Most companies today have corporate ESG initiatives – but how do you achieve those while managing a costly fleet of vehicles? It turns out there are a host of ways companies with fleets can achieve both goals simultaneously.
CHOOSE THE RIGHT VEHICLES
When was the last time you evaluated your fleet makeup? With new technologies, more efficient vehicles may be able to replace less efficient counterparts for a lower total cost of ownership.
Being very selective about the type of vehicle for the role and the job that needs to be completed is critical in managing ownership and fuel costs. Traditionally, large diesel-powered vehicles are chosen for many vocational and construction applications. With the improvement of upfit packages, technology suites, and the inclusion of several features standard on smaller, gas-powered vehicles, fleets should consider if they can cut down on the number of large diesel trucks.
For example, the Ford F-150 comes in an AWD package and offers many of the same amenities as the F-350 at an almost nine percent cost of ownership reduction, provided that the towing capacity of the 350 isn’t needed for operations. Ensuring you have the correct vehicle for the application and are not “over-spec’ing” for the job that needs to be completed is critical to managing overall fleet costs. This can be easily managed as you cycle out older, high-mileage vehicles, and replace them with smaller, more efficient choices.
Traditionally, drivers might be drawn to the largest and most powerful option available. Still, with new technology and other features, even a smaller and more economical vehicle can provide a satisfying and effective work tool. In our experience, drivers are more loyal to OEMs than truck size. Therefore, if you’re giving drivers something they’re used to, it’s the perfect time to consider right sizing your fleet and vehicles.
CONSIDER CONVERTING TO ELECTRIC VEHICLES
EV and battery technologies have come a long way, and there’s now an EV option for just about every vehicle class. There is a perception that EVs typically cost more, but significant investment in battery improvements and supply chain efficiencies have driven prices down, putting most starter EV packages at a roughly similar price point to standard ICE vehicles. Additionally, the money saved on fuel and maintenance contributes to a significantly lower total cost of ownership over the vehicle’s life. With fewer moving parts internally, there is less to maintain and less that could cause your vehicle to be out of commission and not generating revenue for your business.
Despite many fleet managers’ and drivers’ initial resistance to EVs, many report they’re more comfortable to drive and have an eye-catching aesthetic that many find pleasing. Additionally, EVs eliminate idling concerns, providing fuel cost savings. Of course, EVs aren’t suitable for every fleet. Still, they’re perfect replacements for vehicles that run a similar route daily, stay within the battery’s range, and return to the same location every evening for charging.
CYCLE OUT OLDER VEHICLES
As vehicles age, fuel efficiency declines, sometimes precipitously. When considering the total cost of ownership of an older vehicle, replacing it with a newer, more fuel-efficient one may make the most economic sense. Fuel technology keeps evolving, and vehicles just a few years old don’t have the latest and greatest. A newer vehicle will save you on fuel and maintenance, and your drivers will appreciate it, which can help with talent acquisition and retention.
INVEST IN PREVENTIVE MAINTENANCE
A properly maintained vehicle gets better fuel consumption (OEMs’ MPG estimates assume that the vehicle is well-maintained). The best kind of maintenance is preventive, proactively maintaining a vehicle to prevent problems from arising in the first place.
Each vehicle has a personality of sorts, reflected in its maintenance history. This is how you determine if it’s still functioning within the OEM specs and if there are signs that something may soon go wrong that can be proactively addressed; it’s called predictive analytics. Continuing to run a vehicle with a problem usually exacerbates it, reduces fuel economy, and leads to higher repair costs. In some rare cases, an ignored issue can even total a vehicle.
COLLECT DATA VIA TELEMATICS
Fuel is a fleet’s largest operational expense and, therefore, ripe for cost-saving efforts. Effective fuel reduction starts with data, ideally through telematics. You must know each of your vehicle’s average MPG so you can pose this question: is it in line with the OEM’s guidelines when you factor in the age, condition, and usage parameters of the vehicle? If it isn’t, it could be a sign that something is mechanically wrong, such as tire alignment, spark plug issues, or something more significant. Depending on how off a vehicle’s mileage is, it could be a clear sign that it’s time to replace it with something newer and more fuel-efficient.
Telematics data can also be used to educate drivers who engage in behaviors that harm fuel economy, such as heavy braking, fast acceleration, speeding, and one of the biggest culprits—idling. While some idling is unavoidable, it’s the number one reason for fuel waste. Plus, there could be fines for idling in states with clean air initiatives. In turn, how is it best to tackle excessive idling?
Use routing apps to ensure your drivers are rerouting around construction zones and traffic accidents. The longer routes will likely save you fuel. Another benefit of these apps is that some will guide your drivers to the least expensive fuel available in a particular area.
Once again, data is your guide to more significant cost savings and sustainability. Telematics will inform just how much each driver is idling. This allows you to pinpoint and investigate the reasons for their idling. Is it simply because the driver is unaware of the benefits or too focused on the task at hand to turn the vehicle off? That is an easy behavior to correct. Is it because it’s cold out, and the driver doesn’t want to return to a freezing box? Installing a foot heater that runs independently from the vehicle’s fuel system could help.
Incentives can go a long way, too. A Fortune 500 firm successfully incentivized its delivery drivers to reduce idling. Those who kept idling to less than two percent of total drive time were eligible for bonuses and could win prizes, some of them significant, like vacations. This shows how much fuel—and money—can be saved via idling reduction.
PARTNER WITH A FUEL MANAGEMENT PROVIDER
Working with a fuel management provider can help you gain more insight into vehicle fuel usage and identify anomalies that need to be addressed. Moreover, you could qualify for rebates based on fuel purchases, adding further savings to your bottom line.
EXPLORE SUSTAINABLE UPFITS
Yet another way a fleet can contribute to sustainability and save money is by using reusable upfits. These no-drill, no-weld solutions fit within the factory scaffolding and are pieced together. They’re easy to remove and reuse. Most sustainable upfit providers rely on quality, American-made materials, many of which are recycled.
By adopting a data-driven approach and applying the strategies outlined above, fleets can streamline operations and significantly reduce costs, ultimately boosting their bottom line.
about the author
Alexa Rubin has been in the mobility business for nearly a decade. She’s currently the upfit manager at Mike Albert Fleet Solutions and has experience with heavy-duty and semi-trailer leasing. To learn more, visit www.mikealbert.com.
