tfm the journal of total fuel management

Do construction
companies
need a fuel
solution?
page 3

Ask the Fuel Expert:

Measuring the Fuel ROI of
construction projects page 3

Survey of Fuel Trends page 2

Finding capital
in this economy page 6

Better fuel security page 7

www.4Refuel.com vol.9 no.2 the journal of total fuel management 1

Vol.9 No.2
INSIDE: inside this issue START: from the editor ADVICE: ask the fuel expert

If you use fuel, we need to talk

2 Start: If you use fuel,
we need to talk
2 Analysis: Of war,
Washington and
weather
3 Advice: Ask the Fuel
Expert
4 Feature: Measuring
the Fuel ROI of
construction projects
5 Insight: Closed Loop
Technology
6 Expertise: Show
Me the Money
7 Technology:
Found: a low cost
clean air solution
7 Opinion: Improving
bulk fuel storage and
If you need fuel to function, this journal is for you. Our goal is to provide ad-
vice, analysis and insight into using fuel better. How? First, our point of view
is that fuel is not a sunk operating cost. We view fuel as an investment that can
be measured and managed for a return.
For example, do you have a way to measure how much a litre or a gallon of fuel
earns your business? Can you calculate how much product it delivers or how
much earth it moves? How does a business even begin to measure that? This
Journal will help you answer these questions and direct you to the solutions that Measuring the Fuel ROI
of construction projects
make it possible. We’ll also help you manage fuel smarter and find the tools you
need to maximize efficiency and minimize costs associated with using fuel.
At 4Refuel, our Total Fuel Management systems make it easier to minimize
fuel consumption and reduce toxic emissions, making your company more
efficient while enhancing your productivity and profitability.
Costs always seem to be on the rise and fuel has become the largest operating With TFM you are a part of a Clean Air Solution and in
If you have any questions or comments, please send them to me. expense, next to labour. For some, fuel is considered as just an expense, while
fact it can pay you cash back.
Bill Bishop, Editor/Vice President Marketing & Communications other companies can calculate a real return on their fuel investment. They
bbishop@4Refuel.com have taken control using Total Fuel Management (TFM). Adopting a new clean air strategy starts with assessing your needs. Traveling
to and from card-locks or a central refuelling station wastes fuel and causes
TFM gives you the tools to control fuel costs while helping you measure and
emissions. Wheel to wheel refuelling will cut both eliminating on average 20
manage profitability from one project to the next. To start, you must adopt a
minutes in labour costs per fill.
ANALYSIS: both sides of the border new attitude and go deeper into how you look at fuel. Then you look at the
total cost of refuelling, not just the cost of fuel. The cost of fuel is the price you Are you managing your fleet effectively? 4Refuel’s Closed Loop Technology is
pay at the pump. The total cost of refuelling includes that plus the cost of la- available to measure your key operating information. (See the article on page 5)

Of war, Washington and weather

security
bour, the time spent refuelling and the waste and theft that occur in the process. One more point. You can eliminate wasted fuel and pollutants quickly without
Fuel spills and expensive clean ups contribute to your cost of refuelling too. any cost by simply educating your drivers and equipment operators. Once they

