Fuel management: 5 Ways to curb increasing costs

Posted by

hitanshi D.Rathod

Fuel is one of the biggest expenditure of a business, taking up to 30% of the total operational costs. With the very nature of the fuel consumption being beyond one’s control, fleet managers helplessly try to find ways of reducing such costs. Advanced fleet management systems are now capable of unlocking crucial insights that can make a significant difference in the fuel consumption rate and its expenses, without disturbing the operational flow.

Here’s the lowdown of the problems that affect fuel management and the factors that improve its efficiency.

Unnecessary fuel costs

In more than 75% cases, fuel costs tend to exceed projections, making businesses liable to shell out major portions of their revenue. Let’s take a look at the major profit-draining factors.

  • Route planning

The primary function of an organization is to take in maximum orders on a day-to-day basis. However, when multiple stops are involved within a trip, it may lead to unwanted miles, deadhead miles and fuel wastage. This is solely due to the lack of a proper route planning strategy. Earlier, fleet managers strategize for hours to find the optimal route based on unorganized data.

But now, an intelligent route optimization system can map the fastest route after analyzing multiple parameters such as weather condition, traffic forecast and so much more. This means fewer miles, lesser fuel consumption, and more opportunities for your business.

  • Driving behavior

Where an hour of engine idling can drain up to one gallon of fuel, harsh driving drastically decreases the fuel efficiency of the vehicle. From unchecked engine idling, speeding, harsh acceleration to hard braking, these factors altogether accelerate the fuel consumption and increases costs.

With standardized driving behavior parameters, fleet managers can eliminate such harsh instances and reduce unnecessary idling.

  • Fuel pilferage

Fuel theft has been one of the major pain points of the industries on a global level. Drivers commonly follow the practice of stealing a minimum level of fuel which makes it difficult to track such thefts. However, the impact is still heavy on the cost side.

Fuel sensors break down this barrier by keeping accurate data of the fuel level and refills made at any point of time. With details such as cost per unit, volume refilled and more being recorded in real-time, the platform can immediately identify potential theft.

  • Unauthorized vehicle usage

Many times, vehicles ply during unauthorized hours with no means to track such scenarios. This translates to increased distance and wasted fuel consumption. Fleet managers can now create geozones for their depot, customer location and other geographical areas to identify unauthorized vehicle usage.

  • Vehicle Health

Where a tire pressure difference of one psi can waste 1/4th of a litre/gallon, reduced mileage can lead to unchecked fuel wastage. An optimal vehicle health is the best way to ensure better fuel economy. This can be handled by scheduling regular maintenance and fixing crucial repairs at the right time.

Businesses can effortlessly plan maintenance schedules without interrupting the vehicle operations using the MoveX platform.

With such intelligence at hand, fleet managers can analyze cost metrics, vehicle fuel efficiency and other factors for better fuel management. See a difference in your fuel cost management strategies with MoveX.

vehicle maintenance system