Fuel costs and how to keep them down.

Fuel costs are ever increasing worry for transportation companies. According to the survey we conducted in the United Kingdom, the fuel costs account to 40% of the total costs of the road transportation with lorries. So how can a Managing Director decrease the fuel consumption? There are several ways:

1) Route selection. Obviously, less miles travelled equals less fuel consumed. But be wary of the road taxes!

2) Driver behavior. Brake-gas kind of drivers can waste up to 50% of more gasoline. Just by changing the driving habits of these drivers, the company can save money on fuel. Fortunately, most of the tracking solutions available also provide information about driver behavior. This enables the MD to take the necessary measures to discipline bad drivers.

3) Avoiding mistakes. Mistakes such as wrong turns, incompatible vehicles, other errors with planning, etc cause empty and unnecessary drives which (in addition to time costs) cost fuel. A tool such as LogistIT helps to eliminate that kind of mistakes.

4) Avoiding empty drives. Each empty drive basically means burning the fuel without sending a cheque to anybody. A good fleet manager who can use good tools can minimise the number of empty trips. LogistIT provides fleet managers with best tools to avoid empty drives and be more efficient in resource planning.

5) Stealing. Fuel thefts from tanks are still a problem everywhere in Europe. Most of the time the thefts occur while the drives has parked the vehicle and is sleeping. Unfortunately, there are still some opportunistic drivers who steal the fuel themselves. Whoever the thief is, there are already solutions which help to identify the theft immediately and alarm the driver / fleet manager / MD.

6) More economic lorries (including aerodynamic measures). There might be a significant difference on the fuel consumption of two vehicles. This is definitely a characteristic to observe when buying a new lorry!

7) Choosing the places where to purchase fuel. This measure is especially important in international cargos. Even in Europe, the taxes on fuel and thus the fuel prices can vary twofold in different countries. It makes sense to buy the gasoline in countries where it is cheaper. In the longer run, the difference can be quite significant!

These measures add up. By observing all of them, a good MD can decrease the fuel consumption considerably. Less money spent on fuel equals bigger profit.