A new purchasing alliance is aiming to help small and mid-sized trucking fleets reduce one of their biggest operating expenses by giving them access to fuel pricing typically available only to much larger carriers.
The Fuel Purchasing Alliance, a joint venture between Logistics and Route Group GPO (LRG GPO) and SourceIntersect, offers free membership and negotiates fuel pricing on behalf of commercial fleets. Rather than issuing its own fuel card or selling fuel, the alliance aggregates purchasing volume and works through a nationwide fuel card partner to secure discounted pricing.
The launch comes as fleets continue to grapple with volatile diesel prices. The companies say smaller carriers are often at a disadvantage because they lack the purchasing power to negotiate the wholesale or rack-based pricing available to larger fleets.
“My dad ran a small hardware store, and I watched him work twice as hard every day to compete with big-box retailers who could buy at prices he’d never get on his own,” said Steve Cross, co-founder of LRG GPO. “Small and mid-sized fleets are in that same fight today with fuel. They already have the grit and the operational discipline to compete with much larger organizations — what they haven’t had is the buying power. The Fuel Purchasing Alliance is one more arrow in their quiver to help them do that.”
The alliance includes separate programs for diesel and gasoline users. The Diesel Purchasing Alliance is designed for over-the-road, regional, construction, and hotshot fleets, while the Gasoline Purchasing Alliance targets last-mile delivery and service fleets.
Brian Townsend, co-founder of LRG GPO and a former executive with Corpay/Comdata, said the goal is to provide smaller fleets with the same procurement expertise and market intelligence used by Fortune 500 operators.
In addition to fuel purchasing, LRG GPO said members can access more than 20 other negotiated purchasing categories through its broader procurement network. Membership in the Fuel Purchasing Alliance is free. More info can be found at www.LRGGPO.com and www.FuelPurchasingAlliance.com.
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