CLEAN AIR: could actually
save you money
Does biodiesel work with
construction?
Biodiesel is a mix of traditional
diesel fuel with renewable veg-
etable oils and rendered fats.
It does not require any engine
modification and by using a
B20 blend, (20% biodiesel) you
can expect approximately a
15% reduction in greenhouse
gas emissions. 4Refuel can an-
swer all of your questions re-
garding the use of biodiesel.
– a survey of fuel prices
Bob van der Valk, 4Refuel Fuel Pricing Analyst
When considering oil prices there
are more moving parts than a car
wash, but here are a few things we
have been keeping our eye on.
Canadian and US diesel prices have
been at similar levels, (excluding
taxes, which can add up to 20% in
Canada) but parity may not con-
tinue with consolidation within the
Canadian  petroleum industry.  Re-
cent  news of   Calgary’s  Suncor
Energy  merging with Petro Cana-
da  will effect overall competition. 
The move  gives Suncor all of Petro
Canada’s worldwide operations
including lucrative oil sands explo-
ration in Fort McMurray, Alberta,
refining facilities in Fort Saskatch-
ewan, Alberta as well as Petro Can-
ada’s collection of over 1,500 retail
outlets – among the largest and most
profitable networks in Canada.
Commodities  have typically been
used as a hedge against inflation and
crude oil has been the investment of
choice by players in that market. To
monitor any kind of trend in the pe-
troleum business, we’ll keep a sharp
eye on supply and demand levels.
Oil refiners who were producing
diesel in record numbers last year
have reversed course in line with
shrinking demand for  road diesel.
In fact, fuel volume  at truck stops
has dropped by a national average
of  nearly 20 percent. Some of that
loss was offset by increased use of
heating oil as a result of colder than
average winter weather conditions.
If the prediction that we are enter-
ing a 20 year cycle of colder winters
is correct, we can expect to see a
pattern of higher consumption.
Oil futures and the Middle East
squeeze prices…
Oil futures should be watched very
closely as changes to supply levels in
the Middle East come to bear. The
anticipation of tightening supply
has kept prices moving up and this
trend will continue if confirmation
comes that supply is dropping.
In addition, decisions on govern-
ment intervention and regulation
in the world economy will play out
amid other geo-political events.
Much of the world is waiting to
see how decisions being made in
Washington will shape the present
economic uncertainty. Most of the
usual economic levers have already
been pulled by the Bank of Cana-
da and, like other countries; we’re
watching the US to see how quickly
the engine of the world economy
can be re-started.
The Energy Information Admin-
istration (EIA) predicted gasoline
prices for the US to be at $2.21 this
summer. I expect prices to average
around $2.50 per gallon.
With regards to diesel, this year’s
prices seem to move based on the
crude market rather than pres-
sure from speculators. Demand is
down significantly due to the world
economy, so expect diesel prices to
remain below gas prices in Canada
and the U.S.
If you have any questions about
this article or other topics related to
trends in fuel prices, please contact
Bob directly at 406.853.4251 or
BVan@4Refuel.com
You can get all of Bob’s fuel updates
here: AskTheFuelExpert.com
The future is now…TFM has changed the process of
refuelling and how construction companies measure
know the effect they are having on the environment, changes can be made.
And your new TFM system pays you cash back too, because every time you
cut wasted fuel it saves you money.
return on investment.
Jack Lee is President and ceo of 4Refuel - got a question?
4Refuel’s TFM system locates the fuel you need and delivers it to you. This
You can Ask the Fuel Expert directly at askthefuelexpert@4Refuel.com
saves fuel and labour costs. It also stops theft. Then you start to measure fuel
consumption by tagging each piece of equipment with a digital chip for posi-
tive identification so you know exactly where each drop of fuel goes as well as Ask the Fuel Expert
engine operating data. Each month “Ask the Fuel Expert” appears in newspapers and
magazines across Canada and the United States. Each article is
You can set operating thresholds for each machine and quickly see where the
intended to help you understand how to be better fuel managers.
most fuel is being used, or wasted. Once you have that you can manage your
Visit us online at www.askthefuelexpert.com
people, and your fuel better. It is not impossible to cut fuel expenses by 15%
or more based on the information you now available.
You can’t control the price of fuel, but you can control
each project’s fuel consumption.
SUBSCRIPTIONS: don’t miss out
Here are SIX Ways to Cut Construction Fuel Costs:
1. Become a Fuel Manager: Fuel is expensive, so plan to manage its use
and control consumption. 4Refuel can show you how. Get the latest fuel information – real-time
2. Train and educate your people: Your people control fuel consumption each
time they fire up their engines, and proper training can improve fuel efficiency. You can get important fuel updates whenever you want – however you want.
3. Decrease Idling: Be aware of the time engines idle and you can cut your 4Refuel gives you quarterly, monthly and weekly updates online and in print.
fuel costs by as much as 50%. Initiate a campaign to reduce idling time and Ask the Fuel Expert – get CEO Jack Lee’s fuel advice column via email
reward participants. or online at AskTheFuelExpert.com or in any of 58 publications across
4. Upgrade your Fleet: Whenever possible, invest in modern, more fuel- North America manage your subscription at AskTheFuelExpert.com
efficient equipment. Modern diesel engines are far more fuel-efficient and
The Pipeline – get the latest analysis of fuel supply and pricing trends from
perform better.
our fuel pricing expert, Bob Van der Valk – twice monthly! manage your
5.Plan a regular maintenance schedule: Well maintained equipment
subscription at 4Refuel.com – click “Join Newsletter” to change options
performs better, improves fuel efficiency, reduces toxic emissions and, in the
long run, will cost less to maintain. Journal of Total Fuel Management – receive this publication
6.Track your operating data: You can measure and manage your fleet direct via email manage your subscription at 4Refuel.com – click “Join
better when you have the right information. Tracking fuel and efficiency is Newsletter” to change options
critical to cutting fuel costs.

