HOUSTON, TX--(Marketwired - Mar 13, 2014) - FuelQuest Inc., the leading on-demand software and services company for the global downstream energy industry, today announced new survey results highlighting growing fleet business concerns over inaccurate fuel invoicing. The findings reveal nearly 40 percent of respondents suspect errors in their fuel invoices, and over 38 percent have plans to implement measures to combat invoicing errors this year. The survey reveals companies' concerns over a pervasive, long-standing industry problem. Working with many of the largest fleet companies in the U.S., FuelQuest provides a solution to reduce inaccurate invoices with invoice reconciliation software and services.
"Unaddressed, bulk fuel invoice error rates tend to hover around 25 percent, but we have seen some companies with rates as high as 55 percent. Accuracy is a challenge for both suppliers and buyers due to complex fuel and freight contracts as well as manual or sample-based reconciliation processes," said Ryan Mossman, vice president and general manager of FuelQuest Fuel Services. "With such a high number of invoice issues, companies run the risk of paying more than they owe for bulk fuel purchases. We are glad fleet-based companies are starting to recognize the financial risk invoice errors can create."
According to the survey findings:
Invoice discrepancies cost fleets millions; higher accuracy is becoming a greater focus for fleets
- Nearly 40 percent are concerned they are receiving fuel invoices with inaccuracies
- Almost 38 percent of fleets say they plan to implement an in-house or automated solution to combat this issue, and
- Over 38 percent of fleets plan on routinely checking a greater number of invoices throughout the year.
Nearly one quarter of fleets experienced an impact to their business due to inaccurate fuel invoicing
- Of the fleet owners surveyed, over 24 percent stated there was a business impact from invoicing errors including overpayments, increased operational costs, and lost trust in suppliers.
Recent scandals serve to heighten concerns
- Twenty-four percent say that they have changed the way they manage and review their fuel invoices as a result of recent scandals such as the prosecution of Pilot Flying J for fuel rebate fraud.
Complexity of fuel invoicing a factor in number of errors
- Almost all fleets surveyed (99 percent) reported invoice discrepancies up to 25 percent of the time, with some reporting discrepancies up to 50 percent of the time.
- Spot price comparison ranked as the No. 1 challenge for fleet owners (35 percent), closely followed by monitoring tax rule and rate changes (32 percent).
FuelQuest Solution: Fuel invoicing is managed optimally with a combination of standardized processes and technology automation. FuelQuest provides both as part of its Fuel Center® fuel service offering achieving auto-approval rates of over 90 percent with error thresholds as low as $1. FuelQuest Fuel Center utilizes a team of fuel management experts, best-of-breed technology with FuelQuest Fuel Management System (FMS) software, and industry-leading best practices to reconcile invoices for leading fleet-based organizations such as C.R. England, Carmeuse, Dyno Nobel, FirstGroup America, J.B. Hunt, Murphy-Brown, Pilgrim's Pride, Republic Services, and more.
About the Survey
FuelQuest conducted the 2014 online survey of over 80 fleet-based businesses across North America from Dec. 18 through Jan.12, 2014. Respondents included truckload, less than truckload, private carrier, and common carrier fleet businesses. To view highlights of the data results, visit http://www.fuelquest.com/blog/index.php/58-blog/175-trucking-companies-displaying-greater-concern-about-fuel-invoicing.
FuelQuest provides on-demand fuel management, tax automation, and compliance solutions for suppliers, distributors, buyers, and traders of petroleum products and other energy commodities. FuelQuest's solutions deliver operational and financial value to over 650 customers. These customers include leading global oil companies, international retailers, shippers and government entities. FuelQuest's fuel management solutions help customers manage the complexity, regulation and market volatility for more than 22 billion gallons of gasoline and diesel fuel annually. Its Zytax solutions ensure compliance and accuracy for tens of billions of dollars of energy-related excise taxes per year. Learn more at www.fuelquest.com.