When it comes to fuel, remote working operations such as construction sites, open pit mines, commercial farming and logging operations create unique challenges for the fleet or operations manager.
Most successful entrepreneurs can tell you stories of humble beginnings where their product and service development slowly eased into their targeted marketplace. This is not necessarily so for the Tavassoli brothers and Coencorp. Their beginnings were far from humble and they exploded onto the transit scene with one of the country's largest public transit companies. Here is what happened.
According to some recent statistics on AutomotiveFleet.com, the repair cost (labor and parts) of running your aging fleet increases annually by 5% to 7%, but when you look closer at the segment breakdowns, the numbers are much more dramatic. Looking at “Repair Spend by Odometer” we see the cost rise almost 10 times, once the vehicle hits over 90,000 km and “Repair Spend by Months in Service” shows a jump of nearly 8 times, once we get past the 37-month mark. Furthermore, these statistics exclude regular tire and oil changes, rental of replacement equipment and emergency overtime costs, or accident expenses. If these jumps seem extreme to you, it’s because they are, but they are a manageable part of the cost of maintaining a fleet. Keeping your fleet assets (vehicles and other mobile fueled equipment) and drivers safe, productive, and mobile is pivotal to reaching your organization’s sales and service goals. A great Fleet Management software will help you keep an educated eye on your maintenance costs, indicate when they begin to rise, and how to plan for optimization of the fleet. So, what can you do to keep your fleet in optimal shape?
The business world was rocked when Stephen R. Covey, the author of the best-selling book said, “ineffective people live day after day with unused potential.” Industry leaders, managers, and entrepreneurs everywhere quickly realized he wasn’t only talking about people, he was also describing the primary factors limiting a company’s growth.
Being a fleet manager has its unique challenges.
The Bad News
Buses running out of fuel on the road occurs far more often than most people would believe. It is a major, very expensive problem, in terms of both money and citizen good will. The problem is much more complex than it seems, but also a lot simpler to solve than many within the industry believe .
The global construction industry accounts for between 25-40% of the worlds carbon emissions from all its gas-guzzling assets. It’s no surprise construction companies are under intense scrutiny over fuel consumption. Increasingly rigid government regulations are demanding accountability for every drop of fuel that goes into an asset’s tank and how every one of those drops are being spent. Public opinion now plays an equally strong value on sales and gas-dependent companies need to get green to keep and gain more clients, especially regarding lucrative government contracts. Construction fleet managers are needing to report on behaviors they once took for granted and providing detailed data beyond the amount of fuel purchased. They need to know where, how, and why it’s being spent. Traditional methods of manual data collection are no longer adequate and new industry leaders must implement more efficient solutions. The need for accurate reporting tools has become clear, and gas giants like BP are painting perspectives for their customers on the imperative benefits of having automated & integrated fuel management systems, like SM2. At Coencorp, we always start with the individual’s unique needs, so let’s start there to illustrate what BP is telling all fuel consuming industries.
Across industries and markets, we hear the call to real-time data collection and its importance to profitable big data analytics. Companies with fleets to manage have known this for a long time and continue to partner with fleet management system (FMS) suppliers to improve business practices and outcomes.
When people think of fuel management systems (FMS), the first thing that usually comes to mind is some kind of terminal at the pump identifying users and vehicles via cards, key tags, and ID numbers punched on a keypad. In other words, they think of what is mostly the control aspect of a FMS. Although control is an important dimension of such a system, there needs to be more going on than that.
Let’s start by getting the obvious out of the way. After labor, fuel represents the highest cost of running a fleet. If you have your own fuel tanks and pumps, you need a fuel management system. No ifs, ands, or buts about it. The level of sophistication and control required will vary from one place to the next, but the need to have a minimal level of distribution control is undeniable. Fuel is expensive, and constantly buying it without knowing who takes it, how much of it and where it goes is as unacceptable as having a bank account without the same level of control.
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