The Market Leading Fuel Management Solution Provides Optimised Strategic Sourcing, Enhanced Margin Analysis And Tighter Supply Chain Integration
FuelQuest, Inc., the leading on-demand software and services company for the downstream energy industry, announced today version 5.0 of its broadly deployed Fuel Management System (FMS). FMS has become the industry standard for bulk fuel management, and version 5.0 delivers enhanced functionalities to reduce fuel costs and inventories while enabling efficient execution of core business processes between suppliers, distributors and buyers.
“As fuel prices and volatility increase, FMS 5.0 provides fleet, retail and transportation companies the ability to minimise inventory levels, source fuel at the lowest cost and perform accurate margin analysis,” says FuelQuest Executive Vice President, Matt Tormollen. “Through increased automation of business processes that span suppliers, carriers and buyers, we are further reducing costs and driving efficiencies for our customers.”
FMS 5.0 features include unprecedented visibility into 'delivered' pricing data. By tapping automated data feeds directly from partner back offices, FMS 5.0 diminishes redundancies and the likelihood of human error, instead providing sharper insights into delivered pricing components such as freight costs, unit costs and taxes. Equipped with this deeper understanding of ever changing price composition, fuel buyers can realise greater strategic sourcing benefits that scale with their operational requirements.
With improved sourcing capabilities in place, users can create pricing options and track fuel contracts across various pricing scenarios. This flexibility, combined with a built-in capability to tap spot market prices, enables optimised strategic sourcing and decision making. By integrating high-integrity data throughout the buyer's supply chain, FMS 5.0 increases best buy and strategic sourcing efficiency – from inception to invoice.
“It is becoming more important than ever for any company that uses fuel to really analyse the entire fuel supply chain to help minimise risk given that price volatility has become increasingly violent over the past few years,” adds OPIS chief oil analyst, Tom Kloza. “So far this year, spot prices at the Gulf Coast have moved by an average of 5.3 cents per gallon from day-to-day. That is more than a penny increase in price fluctuations from what was witnessed in 2007.”
Greater Inventory Management Precision and Accurate Margin Analysis
The FMS 5.0 Net Landed Cost Report lays the foundation for inventory cost and margin analysis and encompasses product cost, taxes, freight costs and tank fees. Based on data housed within FMS, this automated knowledge capture function tracks inventory costs across multiple loads and monitors deliveries at their earliest updated point in time. Without labour-intensive processes, data centralisation increases accuracy of retail fuel pricing, maximising margins and improving forecasting abilities.
Additionally, FMS 5.0 allows disbursements and meter readings tracked by fuel grades, providing greater precision in environmental compliance and inventory control. The system feeds this data into the customer's back office applications, which automates data calculations and reduces the need for manual overrides.
Tighter Carrier Integration
FMS 5.0 addresses forecasting, scheduling and replenishment challenges by effectively integrating carriers into the customer's supply chain. Using automated electronic load requests and bills of lading, the inventory management module centralises freight data and eliminates errors before release to vendors via auto-distribution. This efficient bi-directional electronic communication with carrier networks speeds response times, resulting in fewer run-outs and increased carrier accountability. As a result, fuel buyers are immediately made aware of load request acceptance or rejection, providing greater operational flexibility while reducing the likelihood of miscommunication or missed deliveries.
FuelQuest provides on-demand, web-based supply chain management and tax automation technologies for suppliers, distributors, buyers, and traders of petroleum products and other energy commodities. FuelQuest solutions deliver operational and financial value to over 750 customers. These customers include leading global oil companies, international retailers, shippers and government entities. FuelQuest solutions help customers manage the complexity, regulation, and market volatility of billions of litres of unleaded and diesel fuel annually. ZyTax solutions process tens of billions of dollars of motor fuels excise taxes per year. FuelQuest has offices in Houston, Texas and Manchester, England. To find out more visit www.fuelquest.com