At the Fleet & Asset Management 2011 conference, Conal Deedy, Solution Manager for Volvo Group Telematics gave the presentation “Fuel Management Systems: The Indispensible Investment”. In his talk, Deedy highlighted the fact that 31% of operational costs in trucking are fuel. In a low margin business like trucking, the effect of lowering fuel consumption by 5% can lead to an increase of 18% in company profitability.
Deedy asserted that these are the biggest factors affecting fuel consumption:
Take something as simple as tire pressure. According to Deedly, 50% of all truck tires are more than 10% under-inflated. A -10 PSI tire inflation equates to a -1% mpg reduction in fuel economy.
As we have documented in our white paper “Telematics ROI: The Human Factor” each 1 mph increase in speed over 55 mph reduces fuel economy by 0.1 mpg. Deedly stated that the most efficient drivers get about 30% better fuel economy and idling can account for 30-60% of a vehicle’s operating hours.
To save costs and increase profits, trucking companies need to focus on fuel savings. The best performing ones know that altering driver behavior requires both coaching and monitoring of drivers. Telematics solutions like ours give you the tools to both monitor and provide drivers with feedback to improve their fuel economy.