Fleet cost management to help reduce fuel consumption

Fleet cost management to help reduce fuel consumption

Reducing a company’s overall spending in areas that directly impact its bottom line can be a challenging task.

Fleet cost management helps businesses cut fleet costs not only to help face  daily challenges, but also to help improve  profitability and competitiveness.

Challenges such as constantly changing fuel prices, inflation, supply chain problems or higher fleet costs can make  cost reduction a challenge—but one they can tackle with the help of an advanced fleet management system.

According to the American Transportation Research Institute, on average, fuel represents 24.4% of a fleet’s total operating cost per mile¹–far and away the largest single cost. Given the impact that fuel has on the bottom line, fleets certainly want to curb its cost as much as possible.

Boosting  fleet cost management culture and embracing driver education can help businesses show their drivers  how to increase fuel savings, no matter where they are headed. Here are some steps fleet managers can take to educate their drivers.

Fleet cost management strategy: 8 tricks to help save fuel

A fleet cost management culture includes educating drivers on how good driving habits  can help reduce fuel use. The resulting cost savings can, in turn, support their job security. This kind of culture can also help drivers be more conscious of the safety benefits of driving more responsibly.

Here are a few tips for drivers that you can use as part of your fleet cost management culture to save fuel:

1. Monitor traffic ahead
   By keeping an eye on upcoming traffic conditions, drivers can anticipate having to slow down. It is more efficient to keep a truck moving than to start from a complete stop. Drivers should also check for any hazards ahead, both for safety reasons and to improve efficiency.
   
   
2. Obey posted speed limits
   Driving at high speeds can have several negative effects, including additional stress on the engine,  increased risk of accidents and speeding fines,and decreased  fuel economy.

According to the U.S. Department of Energy (DOE), “Speeding increases fuel consumption and decreases fuel economy as a result of tire rolling resistance and air resistance. While vehicles reach optimal fuel economy at different speeds, gas mileage usually decreases rapidly at speeds above 50 miles per hour (mph).”² In addition, “obeying the speed limit, accelerating and braking gently and gradually, and reading the road ahead can improve the fuel economy of your vehicle by 15%-30% at highway speeds and 10%-40% in stop-and-go traffic.”²

1. Avoid excessive idling
   According to the DOE, “idling a heavy-duty truck consumes about 0.8 gallons of fuel per hour. Even when diesel costs as little as $2.50 a gallon, fuel for one 10-hour rest period will cost $20. Typically, a long-haul truck idles about 1,800 hours per year, using about 1,500 gallons of diesel.”³ Use of the air conditioner while idling can drain fuel economy even more. It’s clear the costs can quickly add up, so be sure to pause and check if you really need your engine running. If not, turn it off.
   
   
2. Avoid overfilling
   If a fuel tank is filled to the brim, it can easily overflow when the fuel is heated, either by the sun or from fuel returned by the engine. This is not only dangerous to other road users but also wasteful.
   
   
3. Maintain correct tire pressure
   Make sure the tires are kept at the correct pressure to help improve fuel economy and the life span of the tires. This can also help reduce the chance of an accident due to a tire blowout.
   
   
4. Set up an easy departure
   If stopping for rest, park the truck so as to avoid a lot of maneuvering with a cold engine, as this can use a lot of fuel. In addition, park in the shade to minimize use of air conditioning systems during the summer.
   
   
5. Use cruise control
   Keeping your fleet vehicle at a constant speed is an easy way to add fuel efficiency. When possible, use cruise control for highway driving.
   
   
6. Stay up to date with preventative maintenance
   It’s important to make sure air filters and spark plugs are replaced at their recommended intervals. Preventative maintenance can also help to get ahead of possible issues with fuel injection and oxygen sensors.
   
   

Leverage technology to save fuel when driving as part of fleet cost management 

In addition to implementing a driver education plan, you can use fleet management technology to create a more fuel-efficient fleet focused on fleet cost management.

• Monitor fuel usage: See the approximate amount of fuel used by each vehicle in gallons or dollars. Also view idle time per vehicle and fleetwide idle time averages. This allows you to take actions to help limit fuel usage, such as scheduling engine tune-ups or coaching drivers to reduce their speed on the road. Reports also can help reduce instances of fraud by reconciling fuel card expenditures with actual fuel consumption.
  
  
• Select better routes: Plan more efficient routes by accessing maps that show the location and final destination of every fleet vehicle. View driver and vehicle information through actionable icons while monitoring traffic, weather and more. See area topography, building footprints and vehicle clusters to support greater fleet efficiencies and reduce miles driven.
  
  
• Stay on top of driver behavior: Aggressive driving like hard braking and rapid acceleration can waste fuel. Use fleet management technology to identify when and where hard braking or acceleration events occur, receive automatic alerts via text or email, and create customizable driver behavior reports.

As part of a fleetwide management system, managers can use these tips to create a culture of fleet cost management, reduce overall fuel usage and improve the company’s bottom line.

To learn more about how fleet management technology can help reduce fuel spending and aid fleet cost management overall, download our Five Ways to Reduce Fuel Costs eBook to discover some of the best ways to reduce fuel costs.

Resources:

1. https://truckingresearch.org/2024/06/new-atri-research-industry-costs-increased-more-than-6-percent-during-freight-recession/
   
   
2. https://afdc.energy.gov/conserve/behavior_techniques.html
   
3. https://afdc.energy.gov/files/u/publication/hdv_idling_2015.pdf