Written by Gerard McLennan, CEO and Founder of LBM Fleet
Fuel is one of the biggest cost pressures for fleets right now and it doesn’t look to be resolving anytime soon.
While there’s growing interest in electric vehicles, the reality is they’re not an overnight solution for most fleets. The current models are also not fit for purpose for all fleets.
So, the question is – what can you do today?
What can you do right now:
- Policy, policy, policy – Like it or not, private use is often a large consumption factor in the overall usage of a fleet. It is also something that is often perceived a ‘free’ – the company fuel card pays, and the driver uses the car however they wish. Now is a pertinent time to revisit policy positions and better manage vehicle usage. (If you missed the recent WLC webinar with Sarah Johnson and Marc Sibbald, it may be worth a listen, where they covered all aspects of fleet policy in detail.)
- Vehicle utilisation – prioritise your most efficient vehicles first (EVs, hybrids, newer models). Also, help your drivers use the right car for the right job. Not the 4WD because it is more comfortable. or the car with roof racks or extra equipment that isn’t needed for the current job.
- Driver safety monitoring – monitoring speeding and hard acceleration helps identify higher fuel-consuming drivers early. Real-time feedback can help drivers be more aware and change their behaviours.
- Fuel card reporting – capture any fraudulent transactions including filling up personal vehicles or using restricted fuel types in company owned cars. We provide clients with full reconciliation – if the car isn’t moving enough, fuel is unaccounted for.
- Car Pooling – encourage drivers to car pool where practical. Two cars going to the same place at the same time uses double the fuel.
- Route optimisation – ensure the shortest routes are being taken. Make journey planning an essential part of being in the field.
- Idle time – review excessive idle times. This can be a major contributor to higher fuel usage.
- Pre-start checklists – checking trye pressure and making sure the vehicle is properly maintained can save fuel.
Long-term plans:
- Right-sizing – reducing your fleet to the “right-size” actually needed to run your operations will predictably reduce overall fuel consumption in the long term.
- Fleet transitions – accelerate your transition to electric vehicles. Actively make and increase the weighting of fuel efficiency being part of your decision making.
None of these will solve the problem on their own, but we can make small changes to ease the immediate pressure while planning for the long term.
We are working actively with clients on coming up with practical ways to address the issue and achieve instant results.
If you need any support, please get in contact with our team.