2 vol.9 no.2 the journal of total fuel management www.4Refuel.com www.4Refuel.com vol.9 no.2 the journal of total fuel management 3
feature: fuel management
Does construction
need a fuel solution?
Your calendar is marked. Your people and equipment are ready to
begin that new project for the summer and hopefully the weather
will cooperate. The last thing you need to worry about is fuel.
In the past, you could rely on the major oil companies, however times have
changed. The fuel you need may not always be available because of high
seasonal demand and refinery shut-downs due to accidents. But there is a
new advantage called Total Fuel Management. TFM eliminates the risk
and worry associated with refuelling.
TFM is a complete solution from fuel purchasing and delivery to cost
containment and consumption analysis. It helps construction companies
manage fuel like other investments and drive a higher return. The system
works by combining professional onsite service with powerful online reporting
tools to minimize the cost of obtaining fuel and maximize productivity and
profit from using it.
The system works by combining professional onsite service with powerful
online reporting tools to minimize the cost of obtaining fuel and maximize
productivity and profit from using it. It gives you simple effective control of
your fuel to eliminate environmental risks, fuel theft and unnecessary waste.
Most powerful of all, TFM is an adaptable, reliable, multi-phase solution that
was built for construction business. Since it consists of scalable technology,
adaptable systems and professional service the scope of the solution changes
in sync with each stage of a construction project.
Each project is different but so is each phase of a project. The middle stages
are the busiest with the most equipment and operations the most spread
out and, of course, the most fuel intensive. Consider the project value of
just one percentage point during this busy phase and you can see how not
tracking fuel adds thousands of dollars to overall costs.
During this frantic phase, fuel needs are immediate, supply is essential and
every minute of the day is worth thousands of dollars. 4Refuel’s highly
flexible fuel management solutions scale to match your operations with
an array of mobile and tank-based applications. Fuel security is most
important at this time too, when the worksite is at its most populous.
Positive ID systems provide tight control over supply and ensure accurate
data capture.
4 vol.9 no.2 the journal of total fuel management
Final stages – as a project winds down the fuel needs decline and equipment
is reduced to a smaller detail and fewer staff – depending on proximity of
equipment and accessibility, a smaller scale application of mobile and tank
solutions can be employed -
Start Up: Needs are limited. Fuel is required for a few pieces of equipment
along with consumption and operating data and reporting. Mobile fuelling
services the small amount of equipment and 24 hour service ensures all
equipment stays busy while the project picks up momentum.
High Activity: Construction is in full swing and the project’s fuel needs rise
dramatically. Supply is critical and empty is not an option so our Certified
Refuelling Professionals ensure top grade service. Concentrated areas of
the project might have bulk fuel tanks installed with remote monitoring to
ensure security and supply whenever it’s needed. Mobile fuelling can be
used for after-hours service and to reach far flung equipment, cranes and
stationary units.
Wind Down: You are close to being finished. Fuel needs decline and your
on-site equipment is limited, but TFM still tracks every drop of fuel you use.
The fuel management solution scales back to mobile solutions to optimize
your productivity and minimize labour.
Here is a quick overview of the many features and services which can
be included in a multi-phase Total Fuel Management strategy:
• wheel to wheel delivery by Certified Refuelling Professionals (CRPs)
• automated data collection at every point of fuelling
• online access to detailed fuelling records
• web-based tools for cost containment and analysis
• automated odometer readings and operating hours
• GPS shots of every site fuelling for enhanced resource management
• professional handling, convenient service
• expert analysis of fuel needs and planning of fuel logistics strategies
www.4Refuel.com
Closed Loop Technology:
Take total control of your fuel dollars
4Refuel delivers Total Fuel Management with Closed Loop Technology
developed exclusively by 4Refuel. James Lee, Vice President Systems
Development & Integration points out, “Our technology solutions are
flexible, scalable and easily integrated into existing platforms. It is the most
sophisticated system available in the world today.”
Lee explains, “Fuel Management Online (FMO) can record all refuelling
information and deliver it to your desktop. An RFID chip about the size of
a dollar coin is attached to each piece of equipment. A fuel record including
location, date, time and volume is recorded and then paired with the vehicle
identification number.”
“Our software reports everything from when to order fuel to how effectively
fuel is being utilized in fleet vehicles. We provide information measuring
engine idling, speeding, revving and GHG emissions. This allows our
clients to manage fuel efficiency, asset productivity and their environmental
footprint. In addition, the threat of fuel theft is eliminated. Fuel can now be
managed like other assets to show a return on your investment.”
“Fuel consumption data helps project managers save money, control costs
and make better decisions”
www.4Refuel.com
in yard onsite
onsite fuel direct onsite
storage tanks refueling
onboard
client fuel
offsite
fuel data uploaded
trucks from filling
stations
insight: closed loop technology
All data is delivered via email and available online from the Fuel Management
Online (FMO) or on-line portals. Our technology makes it easy for you
to measure fuel consumption by piece of equipment so you can compare
performance through each phase of your projects.
Here is where 4Refuel’s technology fits in:
Onsite: we deliver fuel directly – wheel –to-wheel – to your equipment
when it’s not in use and measure each drop of fuel pumped
Onsite tanks: we make bulk drops to yard tanks and storage tanks – we
can equip your tanks with security, remote monitoring, fuel island dispensing
and positive ID so every transaction can be tracked online
Off-site: our online tracking integrates with card-lock systems enabling full
control and fuel management no matter where you get your fuel
Onboard: operating a remote site? we can lease you a fuel truck or equip
one of yours to capture and upload fuel data from your site
Fuel Management Online: is where you can easily view ever docket
and review price history, consumption records and even greenhouse gas
emissions at no charge
Get more information at 4Refuel.com or by calling us toll-free 1 888 4 Refuel
vol.9 no.2 the journal of total fuel management 5
expertise: show me the money TECHNOLOGY: greener & leaner

