Roberta Wright, CEM and Fleet Coordinator for the City of Lynchburg, Va., has learned to shop around when it comes to fuel prices. In 2018, when she discovered she could get a better price from other vendors than the vendor on contract, she broke the contract and started to get quotes for every load of fuel. The net savings added up to more than $103,000 over 5 years.<\/p>\n
With an increasing number of supply chain issues, this year Wright has returned to contract purchasing, but with a twist. She asked participating vendors to show documentation of what they paid for the fuel, plus their constant, delivery fees and the total price per gallon of fuel for each load. \u201cIt’s not that I am trying to undercut everyone. It\u2019s my job to get the lowest price.\u201d<\/p>\n
While your business may not have the buying power of a municipality, the point is to keep vendors honest by keeping the fuel pricing transparent. \u201cAnyone can do it,\u201d says Wright.<\/p>\n
If you\u2019re fueling at retail, several apps can help you identify the lowest price for gas and diesel near you such as\u00a0Gas Buddy\u00a0and\u00a0Drivvo.<\/p>\n
2. Track fuel costs with fleet management software<\/strong><\/p>\n Wright highly recommends fuel management software to help managers keep an eye on costs. Reports from\u00a0FuelMaster\u00a0software show the vehicle number, who fueled the vehicle, the number of gallons, date, time, pump, and product. She adds in the fuel costs which change every time they load their two on-site tanks. \u201cHaving some type of monitoring system reduces theft,\u201d says Wright. When she sees fuel efficiency decreasing, she can have the maintenance team identify any issues.<\/p>\n 3. Dig into telematics<\/strong><\/p>\n Telematic data offers valuable insight into fuel efficiency and machine utilization. \u201cAcross the industry, telematics data is often underutilized,\u201d says\u00a0Larry Herman Jr, Telematic Support Supervisor at\u00a0RDO Equipment Co., which represents CONEXPO-CON\/AGG exhibitors John Deere and Vermeer.<\/p>\n According to Herman, many\u00a0factors can contribute to fuel burn rate and excessive fuel consumption.\u00a0\u201cTelematics systems, like John Deere\u2019s JDLink, can track utilization data including idle time, fuel consumed while in idle, and compare that data across the fleet to identify opportunities for improvement,\u201d says Herman. \u00a0JDLink\u2019s Machine Analyzer tool allows managers to compare data for the entire fleet, specific groups of equipment, or machine types.<\/p>\n Another area to focus on are the gears or modes the machine is being operated in. \u201cIf a machine isn\u2019t being operated in the optimal mode (eco, production, etc.) or in the optimal gear, it won\u2019t achieve maximum fuel efficiency,\u201d says Herman.<\/p>\n According to Herman, John Deere\u2019s JDLink system allows managers to see where their machines are hitting key utilization on job sites. This is based on machine load factors, engine loads, and gearing. \u2018Too much hard utilization and you are wearing the machine and burning more fuel,\u201d says Herman. \u201cToo Low utilization and you are burning excessive fuel where a smaller machine could better perform that work.\u201d<\/p>\n With telematics data in hand, managers and foremen have the information they can use to coach their operators to maximize productivity with utilization.<\/p>\n Herman encourages managers to sit down with a specialist at the dealer who can offer in-person or remote support to help customers delve into their data and capabilities. The answers aren\u2019t always clear-cut.<\/p>\n \u201cAuto-idle\/shutdown can be beneficial in some situations, but not every situation as each business and use-case is different,\u201d says Jacob Koon, an RDO telematics consultant based in Texas.\u00a0 \u201cFor example, an excavator on a pipeline job may be continually digging and have relatively low idle. That machine may be a good candidate for auto-shutdown because its job is to be constantly \u201cworking.\u201d\u00a0 However, another excavator on that same job may have very high idle because it\u2019s being used to hold the pipe in place while it\u2019s being attached.\u201d<\/p>\n The Association of Equipment Manufacturers (AEM) has shared an article titled, \u2018Tips for Minimizing the Impact of Rising Fuel Prices\u2019, authored by CONEXPO-CON\/AGG.<\/p><\/div>\n 4. Be transparent with customers when implementing a fuel surcharge<\/strong><\/p>\n California-based,\u00a0Graniterock\u00a0burns through approximately 3 million gallons of diesel fuel each year, producing and delivering concrete and other materials to customers in the San Francisco Bay area. \u201cWe pride ourselves on setting a price and sticking to it,\u201d says Rich Sacher, Executive Vice President of the Materials division. \u201cHowever, this year, we could never keep up with the velocity of change.\u201d<\/p>\n As a result, the company did something it has never done before\u2013 it instituted a fuel surcharge. The fuel surcharge is based on a publicly available data source and adjusted monthly.<\/p>\n According to Sacher, Graniterock chose a fuel charge, because they believe it is the fairest option that offers full transparency to their customers. To ease the burden, they stood behind customers with long-term commitments.<\/p>\n \u201cAnytime you have a challenge in a supply relationship or a contractual relationship it forces you to reach out and challenge each other,\u201d says Sacher. \u201cCustomers appreciate that the fuel surcharge is something they can clearly show to their own customers.\u201d The company announced the surcharge in a letter to customers and explained the decision in both a\u00a0video\u00a0and podcast.<\/p>\n Across the industry, fuel surcharges have become more common. In some cases, contractors and government agencies are delaying projects and\/or spreading out work over a longer time period in the hopes that fuel prices drop and work can be completed more efficiently.<\/p>\n 5. Convert trucks to compressed natural gas hybrids<\/strong><\/p>\n With compressed natural gas (CNG) priced at $2.52 per gallon, converting your trucks to run on CNG and gas, or CNG and diesel can bring significant savings, all while reducing emissions. Conversion kits from\u00a0Green Energy Solutions\u00a0effectively convert your trucks to dual-fuel hybrids, running approximately 20-30% CNG.<\/p>\n According to Business Development Manager\u00a0Kyle Flint, one of their clients, Oklahoma-based\u00a0B&H Construction, has seen fuel costs go from $11,600 per employee to $4,800 per employee after converting most of their truck fleet. \u201cEverything more than a half-ton has been converted,\u201d says Flint.<\/p>\n Conversion kits are easily installed and include a tank package suited to the vehicle, plus hoses, tubes, fittings, pressure regulator fuel delivery system, sensors, and processors. The cost for a diesel assist kit is approximately $15,000-$20,000, while the cost for a gas kit is $13,500-$15,500. There are a number of government incentives for organizations that convert their vehicles to CNG because it is a renewable, clean-burning biofuel. Green Energy Solutions will have products on display\u00a0at CONEXPO-CON\/AGG 2023.<\/p>\n![\"\"](\"https:\/\/www.findadistributor.com\/news\/wp-content\/uploads\/2022\/07\/Screenshot-2022-07-25-at-15.09.51.png\")
![\"\"](\"https:\/\/www.findadistributor.com\/news\/wp-content\/uploads\/2022\/07\/Screenshot-2022-07-25-at-15.09.40.png\")