In the competitive landscape of small businesses, where every penny counts, managing a fleet of vehicles efficiently can significantly impact the bottom line. One of the most substantial ongoing expenses for businesses with fleets is fuel costs. The line item for fuel and gassing up vehicles is always on the books. Businesses are always looking for ways to reduce the expense of fueling their fleets.
In this easy-to-use guide, there are various strategies and practical tips to help small business owners save on gas and maximize gas savings for their vehicle fleets. One of the best ways to save on gas is starting to look for savings in other places to offset a cost that you know will always be on your books.
Fuel Expenses: A Constant Concern
Running a small business with a fleet of vehicles involves a unique set of challenges. Fuel expenses are a constant concern, but with strategic planning and thoughtful practices, businesses can navigate these challenges successfully. While planning for the next year can begin for business owners in September or even earlier, it is never too late to begin calculating ways to reduce the expense of fuel and save on gas for your fleet.
Let’s delve into the key ways small businesses can save on gas, ensuring both environmental sustainability and financial viability. One attraction for new employees to your fleet business is showing the ways your business has considered its environmental impact on the world and the communities where you operate. Including this key in gas-savings research helps fulfill two major goals: environmental sustainability and community awareness that ultimately factors into employment desirability.
Fleet Management Strategies
To properly manage a fleet while at the same time saving on gas, there are an array of ways to achieve the goal. From regular maintenance and vehicle selection to driver training and route optimization, creating a strategy that touches each part of the business is a powerful approach. This holistic approach to savings on gas ends up making a difference in other parts of your business.
From regular maintenance and vehicle selection to driver training and route optimization, creating a strategy that touches each part of the business is a powerful approach.
Regular Maintenance
Keeping vehicles in optimal condition is crucial for fuel efficiency. It helps to realize that maintaining a vehicle ultimately saves on gas in the long term. Regular maintenance not only extends the lifespan of vehicles but also ensures they operate at peak performance, resulting in significant gas savings. Key maintenance practices include:
- Scheduled Tune-ups: Regular tune-ups can identify and fix issues that negatively impact fuel efficiency. Wear and tear on a vehicle is a true concern. As soon as a car, truck or van is driven off the lot and becomes a part of your business fleet, they begin the process of breaking down. It isn’t as obvious at the beginning, but eventually a vehicle that drives, turns, stops, starts, makes its way through rain, snow, heat and sleet will break down. This inevitably means consistent scheduled tune-ups can only help the longevity of the vehicle.
- Proper Tire Maintenance: Underinflated tires can decrease gas mileage. Regularly check and maintain tire pressure. While it seems obvious that tires being underinflated is a bad thing, you cannot simply assume a tire is inflated fully with a visual. Including checklists for drivers each week or even each can remarkably transform the life of a vehicle and the life of tires.
- Oil Changes: Ensure that vehicles receive timely oil changes to reduce friction and improve engine efficiency. Those little stickers that remind you when to change the oil are not just a marketing ploy–they mean to keep your vehicle at the top of its game. As stated earlier, vehicles begin the wearing down process as soon as they’re driven off a lot and included in your fleet. If there was a way you could ensure you get the maximum usage from the investment of a vehicle…wouldn’t you do it, no questions asked? Oil changes are a simple, time saving exercise that helps keep a vehicle running efficiently which ultimately saves on gas.
Vehicle Selection For Gas Savings
Choosing the right vehicles for your fleet can have a profound impact on gas savings. Consider the following factors when selecting vehicles:
- Fuel Efficiency Ratings: Prioritize vehicles with high fuel efficiency ratings. Ratings cover many factors, the most important of which is how many miles you can drive per gallon of fuel. A truck that can drive 15 miles for every gallon versus a van that can drive 20 miles to the gallon are offering very different efficiencies. The ultimate cost of fuel can be calculated quickly and you’ll find the most fuel efficient vehicle makes the most sense for a small business wanting to save on gas.
