When Western Canadian energy company Tidewater needed a fleet management partner to help them develop an effective and economical fleet program they reached out to Foss National Leasing                                           

Tidewater Midstream is a Western Canadian energy company focused on natural gas processing, liquids upgrading, storage and transportation, and the marketing of energy products. Their mission is to become the midstreamer of choice by providing creative solutions that ensure optimum flexibility for their customers and provide solutions to realize full-scale value across the entire North American energy value chain.

Their main operations are located in the Deep Basin, Edmonton, and Montney regions of Alberta & British Columbia. An efficient, well functioning fleet is crucial to managing these operations, some hundreds of kilometers apart. 

When Tidewater approached Foss National Leasing, their vehicle fleet was brand new, and they knew they needed the professional expertise of a fleet management company to help them meet their targets.                                    

Their main goals were to:                                 

  • Ensure they were tracking and monitoring fuel and maintenance costs effectively.
  • Find a partner that could manage their vehicle leases and roll out a vehicle replacement strategy.
  • Receive direction on how to set up internal processes to expand the fleet for their growing business.                                         

Strategy                                               

Foss National Leasing’s technical team set to work on strategically addressing each of Tidewater’s goals and requests. This included providing data and analytics via its fleet portal, which enabled them to efficiently track all vehicle-related expenses. Additionally, on an ongoing basis the FMC spends time interpreting the data for them, which saves them time, and ensures they’re empowered to take action based on the information.                                   

The strategic consulting Foss initially provided allowed Tidewater to build a solid foundation that enabled them to effectively scale their fleet. Within 18 months, Tidewater’s fleet grew from zero to 35 units, made up of half-ton, three-quarter-ton, and one ton trucks. The fleet is now 135 units strong. Foss continues to work with them to optimize their fleet, helping make their operations more efficient while reducing their total cost of ownership.                                       

FNL’s involvement made this exponential growth easy to integrate into Tidewater’s ecosystem                                   

SHOWCASE #1                                     

Streamlining Accounting and Reducing Administration Workload                                             

Using the Foss fleet card program, Tidewater is able to review all fuel and maintenance purchases on a single invoice. Each vehicle is assigned a card, which is used for all vehicle-related purchases.   At the end of each month, Tidewater receives an invoice from Foss with all purchases itemized and allocated to a specific vehicle or driver. The invoice is pre-coded and easy for them to review and input into their accounting software.  All Tidewater has to do is review, sign off, and prepare one cheque for their entire fleet’s activity. Because of this, there’s been no need for them to hire an in-house administration employee. This has saved them approximately $30,000-$40,000 a year, over the six years of  working together. Additionally, Tidewater now receives meaningful fuel discounts through the Foss vendor network.     

"If we had to do everything that Foss National does for us ourselves, I don’t even think we could do it without a huge amount of manpower."                                  

Supervisor, TWL & TWP Divisions at Tidewater Midstream 

SHOWCASE #2                                                 

Reducing Unauthorized Fuel Purchases                                                

Getting approval for all fuel and maintenance purchases was extremely important for Tidewater. Since they’re a publicly-traded company, their purchase processes are under a high level of scrutiny.

FNL set up a system which:                                           

  • Applies dollar limits to every driver’s fuel and maintenance card.
  • Monitors all purchases and instantly reviews them before they’re approved.
                                                                                       

Additionally, the system identifies anomaly transactions (such as if a driver purchases more fuel than the vehicle’s tank can hold) and notifies Tidewater with a fuel exception report within minutes of the transaction.                                                         

SHOWCASE #3                                                 

Comprehensive, Easy-to-Use Reporting Interface                                                         

It’s critical that Tidewater can access key reporting information when they need it. The Foss system is easy to use, provides an overview of their entire fleet, including:                                             

  • What lease payments are being made.
  • What fuel is being charged on a vehicle.
  • What vehicle maintenance is being done.                     

This allows them to track costs accurately and efficiently, so they know exactly how much money they’re spending on their fleet.           

Foss also assists Tidewater with their Taxable Benefit program, tracking drivers’ personal and business mileage on a monthly basis.                                                                                                                     

"The advice gained from Foss has been invaluable and has allowed us to grow our business without the usual chaos and expensive mistakes. I would recommend their services to anyone but especially a company just starting out."                                                  

Supervisor, TWL & TWP Divisions at Tidewater Midstream

 

 

© 2022 First XV. All rights reserved.