6 Key Considerations for Procuring Reliable Fuel Delivery

Fuel is the lifeblood of any business with a fleet of vehicles or equipment. And ensuring a steady and reliable fuel supply is vital for keeping operations running smoothly.

For procurement personnel responsible for securing fuel delivery services, carefully evaluating providers and their services is crucial before entering into a contract. Doing the research yields the greatest results.

Businesses need a fuel provider that’s not just a vendor, but a valuable and trusted partner who can help them achieve results like increased efficiency, cost reductions, and a higher ROI. Fuel delivery services and capabilities vary by provider. With so many to choose from, it can be challenging to select “the one.”

To help with the vetting process, we crafted a guide on the key aspects procurement personnel should consider when sourcing fuel delivery services.

1. Supplier Reliability and Reputation

Looking for providers with a proven track record of timely deliveries, especially during high demand or weather-related events, is key to selecting a fuel provider. Delays or non-deliveries can disrupt operations and lead to:

• Downtime
• Increased costs
• Customer dissatisfaction
• Loss of reputation

Procurement personnel should conduct thorough background checks and ask a provider’s customers about their reliability to ensure they have a strong history of dependable 24/7 services. Considerations include:

• Does the provider have an extensive supply infrastructure?
• Do they have a proven track record of providing emergency fueling services?
• Do they have fueling options like mobile, bulk, and retail fuel card programs with nationwide acceptance?
• Does the retail card program offer purchase controls and reporting capabilities with transaction data by date, card number, driver PIN, location, and line-item purchase details?
• Do they offer customized fuel scheduling options based on consumption and favorable rate optimization?
• Can they scale deliveries up or down with your changing business requirements?
• How far in advance do you need to place orders?

2. Fuel Quality and Compliance

Fuel quality directly impacts the performance of vehicles and equipment. Poor-quality fuel can cause equipment malfunctions, increase maintenance costs, and shorten engine lifespan.

Procurement personnel should ensure that a provider’s fuel meets industry standards and regulatory requirements, including sulfur content, octane rating, and additives that promote cleaner combustion.

Considerations include:

• Is the fuel certified by relevant authorities — for example, tested using ASTM standards?
• Does the provider offer fuel testing and quality assurance?
• Do they have measures in place to avoid contamination during transport and storage?
• Are they EPA-compliant?

3. Pricing Structure and Transparency

Fuel prices can be highly volatile. They are influenced by geopolitical events, global supply and demand, and changes in regulatory policies. Procurement personnel must negotiate pricing structures that provide flexibility and cost control.

Transparent pricing that offers a detailed breakdown of costs — including taxes, delivery fees, and fuel surcharges — can help you avoid unexpected cost surprises. Considerations include:

• Does the provider offer fixed pricing or floating rates tied to market indices?
• Do they offer bulk purchase discounts or long-term contracts?
• How transparent is the provider about potential price changes?

4. Environmental Considerations

Sustainability has become a key factor in procurement. Most organizations are now incorporating green energy initiatives, such as biofuels or partnering with providers who have environmentally friendly practices.

Procurement personnel should evaluate the environmental impact of the fuel delivery process, including emissions from fuel transportation and the potential for spillage or contamination. Considerations include:

• Does the provider offer alternative fuel options, such as biodiesel, CNG, ethanol, or propane?
• What environmental policies do they have in place regarding fuel transport and delivery?
• Do they adhere to industry best practices for minimizing carbon footprint?
• Do they have extensive knowledge of the transitioning process to alternative fuels, including tax incentives, vehicle compatibility, infrastructure, and vehicle replacement?

Read our white paper on the advantages of adopting green fuels here.

5. Contractual Terms and Risk Management

Fuel delivery contracts should be structured to protect you from risks such as:

• Supply chain disruptions
• Price spikes
• Service agreement breaches

Procurement personnel should negotiate contracts that clearly define the terms of service, including penalties for late deliveries, dispute resolution mechanisms, and performance guarantees. Additionally, it’s important to consider insurance coverage in case of an accident during delivery or fuel contamination. Considerations include:

• Are there penalty clauses for delayed deliveries or substandard fuel quality?
• Is there a risk management plan in place to handle supply disruptions?
• What are the terms for contract renewal or termination?

6. Technology and Digital Integration

Using technology enhances the efficiency of fuel deliveries significantly. Procurement personnel should look for providers who offer technology integrations, such as:

• Online ordering systems
• Electronic billing
• Fuel usage and monitoring
• Tank monitoring
• Real-time delivery tracking

These technologies can streamline fuel management, improve forecasting, and ensure accurate and simplified billing. Considerations include:

• Does the provider have a customer portal for fuel orders and deliveries?
• Can they integrate with your existing inventory management or fleet management systems?
• Do they offer analytics or reporting tools to optimize fuel consumption?

Still need help finding a fuel provider?
Stay on track by downloading our Fuel Provider Procurement Checklist.