Fuel Management: Reduce Fleet Costs
Lower Fleet Fuel Costs
The cost of fuel is expected to climb to record breaking highs in 2012, which greatly impacts fleet managers’ bottom line. Besides payroll, fuel is generally the largest cost in the fleet industry, and managing 2012 price increases properly is absolutely essential to make or break businesses this year.
How can fleet managers handle rising fuel costs?
Valor System has gathered information from various resources to provide fleet managers with fuel saving tactics that are proven to work.
Filter through the tabs below and begin lowering your fuel costs immediately.
The first step in lowering fuel costs is having the ability to accurately monitor fuel purchases. It’s essential to be able to break down costs and fuel consumption with certainty, therefore managers can measure the effectiveness of their fuel reduction tactics.
Below are a few strategies that have successfully worked for fleet managers.
Finding The Cheapest Gas
Modern technology allows us to find the cheapest gas prices absolutely anywhere with free tools such as Gasbuddy.com (also available as a free mobile application). The easy to use web-site and application allows users to enter a zip code or address to locate all nearby gas stations and prices. Whether drivers check prices on the go from their mobile phone, or dispatchers use this tool to route drivers, finding the lowest possible gas price is very feasible.
Eliminate Unnecessary Idling Times
Idling times can quickly add up and can drain a fuel budget, so it’s critical that employees turn off vehicles when they’re parked. The Valor System’s Fleet Tracking Platforms each feature idling reports as a standard feature. On average, an hour of idling uses about a gallon of gas. Download our idling calculator for free or review the chart below to see how much idling can cost on a scale of 5-25 vehicles.
EcoDriving is the most effective strategy for fleet managers to reduce their fuel costs. Edmunds.com released a study showing that variables in driver behavior accounts for up to 37% in additional fuel consumption.
Get your driver’s on board with EcoDriving by offering incentives for the best MPG.
Encourage these gas saving behaviors:
– Drive the Speed Limit (Save 13.5% fuel by driving at 60 MPH rather than 70 MPH)
– Reasonable Acceleration (utilize fleet tracking acceleration reporting)
– Cruise Control or Coast If Possible
– Handle Intersections and Traffic Properly
– Plan Effective Routes (Integrated Live Dispatch Routing Systems)
Scheduled Maintenance Saves Fuel
Keeping track of scheduled maintenance keeps vehicles running optimally and increases average MPG while prolonging their life span. Regardless of how many vehicles you have, stay organized with a GPS Fleet Tracking System that automatically sends alerts when it’s time to service a vehicle.
Keep track of all scheduled maintenance including:
– Changing Air Filters
– Oil Changes (by miles or date)
– Rotating of Tires
– Changing Fuel Filters
– Standard Tune Up
– Tire’s Air Pressure
– Transmission Services
GPS Fleet Management
Installing a Fleet Management System allows allows users to track several metrics that can aide in conserving fuel and saving money. In fact, fleet managers reduce their costs by up to 25% across the board and simultaneously make their job easier to perform at a higher level.
Monitor fuel conserving variable such as:
– Idling Times
– Vehicle Maintenance
– Speeding Reports
– Acceleration Reports
– Route Mistakes
– Unapproved Vehicle Usage