What’s one of the largest operational expenses for businesses that run fleets? Fuel. It’s a critical factor for profitability, efficiency, and sustainability, and costs can vary widely depending on factors like fleet size, vehicle type, or vehicle fuel.
Consider these general figures on fuel as a percentage of operating costs by fleet type:
Fuel is a valuable but costly resource. Wasting it drains operations and erodes profit margins. Every unnecessary gallon of fuel burned means higher costs, faster vehicle wear, lower efficiency, and a bigger carbon footprint.
Stretching every gallon requires creating a smart fuel management program for your fleet. One that consists of a mix of tools, technologies, strategies, and policies that:
Here’s a closer look at tools, technologies, and strategies we’ve seen in the field that enable better fuel management practices.
Tools and technologies are crucial to smart fuel management. They provide real-time insights for better decision-making and process automation to streamline operations. Here are key tools and technologies to consider.
Fuel monitoring systems track, analyze, and optimize fuel usage in real time. They leverage telematics, GPS tracking, IoT sensors, and AI analytics to provide accurate fuel data to make smarter fuel decisions that boost profitability. Information collected include:
Tank monitoring technology tracks aboveground fuel tank inventory 24/7. With the real-time data that monitoring provides, you can prevent run-outs, track fuel usage, detect tank leaks or theft, and ensure EPA compliance.
Route optimization software plans the most fuel-efficient routes, avoiding road closures, construction zones, traffic congestion, and unnecessary mileage. This ensures that vehicles consume the least fuel and routes are completed efficiently.
Fuel cards monitor fuel and maintenance purchases, prevent unauthorized transactions, and provide fuel discounts. Cards can be customized to your needs and give you the ability to track fuel use and maintenance charges to the asset level. Integrating fuel card data with fleet management software allows for better tracking and more precise budgeting and financial planning.
Properly inflated tires can improve gas mileage by up to 3%. Tire pressure monitoring systems help ensure optimal tire pressure, reducing fuel consumption, improving safety, and reducing wear and tear.
Excessive idling is a major fuel waster and significantly increases fuel costs. An idling vehicle can waste over 1,500 gallons of fuel a year if it idles for just 2-3 hours per day. Implementing policies to limit idling time backed by technologies such as automatic engine shutdown/startup systems to enforce these policies can dramatically reduce your fleet’s fuel consumption.
Once the tools and technologies are in place, implementing smart strategies can stretch gallons even further. Here are a few we’ve seen to be effective.
Training drivers on eco-friendly driving techniques such as smooth acceleration, maintaining steady speeds, and minimizing idling can reduce fuel consumption by 10-20%. Driver scorecards and in-cab coaching devices can also help monitor and correct fuel-wasting behaviors like harsh braking, rapid acceleration, and excessive idling. Get more tips here.
Poorly maintained vehicles consume more fuel. Keeping up with preventive maintenance can lead to significant fuel savings and vehicles that operate at peak efficiency. Key maintenance practices include engine tune-ups, oil and air filter changes, and proper tire inflation.
Excess weight and poor aerodynamics increase fuel consumption significantly. Reduce weight by 10%, and you’ll gain an approximate 7% reduction in fuel consumption. Reduce drag by 10% and improve fuel efficiency by 5-7%. Best practices to accomplish this include:
Read this blog on how to optimize weight to increase fuel efficiency.
Shifting to electric, hybrid, or alternative fuel vehicles can significantly lower fuel costs and environmental impact. The upfront investment may be higher, but the long-term savings on fuel and maintenance make alternative fuel and vehicles the best option for many fleets.
Risk management strategies minimize exposure to fuel price volatility, reducing the effect of price spikes on your operations and fuel budget. You also gain greater control over fuel costs. Common strategies include:
Smart tools, technologies, and strategies are redefining fuel management, allowing fleets to cut costs, boost efficiency, and drive sustainability. They help future-proof fleets for a leaner, greener, and more profitable operation.
Brilliant!