Understanding every factor that directly affects fuel consumption is the goal of fuel management. Since the margins are so slim, it is a hot topic in the sector and will become even more crucial in the future.
Many people working in the transportation and logistics industries are still unaware of all the factors that affect fuel use. Even a truck’s aerodynamic design can impact fuel efficiency and, in turn, increase the profitability of your fleet.
With that said, let’s look at how important fuel management is to your business and how strategies such as tracking trucking revenue per kilometre, could save you money.
Since fuel is one of the major expenses in the logistics sector, it also presents many opportunities to raise margins. One of the main advantages of employing a fleet management system is the ability to save the business 5% to 10% on fuel with effective fuel management systems.
For example, if your truck uses 30 litres of fuel at $3 per litre every 100 km and drives 120,000 km per year, good transport fuel management could save up to $16,200 per truck. This means that you save up to $1,620,00 per year if you have a 100-truck fleet.
As you can see, fuel management can be a huge factor in saving vast amounts of money. Let’s now take a look at how fuel management systems have an effect on fuel efficiency for trucks, so that you can increase your fleet’s margin.
Although one of the top tips to improve cashflow for your company, that’s not the only benefit a fuel management system will provide. We have highlighted some of the key benefits of using a fuel management system for your business.
Helps Understand Fuel Usage
You can view the fuel data for the entire fleet at once using a fuel management system, identifying any issues or inconsistencies. Advanced fuel management system software offers fuel usage details that may be used to create an analysis that’s more thorough and transparent. Fleet managers can access detailed analytical reports on fuel transactions broken down by fuel type, mileage, effectiveness, quantity, and cost.
Get Real-Time Data
Technology is used to provide fuel management solutions like real-time alarms and notifications if there is any variation from typical fuel usage. For instance, fleet managers and drivers may be alerted if there is a rapid decline in fuel capacity or levels. This enables them to identify fuel theft or deficient engine performance, which can then be repaired before the next departure and prevent unwanted breakdowns.
Reduces Risk Of Theft
Fuel theft is a problem that frequently occurs in the industry and is significantly reduced by using fuel management solutions. They compile data and with the help of this information, they estimate the quantity of fuel that has been stolen and provide proof, timing, and other specifics. Fuel management solutions such as this help to improve your operations even more.
Helps Identify Early Fuel Wastage
A fleet fuel management system and fleet tracking can work together to predict fuel wastage more accurately and increase efficiency. Systems can give their fleet the most precise mileage and fuel usage data by outfitting the vehicles with sensors and cognitive analytics. Identifying and avoiding fuel waste allows you to lower trucking expenses to increase profits for your company.
Manage Fuel Transactions
For on-route trucks, fleet fuel management systems provide the service of efficiently managing and tracking fuel purchases. To save the burden of trying to keep track of perishable paper receipts, drivers can simply enter all of their fuel transactions and upload events.
When setting up a new management system that caters specifically to your company’s needs, there are many things to consider. The following are some key areas to help maximise the benefits of a good fuel management system.
Train Drivers And Encourage Good Driving Habits
Fuel management systems can be used to spot occurrences like erratic braking and speeding. This information aids fleet managers in identifying drivers that require coaching and helps you comprehend and encourage safer driving throughout your fleet.
Proactive Vehicle Maintenance
It is difficult to rely on drivers to keep track of their truck’s upkeep and fix issues on the road. Solutions for fleet management remove any uncertainty from maintenance. Vehicles that are operating at their peak efficiency use less fuel.
Use Automated Fuel Management Systems
Using automated fuel management systems is simple and improves efficiency, while saving fleets money. You can determine the best ways to enhance your fuel management when you have real-time data on what is happening in your fleet, such as increasing profits through load planning more efficiently.
Use Telematics Data
With GPS fleet tracking software, you can monitor driver safety and vehicle performance. It can keep an eye on the driving habits and routes, as well as fuel usage and other statistics. It can even send data to the central hub to generate trucking invoices the moment the job is completed.
Avoid Unnecessary Idling
More fuel is consumed each day by vehicles started more frequently than by those that are started less frequently. At the same time, idling trucks waste fuel needlessly and rack up expenses.
Fuel expenses don’t need to be a hassle. Installing a fuel management system to increase fuel efficiency can save expenses, save time, enhance driver behaviour and retention, and lower your carbon impact.
By investing in software from MyTrucking, you can achieve fuel savings today and save for tomorrow. With benefits like accounting software for trucking businesses included in most packages, the reduction of fuel costs opens up possibilities to clearly see where those savings can be used best.
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