Fuel Cost Optimization with SAP Fleet Management

Fuel managemnet sap

Fuel cost is a major cost in any asset intensive industry. A lack of cohesive Fuel Management squeezes business profitability and increases maintenance cost. SAP is capable of  covering all major business scenarios in Fuel Management resulting in higher profitability.

Disorganized fuel management results in following pain areas,

  • Uncertainty of available stock with risk of stock-out
  • No real time view of the inventory with high working capital locked up
  • Manual data entries prone to error and manipulation
  • More manpower efforts & costs
  • Inaccurate vehicle wise consumption data
  • Increased cost of fleet operations and maintenance
  • Reduced visibility of fleet operations

Solutions from SAP Fuel management with core integration to other key modules like Finance, Procurement with exhaustive Business functionalities to cope up will remove all pain areas.

In one of the recent SAP implementation for terminal, Envecon implemented SAP Enterprise Asset Management (EAM) and Fleet Management. In terms of Assets,Terminal had large fleet of Reach Stacker, Empty Handlers and Rubber Tyre Gantry (RTGs),Trucks to be managed efficiently.

Why SAP?

SAP is one solid platform for whole organization.  SAP has in-depth functionality in each of area to take care of any business requirement like,

  • Enterprise Asset Management(EAM) capabilities with Add-on functionalities
  • Storing integration capabilities e.g. RFID and Mobile Device Tracking for Fuel Consumption & Refilling of fuel
  • Easy to use personalizable screens
  • In-depth fleet management functionality
  • Seamless integration to finance, materials management, procurement etc.
  • World class mobility solutions like Syclo Works Manager
  • Exhaustive ready reports covering MIS aspects

Client was looking for Managing Fuel consumption with optimized inventory with detailed tracking/reporting for each fleet. Envecon successfully streamlined the Business processes with the functionalities in SAP. Some Key Areas client needed attention were,

  • Higher Fuel cost ,
  • Inaccurate demand
  • No Fuel consumption monitoring
  • Increased cost of operations
  • Inadequate visibility on fleet operations

Envecon Contribution:

Below are the Envecon key contributions:

  • Efficiently managed processes for buying fuels considering Buffer stock, Minimum/Maximum quantity to order depending on consumption pattern.
  • Stock Projection/Stock (Fine-Tune Inventory Insight) Management.
  • Measurement counters and integration with RFid’s at Fuel stations for Mileage/consumption analysis,
  • Route configuration for cost optimization for redundant trips and to avoid unnecessary wear and tear for equipment’s.
  • Integration to RFid’s and integration with all Base modules e.g. FICO, MM
  • Pre-defined Auto Refilling with RFid tag for all equipment’s
  • Comprehensive reports including Trip sheet, Mileage, Vehicle operating cost, Consumption Analysis.

Benefits:

Following are some of the Benefits realized after Implementing above solutions:

  • Equipment level consumption analysis,
  • Improved Operational Efficiency,
  • Minimize Reconciliation work by accessing integrated information and real-time reporting
  • Reduced fuel costs
  • Reduced cost of fleet operations and maintenance
  • Centralized monitoring of fleet operations with Improved visibility

Summary:

Fuel is a major cost in any asset intensive industry. It locks up sizable working capital and requires manpower to manage. Automating and integrating the full process have many benefits.

SAP has strong Fleet management capabilities coupled with inventory management, procurement, finance and integration. Automating and integrating full process surely provides visibility, savings and efficiency.

Implementing  SAP fleet management with implementation partner who understands your domain will result in substantial savings, reduced pollution and increased usable life for the fleet.