FuelQuest Debuts FMS Version 5.0

• Facebook
• Twitter
• LinkedIn

HOUSTON -- FuelQuest Inc., an on-demand software and services company for the global downstream energy industry, has announced version 5.0 of its Fuel Management System (FMS). FMS is used for bulk fuel management, and version 5.0 delivers enhanced functionalities to reduce fuel costs and inventories while enabling 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 minimize inventory levels, source fuel at the lowest cost and perform accurate [image-nocss] margin analysis," said Matt Tormollen, executive vice president of Houston-based FuelQuest. "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 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 insights into delivered pricing components such as freight costs, unit costs and taxes. Equipped with this understanding of ever-changing price composition, fuel buyers can realize greater strategic sourcing benefits that scale with their operational requirements, the company said.

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 optimized 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, said the company—from inception to invoice.

"It is becoming more important than ever for any company that uses fuel to really analyze the entire fuel supply chain to help minimize risk given that price volatility has become increasingly violent over the past few years," said Tom Kloza, chief oil analyst of Wall, N.J.-based OPIS. "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."

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 labor-intensive processes, data centralization increases accuracy of retail fuel pricing, maximizing margins and improving forecasting abilities, FuelQuest said.

Also, 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 backoffice applications, which automates data calculations and reduces the need for manual overrides.

FMS 5.0 addresses forecasting, scheduling and replenishment challenges by integrating carriers into the customer's supply chain. Using automated electronic load requests and bills of lading, the inventory management module centralizes freight data and eliminates errors before release to vendors via auto-distribution, said the company. This bi-directional electronic communication with carrier networks speeds response times, resulting in fewer runouts 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.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.