Does your business own a fleet of vehicles? As you are aware, fuel costs associated with keeping a fleet operational can be very expensive.
Research shows that almost 60% of a company’s operating costs are on fuel and in spite of your efforts to keep fuel expenses at a minimum, you may have noticed that you are spending more money.
The rising global fuel prices have also put a strain on your budget as you have to spend more to keep the business running. In Kenya, the cost of fuel has been on an upward trajectory leading many businesses to scale back operations.
Here is how the fuel prices in Kenya have changed in 2022 compared to 2017. The prices are projected to continue rising.
As fuel costs continue to rise, it’s important for fleet managers and business owners to manage fuel consumption and the money spent. If only there is a way that you could save a few coins! Well, good news there is!
While the actual cost of fuel may not be in your control, there are certain aspects you can control. One effective way of gaining control over fuel is by using technology. A tracking and monitoring solution is a sure way of keeping tabs on your daily fuel use.
Given how important fuel monitoring is to your business’s success, the Tracking Hub Limited team did a small research to identify some of the blind spots that could be costing you millions each year plus how to fix them.
4 Ways You May Be Losing Money Plus What To Do About It
#1 Fuel Theft/ Siphoning
The high cost of fuel has created a black market for fuel as people look for alternative ways to access cheaper fuel. This has led criminals or even unscrupulous employees to try and gain access to your vehicle’s fuel tank and drain it, costing you more money.
What you can do about it: Add more security? Yes, this might work in a short time but human error is something that cannot be underestimated.
To keep the fuel secure, technology is the only option that can give better security. Installing fuel sensors allows you to monitor the fuel levels in real time and get alerts directly to your phone in case of any changes.
#2: Poor mechanical condition of the vehicle
An inefficient engine will turn your vehicle into a fuel guzzler, costing you more money. Additionally, things like tire inflation can impact how much fuel is used. So, if your vehicle is not well-maintained, it will end up costing you more in the long run.
What you can do about it: Conduct regular checks on your vehicle to ensure that the maintenance is up to date. Having a Tracking Hub tracking device in your vehicle will keep you in the know. We do not just track fuel we keep data on the maintenance schedule to keep you informed.
#3: Poor driving techniques
Did you know that poor driving techniques can also lead to increased fuel consumption? A driver who accelerates and decelerates rapidly tends to use up more fuel than one who is more cautious. Some drivers are also pretty reckless and neglectful of their vehicles, leaving them running idle for lengthy periods. That is both wasteful and harmful to your pocket and the environment.
What you can do about it: Ensure you give your drivers performance reviews. It’s also a good idea to include certain rules in your guidelines such as: If the car is not in motion, the ignition should be turned off.
#4: Poor route planning can also lead to an increase in fuel cost
Planning your trips effectively can help save on fuel. Imagine a scenario where your drivers take a route in a high-traffic area that leads to lengthy periods of idling (where a car is not moving). High-traffic areas use more fuel which results in additional costs.
What you can do about it: Plan your routes and take advantage of real-time traffic updates via tools such as Google maps. That can minimize the time your drivers spend on the road and in turn fuel usage.
Bonus: Advanced solution to help you save up to 20% on your fuel costs this year:
If you’re looking for state-of-the-art, affordable, and reliable technology to help you get back control over your fleet management and monitoring, consider our solution. Using Tracking Hub Limited fuel monitoring solutions, you’ll know how much fuel each vehicle has used, the distance traveled in relation to consumption, and how the vehicle is being driven.
Conclusion
As a fleet manager, you have an important role in ensuring that your fleet uses fuel efficiently. Managing fleets comes with the constant need to optimize processes, improve operations and also maximize return on investment (ROI).
Keeping tabs on fuel is one sure way you can optimize your business operations while also saving and minimizing operational costs.
Tracking Hub Limited is at the forefront of offering solutions that will help you improve efficiency while minimizing unnecessary losses.
We are not just your typical tracking company, we strive to offer solutions that address the gaps in your business. To learn more about our solutions and how we can help you minimize fuel costs, get started today!
