The Ways Fleet Telematics Can Reduce Fuel Costs

One of the most significant and measurable ways telematics can impact your fleet's bottom line is by reducing fuel costs for your fleet. Fuel is by far the biggest ongoing cost for fleets, so ensuring efficient fuel usage for your fleet can be a huge saving for your business.

Although you have no control over the price of fuel and the market can be volatile, there are some things you can control that will help reduce your spend on fuel. This is where telematics technology and fuel management systems come in.

Understanding Fuel Consumption

The key to fuel efficiency lies in understanding how an engine processes fuel. At its core, the process revolves around combustion—the moment fuel and air unite within the engine. The engine's design, compression ratio, and ignition system play pivotal roles in this performance. Technological advancements, like direct fuel injection and variable valve timing, further fine-tune the efficiency of this process. In simple terms, the more efficiently an engine combusts fuel, the more mileage you get from each drop.

Choosing the right fuel type is also important when it comes to fuel consumption. Diesel engines, prized for their torque and fuel efficiency, excel on long journeys. Meanwhile, petrol engines, with their refined combustion, are well-suited for city driving with frequent stops and starts. Beyond the classics, alternative fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), and electric power, offer a greener frontier. 

The Impact of Driver Behavior

The habits of drivers wield significant influence over a vehicle's fuel efficiency, making eco-driving practices a linchpin in cost-effective fleet management. Adopting a set of straightforward techniques can lead to substantial fuel savings. From smooth acceleration and deceleration to maintaining a consistent speed and avoiding unnecessary idling, these practices not only conserve fuel but also contribute to a safer and more controlled driving experience.

Harnessing the power of technology can be a game-changer in cultivating better driving habits. Various tools and technologies are now available to assist drivers in real-time, offering insights and feedback that promote fuel-efficient practices. From telematics systems like MiX Fleet Manager that monitor and analyze driving behavior to onboard diagnostics that provide instant feedback, these aids empower drivers to make informed decisions on the road. 

Advanced Telematics Features for Fuel Monitoring

In the realm of fuel monitoring, advanced telematics features act as a vigilant sentinel, providing comprehensive insights into fuel consumption patterns. Fuel consumption reports generated by telematics systems offer a detailed and data-driven view of how vehicles utilize fuel. By analyzing trends, identifying inefficiencies, and highlighting areas for improvement, these reports become indispensable tools for fleet managers. 

The real-time nature of telematics extends its impact beyond passive monitoring, playing a pivotal role in preventing fuel wastage and theft. Real-time alerts act as proactive sentinels, instantly notifying fleet managers of any irregularities or potential issues. Whether it's sudden and unexplained drops in fuel levels or unauthorized fuel transactions, these alerts empower managers to address concerns promptly. By providing immediate visibility into unusual activities, real-time alerts not only safeguard against financial losses but also serve as a deterrent against fuel-related malpractices. 

How Fleet Telematics Can Help Reduce Fuel Costs

1. Reducing Fuel Waste Caused By Driver Habits

Driving habits such as excessive idling and aggressive driving behavior can cause your fuel costs to soar. On average long-haul truckers may idle from six to eight hours a day up to 300 days a year. And if a driver suddenly increases or decreases their speed, their truck may use 20% more fuel. The cost of these fuel-wasting behaviors adds up to significant costs annually.

A fleet fuel telematics solution can give you insights into your fleet vehicles' fuel and energy use that you can use to help your drivers reduce excess idling and other habits that can cause them to waste fuel. Telematics tools let you pull reports on fuel usage and set up alerts that let you know when your drivers are idling, speeding, or otherwise engaging in aggressive driving behaviors. You can pinpoint problem areas and set goals based on what you determine will have the most impact on your business.

Common aggressive driver behaviors such as excess acceleration, harsh braking, coasting, cruising, and more will have an impact on fuel efficiency across your fleet as well as your bottom line. They may seem inconsequential when viewed by each driver, but in aggregate, they can significantly impact fuel expenses and vehicle lifespan. By tracking these driving habits, you can get insight into your fleet's driving habits, create driver training programs, and incentivize good behavior.

2. Decreasing Fuel Theft

If your fleet vehicles are using more fuel than it seems like they should, you may be a victim of fuel theft. Telematics can help you track and see trends. You'll be able to see which vehicles fueled up at which stations and when they did so. This takes the guesswork out of confirming fuel purchases. Without fuel purchase history, suspected fraudulent expenses can be difficult and time-consuming to verify.

Telematics can also flag cases of fuel theft with alerts that automatically let you know when a vehicle fuel level decreases faster than expected. You can set up parameters that measure a predetermined percentage used in a specific amount of time. This can be extremely valuable when investigating whether theft took place. For instance, if the amount of gas pumped into a vehicle exceeds the capacity of your tank, it may be a case of fuel theft.

These insights of fuel usage can help identify inefficiencies across vehicles and drivers.

3. Monitoring Diesel Exhaust Fuel Levels To Refuel More Efficiently

Making sure your fleet vehicles' diesel exhaust fuel (DEF) levels are properly maintained helps your fleet business avoid emission mandate violations. DEF is an ammonia-based liquid sprayed into the exhaust stream of a diesel-fueled truck to lower the amount of nitrogen emissions from diesel engines. If a vehicle's DEF level doesn't meet that of emission regulation, operation of that vehicle must stop until it is refueled. But avoiding violation is only one part of the picture. A lack of visibility into fuel usage and DEF levels can cause inefficiencies that prevent fleets from finishing jobs. When neglected too long, improperly maintained DEF can lead to expensive engine repairs.

