How many different jobs do we all do in a day?
How many different jobs do we all do in a day? If you're like most managers, you wear a lot of hats. You probably manage people, resources, equipment, timelines, budgets and more. Among businesses in fleet or construction, most have general managers, human resource managers, equipment managers and fleet or operations managers; but almost none has a Fuel Manager. Perhaps not surprising, but consider that fuel is now the highest operating expense in these industries - higher than equipment and even labour.
Without effective fuel management your company is wasting thousands of dollars each month. Fuel is just like any other expense. It can be controlled only if it is measured, along with a number of other critical operating practices. But you need access to all that information.
The good news is that technology exists so just about anyone can become a fuel manager. Good fuel management includes route planning, measuring fuel consumption and managing equipment operating practices.
First you can add a GPS unit to all of your fleet vehicles. For a modest expense you can put billions of dollars worth of technology to work for you to help plan your fleet's daily travel. GPS - or Global Positioning System - employs 27 earth-orbiting satellites, developed by the
Now that you can minimize your travel time with GPS, what about more important data directly related to fuel consumption? There is new technology available that can show you exactly where all that fuel goes. Once you have that data you are on your way to better fuel management.
Some onsite fuel providers use wireless systems to record fuel data - the amount and type of fuel pumped, the vehicle that received it and the time and date. This data is then made available online where you can see your entire fleet or each unit's fuel consumption by date or fuel type. One system, Fuel Management Online, actually lets users' track docket data, price history and years of fuel data at no charge. With this data you can compare fuel consumption from unit to unit and make some decisions.
Next is technology that can assist you to gather and deliver key information about your fleet's fuel consumption and operating data. The latest Advanced Mobile Asset Management Technology can record all re-fuelling information and then deliver it, via email, to your desktop. A wireless data capture chip about the size of a silver dollar is attached to each piece of equipment for positive identification. Fuel and engine performance information is recorded giving you the data you need for effective fuel management. Even more valuable is software that can help you analyze key operating information such as excessive idling, speeding, aggressive acceleration and improper equipment maintenance. Inefficient driving habits waste the most fuel, but with this information in hand you can cut costs. Once you have this data, you set thresholds for each category and compare each unit's performance. Now you can manage driving habits to deliver the best possible fuel efficiency.
We can't control the cost of fuel, but we can control how much we consume. When you measure and manage your fuel expenses you can manage a realistic return on your investment for fuel. When the fuel economy of each vehicle improves month over month by managing exceptions to your set thresholds, and because you are able to record odometer readings, transaction volumes and related fuel costs, you can calculate the actual return on investment for every litre of fuel you buy.
In a case study completed by Natural Resources Canada, differences of up to
You can't control the price of fuel, but you can control your fuel consumption. The answer is Fuel Management.
Any company can improve their fuel efficiencies. It takes work and commitment from the head office to your people on the road and at the job sites as well as an investment in new technologies to assist you in achieving these goals. More and more companies are making changes in their operating practices to cut costs now and to be prepared for even higher costs in the future.
Here is what many consider the best ways to cut fuel costs:
1. Train and educate your drivers: It starts with the people who have their foot on the gas pedal. Your drivers can control fuel consumption each time they fire up their engines, and proper training can improve fuel efficiency, economy and emissions. Hard acceleration, speeding and idling are the biggest causes of fuel waste. Initiate a training course for drivers and reward participation.
2. Decrease Idling: Be aware of the time engines idle. No longer can we leave machinery and equipment running all day long. Stop your engines! Excessive idling add to your fuel costs by as much as 50% and can shorten the life of engine oil by 75%, adding more costs. Initiate a campaign to reduce idling time and reward participants. Allowing an engine to idle more than 3 minutes causes expensive damage which harms efficiency, shortens engine life and increases maintenance costs. It all adds up.
3. Start off slower: This is another lesson your drivers must be taught. Jackrabbit starts waste fuel and save less than 3 minutes per hour driving, but can result in using 40% more fuel and increase toxic emissions by 400%! What's the rush? Ease up on the gas pedal and your efficiencies will improve.
4. Slow down: Speeding is dangerous; it wastes fuel and creates higher levels of toxic emissions. Speeds over 100 km/hour drastically impact fuel efficiencies "cars travelling at 120 km/hour use 20% more fuel. Trucks travelling at 120 km/hour use 50% more fuel and they also emit 100% more carbon monoxide, 50% more hydrocarbons and 31% more nitrogen oxides.
5. Lose Weight: Excess weight places unnecessary strain on your vehicle's engine and greatly affects its fuel efficiency. By removing as little as
6. Use a Fuel Management System: This is the most powerful way to lower fuel costs and increase productivity. Available systems range from basic onsite refuelling (which saves up to 20 minutes in wasted time and fuel each day, per vehicle) to automated fuel tracking (which details every litre pumped into every vehicle by date, time, quantity and fuel type) to telematics (which measures overall fuel efficiency, vehicle performance, tracks fuel waste due to idling, speeding, etc. and identifies critical areas to improve efficiency and reduce fuel costs and emissions.) The technology exists so you can become a Fuel Manager and stay on top of your fuel consumption, one vehicle at a time. It can work for you.
7. Upgrade your Fleet: Whenever possible, invest in modern, fuel-efficient vehicles. Modern diesel engines are far more fuel-efficient and perform better with modern diesel fuels such as ultra low sulphur diesel and biodiesel. Though it may seem expensive, new diesel vehicles can save thousands of dollars in maintenance, fuel and productivity per vehicle. Measure each piece of equipment for fuel efficiency and get rid of the bad ones! Replace and upgrade your equipment regularly. It may hurt now but it will pay you back.
8. Tune-up vehicles regularly: Do you have a stringent, well-managed maintenance policy? Many companies "fix it when it breaks." This attitude costs too much in wasted fuel. A well maintained vehicle performs better, improves fuel efficiency, reduces toxic emissions and, in the long run, will cost less to maintain.
9. Pump it up: Proper tire inflation improves gas mileage. At 4Refuel our statistics show improperly inflated tires can cost up to 2 weeks worth of fuel per year! How big is your fleet? Two weeks per year per vehicle add up to thousands of dollars in lost profits! In addition proper inflation results in improved vehicle and braking performance, and increases tire life.
10. Implement Advanced
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