Found: a low cost clean air solution

4Refuel’s TFM systems have built in
green benefits that pay big dividends to
our environment. “Our first goal is to
help our clients cut their fuel consump-
tion, and when we do their carbon
footprint is automatically reduced,”
say 4Refuel President Jack Lee.
According to Transport Canada’s
statistics each litre of diesel fuel
burned creates 2.7 kilograms in toxic
exhaust. “We deliver fuel wheel to
wheel,” adds Lee. “We eliminate
time on the road and the fuel it takes
to get to their refuelling station.”
Among 4Refuel’s strategic business partnerships is our relationship with the With over 6,000 clients it is easy to
calculate the reduction in GHGs.
Royal Bank of Canada. Recognizing the great advice RBC gives us, we asked “This year alone, our clients have
combined to save the environment
RBC Vice President Dave Pohl, to share some insight with our readers. 17 million kilograms in pollution.”
plies Wal-Mart Canada in Ontario
with 135 trucks on the road and an-
other 16 vehicles in yard to serve the
massive retail conglomerate. Hugh
Sanders, Roff Logistics Vice President
tells us Wal-Mart has a green agenda.
“Each year they look at ways to im-
prove their operations and decrease
their carbon footprint. In fact one of
our managers sits on a green commit-
tee with other Wal-Mart suppliers to
work on these ideas. Every year we
have to come up with new ways to do
our part for the environment.”
This year Roff Logistics has cut its
toxic emissions by 228,461 kilograms
of GHGs. Mr. Sanders is quick to
add, “It is astonishing to see those
numbers are that high. Our com-
times we have installed GPS units in
our trucks and we are now measuring
some operating data, and have looked
at the average time our vehicles spend
idling. We regularly meet with our
drivers. Since inception this plan has
worked. We have reduced idling time
in Brampton by 15% and in Corn-
wall by 9%…those numbers were
almost double that when we started.
It all cuts fuel consumption.”
He adds, “4Refuel has helped us
grow with our business. When there
was a refinery shut down, you found
the fuel we needed so there was no
interruption to our service. We didn’t
have to drive around, searching.
That saved time and fuel.”
Mr. Sanders looks at what his compa-
cutting emissions, just imagine what
the result would be with a fleet of
400 or 500 trucks. More companies
should take advantage of 4Refuel’s
services.”
Other clients using 4Refuel’s TFM
systems have made an impact too.
Miller Transport who serves McDon-
ald’s Restaurants in Ontario has cut
emissions by 599,373 kilograms. ERB
Transport with operations in Quebec
has cut their toxic emissions by over
553,000 kilograms and Coca-Cola
has cut 242,892 kilograms of pollut-
ants in the Ontario region.
When you look at transport compa-
nies that operate hundreds of trucks
the GHG savings, thanks to TFM, is
astounding. Tim Horton’s (Ontario)

Prepare now for the Economic Recovery

Roff Logistics of Brampton Ontario pany’s green policies have been evolv- ny has done to cut pollution, “When cut an astounding 866,355 kg in
is one of those companies. Roff sup- ing over the years. To shorten drive you think about what we have done GHG emissions in just one year!

