Enhancing the Performance of your Haulage Business (Part Two)

Fuel Mgmt

FUEL MANAGEMENT SYSTEM

With fuelling accounting for 30% (if not more) of the operational cost of most haulage businesses, it will make a lot of sense to state that a policy geared towards reducing fuel consumption or getting better mileage for same volume of fuelling will most assuredly impact positively on haulage operational efficiency and performance. Within the haulage industry in Nigeria and most especially for haulage businesses that are driven by contract-based engagement with manufacturing majors, the common practice has always been that the manufacturing companies put in place an internally managed fuelling structure (a solution probably devised to address distribution disruptions resulting from perennial fuel scarcity typical of our operating environment) that ensures loaded trucks are fuelled and discharged instantaneously. However, in view of reported instances of fuel contamination, alleged collusions between drivers and fuel deport managers and conflict over ration discharged to trucks, we are beginning to see more and more haulage companies undertaking the direct fueling of its assets through the establishment and maintenance of fuel dumps on site.

Therefore, an efficient fuel management system will involve a series of well-coordinated and deliberate actions towards better management of fuel from purchase to storage and then use throughout the life of the trucks in the company’s operation. A successful fuel management system will among others lead to:

 

Reduction in distribution costs 

Improvement in operational efficiency 

Reduction in the environmental impact of its distribution operations resulting from a fall in emissions.

 

Effective fuel management regime can be institutionalized if the following determinants are properly addressed:

 

Driver Training

Fuel recording systems

Driver Training

Research and experience has shown that a single most-important contributory factor to the issues of fuel is the Driver in terms of their technique, experience and style. Driving technique and style, most especially the ones connected to the below listed, impact on fuel consumption:

 

Speed

idling time 

Harsh braking 

Rapid acceleration

It therefore follows that a responsible haulage company will place serious emphasis on proper training for its drivers especially in programmes that address eco-driving and defensive driving. A further complementary solution may involve the company putting in place an arrangement (computerized or otherwise) that monitors these flashpoints as enumerated above and match it with some incentive scheme which will be closely monitored and managed. Several of the fleet management solutions have the capacity to generate these flashpoints. The system would however have to be actionized in ways that affords each driver the opportunity to explain deviations and under-performance so as to preserve drivers’ morale. In addition, each driver’s performance may be displayed on a notice-board, showing current fuel performance, last year’s fuel performance and the driver’s individual target. A league table of this sort allows drivers to compare performances and also engenders some friendly competition and motivation.

 

Fuel Recording Systems

Effective fuel recording systems helps to measure and monitor your usage of fuel. This may take the method of simply recording fuel pump readings manually for each vehicle and subsequently combining these readings with vehicle distance travelled in order to generate Kilometer per litre index. It may also be through linking appropriate fuel consumption metrics on truck’s dashboard to remote telematics assessment location or division for a generation of similar parameters. In executing this dimension of efficient fuel management system however, care must be taken to swiftly closeout exogenous variables which may affect the integrity of fuel management indices such as data entry problems, power supply issues, leaks from the tank or pipework or possibly fraud. Early and swift reactions to these issues will translate to more savings in operational cost.

………………..To be Continued in Part Three.

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