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3 Myths About Implementing Fuel Recovery in Europe
September 26, 2024
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Implementing an effective transport energy management program can be challenging, especially with the myriad misconceptions floating around. Here, we debunk three pervasive myths that often deter logistics directors from adopting efficient energy management systems in Europe.
Myth 1: Transport contractors will shift their freight and energy buckets
The Reality:
Transport contractors remain eager to compete for your business. The belief that contractors will resist changes in how freight and energy prices are managed is outdated. In fact, we have found that contractors are willing to adopt more transparent and efficient pricing models like Fuel Recovery.
Key Insight:
We support bid negotiations with real-time freight and energy data, which helps create a fairer and more competitive market. Energy prices fluctuate daily, and shifting from monthly or quarterly adjustments to weekly inputs ensures a more precise calculation of costs. This dynamic approach enables both shippers and transport contractors to adapt swiftly to market changes, fostering a more equitable and efficient business operation.
Myth 2: Transport contractors will push back against decoupling energy prices
The Reality:
Decoupling energy from the all-in transport charge increases transparency, ensuring transport contractors receive accurate compensation for the fuel consumed. This separation provides clear visibility into energy prices and freight charges, offering insight into energy consumption. Such transparency helps establish a scope 1 and 3 transportation emissions baseline and supports initiatives for emissions reduction, particularly as the European Union's Emissions Trading System is set to be implemented for heavy-duty vehicles as early as 2027.
Key Insight:
By delivering a market-based energy price, we enable operational efficiency for both contractors and shippers. This transparency fosters stronger partnerships by allowing shippers to concentrate on service and enhancing the relationship.
Myth 3: My data will not be protected
The Reality:
Concerns about data security are valid, especially when dealing with sensitive transactional information. However, Breakthrough ensures that all data is securely stored and transmitted. Our encrypted data lake, hosted on Google Cloud Platform (GCP), and next-generation firewall technology provide robust protection against unauthorized access.
Key Insight:
Breakthrough has operated for over 20 years with a 99% client retention rate, demonstrating our commitment to data security and client trust. Our advanced security measures ensure that all data transmissions entering the Breakthrough network are thoroughly inspected, safeguarding your information.
Unleash the power of transparent transport energy management
By addressing these myths head-on, it becomes clear that implementing Fuel Recovery in Europe is not only feasible but also beneficial for logistics directors looking to enhance their operational efficiency. Transparency, fairness, and security are at the heart of Breakthrough’s approach, ensuring that both shippers and transport contractors can thrive in a competitive market.
Ready to enhance your transport energy management strategy? Learn more and get started with Breakthrough today.
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