Niki Holt, head of commercial at Certas Energy.
The transport and logistics industry is facing unparalleled uncertainty.
Supply chain issues, pump price increases, market volatility and driver shortages are some of the challenges sparking concern and the sector must also balance this with increased pressure to cut emissions.
And while more sustainable operations is certainly an important objective, it can be difficult to achieve with limited infrastructure and support.
But the old adage ‘out of adversity comes opportunity’ does ring true – there are ways and means to reduce the impact of some of these pressure points.
From telematics to fuel cards, tailored solutions can help fleet managers to overcome the current market challenges, while creating a more efficient and productive fleet for the future.
Helping to overcome fuel cost uncertainty
Concern over fuel price volatility is at an all-time-high, and for fleet businesses that are heavily reliant on fuel it may seem there are few cost management options available.
But with the aid of consultancy services, businesses have the opportunity to reduce their fuel-related total cost of ownership by up to 10%.
Total cost of ownership (TCO), accounts for both direct and indirect costs of owning a product over its lifetime.
While pump prices make up a significant proportion of TCO for fleets, up to 15% of fuel-related TCO – including fuel efficiency, product quality and fuel storage – is directly manageable with the right tools and practices.
Fuel cards and onboard telematics, for instance, when combined, can help promote a more cost-effective, efficient approach to fuel management when vehicles are on the road.
These solutions can help to ensure fleet visibility and identify areas of inefficiency, such as fuel spend or utilisation, and acting on these valuable insights can help companies save up to 25% on fuel costs.
Fuel storage tanks also help to keep fuel safe and secure, protecting against fuel theft and preventing costly leakages.
Smart tanks fitted with telemetry systems also enable users to monitor fuel levels remotely for added peace of mind.
As market prices continue to fluctuate, fuel savings like these can make all the difference.
Efficiency, efficiency, efficiency
For fleet operators faced with ensuring smooth operations despite having fewer drivers on the road, efficiency is key.
And simple management changes can help to keep the wheels in motion.
Effective lubrication is an important, yet often overlooked, method of improving fleet efficiency.
In fact, 56% of transport businesses in a Shell Lubricants Study said they did not expect high-quality lubricants to cut maintenance and reduce downtime.
Despite this, the research further highlighted that lubrication errors had cost the businesses of those surveyed over £800,000 over a three-year period.
With the right lubricants, fleets can help minimise unexpected downtime, improve fuel efficiency and – most importantly – save on capital expenditure costs from replacing machinery before its time.
Routing your drivers to the convenient refuelling sites can also help to reduce downtime.
High-speed, secure, and well-managed refuelling sites can ensure drivers have access to quick and reliable supply when they need it, as well as comfortable facilities to eat, rest and freshen up.
Cutting emissions, the right way
Fuel prices and driver shortages may be at the forefront of fleet operators’ minds, but with net zero 2050 on the horizon, the industry must take steps to proactively cut emissions.
The early adoption of cleaner fuel alternatives both helps to protect the environment and frame businesses in a positive light. But where do fleets begin?
The transition to cleaner fuels is not as onerous as one might believe.
In fact, fuels like Shell GTL Fuel and Hydrotreated Vegetable Oil (HVO) can be ‘dropped’ into engines, with no vehicle modifications required.
So, these alternatives to diesel can make an instant difference to the environment, without disruption or delay.
Fuel for thought…
There is no doubt that the transport and logistics industry is facing trying times.
But while there are certainly challenges to overcome, a growing number of solutions are available to help fleet operators take the wheel and decide the future direction of their business.
With forward planning, robust management methods, and expert advice, you can be in a strong position to not only survive, but thrive as you navigate your fleet’s fuel journey.
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