Module IV - Fuel for thought: How to manage fuel consumption and slash fuel costs
On the road to lower fleet costs, lowering fuel consumption is a quick win. Are your vehicles burning excessive fuel?
Expected to stretch taxpayer funds and maintain clear transparency with your constituents, it can be a constant challenge for your agency to reduce operational costs without sacrificing the quality of your service. However, by examining your fleet, one of your budget’s largest expenses, you can identify key areas to reduce spending and be more efficient with public dollars. This module will focus on reducing fuel consumption, a primary driver of high costs in many agencies’ fleet operations. We’ll outline the primary causes of excessive fuel burn and provide step-by-step guides for measuring consumption, scaling it back and tracking cost reductions.
What contributes to high fuel consumption?
Fuel is the lifeblood of your fleet. But with prices constantly fluctuating, multiple vehicles to fill up and driver behavior immensely impacting how it’s consumed, using fuel responsibly and keeping costs under control are constant battles. If you aren’t currently tracking your vehicles’ driving patterns, emissions and maintenance schedules, it’s impossible to truly optimize your fleet’s fuel consumption and look out for your budget.
When seeking to optimize your fuel expenses, there are several primary contributors to be aware of. All of these factors, whether obvious or hidden, can result in higher consumption rates and force you to allocate more of your budget toward fuel. Below, we’ve outlined the most common causes of high fuel burn.
Poor driving practices
Driver behavior has the single most significant impact on your fleet’s fuel consumption. If drivers are frequently speeding or harshly accelerating, your vehicles’ fuel tanks are sure to become depleted faster, requiring more frequent fill-ups.
Excessive idling
Passive driving behaviors also needlessly consume fuel, such as idling. Idling occurs when a vehicle is turned on and sitting still without actively being driven. Employees may be idling in their assigned vehicles when completing tasks such as paperwork, eating or taking breaks.
High-emission vehicles
Older or larger vehicle models can burn fuel faster than modern alternatives. If your fleet is highly populated with high-emission vehicles, your fuel consumption—and subsequent costs —may be higher than necessary.
Unoptimized routes
Inefficient routing additionally contributes to expensive fuel costs. This can include schedules for your employees that involve driving at sub-optimal times of day, such as during rush hour traffic. Being stuck in congestion can burn unnecessary fuel and also lead to employee frustration and turnover, contributing to higher operational costs overall.
Neglecting vehicle maintenance
Failing to keep up with proper vehicle maintenance can additionally result in unoptimized fuel costs. Several maintenance practices that have a marked impact on fuel economy include regular tire rotations, tire air fill-ups, vehicle alignment, oil changes and air filter replacements. Ignoring key vehicle alerts like check engine lights also can cause fuel consumption to creep upward.
Physical key exchanges
If you operate a government motorpool, requiring employees to meet in person for vehicle key drop-offs can waste fuel and time. It’s ideal to reserve fuel for other critical facets of operations, rather than unnecessarily burn it on scheduled key exchanges.
In order to prevent these key contributors from affecting your fuel management practices, there are several essential metrics to track, including:
- Total fuel consumption in your fleet for both active driving and passive driving habits (idling)
- Fuel economy, which represents the actual miles per gallon (MPG) consumed
- Current fuel levels in each of your fleet vehicles
- Data on true idling, which is defined as a vehicle’s engine being running without its position changing
- Engine malfunctions, such as broken oxygen sensors
Once you’ve collected data from all of these areas of your fleet, you can then begin pinpointing any inefficiencies and developing new strategies to fix them. Our step-by-step guide will walk you through how to locate problem areas within the data and craft a cost-reducing plan, then study its impact.
Research from Frost & Sullivan shows that telematics helps fleets save an average of 20-25% on fuel costs.
How to locate fuel consumption problem areas and craft new policies to fix them
Fuel consumption data is intrinsically valuable, but it’s not enough to simply have the data alone. You need deeper insights that will show you the best path forward to drive down costs. To glean deeper, more meaningful insights and reduce fuel consumption, a telematics platform is your best friend. This type of technology works by drawing in rich data from every connected vehicle in your fleet, translating it into digestible and clear insights on how to effectively take action and improve your operations.
Telematics helps you pinpoint key improvement areas in your fleet’s fuel consumption patterns and infer successful ways to enhance them. From a fleet management platform’s dashboard, you’re treated to a holistic view of your fleet’s behaviors, tendencies and fuel consumption trends. Here’s a step-by-step guide for locating the key areas in your operations where fuel efficiency can be improved using a telematics solution:
Set durations
Define a time period you want to measure fuel consumption over.
Analyze trends
Study fuel reports to identify your highest-emitting vehicles.
Look for harmful habits
Analyze common speeding and acceleration tendencies by your drivers to see which are most responsible for high fuel usage
Put idling under the microscope
Examine idling data with custom reports for your fleet that break down instances of true idling versus operational idling. In certain cases, operational idling may be acceptable, such as when warming up a vehicle for use in frigid weather or to supply power for external equipment. Due to these key differences, it’s essential to filter out necessary versus unnecessary idling instances when curbing fuel costs.