To make sure your fleet maintains optimal DEF levels, telematics can offer real-time insight with alerts that let you know when DEF goes below a set threshold. When the alert goes off, your fleet vehicles can proactively refill, avoiding expensive maintenance, and ensuring their vehicles stay on the road.

4. Planning Proactive Maintenance Schedules

DEF levels are not the only cause of expensive maintenance for your fleet. The aggressive driving behaviors outlined above can cause excess wear and tear, causing vehicles to need maintenance sooner than expected. Vehicles that are not in good repair tend to use more fuel. By planning proactive and predictive maintenance schedules, your fleet vehicles run better and use less fuel.

Scheduling preventive maintenance won't impact schedules because it can be done during slower times or after hours. Telematics allows you to set up alerts based on time or mileage. And since telematics hooks up to your fleet vehicles' engines, it can alert you when an emerging problem needs to be addressed. This helps reduce the wear and tear that can cause excess fuel usage.

5. Finding Efficient Routes

By monitoring your fleet's movements and usage with a telematics solution, you can make sure they are taking the most efficient route. You can send drivers to jobs near their current location so that they won't waste time and fuel on long drives. By preplanning the best routes, your fleet vehicles can avoid heavy traffic and therefore avoid excess idling. And when your drivers have plenty of time to get to their job locations or destinations, they are less likely to speed.

Bonus Tips To Cut Fuel Costs

• Make sure the tires are correctly inflated–according to the U.S. Department of Energy (DOE), for every one psi drop in tire air pressure gas mileage is lowered by 0.2%. This small percentage adds up over time. Correctly inflated tires not only get better gas mileage, but they also last longer and are safer for your drivers.
• Reduce air conditioner and heater usage by setting the temperature for comfort instead of keeping it on high.
• Minimize overloading by making sure your drivers adhere to the maximum payload their vehicles can carry.
• Eliminate personal and unauthorized vehicle usage by tracking drivers through a driver identification system.
• Make sure your vehicles use the manufacturer's recommended grade of motor oil, your fleet's gas mileage can improve by 1% to 2%.
• Cleaning your vehicles' air filters can improve gas mileage by about 10%, and it will take you 23 miles further on a typical tank of gas.
• Check your tire alignment, misaligned tires drag instead of roll freely, an issue that can reduce fuel efficiency by as much as 10% (about 31 cents per gallon).
• Replace worn-out spark plugs — if they are worn out, it can cause misfiring, and a higher voltage is then needed to deliver a spark. And that, in turn, uses more fuel.

The Environmental Impact of Fuel Efficiency

Reducing fuel consumption isn't just a fiscal strategy; it's an important step toward environmental stewardship. The concept of a carbon footprint, representing the total greenhouse gas emissions associated with an activity or entity, becomes particularly pertinent in the realm of fuel efficiency. By curbing fuel consumption, fleets can significantly diminish their carbon footprint, contributing to a more sustainable and eco-friendly operational model. 

In the pursuit of sustainable fleet management, telematics emerges as a powerful catalyst. Beyond mere fuel monitoring, telematics systems facilitate holistic eco-friendly fleet operations. By providing real-time data on driving behavior and vehicle health, telematics empowers fleet managers to implement strategies that minimize environmental impact. 

Cost Analysis of Fuel Efficiency

In the ever-evolving world of fuel prices, the ability to anticipate trends becomes a strategic advantage for fleets. Telematics, armed with historical data and predictive analytics, can offer valuable insights into future fuel price trends. By analyzing patterns and identifying potential fluctuations, fleets can proactively adjust their strategies to mitigate the impact of rising fuel costs. 

Investing in telematics is not merely a technological upgrade; it's a strategic move with profound financial implications. A meticulous analysis of the return on investment (ROI) reveals how these technological advancements translate into tangible savings in fuel costs. A MiX by Powerfleet solution can provide an average fuel savings of 10%. 

Integrating Telematics with Other Systems: Enhancing Operational Synergy

In the pursuit of comprehensive fleet management, the integration of telematics with Enterprise Resource Planning (ERP) and financial systems emerges as a strategic imperative. This symbiotic relationship provides decision-makers with a panoramic view of fuel-related expenses, aligning operational data with financial insights. By seamlessly syncing telematics data with ERP systems, fleets gain real-time visibility into fuel consumption patterns, allowing for more accurate budgeting and resource allocation. 

The marriage of telematics with cutting-edge technologies like Artificial Intelligence (AI) and machine learning transforms data into foresight. Predictive analysis becomes a game-changer, using historical telematics data to forecast future fuel consumption patterns and costs. By employing advanced algorithms, fleets can proactively identify trends, anticipate fluctuations, and optimize their strategies accordingly. 

Driving Efficiency, Nurturing Sustainability

Telematics technology is not merely a technological tool but also a strategic ally for fleets seeking to navigate the complex terrain of fuel management. From deciphering the intricacies of engine mechanics to embracing eco-driving habits, and from leveraging advanced telematics features for fuel monitoring to integrating with other systems for a holistic view, the journey toward reduced fuel costs is marked by innovation and informed decision-making.

The impact of telematics extends beyond the bottom line, transcending into a commitment to reducing environmental footprints and embracing greener operational practices.

As we navigate the ever-evolving landscape of fuel prices and environmental consciousness, telematics stands as a beacon of adaptability and resilience. The investment in this technology is not just a response to current challenges but a proactive strategy for the future. By reducing fuel costs, fleet operators can reallocate resources, enhance competitiveness, and contribute to a more sustainable and responsible industry landscape.

Start saving today with a fuel-saving solution from MiX by Powerfleet.