Fuel remains one of the most inevitable expenditures for every fleet business and it consumes more than 30% of the operational expenses. Where there isn’t much fleet managers can do to manage fluctuating fuel price, there are certain factors that can be controlled to lower costs, improve fuel efficiency and, in turn, increase your profit margin.
Fuel costs: The perpetual dilemma
Traditionally, businesses – in the transportation, logistics and industries where vehicle dependency is crucial for daily operations – are under the constant pressure of minimizing fuel costs. Fleet managers rely upon manual, error-prone fuel recording processes to keep track of fuel logs. And at times, there is a high risk of fuel theft, which causes severe repercussions on the fuel expenditure. With unreliable data and limited visibility over operations, fleet managers struggle to accurately plan their fuel budget.
A fleet management software takes away the guesswork and helps to lower fuel expenditure and improve fuel efficiency. Here’s how:
Digitized fuel recording
Earlier, fleet managers relied upon messy fuel receipts and their drivers to provide fuel fill-up details. Not only was this process unorganized, but there was no way of validating the accuracy of the information. Additionally, with no concrete data, it became increasingly difficult for businesses to set the budget.
Digital recording of fuel entry has simplified the process and made it easier for fleet managers to keep track of the fill-ups. The platform provides details such as fuel cost, price per litre, refilling station location and meter reading. Also, fleet managers can integrate fuel cards to streamline the payment process and ensure accountability for every fill-up.
Control fuel-draining factors
The vehicle’s fuel efficiency depends upon multiple factors such as aggressive driving behavior, idling and engine condition. The fleet management system allows businesses to keep track of speeding, hard braking, harsh acceleration and unnecessary idling. Fleet managers can control such events and inculcate safe driving practices to reduce the vehicle wear and tear.
Also, with an integrated platform, fleet managers can continuously monitor the vehicle health and schedule maintenance accordingly, making it easier to keep fuel-efficient vehicles.
Prevent fuel fraud
Most fleet managers find fuel theft a growing concern with no means of tracking such discrepancies. Fuel theft can occur in multitudinous ways where drivers can either record inaccurate refilling data or use the company card to resell the fuel. Fuel sensors and digital fuel entry can prevent such fraud. Apart from recording the refill details, the fuel sensor can keep track of the actual capacity to validate every refill.
Analytics for better decision-making
With real-time and historical fuel data, an intelligent fleet management system can empower fleet managers to identify patterns in fuel consumption and average miles per month to accurately forecast the fuel expenditure. Also, with fuel analytics based on varying metrics, fleet managers can identify fuel-efficient vehicles to assign jobs intelligently.
An efficient fleet management system can be the deciding factor for businesses who are looking to improve their fuel efficiency and control their fuel costs. Switch to the digital way of managing your fuel expenditure to realize better bottom-line results.