September 2008, Automotive Fleet - Feature

60 Ways to Reduce Your Fuel Spend

By Mike Antich

 

45. Eliminate Pickups When Possible.

Some companies are eliminating trucks and shifting to crossovers, if able to fulfill the fleet application. One company shifting away from pickups is Advanced Stores Co. Inc.

“In the past, our fleet consisted of 100-percent light-duty pickup trucks,” said Carol Davies, CAFM, fleet manager, store support center for Advance Stores Co. Inc. in Roanoke, Va. “In 2008, we moved to the Pontiac Vibe for an increase in fuel economy. We have built the fleet up to 13 percent of our fleet and expect to grow that number in 2009. We have increased our fuel mpg by 9 gallons per mile.”

Another example is Flowserve Corp. “We are working with our drivers to reduce the number of F-150 Super Crews unless a truck is truly needed for the job,” said Lakes. “In the past, it was just one of our four choices that anyone could order. Our new process has helped us save money by only using trucks where essential.”

Another company decreasing the number of pickups in its fleet is USG. “We have eliminated the number of pickup trucks and are extending their replacement mileage,” said Williams of USG.

46. Tighten Driver Eligibility.

The rule of thumb is that an employee must drive a minimum 12,000 business miles a year to be eligible for a company-provided vehicle. Some companies are increasing this to a minimum of 15,000 business miles to eliminate marginal drivers and to reassign responsibilities to other drivers.

Sprint Nextel has eliminated nonessential drivers to reduce fuel spend. “We took over 500 nonessential vehicles out of the fleet,” said Bret Watson, CAFM, national fleet manager for Sprint Nextel Corp.

Fuel Management

47. Police Exception Reports.

Fleet managers are paying increased attention to exception reporting provided by their fuel management providers. Identify drivers who purchase more gallons of fuel than the capacity of their fuel tank at a single refueling. This may indicate that a driver is fueling another vehicle or storing fuel in gasoline canisters for personal use. Also, monitor multiple refueling during the weekend and too-frequent refueling that doesn’t correspond to a vehicle’s mpg.

“We are keeping a close eye on exception reporting, such as the use of premium fuel, fuel purchases exceeding fuel tank capacity, etc., and raising awareness of drivers’ need to perform regular PMs, keep tire pressure monitored, and reduce cargo load,” said Barlage of Regis Corp.

Another fleet aggressively enforcing exception reports is Toshiba America Medical Systems. “I receive a premium fuel purchase report from our fleet management company, and I send an e-mail to those employees reminding them of our policy to not purchase premium fuel. For those who do not listen, I escalate it to their managers,” said Berg of Toshiba America Medical Systems.

Agreeing is Hodgdon of E.A. Sween Company. “We have tightened up our fuel usage monitoring program,” said Hodgdon. Likewise, H.J. Heinz Co. in Pittsburgh, Penn., has adopted a more in-depth “watchdog” approach to fuel expenses, said Fleet Manager Paula Bucklad. “We are working with those with company vehicles as opposed to working against them. We are alerting them to ways of conserving fuel, as well as the grade of fuel to purchase,” said Bucklad. “If you are straight-forwarded with the employees as to ‘what the flip side of the coin could be if the costs continue to escalate,’ they tend to work with you.”

48. Investigate Fuel Hedging.

“We will likely investigate fuel hedging for CY2009. Hedging doesn’t necessarily save you money, but it can smooth your expenses and avoid price spikes,” said LaPorte of Iron Mountain.

49. Use Tier 2 & 3 Fuel Suppliers.

“We began an initiative last year to increase fuel purchasing volume with Tier 2 and Tier 3 suppliers, who typically charge less. Already, we have increased our volume by 15 percent,” said Michael Bieger, senior director – shared services for Automatic Data Processing.

50. Don’t Buy Premium Fuel.

Use a high-quality fuel with the lowest appropriate octane rating. Check the owner’s manual for the manufacturer’s recommendation.

There is no benefit to using premium gas in a vehicle calibrated for regular unleaded. Resist the urge to buy higher-octane gas for “premium” performance, unless the vehicle requires it. Octane has nothing to do with gasoline performance. “Octane is a resistance to knock and does not influence the volatility factor of fuel,” said Keig. “Many people associate premium fuel to be better for an engine, which is simply not true.” Unless the vehicle’s owner’s manual specifically requires it, don’t use premium fuel. Most fleet vehicles are designed to run on unleaded regular and filling up with premium only increases cost, not performance.

Fuel costs could go down as much as 10 cents per gallon by buying regular fuel instead of premium.

51. Buy Fuel in the Morning.

To maximize fuel economy, Kelley Blue Book suggests buying gasoline when the temperature is cold and gasoline is at its densest. Consumers are charged based on volume, not density. Buy gasoline during the coolest time of the day or first thing in the morning. Conversely, heat causes fuel to expand and overflow. Don’t completely fill the gas tank in hot weather.

52. Maintain Constant Awareness of Market Prices for Fuel.

“Our managers are tied into every local fuel location in their geography and they check prices everyday. We move from one fuel stop to another to save a nickel a gallon,” said Paul Gossard, corporate director of safety, risk management, and quality assurance for Permasteelisa in Miami, Fla.