Fleet ManagementTransport Management

Identifying the major fleet management costs and their significance. (Part 4)

By April 23, 2019 No Comments

Contd from part 3

Fuel costs:

The major part of a fleet’s operating costs that adds up significantly to the Total Cost of Ownership (TCO) are a fleet’s fuel costs. While gas prices globally are quite volatile due to supply and demand factors, taxes, location, seasonal effects, it influences a fleet’s fuel budget that has effect on the operational performances and profitability factors. However, there are various other factors that lead to over consumption of fuel and increase fleet costs.

  1. Driving practices- aggressive driving habits such as speeding, accelerating, harsh braking and sharp cornering increase fuel usage. With proper instructions to drivers and restricting speed for vehicles and routes, driving habits can be improved.
  2. Idling- Every time the engine is started, fuel is being consumed and if it’s done unnecessarily, it adds up unnecessary costs. This habit is a major threat to fleets that operate more vehicles and biggest challenge for a fleet’s economy. Adopting technology to alert drivers and management on such instances is proven helpful.
  3. Tire conditions- tires when not inflated properly contribute towards increase in fuel usage. Checking and inflating tires frequently will not only ensure smoother operations of the vehicles but also save fuel costs.
  4. Vehicles and routes- Understanding vehicle loads and road conditions prior to operation can reduce excessive energy usage from engine and avoid traffic congestion. It is important to make sure vehicles are matched to the type of cargo used.

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This is a part four of a five series blog, outlining the significance of the major costs associated with fleet management and how they can be controlled for better fleet performance.