OPINION: effective fuel management

Nothing lasts forever, but when He adds, “When you review these with your banker you can get good feed-
we are going through a sluggish
economy it seems like the end will
never come. But fear not, there is
back on the health of your business. We look at your equity base as well as
your working capital. We consider your debt load and your ability to service
debt. And it’s all right there in your Financial Statement.”
Improving bulk fuel
economic recovery around the bend
and according to Dave Pohl, Royal
Bank’s Vice President/Commercial
Where can you find money in this economy? It could be
closer than you think…
storage and security
Managing and maintaining your own on site fuel tanks can be a risky business.
Financial Services there are a num- Are you sitting on extra cash? Let’s find out… Without the proper controls fuel spills, environmental clean-ups and fuel theft
ber of things you can do right now • First look at yourself. Where can you be more efficient and cut costs? For add up to squash your bottom line. Unless you are using Certified Refuelling
to speed your company’s recovery. example carrying unnecessary inventory is a liability, rather than a profit Professionals and digital measurement data capture, profits will slip away.
Dave Pohl, Vice President, First, are your financial Statements centre. Do you need to carry so much stock? Waste is created when times
Royal Bank of Canada are good and your sales are growing. Look at your company and ask, “Do I Not only does our Bulk Delivery Service ensure you will get the fuel you need
in order and up to date? “Your com-
really need to buy that?” at competitive prices, but we guarantee minimal risk to the environment and
pany’s Financial Statement is a road
your employees with our best practices policies. 4Refuel’s data capture at
map for your business,” Mr. Pohl says, “It shows you and your banker where • Look for hidden value. For example one client had a storage yard they point of refuelling streamlines your accounting with instant accurate data for
you have been and where you are going. It is important to do these monthly bought for $100,000 that is now worth ten times that. Does it make sense simple reconciliation using Fuel Management Online (FMO). For multi-loca-
and quarterly so you know where you are at any given time. And with the to sell the property and use the cash for your business, and instead rent a tion users data can be delivered to one office. Equipment performance and
software programs that are available off the shelf (like Quick Books) it is easy yard? Another option is consider a sale/lease back on your equipment. fuel consumption data gives you the ability to mange your people and equip-
to input your numbers and keep track.” Rather than owning that equipment, you may want to sell it and lease it ment maximizing productivity, controlling fuel consumption and emissions
When business is good companies may get back from the bank. That can give you instant cash. too. Our TFM systems are scalable fuel logistics solutions that are adaptable
fat. Mr. Pohl points out, “Now its time to • Re-Consider your ROI. Return on invest- to multi-phased projects.
get fiscally fit and learn where to improve “Look at your most recent Financial ment should be measured for all your as- 4Refuel’s Bulk Fuel Delivery Services include:
operations and cut costs. Look at your sets. Are you making an acceptable return?
most recent Financial Statement. A lot of
Statement. A lot of companies • bulk fuel delivery to tanks
Every expense should be measured. For ex-
companies consider their annual Financial consider their annual Financial ample rather than spending $400,000 on a • cartage (moving fuel purchased by client from third party)
Statements as something they have to do new piece of equipment, would you be bet- • remote tank monitoring (keep-full service)
for corporate reporting or for their bank- Statements as something they have to ter off investing $40,000 to fix it? • fuel islands (dispensing with auto fuel data capture and upload to FMO)
er. Really, financial statements are your do for corporate reporting or for their In conclusion Mr. Pohl adds, “Running a • theft controls (positive ID to lock out misappropriation)
scorecard. They give a real view as to how
healthy your business is. They help with banker. Really, financial statements are business is hard work and it is not easy to • mobile fuel cubes and industrial grade site tanks
make changes, but you gotta do it.”
strategic and business planning. With them
your scorecard. They give a real view Find out more at your local RBC branch or
4Refuel is a national Canadian company with operations in regions of the USA.
you will see significant changes happening, Find a solution quickly at 4Refuel.com/where or call 1 888 4Refuel
before it’s too late.” as to how healthy your business is. ” online at RBC.com

6 vol.9 no.2 the journal of total fuel management www.4Refuel.com www.4Refuel.com vol.9 no.2 the journal of total fuel management 7
 Who’s managing your fuel costs?

It’s time to stop viewing fuel as a cost

and start seeing it as an investment.

With fuel fast out-pacing labour among top

operating costs, businesses today can’t afford
to be without a fuel management system.

4Refuel not only reduces your true cost of fuel, we also

help you lower consumption, increase efficiency and
maximize productivity across all your equipment.
Find out how to maximize your fuel investment.

Canada 888 4Refuel | USA 877 US Fuels | International 1 604 513 0386 | Online 4Refuel.com