In the world of fleet management, efficiency drives profits, and the overarching goal of all fleets — big and small, government or private — is managing fleet operations at the lowest possible cost. That’s why, according to closed-loop fleet fuel card management provider Multi-Service, 71 percent of fleets in the trucking industry prefer to buy fuel from vendors who offer a closed-loop fleet fuel card program.
Closed-loop fuel card programs, which differ from open-loop programs that utilize the payment networks of Visa, for example, offer fueling and retail services at specific locations, and can limit purchasing behavior. However, for fleet managers, the biggest advantage of a closed-loop fuel card program is the level of business insight these programs provide, which can help grow fleet efficiency by limiting operating costs, leading to increased profits.
For example, closed-loop fleet fuel cards not only provide fleet managers with detailed level III transaction data, but can also provide custom data collection, requiring drivers to enter time-of-fueling information, such as vehicle identification number and mileage readings to track metrics like fuel costs by vehicle, as well as fuel costs by state and fuel type. Closed-loop fleet fuel card programs can also streamline International Fuel Tax Agreement (IFTA) reporting, and provide detailed management reports not necessarily offered by open-loop programs.