TRANSPORT & LOGISTICS C
onstruction businesses and builders have been thrown a series of curveballs. The highest inflation levels in three decades, increasing interest rates and ongoing supply chain issues. Some are seeing their profit levels eroded while others are having to make changes to their business models. Many are analysing their businesses to see where cost savings can be made.
“For some businesses this rationalisation is their key to survival. Yet I think it is important that even businesses who have thrived in recent times take a look at the way in which they operate,” says Richard Lilwall, CEO of Quartix, the GPS vehicle tracking people.
The costs of fuel
Soaring fuel prices mean that the cost of running and maintaining vehicles is more expensive than ever before. In the UK, the Office for National Statistics (ONS) reported that average petrol prices rose by 12.6p per litre between February and March this year, the largest monthly rise since records began in 1990.
Lilwall says that there are however ways in which businesses, whether they run a fleet of many vehicles or operate using a couple of vans, can rationalise and reduce these costs. “When the right software is combined with an intelligent approach to vehicle management, costs can be reduced and emission levels lowered. There is a concept currently being championed across the industry called ‘eco- driving’. If adopted, it could be transformative. As the name implies, it will aim to cut carbon emissions.”
Eco-driving can also have a significant impact on the company bottom line, he continues. “Research company, OVE Consulting, estimates that eco-driving can create cost savings of up to 25%. For example, a construction company with ten vehicles, each consuming about 400 gallons of unleaded petrol per year, could save over £6000 through adopting eco-driving.”
An overview of eco-driving? Lilwall says that, in many ways, eco-driving is simply common sense. “It starts before a driver gets into their car or van. It is about committing to undertake checks we know we should do, but don’t always get round to. Underinflated tyres increase rolling resistance, resulting in up to 5% more fuel consumption, yet how many of us check the pressure of our tyres at least once a month.
“Furthermore, a poorly maintained vehicle can increase fuel consumption. A clogged air filter fills the engine with dirty air, leading to a loss in power from the internal combustion mixture.
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BETTER DRIVING CAN KEEP FUEL COSTS IN CHECK
With fuel costs soaring, it’s important that merchants think abut how their employees are driving as well as what they are driving, as BMJ finds out.
Regular maintenance of a fleet saves money on fuel and maintenance and extends the life of vehicles.”
Better driving behaviours Minimal speeding, instances of harsh braking or acceleration will help reduce fuel consumption. Lilwall says: “Gear changes should be around 2,500 rpm for a petrol vehicle and around 2,000 rpm for a diesel vehicle. By using an engine optimally, fuel spend can be reduced by a significant amount.”
Generally, it is seen as best practice only use the AC when really needed or when you are driving above a certain speed (depending on vehicle size this ranges between 45mph and 75mph). Another good tip is to avoid unnecessary idling, by turning off the engine once the vehicle is parked or if the vehicle has been idle for more than 20 seconds.
Ensuring best practice According to Lilwall, eco-driving is largely common sense, the difficulty for businesses is how can they ensure that their drivers follow these guidelines.
“Implementing a vehicle tracking solution can help play an important role here, giving companies visibility of how their staff are driving, enabling them to spot issues and coach
drivers where needed. Driving style reports allow managers to analyse the strengths and weaknesses of drivers as part of continual professional improvement,” he says. Some vehicle tracking solutions can be set to assign a driving score to each driver which is calculated using various criteria such as speed, acceleration and braking indexes, allowing business owners to identify poor driving behaviours through something like a league table. The data could then be used to encourage responsible driving.
“One Quartix client reported to us that a driver with above average speed scores totalled £1200 in fuel consumption, £96 in workshop repairs and just 1.5 hours of workshop labour time over a 3-month period. In the same 3 months, a driver with a poor speed score, covering similar mileage to the latter, used £150 extra fuel, cost the company an extra £2120 in repairs and incurred an astonishing 29.5 hours of workshop labour.
“By 2030, there is a requirement to switch to EV fleet solutions. This can be quite complex to navigate as there are many factors to consider ensuring this is both economically as well as technically viable. The good news is that there are savings to be made here by businesses in the meantime, working to be as efficient as possible.” BMJ
www.buildersmerchantsjournal.net June 2022
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