- Alternative Fuels: Explore options like hybrid or electric vehicles to reduce reliance on traditional gasoline. There are several states that participate in a similar federal program offering rebates to purchases of new electric vehicles. Those types of incentives help guide your business to efficiencies that have long-term benefits. Saving on gas might mean for your business that you simply don’t even spend on gas. “Fueling” may mean charging for an electric fleet. The new types of considerations for electric vehicles is time spent fueling. While demand grows for electric vehicles, the infrastructure to support them will grow.
Driving Practices Can Save on Gas
It may not seem obvious, but one way to help save on gas is rethinking everything you know about how to drive, where to drive and techniques of driving vehicles. Changes implemented from driver training to route optimization contribute to obvious savings in fuel and gas spending.
Driver Training
Educating your drivers on fuel-efficient driving practices can yield substantial gas savings. While it may be initially met with some resistance, long-term effects of better trained drivers can put your drivers and therefore your business at a marked advantage.
Choose to implement training programs that cover:
- Smooth Acceleration and Deceleration: Encourage drivers to accelerate gradually and avoid unnecessary braking. Harsh and quick braking at every stop will eventually deteriorate brake pads. This costly repair is easily remedied with driver training that encourages smooth acceleration and deceleration.
- Optimal Speeds: Maintaining a consistent, moderate speed can significantly improve fuel efficiency. There are speed limits for a reason. Not only do speed limits help manage the flow of traffic for various geographic areas (interstate compared to residential areas) but maintaining the posted speed limit actually helps save on gas over the life of the vehicle.
- Reduced Idling Time: Excessive idling consumes fuel unnecessarily. Encourage drivers to turn off engines during extended stops. Stopping at a delivery point may make sense, but if the loading or unloading keeps a vehicle idling for an extended period, it stresses the vehicle, the gas and the environment.
Route Optimization to Save on Gas
Efficient route planning can minimize fuel consumption and increase overall productivity. There are so many available forms of technology that help optimize routes. Large fleet companies sometimes hire logistics professionals to help analyze and understand how and where to save on gas in terms of route optimization. From creating routes that reduce the number of left turns to plotting routes based on known surges in traffic all contribute to a strategy that saves a small business fleet on fuel costs. Leverage technology and consider the following:
- GPS Navigation Systems: Utilize GPS systems to find the most fuel-efficient routes and avoid traffic congestion. GPS can also help plot when you need deliveries arriving so expectations are managed from each end.
- Centralized Dispatch: Implement centralized dispatch systems to optimize routes and minimize idle time.
Save Gas with Fuel Management
It would appear fuel management as a way to save on gas is the clearest way to achieve the ultimate goal. There are ways to manage fuel that are new and revolutionary. Fuel cards and fuel apps make managing the world of fleet fuel consumption an easier beast to harness.
Fuel Card Programs
Implementing fuel card programs can streamline the process of managing fuel expenses. Fuel card programs are simple to start and a breeze to implement. While fuel cards or gas cards help streamline the process, they also can bring deep levels of organization to your business from reporting and projecting to real-time fleet awareness.
Take advantage of volume discounts offered by fuel card providers.
Fuel card programs often come with benefits such as:
- Expense Tracking: Easily monitor and control fuel expenses through detailed reporting features. Gone are the days of drivers compelled to save paper receipts for every transaction on the road. Eliminating the human error of expense receipts changes the fleet business game in your favor.
Fuel Efficiency Apps
Embrace technology by incorporating fuel efficiency apps into your fleet management strategy. Smartphone apps for managing fleet fuel expenses are getting more sophisticated each year. These apps can provide real-time data and insights, including:
- Fuel Consumption Monitoring: Track fuel consumption patterns and identify areas for improvement. When fuel consumption is monitored, you can begin to see which vehicles may need maintenance. Regular maintenance for vehicles is important, but annual wellness checks for a fleet can improve your business bottom line.
- Maintenance Alerts: Receive timely alerts for scheduled maintenance to keep vehicles in top condition. While a service center can do the deepest diagnostic work, vehicle apps for improving efficiencies before anyone can get to them will create an efficient car that can last longer helping a business’ bottom line.
