Six Signs That An Organization Should Sign A Contract With A Fuel Supplier

Entering a contract with a fuel supplier can feel like a major commitment. Many organizations will benefit from establishing a long-term arrangement for fuel transport, though. If you're trying to figure out whether a supply contract would be good for your operations, examining these six factors will help you decide.

Consistently High Consumption

Some businesses have consistently high consumption levels that call for a supply deal. Particularly if they have sufficient storage capacity, a supply arrangement allows them to keep fresh fuel on hand at all times. Fleets can benefit from fuel contracts even if they're not large. With enough vehicle miles driven, the benefits of your own fuel supply accrue quickly.

Emergency Availability

Non-fleet operations also benefit from fuel deals. Most hospitals have backup generators to handle emergencies. Maintaining a fuel supply ensures emergency preparedness. Rather than worrying about finding fuel during a crisis, you can use your current supply along with your contract to ensure availability.

Uncommon Fuel Types

Many organizations are moving to less common fuel types for efficiency or environmental reasons. For example, natural gas fleets often record fewer breakdowns. Other options include hydrogen and biofuel. Even a diesel fleet can benefit from a contract, especially in periods of high prices and competition for supplies. Consistent deliveries can go a long way toward stabilizing your operations.

Quality Concerns

Pulling vehicles up at random fueling stations runs the risk of fuel problems. Only one location has to have skunky fuel for a fleet to suffer the consequences. Working with a fuel supplier ensures quality. Your supplier will test all deliveries before shipment to ensure you'll get the right fuel and grade for your fleet's needs.

Expansive Operations

If your business operates over a large area, you might want to set up fueling stations at several sites. This allows an expansive operation to always have access to fuel. Especially if you're drivers do many runs between a handful of points, a dependable supply on your property can save time and costs.

Non-fleet operations also can benefit from economies of scale. If you have buildings in several locations, a single contract may allow you to negotiate lower fuel costs.

Compliance

Many fleets need to comply with local, state, and federal regulations. Working with a tightly controlled fuel supply reduces the risk that bad fuel will lead to failed emissions tests. If there is a problem, you will also have an easy time tracing and rectifying it with your supplier.  

For more info, contact a local fuel supplier.