Over the past month, we’ve seen record high gas prices hit as unpredictable changes in the market manifest. This is, without a doubt, going to affect the bottom line of your company, specifically at it’s fuel bill. There doesn’t seem to be a clear answer as to whether or not this trend will continue or if we’ll see prices fall either. So how will your business ensure that you stay afloat during such dramatic price trends?
Prices haven’t been as high as they are now since September 2014 and there doesn’t seem to be any end in sight. In Calgary, as of this blog entry’s writing, gas prices have hit an average of 167.9 at most stations across the city. One can only imagine how much this will cost a business that relies on fuel for their vehicle fleets as a part of their daily operations. However, now is not the time to spend less on gas but rather learn to optimize your spend instead.
It’s not just commuters who will feel the pinch of rising gas prices.
ROUTE OPTIMIZATION:
If your business relies on vehicles to complete daily operations, you will want to learn how to best optimize the routes your vehicles take. This can be done easily with software that third parties can provide. With route optimization software, you can begin to choose the most cost-effective routes for your vehicles (or entire fleet) to take every day.
Common software features include the ability to show the number of stops, locations, deliveries, and turns/intersections. They are also capable of showing traffic patterns, time windows, and more. All of these are calculated together so that you don’t have to do any heavy lifting and simply have the best routes chosen for you. This will ensure that your vehicles will always take less time driving, reduce their fuel costs, and increase productivity. There are plenty of third-party route optimizing software companies out there, so it’s best to shop around and find the one that best suits your company needs!
PRACTICE AND IMPLEMENT DRIVING BEHAVIOURS:
While technology will always offer huge benefits to your bottom line, it’s always going to come down to the nitty-gritty aspects of your business that will generate savings and increased productivity. Keeping your drivers up-to-date on best driving practices is the next best thing to ensure that your fuel costs are reduced.
The Government of Canada has outlined 5 tips for fuel efficiency that should be adopted by your business:
- Accelerate gently
- Maintain a steady speed
- Anticipate traffic
- Avoid high speeds
- Coast to decelerate
We also recommend that you tell your drivers to avoid idling in order to save on fuel. If your driver is stopped for more than 60 seconds outside of traffic, have them turn off the engine.
Be sure to top off your tires as well! Deflated tires can result in excess fuel consumption up to 4%. Schedule regular vehicle maintenance check ups to ensure that everything is running optimally to avoid any unnecessary expense.
GO WITH AN EXPERT:
Finding external companies to help audit your business’ fuel consumption can be an invaluable method of reducing costs. For example, Watchdog Management Services has over 40 years of industry experience in Utilities, Telecommunications, Waste Management, and more. Services like ours can help pinpoint where your business can reduce fuel consumption and even hunt down the better prices. If prices can’t be lowered, we can identify areas that could be optimized so that you can increase productivity while spending the same amount.
By going with a third party cost management company like Watchdog Management Services, it ensures that you can focus on the everyday operations without worry. Wouldn’t you want to be able to run your business without the responsibility of balancing fuel bills?
While we can never predict the future, we can prepare for it. We hope that these tips help your business find savings and help reduce fuel consumption. Get in touch today to receive a free audit and start saving!
