Better Fuel Management Can Save Your Fleet Thousands Per Vehicle

truck fleet fuel management pumping gasFuel costs are one of a fleet manager’s largest expenses. Applying the best fleet fuel practices such as idling reduction efficient routing are highly effective approaches to reducing fuel costs. Using a web-based fleet GPS management system, purchasing fuel-efficient vehicles, and relocating a key fueling station are also ways to reduce fuel consumption and employee hours.

Fleet Managers should apply the following basic principles of good fuel management because these are proven to be the most effective approach trimming fuel costs and consumption. Once these “best of” fleet management practices are implemented and consistently executed, innovative solutions can further promote control of one of fleet’s most expensive operational costs. The Best Fleet Fuel Management Principles include:

  • Right-sizing fleet vehicles.
  • Idling reduction.
  • Fuel-efficient vehicles.
  • Consistent scheduled maintenance.
  • Eco-Smart driver education.
  • Tracking fuel expenses.
  • Efficient route planning.
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How to Save $1.3 Million with Better Fleet Management – Part Four

fleet-management-lower-costs-increased-efficiencyFleet Cost-Reduction Strategies: Direct Expenses

Reduce fuel costs. Fleet operators should focus on miles per gallon. Fuel costs are a large direct operating expense, especially for fleets with high mileage each month. Many fleet managers approach fuel cost savings by looking for purchase discounts, which aren’t really feasible unless the fleet can fuel in volume at a single site. Fleet fuel cards can be used to direct driver purchases away from premium fuel, which offers some benefits, but the most significant fuel savings come from selecting more fuel-efficient vehicles. Moving away from heavy vehicles and larger engines can provide 30% to 50% fuel economy increases. Using a fleet tracking system to identify poor driving behavior that burns excessive fuel, such as speeding and unnecessary idling can reduce fleet fuel costs by approximately up to 12% per year. Also, a fleet fuel card will help move 8% of fuel purchases away from premium fuel.

Secure the best fleet financing. Proper vehicle financing should absolutely be considered. Leasing vs. ownership of fleet vehicles is a common funding decision for fleet managers, and the economic analysis often ends in a tie. The decision to lease or own frequently hinges simply on balance-sheet considerations.

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