Whether you are using shared tanks across your organization or you better match fuel expenses with revenue, Diversified Energy Supply’s Consigned Fuel program captures individual fueling transactions and invoices you on a usage basis. Properly allocate expenses while leveraging your investments in shared fuel tanks, or better manage cash outflows with cash inflows from service revenues. Our service saves you money and provides better efficiency for your usage rate and operations than competitors.
Maximize the Use of Fueling Infrastructure Investments
If you have multiple entities such as a subsidiary, cost center, or department that use the same fuel tanks, then Diversified’s Consigned Fuel program can allocate fuel purchases to their appropriate destination based upon recorded fuel usage. Diversified’s invoices will be specific to the entity assigned to either the driver or vehicle and will include only their fuel usage. This allows you to expand the use of your fueling facilities to all potential participants without the fear of one cost center bearing the expense burden of another cost center.
For example, if you have a distribution center in Denver that takes shipments to your facility in Salt Lake City, you can allow drivers to fuel at either facility. Wherever the driver’s fuel, their fueling costs will be assigned to their domicile distribution center. This eliminates the need for relatively expensive retail fueling simply to keep costs separated.
More importantly, our process maximizes the use of your fueling infrastructure investments. This is a huge leap forward for any company that wishes to cut costs in regards to its fuel usage and distribution centers. There’s no need to overload your pocketbook because you can’t properly invoice and charge your fueling transactions on a consistent and transparent basis.
Capture Individual Fueling Transactions and Invoice the Appropriate Entity Accordingly
Accurate cost allocations ensure that you know where your money is going. Diversified’s Consigned Fuel program records fueling transactions and invoices based upon usage. Each invoice includes the list of transactions that are part of the invoiced totals. Our transaction reports include the invoice on which the individual transaction was applied.
This cross-referencing allows your accounting team to efficiently prove the accuracy of the invoiced quantities. Guesswork and obfuscated charges are the banes of every accounting department, but Diversified’s service eliminates both, allowing your company to operate with full confidence and peace of mind.
One criticism of other consigned offerings in the industry is the lack of transparency in how the consigned invoices are derived. Recognizing this concern, Diversified’s industry-leading web portal, myFuel, includes a detailed Tank Ledger. Here, our customers can download a full listing that shows the inventory readings, recorded transactions, and fueling transactions from the tanks. The ledger also shows the price of the deliveries into inventory and the price of transactions out of inventory.
This allows you to enjoy the benefits of a consigned fueling program while easily validating the prices you pay. Our aim is to provide transparency and a foundation of trust and support for your business. Every detail of every transaction is thus reported and available for you to comb over at the click of a mouse.
More Effectively Manage Cash Outflows for Fuel with Cash Inflows from Service Revenues
Diversified knows some customers, such as bus services providers, are paid by their customers on a mileage basis. Since Diversified’s Consigned Fuel program invoices fuel based upon consumption rather than the time of delivery, our customers can better align their fuel expenses with their revenue basis.
Many services within the industry are obsessed with nickel and diming their way to profitability, but our service works within your business model and takes into account your operational management and sources of revenue generation. In short, we understand this business, and want to work with and for you rather than against you to help you maximize profits and cut out unnecessary hassles and headaches.