Benchmark
Compare your fuel consumption metrics against like fleets (similar industry, size, vehicle models and usage patterns) to help you accurately diagnose where your fleet may be over- or underperforming.
Keep in mind
Simply knowing the data without a frame of reference makes it difficult to ascertain where improvement is needed. Fuel benchmarking adds crucial context to your results, enabling you to develop strategies that work to close fuel consumption gaps compared to similar fleets. By comparing your fuel consumption metrics to those of like fleets, you can be assured that your agency’s fleet is truly one of the most fuel-efficient and doing everything it can to maximize taxpayer dollars. Take action to cut back on consumption with a powerful combination of fuel usage data and rich fleet insights.
Five steps to reduce unnecessary fuel burn
Reducing your fuel costs requires a steady mix of positive coaching, consumption trend monitoring and ideation. Below, we’ve provided a detailed guide to help you drive down fuel consumption—and subsequent costs—in five simple steps.
Using this step-by-step guide, you can easily begin analyzing potential problem areas in your fleet’s fuel consumption and take action to reduce costs. However, once you’ve instituted new policies aimed at reducing fuel usage, it’s just as important to measure the results of your strategies to consistently stretch taxpayer funds.
Provide uplifting feedback
Offer personalized and tailored driver support that emphasizes the reduction of speeding, harsh acceleration and idling. Set up designated one-on-one sessions between your fleet managers and your drivers to review their performance, identify areas where fuel efficiency can be improved and give encouraging coaching that drives meaningful, lasting change.
Keep distances in mind
When assigning your agency’s employees new jobs, use a proximity-based approach for scheduling. Task employees with jobs that are all relatively close to one another to prevent longer distance drives that consume high amounts of fuel.
Steer clear of congestion
Improve routing by selecting the most optimal driving times to avoid heavy traffic. Driving on clearer roads allows your drivers to make better use of their fuel tanks and make less frequent stops at the pump to refuel, maximizing productivity.
Embrace sustainable fuel options
Consider transitioning high-emitting or high-usage vehicles to electric or alternative fuel vehicles in a phased, cost-efficient way. Switching to sustainable fuel sources helps you reduce emissions and save money on gasoline over time.
Leverage the power of telematics
Set rules in your telematics platform to alert you if any agency vehicles have idled for too long. Enable fleet managers to contact assigned drivers in near real-time to gently remind them of your agency’s policies around idling. For example, the Geotab GO TALK add-on allows your fleet managers to provide in-cab, spoken-word vehicle coaching on demand. Reduce costly fuel expenditures by reaching out to your drivers quickly whenever unnecessary idling is detected.
How to gauge the cost-savings impact of new fuel management practices
To maximize every dollar in your fleet budget, it’s crucial to monitor the impact of your fuel-saving policies and track how much they are helping you save. If any new policies are not yielding the results you’d hoped for, it’s important to either adjust them or pivot your course of action. Below, we’ve provided a list of steps you can take to monitor the impact of your fuel-saving strategies with telematics. These will allow you to consistently assess whether or not your agency is reducing expenditures and optimize fuel management.
Study consumption over time
Monitor month-over-month total fuel consumption after implementing new policies or coaching methods. Study your current month’s fuel consumption compared to a previous month before implementing a new fuel-reducing strategy to see if it’s having intended effects.
Monitor carbon emissions
In addition to fuel consumption metrics, track greenhouse gas (GHG) emissions in your fleet. Back up the reductions in fuel consumption you’re noticing with verifiable proof of a smaller carbon footprint.
Examine potential savings electrification
If your fleet is transitioning to EVs or even alternative fuel programs, determine the savings by subtracting the initial up-front investment by the fuel savings. For simplicity, use a tool such as Geotab’s Electric Vehicle Suitability Assessment (EVSA) to forecast potential savings from electrification.
Compare results
Continuously monitor your fleet’s fuel efficiency and performance compared to your benchmarks. This will enable you to measure your fleet’s performance over time relative to like fleets and deduce where further adjustments are needed.
Gauge response
A successful fuel management program relies on buy-in from all aspects of your organization. During the course of your fuel savings journey, always ask for candid driver feedback on new coaching strategies and ideas on how to reduce fuel consumption. Making your drivers feel empowered, involved and listened to throughout the process helps everyone in your agency feel more engaged and motivated to drive efficiently.
The importance of choosing the right technology partner
In addition to having the technology and knowledge to monitor and reduce your fleet’s fuel consumption, who you choose to partner with greatly matters. Pairing up with a telematics provider that is fully invested in your agency’s success and that always helps you look for new ways to reduce fuel consumption can tremendously benefit your agency’s budget. As you consider a telematics solution for fuel savings, research the provider themselves too. You’ll want to partner with a company that has a strong ABI Research telematics ranking and that will be right by your side, regardless of the challenges your government fleet faces. Use the knowledge we’ve shared in this module for fuel reduction best practices with telematics, enabling each dollar your agency is entrusted with to go further.
Case study
The City of Lehi City
The City of Lehi City discovered that excessive idling in their fleet was costing them $17,000 per month. They were able to reduce their vehicles’ idle time by 50% with Geotab.