Browne Dougherty posted an update 7 months, 4 weeks ago
The ROI Of Fleet Management: Fuel Savings
Part one of a series investigating the ROI of GPS tracking and fleet management solutions.
When it comes on the commercial trucking industry, the largest operating expense is gasoline efficiency is not. According to The Trucker’s Report, a commercial truck could easily consume more than $70,000 of diesel fuel every year. Multiply that by amount of of trucks in your fleet, and you’re looking at a significant hit with your bottom line.
The Climbing Cost of Fuel
According to a report released in 2018 by the American Transporation Research Institute, the average associated with operating a truck topped out at $1.69 per mile a 6% increase from numbers in 2017. Might be of the costs contributing to this included increases in driver wages, insurance and maintenance, fuel remained one with the biggest line portions. This increase was likely due to a rebound in fuel prices after nearly a decade of low-cost fuel.
Additionally, the report broke down that the rising cost of fuel isn’t just one national problem, but where you operate can also impact how much put in. At $1.735 per mile, the Northeast is the pricey area to handle truck, 4.5 cents above the national average. The West ($1.616), Midwest ($1.591), Southeast ($1.553) and Southwest ($1.536) have costs less than $1.69 per mile, but because of the East region’s higher overall cost of just living and fuel prices, it’s more expensive for operate commercial trucks and therefore pushed the national average up.
Though fuel price expected to trend slightly downwards during 2019, the year-on-year increases can be alarming for people who run businesses. Compare the average U.S. retail diesel prices in July since 2016:
* July 2016: $2.38
* July 2017: $2.51
* July 2018: $3.22
* July 2019: $3.05
Since July 2016, certainly fuel for commercial vehicles has increased by over 28%.
The Challenge with Accurately Projecting Fuel Costs
Review site SoftwareAdvice.com conducted a survey of transportation industry professionals regarding the contests they face with relation to its fuel ability. More than half of the respondents (53%) said that the fuel costs exceeded their projections either somewhat or very recurrently.
Frequency of Fuel Costs Exceeding Projections
Some for this reasons for exceeding these projections included:
* Accounting errors
* Poor or inefficient route planning
* Road work or traffic
* Poor driver behaviors (idling, hard braking, speeding)
Given that fuel is actually a huge expense for commercial fleets, what can a fleet manager or fleet owner do? That is where telematics and fleet management solutions show up in.
The ROI of Fleet Management for Fuel Costs
Using a fleet management solution can lead to a regarding benefits, including improving savings on fuel spend. For example, did you know:
* A fleet management solution can increase your fuel efficiency resulting in 30% more miles per gallon (MPG).
* Using a fleet management solution to monitor driver behaviors can reduce wasted fuel consumption by 80%.
* Monitoring your fleet with a telematics solution can help to lower idle time by nearly 40%.
The numbers look good, but the various a telematics solution actually bring proven ROI benefits for fuel to the table?
8 Ways Fleet Management Cuts Fuel Costs
A fleet telematics solution can provide you better advice about your day-to-day business with accurate, detailed information. From detailed reports on your entire fleet to individual driver scorecards, you’ll get actionable data to help streamline your fuel is. For example:
1. Accurately budget fuel costs. A fleet telematics solution can help you better know the way your fleet is performing, right in order to actual costs per kilometer. Having a handle on your fuel spending can assist you in making better budgeting decisions.
2. Monitor idle time period. By monitoring your idle time, you can gain valuable insight into how much fuel you’re wasting, and when and in order to cut you can during extended periods of uncovered.
3. View driver scorecards. Quickly view and analyze the behavior of your drivers to help coach against fuel-guzzling driving practices regarding idling, speeding and rapid acceleration.
4. Optimize routing. GPS tracking and fleet management can calculate more efficient routing, reducing the number of miles gone. Less miles = less fuel used.
5. Use speed dire warnings. It’s a fact excessive speeding increases fuel consumption. By setting up an alert, you can rapidly react and instruct drivers to individuals.
6. Fuel card addition. Get a handle on if maybe you could your drivers are fueling, how expensive is being spent and a correct view with the your average cost per mile is actually.
7. Monitor vehicle health and well-being. Keeping
tracking equipment running in peak condition significant for your current ability to lower your fuel. By using a fleet management solution, you’re able to prevent inefficient vehicles by setting regular maintenance dire warnings.
8. Understand vehicle results. Getting an in-depth understanding of how Vehicle A performs against Vehicle B can permit better utilize your fleet for tasks.
According to Automotive Fleet, only 30-40% of fleets are the telematics option. With all of the proven ROI benefits, why to become more fleets not taking advantage of fleet management solutions and telematics?
Not utilizing a fleet management solution or telematics yet? Find out what your estimated ROI has been our free, online ROI calculator in the present day!