How Does IDSC ExpertFuel Work?
Step 1
IDSC ExpertFuel determines your trip origin and destination from integration with your dispatch system. It computes the shortest or most practical, truck-safe route line, taking into account distance, time and even toll costs, using the routing engine from your provider-of-choice, ALK PC*Miler or Rand McNally.
Step II
With the defined route line, the truck's starting fuel level (provided by the driver), your negotiated network discounts and daily fuel pricing nationwide, along with a comprehensive set of your driver and company preferences, are considered in building a unique and optimized fuel purchase plan for that truck on that trip - detailing how much to buy and where to buy it for the driver. Calculation takes fractions of a second. When the truck is dispatched, the easy-to-follow fuel purchase plan (with or without route details) is communicated to the driver in the cab via standard mobile comm messaging.
Step III
Measure your savings with the detailed driver compliance and savings reports generated by IDSC ExpertFuel, which imports your purchasing records from fuel card vendors automatically to audit compliance. Your actual, realized savings and your lost savings from drivers that did not follow their fuel plans are clearly identified to assist with driver coaching.
A Fuel Management Glossary:
Rack Average = Average wholesale price at a given fuel rack (bulk fuel supply source) across multiple bulk fuel suppliers, sometimes referred to as "contract average".
Rack Price = Price paid by the fuel retailer or truckstop chain at that rack.
Note: Larger chains typically purchase from the lowest cost suppliers at the rack, making their wholesale cost (rack price) less than the rack or contract average.
Estimated Cost = Rack Average + State and Federal Taxes + Fuel Transport Cost (from rack to retail store location)
Note: OPIS (Freight Cost is "actual cost" for most major fuel chains, except two estimated by OPIS (Oil Price Information Service, the world's most widely accepted fuel price benchmark for supply contracts and competitive positioning.)
Retail or Pump Price = Price shown at the retail or truckstop pump
Margin (spread) = Retail Price - Estimated Cost, or the retail profit margin for fuel sold at that truckstop
Common negotiated fuel discount structures supported by IDSC ExpertFuel calculations:
1. "Retail Minus" = Pump price minus a fixed number of cents per gallon
2. Cost Plus (or Cost Minus) = OPIS Cost offset by a fixed number of cents per gallon
3. "Better of" = The immediate selection of the better deal for the buyer of option 1 or 2, above.
4. "Formula Cost" = User-defined custom pricing structure, such as a negotiated specific rack price or price less freight transport costs
Your Effective Fueling Cost = as defined by IDSC ExpertFuel, is calculated with option 1, 2, 3,or 4, according to your situation, minus the state fuel tax (IFTA) amount collected at the pump.
Note: IFTA, the International Fuel Tax Agreement, facilitates the allocation of fuel taxes collected at the time of purchase to the state in which actual miles are traveled by that commercial vehicle. Regardless of where you buy the fuel, IFTA reporting required from motor carriers assures that you pay the respective state fuel tax rate for mileage that your trucks actually drive in each state.
