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How Driver Behavior Impacts Fleet Fuel Cost
How Fleets Are Addressing Driver Behavior to Manage Fuel Cost
It is no surprise that fuel cost and consumption is on the mind of fleet managers and owners nation-wide. As the second largest variable expense in the trucking industry, fleet managers are always looking for the better ways and the best prices where fuel management is concerned. Fortunately, over the last couple of years, the cost of fuel has been at its lowest and the industry has benefitted along with the rest of us. However, as prices continue to fluctuate, fleet managers recognize that the cost of fuel is not something they can control in managing their fuel spend, so they are looking to areas that they can control.
10 Ways to Reduce Fleet Fuel Spend
1. Smaller vehicle: Not all fleets could implement this strategy, but many should consider the obvious. Are larger vehicles necessary across the entire fleet? In many cases, fleets could benefit from smaller, higher mpg vehicles as an asset in managing their fuel spend.
2. Minimum MPG requirement: Currently many fleets base their selector decisions on EPA ratings but not all do, and by requiring a minimum MPG, fleets can save and abundance over the long term. Four-cylinder engines can reduce the fuel spend as well, and many of these models come equipped with twin powered engines that provide power and a higher mpg.
3. Hybrids: Many fleets are going green by populating their fleets with hybrids, especially in urban applications.
4. Efficient routing plans: Not only will a routing plan make trips more fuel efficient, it will increase time efficiencies as well. Plan and consolidate trips to bypass congestion and avoid stop-and-go traffic. Routing software and telematics are common tools that fleets are implementing to increase efficiencies by saving time and fuel.
5. Optimize fleet utilization: Closely examine vehicle mileage records and eliminate marginal, low-mileage vehicles that do not fully contribute to the fleet application.
6. Minimize the load: Overloading can contribute to additional fuel consumption and pose safety risks as well as unnecessary wear and tear on the vehicle.
7. Modify vehicle specifications: Modifying truck and tractor specs, tire specs and drive train specs can increase fuel efficiencies considerably. Aerodynamic truck and tractor configuration can eliminate drag, low rolling resistance tires can improve mpg, and optimizing the drivetrain will allow the truck to run at a slower RPM so less fuel is burned.
8. Electronic fuel monitoring: Install in-cab electronics so the driver can monitor the fuel economy and performance in real-time.
9. Add a fuel card program: A fuel management program can be one of the most effective ways to manage fuel usage and cost. Fleet managers can control the purchase. Limiting the type of fuel purchase is an easy way to control costs. EFS offers a fleet fuel card solution based on the specific needs of the fleet, regardless of the size.
10. Telematics Solutions: The integration of online support platforms and mobile apps offer data in real-time. This data is key to managing fleet fuel cost but also potential fraud and theft.
The more obvious ways to save on fleet fuel costs might be inherent in the cost of fuel, the vehicle or the planning – but in many cases, fuel economy can be better controlled by the driver. Fleet managers are beginning to look at driver behavior as the biggest source for fleet fuel efficiencies and they are building programs to manage it accordingly.
“I would say maybe a third of [the company’s fuel cost reduction] has been due to the cost of fuel actually coming down,” says Steve Doss, Control Manger for Hammer Construction, Norman, Oklahoma. “The other two thirds I would attribute to just training drivers, and changing driver behavior, driver mentality.”
Like many fleet managers across the country, Doss found that the biggest contributor to fuel expense was fuel theft. Whether it was intentional or not, fuel purchase for personal vehicles has become rampant in the industry, and the majority percentage of fuel theft occurs through misuse of company fuel cards. The three contributing factors for the inconsistencies were as follows:
- Cards were not capturing the true fuel spend, making it impossible to see where the fuel was going and into which vehicle.
- Cards were assigned to people not vehicles. Assigning the card to a VIN number, streamlined the process and eliminated the potential for theft.
- Lack of tracking. Now fleet managers like Doss have installed WEX telematics to track driving habits which has the potential to significantly reduce the rate of fuel theft. Trimming a few short miles off of a route has the capacity to save thousands over time.
With any business in the world today, technology is helping to solve our biggest problems. While fuel theft is only one factor in managing fuel efficiencies, technology can address almost anything that has an impact on fleet fuel cost from tracking mileage, to time behind the wheel and even fleet idle time. According to Tom Kanewske, Vice President of Business Development at Derive Systems, “On average, service fleets idle somewhere between three to four hours a day. The average fleet vehicle, burns about half a gallon of fuel every hour.”
“Reducing the idling time of vehicles saves fuel while also reducing engine wear and associated maintenance costs, which will also help save costs in the future,” — Bernie Kavanagh, Senior Vice President and General Manager of Large Fleet at WEX Inc.
Factors like reducing idle time, developing more effective routes, preventative vehicle maintenance and energy awareness all apply to driver behavior. Communicating fuel savings tips and offering a robust fuel card can be one of the most beneficial tools for helping to modify behavior. EFS fuel cards offer benefits not only to the company but to the driver as well. The Fleet One EDGE card can make the driver’s job easier and save money at the same time.
- Largest nationwide fuel discount network at over 3,600 sites – average savings of 12 cents per gallon
- No fuel transaction fees in network
- Universal acceptance at over 8,000 truck stops nationwide
- Nationwide discounts on major tire brands – save an average of $40 per tire
- Thousands of additional savings on wireless, equipment, maintenance, parts, breakdown, hotels, and more
- Credit to fund your operations and financing solutions to help you grow
While changing driver behavior is not as easy as tracking fuel purchase, it can be done. Clear communication is key in shifting driver behavior. One of the most important aspects of any job is creating clear expectations and that has never more true than in the trucking industry. If drivers are educated on what is expected of them and why, they are more likely to adhere to the guidelines. Honest and clear communications can build relationships with employees and create the trust that can be more valuable than anything other asset of a company.
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