A Very Liquid Asset

Posted by Reza Tavassoli on Jan. 31, 2019, 7:30:00 a.m.
Reza Tavassoli
Money Pouring Out of Nozzle-AdobeStock_196006574
Where Your Fuel Management System Makes You Money

When discussing the high costs of fleet management, our customers often tell us fuel consumption is on par with expenses related to labor. In fact, they tend to complement each other in clear and trackable ways. The most obvious is when your fleet increases in size, so do labor and fuel expenses. However the relational increase isn’t always a one to one ratio. The question is why it sometimes seems to increase exponentially.  

Fleet managers work as resource managers across several industries including: mining, construction, public works, public transit, transportation, and more. Whether they direct fleets of a few vehicles or massive ones with thousands of pieces of equipment, the two constants are their assets: vehicles and people. Their main challenge remains being accountable for where and how operational expense data is collected. For most of them, a fully automated and integrated fuel/fleet management system, or FMS, shows the detailed breakdown of where the money is going and leads to the implementation of solutions for turning loss into profit.

By being connected to the vehicle’s on-board computer, an automated FMS can record and report:

            1 - Fluid consumption: fuel, oil, brake & windshield fluids, etc.

            2 - Mileage and geolocation

            3 - Idle vs driving time.

            4 - Driver behavior

            5 - Security & maintenance data (meter values, recalls, inspections, etc.) 

Toy Truck Carrying Coins-AdobeStock_196523697How To Save Money With This Data

Keeping track of fuel/fluids consumption is one thing, but knowing how they are being used is more valuable. An FMS with ‘secure user’ & ‘vehicle identification’ functions gives you driver behaviors: routes & destinations, how fast they go, and how long they leave the car idling when stopped. With this data we can determine irregularities such as fuel leaks, route deviations, misuse of vehicles (fraud/theft), and eliminate human error from manual data entry. The fleet manager can now address the human resource component of his expense’s equation. The automated FMS also automatically captures vehicle engine data and dashboard warnings that are necessary for their preventive maintenance plans. Getting a better view of driver behavior permits the opportunity for better training, control, and direction.Money Growing in Jar-AdobeStock_104059872

 

How To Use This Data To Make Money 
  • Reliable data collection improves your R&D and access to valuable R&D grants.
  • The dispatcher plans more cost-effective routes that allow multiple jobs/deliveries and increasing revenue.
  • Implementation of preventive maintenance plans extends the life of vehicles and equipment, and their resale value.
  • Properly managing fuel tanks significantly reduces the risk of costly leaks going undetected and causing a very costly soil decontamination process 
  • Targeted training for drivers and equipment users increases productivity and your bottom line.
  • Increased productivity and service reliability translate into a better customer service reputation and leads to more customers and more business.

As you can see, the benefit of an FMS goes well beyond reducing operational costs; it is the key to improving your profit margins. If you would like to learn more about the benefits of an FMS, or where our clients have used the SM2 fleet management platform, please feel free to contact us. We are always eager to hear from you and help you with your unique needs. Or start a conversation and ask your questions here on our blog. The Coencorp team is always excited to answer your questions.

Topics: fuel management, maintenance management, fleet management, AVL, driver behaviour, vehicle tracking