Get With the System

Q: I work for a small for-hire fleet (19 trucks, operating in the Maritimes and New England). We need a system to monitor fuel tax and prorate licensing. Any suggestions?

I’m going to presume that you’re looking for software. Remember, a “system” can be anything from a pencil and a coil scribbler to a sophisticated computer program requiring specialized talent to keep things operating. And no matter what you choose or how much money you spend, that system will only be effective if you have the discipline to keep entries current and not feed it bad data.

When I visit fleets I typically see one of three types of data-management systems:

o Spreadsheets. Anyone with a working knowledge of Excel or Lotus 1-2-3 can create a spreadsheet for a small truck fleet. You’ll need a more advanced knowledge of spreadsheet programming if you want to develop special reports like chargebacks to drivers. Unfortunately, a simple spreadsheet is difficult to integrate into other systems like accounting or dispatch.

o Off-the-shelf software. It can be useful for small to large trucking companies, but where do you find this stuff? The Internet is a great source. Get into an Internet web browser like Yahoo or Metacrawler, type in the search words “IFTA fuel tax reporting,” and you’ll get a list of sites where programs are available at costs that range from around $100 to many thousands of dollars. Talk to other trucking companies to see what they are using and how they like the product.

Drawbacks to off-the-shelf software might be the high cost of integration with other fleet-management or freight-management software, or a system that doesn’t do everything that you want it to do. Custom-made systems can get very costly in a short amount of time. w Pencil, paper, and calculator. Hey, they work. A simple ledger can suit the requirements and the price range of a one- or two-truck fleet, especially one that doesn’t have a lot of data to crunch.

When you’re deciding on a system, ask yourself some basic questions to help you identify your needs. For example:

o What are the initial costs? Buying an off-the-shelf tax and licence system costs less, but the programs are generic. The cost of developing customized software is hard to predict.

o What will it cost to keep a system operating? I don’t just mean hardware. Will you need to hire specialized people to maintain a system, and are there special training needs?

o What happens if you have to change the system? Governments do change the rules. Or the scope of your operation may change. What then?

o Would you integrate tax and licence with other systems, like accounting or dispatch? Are you creating a system to satisfy one function (i.e., fuel tax reporting and licensing), or do you need the same system to produce other useful reports, like reports on individual trucks or fleets to help you with fleet management requirements?

o How much should I spend on a system? Accurately monitoring the costs of operating the tax/licence function can help determine future options. Should you be doing tax and licence in-house or outsourcing to a reliable service bureau?

In cases where you feel you may be lacking in expertise, have an outside third party come in to assess your needs. Why buy an expensive “system” when really a spreadsheet-or a two-dollar scribbler- would do the job, right?