option.
• Accessibility: While the level of accessibility depends on the type of deployment, there is greater access limitation as compared to cloud-based solutions.
• Implementation: The time it takes to develop custom fuel management system software depends on the features you require. The implementation period is generally higher.
• Cost: The cost of implementation is relatively higher here, as you will also be bearing the cost of maintenance.
• Scalability: These FMS do provide customized scalability options, but making any changes means additional development, which can be cost intensive.
• Maintenance: As mentioned above, maintenance, updates, and security are your responsibilities. Still, this can vary based on the maintenance agreement with the development team.

Fuel management system key components

The main components of a fuel management system for fleet operations are as follows:

• Fuel monitoring devices: Commonly used fuel monitoring devices include flow meters and fuel sensors for measuring fuel levels and consumption in real time.
• Telematics devices: These devices include GPS tracking and fuel monitors and provide data on speed, routes, and idling times.
• FMS software: The fuel management system software provides the dashboard and reports required by fleet managers to track fuel consumption and areas of inefficiencies.
• Mobile app: Apps allow drivers to keep track of fuel statistics and receive alerts when they are on the road. Some fleet fuel management system apps can also help drivers pick better routes to save time and fuel.
• Fuel card systems: It is these systems that allow you to monitor and control fuel transactions. Unauthorized users cannot operate the card. Besides, fuel cards simplify payments and bring accountability to fuel expenses and they are an important part of a fuel card management system.

Fuel management system: benefits of using

The benefits of fuel management systems for fleet operations have been proven beyond doubt. Some of the different ways these systems can benefit your business are as follows:

Enhanced efficiency in fleet management

The best fuel management system can improve your fleet’s operational efficiency in different ways, including:

• Real-time monitoring: Continuous monitoring supports quick decision-making. This helps improve the effectiveness of your fleet management strategies.
• Route optimization: The right FMS can provide helpful insights so that you and your team can refine the routes, reduce fuel consumption, and improve your business’ service delivery.

An automated fuel management system can further make your business more efficient, as it allows your team to readily access required information. For instance, fleet managers can access info on fuel usage to plan for future deliveries on the same route. This can result in improved workflow and reduces the chances of employees logging in false data.

• Better planning & route optimization: An FMS can make it easier to plan and optimize routes. This can help reduce fuel consumption and increase cost savings. Both time and fuel-optimized routes mean consistent and reliable delivery times for customers and reduced costs for your business.
• Improving driver behaviors: The vehicle fuel management system can provide you with actionable data on driving habits and fleet vehicle anomalies. The information can be used to take steps that dramatically reduce fuel costs.
• Preventative maintenance: When vehicle maintenance needs are detected early on, you can prevent costly issues from escalating. This can further help ensure your fleet vehicles run at their optimal levels.

Types of fuel management systems for specific needs

You can find different types of fuel management systems depending on the type and scale of your needs.

Fuel management system for fleets

A fleet fuel management system should provide you with the following features and benefits:

• Real-time fuel tracking: The latest FMS can monitor fuel levels in real-time. This can alert you and your drivers any time a fleet vehicle needs refueling. There is no longer any need to rely on paper-based driver reports for tracking fuel usage.
• Fast & reliable analytics & reports: The right fleet fuel management system software can have advanced analytics and reporting features to assess fleet fuel usage. Some of the insights such reports can provide include driver-based fuel spending, fuel efficiency trends, and route-based fuel costs.
• Fuel card management: Certain FMS’s can perfectly integrate with a fuel card and automated fueling systems. This can enable:
  • Automated tracking of fuel purchase
  • Control over fuel purchases
  • Real-time alerts on fuel purchase

The benefits include simplification of refueling activities, minimal administrative challenges, and greater control over fuel expenses.

• Route optimization: The benefits of this feature from fleet fuel management system software can result in reduced travel distances and avoiding traffic disruptions. Overall, the benefits include reduced idle time and lower fuel consumption and costs.
• Driving behavior monitoring: FMS’s that provide driver behavior monitoring play a big role in improving fleet fuel efficiency. The benefits include:
  • Identifying fuel-wasting habits
  • Identifying and rewarding fuel-efficient drivers
  • Implementing driver training programs 

There are many more features that are integral to an efficient fleet fuel management system. This includes easy integration with fleet maintenance systems, reliable fuel theft detection, telematics system integration, scalability, and customization.

If you want your business to continue growing, it is important to ensure efficient use of your resources. A stand alone fuel management system can help you achieve this by continually monitoring your operations. It can help ensure the most efficient practices are followed.

Fuel management system for cars and personal use

You can also find fuel management systems for cars and personal applications. Some of the main benefits and features of such system include:

• Fuel usage tracking: Keep track of fuel consumption in real-time and in different driving conditions.
• Route optimization: Let the system help you plan the most efficient routes based on distance and traffic patterns.
• Catch inefficient driving behaviors: An advanced vehicle fuel management system can identify areas for improving driving habits such as harsh acceleration and braking and excessive idling.
• Maintenance insights: The right FMS can also send alerts for likely maintenance issues.

So, these are some of the different types of fuel management systems to choose from.