There are several cost-effective strategies to reduce a business’s fuel costs, such as fleet management software and ordering fuel like white diesel from a reliable supplier. White diesel can also be delivered in bulk. But why is fuel reduction such a hot topic in business right now?
The global economy has faced unprecedented changes, mostly brought on by the events of the last couple of years. As a result, fuel prices have skyrocketed, and there is no indication that Brent crude will stabilize any time soon.
Furthermore, a renewed drive to combat global warming informs policy makers’ decisions. In addition to incentives and benefits for businesses to adopt sustainable practices and operations, we see more penalties for businesses that fail to comply with sustainability.
So then, what are some practical strategies that you can implement to reduce your business’s fuel costs?
Rethink Scale
In theory, it’s a simple thing, the idea of downsizing where it makes sense. Although, it can be a challenge to determine which business areas are not vital to current and future operations in practice. In addition, the challenge is daunting regarding company assets in operation, such as a fleet of vehicles.
Many businesses that operate around their vehicle fleets, such as delivery and construction companies, might find it counterintuitive to downsize their primary business assets. But unfortunately, this may be a key area for downsizing to weather the economic crisis.
One of the biggest expenses a company faces is usually redundant vehicles. While the convenience seems to outweigh the expenses when logistics are challenging, the operations costs of any surplus vehicle will exceed any profitability.
Rethink Logistics
At face value, it could seem impossible to make any massive changes to the logistics of your company’s fleet, such as would make any significant changes to expenses. It might be a surprise when you implement modern software to manage fleet logistics.
Using AI and computing,’ neural networks’ advances, modern fleet management software approaches logistics to mitigate human error and finds not immediately obvious solutions. However, it is a difference you can only appreciate once you see it at work.
Rethink Driver Requirements
What do you need when operating a commercial fleet? Naturally, the vehicles are followed in importance by drivers capable of operating said vehicles. However, holding the prerequisite license does not mean that a driver can put a vehicle to the best and most efficient use.
We know that a vehicle’s projected mileage depends on how the driver operates. A driver may have bad driving habits that cost your company more fuel.
You could have drivers trained and certified in efficient driving techniques. Or you could make it a prerequisite before hiring drivers.
There will always be those who do not care. So the vehicles in your fleet should have GPS trackers and offer incentives for drivers to meet efficiency goals. That works better than negative reinforcement, such as imposing fines and saving money.
An incentivized driver is also a safer driver, decreasing the risk of loss due to accidents or vehicular negligence.