Service contractors wear many hats. A typical cleaning business owner manages people, resources, equipment, timelines, budgets and more.
Larger service businesses may have general managers, human resource managers, equipment managers and fleet or operations managers, but almost none have fuel managers. Perhaps that isn’t surprising, but as prices have risen, fuel has consumed a higher share of operating expenses.
Without effective fuel management, a company can waste a substantial amount of money every month. Fuel is just like any other expense: You can control it only if you first measure it, and then use the information as a basis for changing operating practices. The first thing you need is access to the necessary information.
The good news is that you don’t have to hire a fuel manager: Technology can help you handle that job. Good fuel management includes planning routes efficiently, measuring fuel consumption, and managing equipment operating practices.
Via satellite
First, you can add a GPS unit to all of your fleet vehicles. For a modest expense, you can put billions of dollars worth of technology to work to help plan and track your fleet’s daily travel. GPS – or Global Positioning System – employs 27 earth-orbiting satellites that were developed by the U.S. military.
Today, GPS is available for everybody in pocket-sized receivers that will find your exact position anywhere in the world. The system is ideal for planning travel routes, avoiding certain roads, and reducing drive time. Less driving cuts fuel costs and GPS can track your total distance traveled. It can’t directly track fuel consumption or what you have saved, but you can do that yourself using the data and simple math.
Now that you can minimize travel time with GPS, what about more important data directly related to fuel consumption? Newly available technology can show you exactly where all that fuel goes. Once you have that data, you’re in a better position to manage fuel consumption.
Watching wirelessly
Some on-site fuel providers use wireless systems to record fuel data – the amount and type of fuel pumped, the vehicle that received it, and the time and date. This data is then made available online, so that on your computer you can see your entire fleet or each unit’s fuel consumption by date or fuel type.
One such system actually lets users track docket data, price history and years of fuel data at no charge. This data lets managers compare fuel consumption from unit to unit and make decisions.
Next is technology that can help you gather and deliver key information about your fleet’s fuel consumption and operating data. The latest advanced mobile asset management technology can record all refueling information, and then deliver it via e-mail to the desktop.
To collect the information, a wireless data capture chip about the size of a coin is attached to each piece of equipment for positive identification. Fuel and engine performance information is recorded, providing the data needed for effective fuel management.
Even more valuable is software that can help managers analyze key operating information, such as excessive idling, speeding, aggressive acceleration and improper vehicle maintenance. Inefficient driving habits waste the most fuel. With this data, you can identify those who are not driving responsibly and work with them to change their habits. By setting thresholds for each category and comparing each unit’s performance, you can manage driving habits to deliver the best possible fuel efficiency.
Attractive returns
Your business can’t control the cost of fuel, but you can control how much you consume. When you measure and manage your fuel expenses, you can improve your return on investment in fuel.
When you improve fuel economy in each vehicle month over month by managing exceptions to your set thresholds, and when you record odometer readings, transaction volumes and related fuel costs, you can calculate the actual return on investment for every gallon of fuel you buy.
In a case study completed by Natural Resources Canada, differences of up to 12 liters per 100 kilometers (3.2 gallons in 62 miles) were identified between a company’s most and least fuel-efficient drivers. In fact, poor driving habits can consume up to 35 percent more fuel. Using technology can help you measure and manage fuel consumption and could save you thousands of dollars. n
Jack Lee is the president and CEO of 4Refuel Inc, a provider of fuel management technology. He can be reached at AsktheExpert@4refuel.com.
