Generate fuel savings by applying consumption benchmarks
Why, when fuel constitutes 40 to 60 percent of a vehicles operating costs, is there insufficient focus on eliminating wastage and abuse?
I believe that wastage comes from inefficient vehicles, poor route planning and inadequate driver training, and those occasions where drivers and filling stations are guilty of abuse.
“The expression goes that ‘you can’t manage what you can’t measure’ and I am of the opinion that the application of fuel consumption benchmarks is the foundation for measuring performance.
There are procedures that have to be applied to achieve this:
• Implement consumption benchmarks per vehicle;
• Fill the vehicle to the top at each fill;
• Have accurate fill details, specifically kilometre readings, for each transaction;
• Calculate consumption for each fill;
• Calculate the cost of consumption in excess of the benchmark;
• Aggregate the costs of excess consumption, by vehicle, on a monthly basis.
The above process facilitates management intervention on single variances. It also provides trend analysis and comparison of expenditure by vehicle, driver, cost centre and company.
It has been proved that detailed analysis and reporting results in a reduction of fuel expenditure. Having numerical values facilitates their incorporation into key performance indicators and performance reviews.
Daily analysis eliminates the deficiencies of monthly averaging and highlights specific areas where wastage and abuse are taking place.
While the process may sound complex, there is inexpensive software that provides all of the above. The software integrates with bank-card and pump-management systems. It also manages odometer and data inconsistencies which disrupt accurate analysis.
Fleetsolutions, a division of Latitude Fleet Services, can help identify a number of suppliers that provide a proven fuel-management solution.