17 June 2019

Reducing fuel consumption for a company fleet has two main benefits. The fleet manager will be reducing the direct cost of fuel and the amount that is paid in duty, as well as improving the profile of the business thanks to reduced carbon emissions.

By improving the efficient use of your vehicles, you can cut down on empty running too, easing congestion on the roads and reducing the amount of maintenance your fleet needs. In this article, we explore some of the steps that fleet managers can take to reduce their company fuel spend.

Audit the current mileage

At the outset, it is critical to audit the fleet manager establishes a baseline for current mileage and fuel cost so that they have a baseline against which they can monitor any progress or reduction.
Data could be collected in a variety of ways, but some of the most common can include:

 

  • Total annual mileage for the organisation as a whole
  • Departmental mileage, if the business has different ones
  • Individual vehicle and driver mileage
  • If possible, the length and purpose of individual journeys taken

 

Implement company-wide fuel cards

By implementing fuel cards across the organisation, fleet managers are able to accurately record how much is being spent on fuel, which location the vehicles are being filled up, and how much fuel is being used in relation to total miles driven.

Ultimately, fuel cards give the fleet manager greater control over fleet fuel management.

Not only do they give a greater insight into the total spend, but they also allow for fraud detection. For example, vehicles that are being filled up that are not part of the fleet.

At the same time, fleet managers are able to identify which vehicles are being filled up with premium, more expensive fuels.

Overcome potential barriers

For businesses that have operated large fleets for a considerable amount of time, there may be drivers that are accustomed to a specific way of working and driving. This can often lead to misconceptions or disagreements about the way that fuel should be tracked.

However, through clear communication and highlighting how any changes will benefit both the driver and the business, these objections can often be overcome before they escalate.

For example, if the fleet manager wants to implement vehicle trackers, some employees may find this intrusive.

Before introducing vehicle tracking, the fleet manager should consult with employees and highlight the benefits that they hope the system will provide, such as increased safety, reduced insurance premiums and less time spent idling in traffic.

Utilise fleet telematics software

It might seem like basic advice, but one of the most important, and easiest, ways that a fleet manager can reduce their company fuel spend is to monitor it correctly.

With telematics and fleet management software, fleet managers are able to make use of these tools to monitor and analyse overall fuel costs and suggest ways for improvement.

Not only that, but it also helps to identify key vehicles that may need to be upgraded, reduces the risk of fuel fraud and eliminates the practice of refuelling personal vehicles.

Further reading

In summary, fleet managers can easily reduce their total fuel spend by incorporating new strategies from day one. With continuous communication, telematics software and a clear policy on mileage, fleet managers will be able to implement their new plans in a very short space of time.

To find out more about our fleet management and leasing, employee benefits solutions and driver services, call a member of our team on 0844 854 5100 or email CSalmon@sgfleet.com.