Fleet managers can effectively cut fuel costs by implementing several best practices. It’s easy to think the concept of best practices is reserved for big companies, but the truth is many approaches to better fleet management can impact the bottom line of even the smallest business. We will look at six ways a fleet manager or small business owner can effectively and efficiently cut fuel costs.
Here’s a snapshot of what we will be covering:
- Track and leverage fuel data
- Create and enforce fuel spending policies
- Automate fuel expense tracking
- Provide driver feedback, education and training
- Leverage tech integrations
- Optimize vehicle maintenance
Each of these practices impacts fleet management in different ways, but all can help reduce the fuel costs.
Effective Strategies for Fleet Fuel Management
At their most basic level of function, fleet cards are simply a payment method for fuel and other fleet-related expenses. Most of these business gas cards include some form of fuel rebate and discounts on parts and services. Shell Fleet Cards, for instance, offer rebates of up to 6¢ per gallon and reduced pricing at participating Jiffy Lube locations.
However, a fuel card’s benefits extend far beyond discounts and fuel rebates. Many of their features help facilitate the best practices listed above, beginning with real-time data.
Track and Monitor Fuel Usage
Fuel management depends on tracking and monitoring fuel usage. Knowing where and how fuel is used is key to efficiently managing costs. Regular monitoring can uncover valuable insights about your fleet’s performance, enabling you to make data-driven decisions that can help save money over time.
Fuel cards excel at effective fuel tracking. When a fuel card is used, the transaction details are captured and recorded in a fleet card dashboard. The information is housed in an easily accessible database and captured in real time. This means fleet managers can pinpoint specific variables or behaviors that may be driving up expenses.
Analyze Fuel Data
Simply collecting data isn’t enough — you must analyze it regularly to spot inefficiencies. Because they provide access to real-time data, a fuel card allows fleet managers to review fuel consumption reports whenever they see fit. These reports can be used to view information specific to a driver, vehicle or route.
Such data makes it easy to identify areas where waste may be occurring.
Create and Enforce Fuel Spending Policies
Accountability is critical in any business. Policies set expectations around what is expected and appropriate for employees. When it comes to running a fleet, a fuel spending policy is one of the most important ones to employ.
Such a policy should include:
- What fuel or fuels are approved for purchase
- What stations are preferred or approved for use
- Reporting requirements
- Volume or dollar amount restrictions
- Approved times of day or days of the week a card can be used
A fleet fuel card can’t help you write your policy, but it is a powerful tool for enforcement of a fueling preference. Once expectations are set with a well-defined fuel spending policy, a fuel card is the ultimate tool to help reduce fuel spend. These cards are equipped with purchase controls. This feature means a fleet manager or business owner can set parameters or limits for purchasing fuel.
Some of these fuel purchasing limits might include:
- Approved fuel types or grades
- Approved stations
- Volume or dollar limits
- Number of fill-ups per day
- Approved hours or days of the week
A business owner can program a fleet card to reflect the spending guidelines outlined in the fuel spending policy. This means you can tackle policy enforcement and reduce unnecessary spending at once.
Automate Fuel Expense Tracking
Expense reports have long been a pain point for many businesses. They take time to create, are a source of mistakes and often take even more time for accounting departments to review. Automating the collection of full-expense data is a critical practice for cost-effective and efficient fleets.
Such automation does three key things:
- Removes the potential for human error.
- Frees up drivers to spend more time driving and less time tracking receipts and doing paperwork.
- Allows accounting departments more time for more critical tasks than reviewing expense reports.
All the data fleet managers need for fuel consumption analysis is the same information required for fuel expense reports. The fleet card’s dashboard gives you instant access to where a transaction occurred, when, what time, the amount, mileage, driver ID and more.
Train and Educate Drivers
Driver habits can significantly impact a fleet’s overall fuel efficiency. Driver behavior changes that can lead to lower fuel costs include reducing aggressive driving, maintaining steady speeds and minimizing idling time. According to the U.S. Department of Energy, aggressive driving can reduce fuel economy by 15-30% at highway speeds and 10-40% in stop-and-go traffic.
Additionally, implementing practices such as smooth acceleration and anticipatory braking helps optimize fuel efficiency, potentially saving fleets up to 20% on fuel costs annually. Creating a culture where continuous learning is prioritized among your drivers leads to better performance, but it doesn’t end there.
Provide Driver Feedback from Fuel Cards
Real-time feedback can be a game changer for encouraging good driving habits. With the reporting feature of a fleet card, managers can create driver-specific fuel usage reports. Or they can compare multiple drivers who use the same routes and vehicle types. Letting drivers know how they compare to their peers can help promote friendly competition and reduce the negative driving behaviors that can cost a business so much in fuel.
Each step taken toward educating drivers contributes not only to saving fuel but can also help enhance vehicle longevity. As drivers become more conscientious, managers will likely notice reductions in vehicle wear and tear, leading to lower maintenance costs.
Leverage Technology
In today’s world, technology is a pillar of efficient fuel management. Telematics and mobile apps are two practical tools available to fleet managers. Both can help reduce fuel costs in their own way.
Integrate Telematics
Telematics and GPS technology can significantly optimize fuel efficiency for fleets by providing real-time vehicle data, including location, speed and specific vehicle diagnostics. This information helps fleet managers improve route planning, reduce idle time and monitor driver habits such as harsh acceleration or excessive braking. According to studies, fleets implementing telematics can reduce fuel usage by up to 15%.
By integrating fleet cards with telematics solutions, fleet managers can access detailed data about vehicle performance and fuel consumption metrics, revolutionizing fleet fuel efficiency management.
Utilize Mobile Apps
Mobile apps are a great way to provide managers with even more control. These apps can help streamline operations by allowing users to view invoices, adjust purchase limits, cancel cards, order new cards and more.
Most fleet cards are compatible with some version of these apps. Shell Fleet Cards work seamlessly with SmartHub. This app makes it easy for managers to make payments, cancel lost or stolen cards and monitor potential misuse.
Schedule Vehicle Maintenance
Vehicle maintenance plays a crucial role in reducing fuel costs. Well-maintained vehicles consume less fuel, ultimately leading to reduced operational costs. According to a report by AAA, proper maintenance can improve gas mileage by up to 4%. Imagine translating that percentage into real-world dollars over many trips. Every small victory adds up.
Adhering to manufacturer-recommended maintenance schedules is key to optimizing vehicle performance, and accurate usage data from fuel cards makes it easier to track vehicle runtimes.
Best Practices Make a Huge Difference in Fuel Spend
Fleet managers can effectively cut fuel costs in many ways — the most obvious is through fuel rebates and discounts. But when a business leverages best practices like automating fuel expense tracking or optimizing fleet maintenance, the savings can be even more significant.
Shell Fleet Cards can make these and other best practices, like effectively enforcing fuel spending policies and utilizing real-time data for insights, possible. Learn more about how to make a difference for your fleet.