Fuel Theft by Company's Own Truck Drivers

Where did the gas go? (courtesy of imageenvision.com)

When I was with a Third-Party Logistics Provider or 3PL company as their Operations Manager, we had a fleet of about 39 20-tonner trucks delivering canned goods to Manila's supermarkets.  Since we work only on somewhat slim margins, Management watches keenly on its Operating Cost components and one of the most monitored would be Fuel.

We enrolled our trucks in our supplier's Fleet Card program wherein drivers were issued individual Fuel Cards which have to be presented to supplier's gas stations.  The Gasboy would then swipe the Fuel Card to capture data like date fuel was purchased, truck license plate number, driver name, amount of fuel, kilometer reading (optional) and fuel cost.

The idea is that a Monthly report will be submitted to us and we can see the total distance travelled, total fuel purchased and a kilometer per liter reading.  That last one is supposed to flag any unusual high fuel consumption to show of an engine problem or warn of possible fuel pilferage.

All fuel purchases were covered by computerized sales invoices issued by the gas station.  We had the proof when one of the gas invoices presented for reimbursement showed that payment was in the form of a Citibank credit card when in fact we provided petty cash to our drivers for all fuel purchases and these drivers do not have credit cards, let alone use it for a company purchase.

We brought the invoice in question to the attention of the gas station owner who called in the gas attendant whose name appears on the invoice.  The gas pump attendant confessed and this is how it happened:

1.  Our driver and the gas attendant where in cahoots.

Did you actually get the fuel that you paid for?(courtesy of sugarslam.com)

2.  Very few motorists bother to get their copy of the sales invoice.  Upon remitting payment, the cashier would give to the gas pump attendant the sales invoice and the change money.  After giving the change back to the motorist, the gas pump attendant would pocket the sales invoice if the motorist does not ask for it.

3.  When the driver accomplice comes, the gas attendant would look for an invoice of say P1,500 and give it to the driver.  No actual fuel was loaded.

4.  The driver would present the invoice as proof of purchase to our company's petty cash custodian.

5.  The driver and the gas boy divide the P1500 of fictitious purchase.

Of course, the driver would alternate between actual fuel purchase and the above.  The truck does not run out of fuel as our trucks have double-tanks and companies do not always check fuel consumption per truck versus actual distances travelled.

Logistics in its simplest form is planning and implementing the process to move the goods from Point A to Point B at the right time but just as important to the Logistics Manager is knowing HOW THE GOODS GOT THERE!!!


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