Fleets are many vehicles that work together to uphold productivity in various forms. The cars, trucks, and other vehicles are core assets in a fleet business that hold significant value for its success. However, managing costs in a fleet business is a big challenge. The primary concern for fleet owners is fuel costs, which account for a more significant portion of their expenses. According to statistics from the Truckers Report, the average yearly cost of operating a commercial truck is approximately $180,000, with fuel expenses comprising 39% of this total. Consequently, fleet owners constantly seek strategies to help lower these expenses.
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Are you also on the hunt to discover some tips and tricks that could help you lower your fleet fuel costs?
Don’t worry. We have got you covered.
We understand that fuel costs represent a significant portion of fleet operating expenses, and minimizing these costs can significantly enhance profitability for fleet owners. So, considering this pain point, we have excellent strategies to help you reduce fleet fuel costs and boost your cash flow.
Understanding Fleet Fuel Costs
Fuel is one of the largest expenses in managing a fleet in transport and logistics. Several factors contribute to the fuel costs in a fleet operation.
One major factor that impacts the fuel consumption in vehicles is their design and aerodynamic shape. Trucks with sleek shapes experience less air resistance, which reduces fuel consumption. Another crucial factor is the efficiency of the truck’s engine and its regular maintenance. You must maintain the engine with regular oil changes, filter replacements, and servicing.
Driver behavior also plays a significant role in fuel consumption. Efficient route planning and traffic management are mandatory to reduce fleet fuel costs.
Strategies for Managing Fuel Costs
We acknowledge that fuel costs are a genuine hurdle that bothers you when evaluating your company’s profit. The bottom line is simple: lower fuel costs mean higher profit margins. Here are some proven strategies that can help you with fleet management fuel costs:
● Include Fuel-Efficient Vehicles to Your Fleet
Fuel-efficient vehicles are essential for boosting business success and cutting fuel expenses in fleet operations. Now, car modification companies also propose enhancements for trucks and other vehicles to improve aerodynamics. They install active aerodynamic devices like TruckWings, which use telematics to reduce drag and air friction on roads. Another effective strategy is replacing old, inefficient diesel engine vehicles with modern fuel-efficient options. These newer vehicles feature hybrid powertrains, sleek designs, and fine-tuned engines that offer improved fuel efficiency.
● Improve Maintenance Practices
Improperly maintained vehicles can lead to unnecessary fuel waste and increased costs for your company. Poorly inflated tires, loose gas caps, engine malfunctions, and faulty oxygen sensors can be some of the reasons. Proper maintenance practices, such as optimal tire pressure, are crucial in improving gas mileage. For example, vehicles with properly inflated tires can see an average increase in fuel economy of 0.6%, while some cars have shown up to a 3% improvement in fuel efficiency. You should perform regular engine tune-ups and timely repairs of engine malfunctions. Ensure all vehicle components are in good working condition, including filters and emissions systems, to cut fuel expenses.
● Implement an Effective Fuel Management System
Implementing an effective fuel management system allows you to track fuel purchases and analyze fuel usage patterns. Fleet fuel management often involves using fuel cards, which are crucial for tracking fuel usage and expenditures due to their detailed transaction reporting.
Modern fuel management systems also use telematics and GPS technology. These tools help you gather precise fuel data, track vehicle locations, and calculate mileage. By using GPS, you can minimize unnecessary driving and improve overall efficiency. You can then provide drivers with feedback based on this information to ensure better driving habits.
● Refine Driver Training and Behavior
Driver training and behavior modeling is the best fuel management practice. You should hire trained drivers who use fuel-efficient techniques, such as maintaining a consistent speed and minimizing idle time. Educate drivers to avoid aggressive driving habits like rapid acceleration, hard braking, and excessive idling. You can use fleet management software to refine driver training and behavior. For example, telematics software allows you to send reminders to your drivers to avoid aggressive driving behaviors like hard braking and acceleration. You can also track their performance using this software and reward them with increased compensation or incentives for their performance.
● Optimize Route Planning
Avoiding congested routes, minimizing idle time in traffic, and using navigation systems that provide up-to-date traffic information can work wonders in reducing fuel costs. Fleet managers should identify the most efficient, uninterrupted routes and guide drivers accordingly for convenience. Some specialized fleet management software systems are powered by GPS technology. These systems optimize routes by considering traffic patterns and real-time road conditions. They generate optimal routes that ensure drivers take the most efficient path to their destination.
● Modernize Fuel Purchasing Strategies
Since fleet companies are always looking for insight into how to reduce fleet fuel costs, we suggest modernizing their fuel purchasing strategies. Fuel prices fluctuate frequently, so fleet managers should prefer fuel stations offering reasonable prices and purchasing in bulk. Buying in bulk leads to discounts from fuel suppliers. Another strategy is fuel hedging, which helps companies tackle rising fuel costs by fixing prices over a specific period through contractual agreements.
