The biggest risk in fleet management
Any type of entrepreneurship or any type of self-made business can be the most satisfying enterprise one can embark on and, most likely, with the greatest risk. Especially in the case of industries and domains that rely on raw materials – the most vulnerable to economic fluctuations.
As the Ukrainian war has majorly affected the global oil market, prices are currently seeing an unparalleled (at least in recent years) upwards trend. Also, as two thirds of fuel exports rely on sea mobility, the European Union will have to replace approximately 238 liters of fuel, says analyst Tamas Varga for Reuters. Moreover, oil has hit $124 per barrel, the highest price since March.
As a fleet manager, you have probably felt threatened by the rising fuel costs. In the end, they probably represent the biggest budget `leak` that, if left unattended, can lead to major losses and little profit.
Furthermore, inflation means not only rising prices, but a decrease in market demand as well, as customers are more careful when spending money. As such, an efficient management of your budget and resources can be a decisive factor in the longevity and competitivity of your company on the market.
What does an efficient management mean?
It means constant monitoring of fleet activity, of driving behavior, of the vehicles’ condition, of the traveled routes and, first and foremost, of the fuel tank’s status.
However, the first step should be calculating fuel consumption. Once calculated, you can have an overview of all other criteria and you can more accurately determine the major cause of fuel waste.
How to calculate fuel consumption
First of all, you can use the fuel consumption calculator that we will provide you with.
Read, however, the following information to better understand how the calculation is done and what it means.
There are two essential things in calculating fuel – establishing the driving environment and applying the right formula.
Fuel consumption is calculated on a 100 kilometers distance.
For the sake of accuracy, it is important to differentiate between driving environments. There are 5 driving environments you should consider (based on WLPT):
- Urban (city) environment – low speed, of up to 55 km/h;
- Suburban (town) environment – medium speed, of up to 80km/h;
- Rural environment – high speed, of up to 90 km/h;
- Highways – very high speed, of up to 130 km/h;
- Mixed environment – with varying speed margins.
Aside from variations caused by the environment, driving style and car model will have a big influence on fuel consumption. For a better understanding of fuel consumption based on brand and model, have a look at this guide.
The majority of vehicles show the average consumption of fuel in real time. If a car is not equipped with this kind of sensor, the calculation can be made in a simple way, based on two indicators – mileage (since the last fill), by using a mileage counter that can be reset back to 0, and the fuel quantity from the last fill.
The final formula will be:
NUMBER OF LITERS FILLED LAST / KILOMETERS x 100
L/K = X*100
If the traveled distance is 840 km and the fuel quantity is of 65 liters, then:
65l / 840km = 0.0773 x 100 = 7,73 l at 100 km
Another combination would be:
NUMBER OF LITERS x 100 / KILOMETERS
L x 100 / K
And, using the same numbers:
65l x 100 / 840km = 6500/840 = 7,73
How can you monitor fuel consumption constantly?
A good way to manage fuel consumption and your team’s activity is through a fleet management system centered around GPS Tracking technology. A GPS Tracking System revolves around GPS devices installed directly on the vehicles, which communicate information about the condition of the vehicle, of the engine, about location, speed and many other aspects.
By adopting this kind of system, you will know, first and foremost, in what state the fuel tank is. Also, by being aware of how the engine is used and by analyzing driving behavior, you will be able to have a clear view of how fuel is being wasted and of how you can prevent that from happening.
Moreover, aside from using the data sent by GPS devices about the condition of the vehicle and about routes and traffic mistakes to compile the internal driving rulebook with, you will be able to:
- Know the whereabouts of your drivers and vehicles, at any time;
- Give customers accurate time frame estimations;
- Always know the condition of your vehicles and their availability;
- Find out right away what driver is nearest to a location;
- Have access to automated information archives;
- Keep track of customer meetings and tasks.
Having access to a centralized database and the option to convert information into different kinds of reports, you will never lose track of your fleet’s activities, of the status of tasks and assignments and of the vehicles’ condition. Moreover, data processing in real time means a coordination process that is always on top of any unpredicted events. In this way, you can prevent useless trips and optimize routes in real time.
