Additional Tips from Fleets
Using Passive GPS Increases Routing Efficiency
Mark Wilson, Operations Manager
Swish Maintenance Limited
Ontario, Canada
Cleaning products supplier
Fleet size/type: 10 Cube vans, 12 service vans, 15 passenger vehicles, 15 tractor-trailers
Wilson is tackling rising fuel costs with GPS tracking reports, pump savings and more fuel-efficient vehicles. Wilson uses a passive GPS system, which does not allow real-time tracking but also does not incur a monthly charge. He uses the reports to find out if a driver had to detour from his route too far so as to not make the stop cost-effective.
Wilson averages the cost per stop against the company's average margin on sales. For clients on the losing side of those numbers, he's been looking at ways to build the order and decrease the delivery frequency.
While he's seen his vendors tack on fuel surcharges to deliveries to his company, Wilson says it's not an accepted practice in his industry. Wilson has been able to use the tracking information to cut down on idle time as well. The company leases some trucks from Ryder.
The trucks save a few pennies on gas at Ryder fuel locations as part of the deal. The company mandate is for fuel-efficient vehicles, Wilson says. Wilson analyzed the cap costs, fuel efficiency and resale value of a Camry hybrid versus a Chevy Impala and factored in his sales force's annual miles. He found that the Camry hybrid became cost effective in the third year of use, so he bought the car.
"We want to be friendly to the environment. So even if [the costs] came out the same, we didn't use the fuel," Wilson says.
Preventing Fuel Pilferage
Fred Sprenza
Transportation Manager
ARC Broward, Inc.
Sunrise, Fla.
Disabled care agency
Fleet size/type: 50 12-15 passenger vans, Ford E350, Chevy Express vans
Sprenza uses a fleet fuel card to monitor fuel purchases and thus lower the fuel bill. "By reviewing the fuel card reports I recently discovered that a particular driver's van was getting only three miles per gallon.
It's an older van but it was running fine with no computer trouble codes. One day I followed the driver from the agency on her morning run to a local gas station. Lo and behold another SUV pulled up behind her and proceeded to fuel up on the same pump and the same purchase.
I confronted her when she returned to the agency. It turns out it was her boyfriend's vehicle. I fired her on the spot for the fuel pilferage."
Most industry experts agree that a 15 percent savings in overall operating costs is possible by using a fuel management program.
Switching to Propane
Rick Longobart
Fleet Services Superintendent
City of Inglewood Fleet Management and Transit Services
Police, water and sewer, street division, facilities, public transportation and motorpool
Fleet size/type: 600, vehicles and equipment to facilitate the above
The City of Inglewood is switching most of its fleet to run on propane fuel. This is no small undertaking-it involves installing a 1,200 gallon propane tank and digital fueling dispenser that will interface with the existing fuel management system.
The city secured a Propane Energy Resources Council (PERC) grant, which is available to government and private businesses. The grant will cover the cost of the electrical installation for the propane station and leave a balance of $253,000 in grant funds to replace and retrofit older equipment.
The switchover is driven by the very low cost of propane. The cost per gallon, which depends on quantity, is presently $1.27 for Inglewood's fleet. Longobart estimates savings of $30,000 per year by operating city vehicles on propane.
Because propane-powered vehicles operate cleaner, Longobart expects to see additional savings in maintenance.
Getting Serious on Idling
Stuart Aust
Owner and Founder
BugDoctor
Paramus, NJ
Termite pest, bird and animal control Fleet size/type: 25 vehicles, VW bugs, Ford Rangers, F-150s.
Aust has a GPS tracking system installed in his fleet, and has been using it to get serious on lowering idle times. He was able to correlate times on one employee's cell phone bill with the GPS tracking reports to know that he was on a break, staying cool in the truck while making a personal call-for two hours in one day.
"Anybody that's idling for more than five minutes gets spoken to by a manager right away," says Aust. "We tell the guys if you're sitting in the vehicle you're obviously not working on the account, so we're going to consider idling a break. After 15 minutes we consider that downtime."
Aust has tightened up efficiency in routing by cross-training employees for both animal and termite control. Now two faraway jobs, which previously would have required separate trips, can be handled by one tech.
"There's an investment up front, but in the long run it's helping us to be more efficient," Aust says. Aust also uses routing software specifically designed for the pest control market. Originally both technicians and inspectors drove pickup trucks.
Now only the service techs drive the trucks. The inspectors drive fuel-efficient VW Beetles, which also serve as mobile billboards for the pest control company.
Weighing the ROI of "Right-Sizing" the Fleet
Joe Christenson
President
Plumbing Plus and Remodel Works Bath & Kitchen Poway, Calif.
Kitchen, bath plumbing and remodeling Fleet size/type: 30, Chevy 3500 service vans and 1-ton pickups
To save fuel costs Christenson has been "right-sizing" his vehicles to the specific job. He moved a drywall specialist out of a van and into a more fuel-efficient Toyota Tundra pickup with a truck cap fitted with bins and side openings. The change upped his fuel economy from 10-11 mpg to 16-17 mpg, though it hurt on the marketing end.
The large white space on the vans makes for great mobile billboards; not so for the pickups. For the remodeling business, he'll probably stick with the vans. "We were able to do $366,000 worth of business last year on the remodeling side just from people who saw our trucks, or about $20,000 worth of business per vehicle," Christenson says.
Christenson says he'll move toward diesel-powered vehicles for greater fuel savings and longer engine life. Because each van drives more than 25,000 miles a year, he'll recoup the initial diesel premium in a year.
The company is also investing in a custom-built scheduling program for more efficient routing. The program gives each job type-bathtub installation, laying tile-its own code. The codes correspond with each employee's skills. Jobs can be scheduled precisely factoring time, distance, skills and materials needed.
The scheduling program may run as much as $10,000 to build and install, but fits into Christenson's philosophy of automation. He only has one person in accounting; similar businesses have four.
The company streamlines procedures using two GPS systems, one of which processes timecards electronically via Nextel phones.