The goal is to secure fuel at the best possible prices. Moreover, consider partnering with a fuel delivery agency that delivers economical diesel fuel directly to your location.
Monitoring and Analyzing Fuel Consumption
By tracking fuel usage closely, fleet managers can identify trends and areas for improvement that directly impact their businesses. Here’s how monitoring and analyzing fuel consumption benefits fleet companies in the transportation and construction industries, helping with construction fleet management to manage fuel costs:
● Fuel Consumption Tracking
Fleet managers can benefit from monitoring fuel consumption to understand operational costs and efficiency. Methods range from simple manual tracking using receipts and mileage logs to advanced technologies like OBD devices and GPS tracking, which provide real-time data on engine performance and vehicle location. These tools help businesses identify and address fuel-wasting behaviors such as frequent engine idling, rough braking, and uneven accelerations. They also monitor activities like fuel theft by tracking fuel levels and promptly detecting any irregularities or discrepancies in fuel usage.
● Setting Benchmarks and KPIs
Benchmarking in fleet management compares how vehicles or systems perform and find ways to improve fuel efficiency. KPIs show how well the fleet is doing and highlight areas needing improvement. For example, miles per gallon (MPG) is a KPI that helps determine fuel efficiency. A higher MPG means better fuel economy and can indicate which vehicles might need maintenance or adjustments to perform better. Another important KPI is average maintenance downtime, which measures how long vehicles are out of service for repairs. Keeping tabs on this metric helps managers find ways to boost efficiency and cut costs.
Simplify Your Fleet Fuel Management with Fuel Logic
Effectively managing fleet fuel costs includes optimizing routes, using fuel-efficient vehicles, tracking fuel usage with KPIs, strategically purchasing fuel, and educating drivers on efficient practices. These methods not only cut expenses but also improve fleet efficiency and sustainability. These strategies demonstrate how to manage fleet fuel costs while improving overall operational effectiveness.
For effortless fuel management and delivery services, contact Fuel Logic. We specialize in mobile fuel delivery, bulk fuel delivery, DEF fluid delivery, and diesel fuel services across various locations in the US.
Fuel Logic is your reliable partner, delivering quality fuel right to your doorstep whenever you need it. Reach out to us now to place your fuel order. Our dedicated customer support team is available 24/7 to assist with any inquiries related to fuel delivery.
FAQs
What is the best fuel card to have?
The best fuel card offers the most benefits, helps you save fuel, tracks spending, and manages your mobile assets efficiently. Each fuel card has pros and cons, so finding one that suits your business needs is important. Some top options include the WEX Fleet FlexCard, ExxonMobil FleetPro Card, Shell Fleet Navigator Card, ARCO Business Solutions Mastercard, and the list goes on.
What are the disadvantages of fuel cards?
While fuel cards offer great benefits for fleet businesses, they also carry some disadvantages. One of them is that they often come with various fees, such as transaction fees and account setup charges. Another downside is their limited acceptance at fuel stations. Not every station accepts fuel cards, and the stations that do may only accept certain cards. You may have to travel further to find a participating station.
What is the difference between a fuel card and a fleet card?
There is little difference between a fuel card and a fleet card. A fleet card is sometimes also referred to as a fuel card. Both are payment cards that can be used for fuel at gas stations. However, to be more specific, a fuel card is mainly used to pay for fuel, provide discounts, and track fuel expenses. On the other hand, a fleet card has a broader purpose. In addition to fuel, it can be used for vehicle maintenance, repairs, and other expenses related to managing a fleet.
What are the benefits of a fuel card?
Fuel cards offer a convenient way to pay for fuel. They provide a secure and flexible payment method for company drivers at fuel stations. Fuel cards also enhance control over expenses and offer excellent tools to prevent misuse. Businesses can track frauds automatically and customize spending limits based on total amounts, geographic usage areas, and times of day.
What do you need to qualify for a gas card?
To qualify for a gas card, you can apply at gas stations or online, but first, check the specific requirements, which vary by card. Generally, fuel card companies require applicants to be at least 18 years old, employed, have a bank account and savings account, and a registered telephone number in their name. You can apply for the card through the issuer’s website or by calling their customer service.
What is the easiest fuel card to get approved for?
The easiest fuel card to get approved for is the one that requires no credit check. While many traditional fuel cards require a credit check to assess your business’s financial reliability, there are exceptions to this rule. Fuel cards like prepaid and business debit cards do not require a credit check. Instead, you only need to undergo an ID verification process to be approved. Examples include the Shell Refillable Fuel Card and WEX fuel card.
