ABM Q4 - Flipbook - Page 75
OPINION
FLEET
Marginal gains to
manage rising costs
→ David Bushnell is director of consultancy and strategy at Fleet Operations
W
ith fuel prices soaring to
record highs, controlling
costs is once again high
on the fleet agenda.
Although fleets can’t
control global oil
markets or wholesale
prices, they can control
how, where and why
fuel is being used across their business.
There’s no silver bullet, but small
improvements can move the dial.
Beyond pump price and MPG
The cheapest pump price won’t always
be the cheapest option overall. Sending a
driver several miles off-route to save 2p
a litre can quickly wipe out the benefit.
Fleets should consider the routes
drivers are taking, and where it makes
most sense for them to fill up. Agreeing
preferred stops in advance and steering
clear of expensive motorway fuel can
be sensible,
Fuel cards can also help, but only if the
network works for how a fleet operates.
There’s little to be gained if drivers must
travel further to participating stations.
Miles-per-gallon (MPG) has its place,
but fleets can delve deeper by linking
fuel to productivity. For an engineering
firm, for example, this might mean
measuring litres per completed job.
Mileage can quickly add up if
engineers have to head back to their
depot for parts or return to the same
job later in the day, while poorly planned
schedules add further miles.
Idling can be another issue. Fleets
can use telematics data to target the
problem more effectively.
Even an improvement of just one mile
per gallon across a large fleet can make
a difference.
Pay attention
Fuel efficiency is also affected by
what condition and what vehicles are
carrying. Vans can accumulate obsolete
stock, duplicate tools and equipment.
Roof racks, ladders and outdated
fit-outs can add weight and affect
aerodynamics.
Something as simple as low tyre
pressure can affect fuel use, while
telematics data can help flag problems
sooner. However, tech platforms will
only deliver ROI if the insights they
generate are acted upon.
Bring drivers with you
Blanket MPG targets can be unfair
when people are doing different jobs,
in different vehicles and operating
environments. Targets should reflect
what’s realistically achievable.
Good performance is also worth
recognising. Small rewards help get
drivers on board with efforts to reduce
fuel consumption.
The same applies to plug-in hybrids.
They only deliver their intended fuelefficiency benefits if charged, so
issuing them without a clear charging
policy and driver support can quickly
undermine the business case.
Plan ahead
High fuel prices should not be treated as
just a short-term pump-price problem,
but feed into wider decisions about
vehicle choice, use and the longer-term
transition to lower-emission vehicles.
Not every fleet can move wholesale to
EVs today, but every fleet can consider
whether vehicles are correctly specified,
journeys are being planned efficiently
and where there are opportunities to
right-size or reduce mileage.
Moreover, it’s worth looking across the
wider fleet to spot savings in areas such
as maintenance and vehicle utilisation,
which can help balance out rising costs.
For busy managers, independent
support can help identify where where
there’s scope to make savings. You can’t
control the market, but you can control
how your fleet responds to it.
Q4 2026
AUTOMOTIVE BUSINESS
75