Technology Integration for Gas Savings
There are so many new technologies for vehicles, it is difficult to keep up with the latest technology. Some tried and true technology integrations worth of note, especially for saving on gas are telematic systems as well as idle technology systems.
Telematics Systems
Integrating telematics systems into your fleet can offer valuable data for improving fuel efficiency. Telematics can profoundly improve how a business understands its fleet and how it moves into the future in terms of business decisions based on fleet performance.
Telematics systems can provide:
- Real-time Monitoring: Monitor vehicle performance, fuel consumption, and driver behavior in real time. It isn’t as invasive as it sounds. What telematics provides is valuable information about the individual fleet’s usage. Does the drive stop and start a lot? Is the vehicle strained? Is it stopping and starting in an aggressive manner? Are the fuel consumption stops too frequent?
- Predictive Analytics: Anticipate maintenance needs and optimize routes based on historical data. Having the history of a vehicle is a fascinating tool to use when making plans for that particular vehicle or a future one. Does it run efficiently over time? How does the vehicle do in various weather? How quickly does it break down? How often does it need repair? Having this data can add valuable data to decision making for a business.
Idle Reduction Technology
Investing in idle reduction technology can be a game-changer for gas savings. Consider:
- Automatic Engine Shut-off: Install systems that automatically turn off the engine during extended periods of idling. Something as simple as this technology will reap huge benefits for your gas saving goals.
- Auxiliary Power Units (APUs): Use APUs to power essential vehicle functions without idling the main engine. This fascinating technology offsets the strain of idling. So many fleets must idle (refrigerated vans, for instance) so APUs installed for idle reduction is a smart solution for how to ultimately save on gas.
Sustainable Practices to Save Gas
With so much focus on a changing planet, a fleet business can also expand its reach into sustainability by choosing options that consider the earth first. There are alternative fuels available and recognition programs that can shift focus to better fleet management.
Green Initiatives
Implementing eco-friendly practices not only benefits the environment but can also contribute to gas savings. If your business is choosing to strategize ways to save on fuel, there are earth-friendly ways that allow for saving and sustainability.
Consider these green initiatives that save on fuel:
- Alternative Fuels: Explore biofuels or compressed natural gas as alternative fuel options. Anything that can draw away from relying on gas alone can help save on gas.
- Fleet Downsizing: Assess the necessity of each vehicle in your fleet and consider downsizing if feasible. Vehicles are being built with new efficiencies each year. While the expense of a new vehicle is a lot, the long-term savings with a more efficient fleet.
Employee Incentives
Motivating drivers to adopt fuel-efficient practices through incentive programs is one way to realize gas savings. With rewards and recognition, employees get a new sense of pride for their contribution to your business. Here’s what they could look like:
- Fuel Efficiency Bonuses: Offer bonuses or rewards for drivers who consistently achieve high fuel efficiency. These incentives are simple ways to encourage a new way of performance for employees.
- Recognition Programs: Publicly acknowledge and reward drivers who contribute to gas savings. It feels good to do good and to be recognized for those efforts.
Savings on Gas Can Be Yours
In conclusion, small businesses with fleets of vehicles have multiple avenues to save on gas and enhance overall fuel efficiency. There are so many options to consider for a gas savings strategy. By adopting a holistic approach that includes proper maintenance, driver training, fuel management, technology integration and sustainable practices, businesses can achieve significant gas savings. What those savings can mean are for each business to decide but it could mean new vehicles, more bandwidth for new customers or even space to expand a fleet operation and add employees. Embracing these strategies not only benefits the bottom line but also positions your business as a responsible and efficient player in today’s competitive market.
Remember, the key to success lies in ongoing evaluation and adaptation. Regularly assess the effectiveness of your gas-saving initiatives, gather feedback from drivers, and stay informed about emerging technologies and best practices in fleet management. Through a combination of strategic planning, employee engagement and leveraging cutting-edge technology, small businesses can navigate the road to success while keeping their fuel costs in check.