WEX Inc. will begin managing the fleet fuel card program of Valero Energy Corp. under a new partnership, the Portland, Maine-based payment provider has announced.
Although 2013 is shaping up to be comparable to 2012, some commercial fleets are increasing vehicle orders due to improved business or accelerating replacement schedules to take advantage of the strong used-vehicle market.
Every fleet manager is feeling the pressure to reduce costs. The best place to have maximum impact is to reduce overall fleet size and/or modify vehicle composition. A fleet's total cost is directly proportional to the total number of vehicles in operation, which drives all fixed and operating costs, such as fuel, replacement tire expenses, depreciation, accident repair costs, etc. If you can reduce overall fleet size, all other cost categories will decrease correspondingly.
Corporations continue to be uncertain about the strength of the economic recovery. As a result, companies remain cautious about their fleet ordering volumes. Many are right-sizing vehicles and lengthening replacement cycles.
Since extending its replacement cycle in 2004, Valero saved more than $200,000 per year for a total of $654,000 through 2007.
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