Find out what a GPS Tracking System is all about here.
How do I find the best monitoring system for my business?
You need a system that can adapt to any kind of fleet, that has a wide radius and proven results. You can start exploring right now, with the highly adaptable, highly customizable Nexus GPS Tracking.
Over the span of more than 15 years, Nexus GPS Tracking has managed to provide fleet management solutions to and maintain a solid relationship with more than 2000 clients, such as Telekom, DB Schenker and Arabesque.
Aside from efficient fuel management, Nexus GPS Tracking is easy to implement and adapt to all fleet operations. It can also reduce operational costs, as well as increase your team’s productivity. Try it for yourself here.
What will implementing this kind of system mean for your business?
It will mean improving all operations and saving valuable resources, such as fuel.
- Through route optimization
Imagine how much fuel waste is made by just one driver when they have to turn around and find a different route, to redo certain travels or to go around in circles, maybe even more than once a day. Using the information provided by the GPS systems, you will be able to get rid of such inconveniences and reduce fuel consumption. You will save both valuable resources and time.
- By optimizing task assigning
Who is available to fill in holes in the schedule? Find out which driver is free and closest to a location in need of attendance and always cover unpredicted situations using a GPS System. More so, see in real time all free agents to assign unresolved tasks and to prevent using fuel for personal gains.
- By avoiding time waste
You have probably heard the saying `times is money` so often that you are sick of it. The reason why it is so often mentioned though is because it addresses, unfortunately, a universal problem that any business owner faces constantly – the lack of time to review, to experiment or, even more concerning, powerlessness in preventing time waste. However, you have the opportunity to monitor your fleet and prevent time waste with a good tracking system. Choose the right one and your fleet will be ready for action at all times.
By analyzing reports regarding wasted time and its causes, you will be able to find use for it and optimize schedule coordination.
- By increasing productivity
Wasted time can turn into missed opportunity which can in turn result in overtime. Through constant monitoring however, the schedule can be waste-free and the field team can always be ready to manage oncoming situations.
- Through improved communication
If you want to communicate routes, tasks and schedule updates in real time, a GPS tracking system is the ideal solution. Accompanied by the proper software, all data will be stocked, processed and interpreted in real time, so that it will be ready anytime to coordinate activities and make and assign the right tasks. You will, first and foremost, save time and resources by avoiding unnecessary trips and wasted time.
- By reducing maintenance and operational costs
How do you know when a car is in need of care? How about when the maintenance procedures aren’t respected? With a GPS Tracking System, you will be notified when a vehicle approaches tax and services related deadlines. You will also be notified if the drivers do not use the vehicle in accordance with established guidelines, showing signs of aggressive driving or other inappropriate behavior.
- Through improving driving behavior and reducing the risk for traffic accidents
Overspeeding, over accelerating and other such tendencies in front of the wheel increase traffic risk as well as fuel consumption. In the long run, this means material losses and damage to brand image and trust. Monitoring driving patterns will prevent such negative scenarios.
Astfel, pe lângă gestionarea în timp real a combustibilului, un sistem de monitorizare își poate aduce contribuția la îmbunătățirea tuturor operațiunilor și a bugetelor aferente. Prin folosirea echipamentelor de citire și interpretare a consumului de combustibil, incluse într-un astfel de sistem, calcularea consumului de combustibil va fi mult mai exactă.
Fuel consumption calculator
A fuel consumption calculator is not enough to get an accurate result. However, coupled with a monitoring system and considering the driving environment; you can increase accuracy considerably, as well as understand the causes of fuel waste and how to prevent it.
Calculate fuel consumption for free here, taking everything into account.
Then, try Nexus GPS Tracking to see for yourself how you can reduce fuel consumption with a minimum investment.
In the end, fuel management is a process worth investing into, if reducing costs and increasing revenue is a priority for you. Find out more about how you can avoid wasting resources here.