Strategies to Prepare for Rising Fuel Prices in 2012
Guest Blogger Info:
Today’s guest post comes to us from Derek Singleton, ERP Analyst at Software Advice. Software Advice helps buyers find the right software for their business by constantly publish product profiles, comparisons, best practices guides and other research to their website. Experts are also available by phone to provide free consultations for software buyers.
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Over the last few years, everyone has been feeling the pinch from the rising cost of fuel. Many businesses and fuel procurement offices have assumed that if they could just get past a couple of tough years, that fuel costs will stabilize. If there’s one thing that’s become clear over couple year, it’s that high oil prices are here to stay. 2011 set a record for highest average inflation-adjusted fuel price, and 2012 is projected to keep pace with those levels.
While the high cost of fuel can be a vexing problem for businesses everywhere, it’s can be a major obstacle for shippers and carriers. Luckily, there are a few things that companies that manage a fleet can do to manage the rise in fuel prices. Here are two ways that companies help reduce the impact of high fuel prices on their bottom line.
Improve Procurement of Fuel
One of the main trends that we’ve seen in the oil and gas market over the last couple of years is increasing volatility. It’s not uncommon for the market to swing five cents per gallon on a given day. If you find yourself on the wrong side of a purchasing decision when buying thousands of gallons of gas, you can quickly bleed money and go over budget. There are some automated solutions, such as FuelQuest, on the market that can help companies forecast demand, monitor on-hand fuel, and procure at the best market price. These solutions can help companies avoid buying at the wrong time and bolster their bottom lines-and they can often save four to six cents per gallon on fuel purchases.
Better Manage Your Fleet
After making better fuel purchasing decisions, better managing the fleet is a logical next step. While there are some very impressive new technologies (e.g. eco-friendly engines and aerodynamic trailers) on the market, these can be pricey investments. Where companies can get a far better bang for their buck is in employing highly-skilled drivers that are versed in fuel saving technique such as smooth acceleration and momentum control. A skilled driver can save, on average, anywhere from five to 20 percent in fuel efficiency. Another boon is keeping tire pressures at proper inflation levels as a three percent variance in air pressure impacts fuel efficiency by one percent.
Plan Routes More Intelligently
A final way save on fuel costs is to better plan the way that shipments are delivered. This boils down to both delivering along more efficient manner routes as well as shipping loads more efficiently. There are a number of technology solutions that have been developed to help fleets shave off fuel costs by planning routes that require fewer miles and fewer stops. One of my favorite examples of how effective route planning technologies can be is how UPS saved on fuel costs by minimizing the number of left-hand turns that drivers make. While was just a minor change in the way UPS delivered their packages, it ultimately wound up saving them more than 10 million gallons of gas.
These are just a couple of ideas on how to save on fuel costs. For more strategies to reduce fuel costs, you can visit the Software Advice – an online resource for distribution business software. The original post can be viewed at: Three Strategies for Reducing Fuel Costs in 2012.
To learn more about Fleet Management technologies that help fleet managers increase efficiencies and decrease costs such as those incurred by speeding, idling, and poor driving habits click here.
Canadian company wins Metro Transit contract in Oklahoma City
We would like to take this rare opportunity to toot our own horn and direct you to this press release about an exciting new project in Oklahoma City. Mentor Engineering was awarded a contract by the Central Oklahoma Transportation and Parking Authority to implement a GPS-based automatic vehicle location (AVL) and passenger information technology system for Metro Transit. This system goes beyond simply tracking Oklahoma Transit’s buses: it will help improve schedule and route adherence, give passengers better, real-time bus departure information and ultimately help Metro Transit better study its service.
To read more about this exciting project, click here.
Putting an End to Distracted Driving
The stakes for fleet drivers using hand-held cell phone devices while driving just got higher. This article outlines the regulations and implications from a Department of Transportation (DOT) final rule on distracted driving. Ray LaHood, U.S. Transportation Secretary, has announced a final rule that will hopefully put an end to distracted driving in fleet-based industries. The Federal Motor Carrier Safety Administration (FMCSA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA ) have issued a joint bill that will prohibit interstate truck drivers and bus drivers from using hand-held cell phones while operating their vehicles.
As a result of this final rule, drivers who violate the rules will face a $2,750 penalty for each offense and disqualification from operating a commercial motor vehicle for multiple offenses. It is not just drivers that will face hefty penalties for violating the hand-held cell phone ban: commercial truck and bus companies that allow their drivers to use hand-held cell phones while driving will face a maximum penalty of $11,000.
According to Norm Littler, VP, regulatory & industry affairs, for the American Bus Association, the best way for carriers to protect themselves in the event of an incident is by having a clear and concise written rule in place which states the use of hand-held cell phones and texting is against company policy and make sure all drivers have read and signed off on this policy. Also, Littler recommends that carriers frequently revisit and adjust existing policies.
You can access the final hand-held cell phone ban rule from the DOT here. To learn more about technology options to prevent distracted driving, click here.
6 Ways to Improve Your Bottom Line with Electronic Dispatching
In the competitive taxi business, having any advantage over your competitors can make all the difference. An electronic dispatching and vehicle location system can set you apart from your competition and help you dramatically increase revenue. This whitepaper will highlight the benefits of an electronic dispatching/vehicle tracking system using examples from taxi companies like yours. Additionally, it will outline the most important things to consider when purchasing a solution.
An electronic dispatching and vehicle tracking solution consists of software in the office and mobile computers in your taxis. Rugged in-vehicle computers with integrated taximeters provide turn-by-turn directions for drivers and allow seamless communication between drivers and dispatchers. In the office, electronic dispatching software allows call takers or dispatchers to distribute calls quickly and fairly.
Benefits of an Electronic Dispatching System
Complete More Trips Each Day
An electronic dispatching system allows companies to streamline call-taking and dispatching to considerably increase the number of trips they can handle without adding additional staff. Call takers can enter customer calls and record customer requests for trip cancellations quickly and easily in the system. Repeat customer information is automatically filled in and allows calls to be dispatched in 3 to 4 seconds. Call information is sent in real-time to the driver’s in-vehicle computer. Days of telephone tag or clogged radios are over as trips are automatically assigned to the next available, appropriate driver.
This technology has revolutionized the way the Union Taxi Cooperative in Denver, Colorado does business. Since implementing an electronic dispatching system Union Taxi has completed an average of 12,000 more trips each month, which is fourteen times more trips than their competitors, without needing to hire any more staff.
Eliminate Inefficiencies
Best-in-class electronic dispatching/vehicle tracking systems include a comprehensive set of reports which allow owners and managers to effectively pinpoint areas of inefficiency. Identifying areas where your operation can improve, such as adding more vehicles to your busiest zones during peak periods, helps streamline operations and improve customer service. Additionally, managers are granted a completely transparent view into the daily operations of the fleet which allows them to correct undesired behaviors or reward top drivers.
United Blueline Taxi in Saskatoon, Saskatchewan has seen the benefits of positioning their fleet to provide excellent customer service. Operations Manager, Tony Rosina, says, “Quite often people will phone the other cab company (without an electronic dispatching system), wait 25 to 30 minutes, and then call us and we’re at their door immediately.” Speedy response times during peak hours have helped United Blueline gain a larger, dedicated customer base.
Read more
Beyond AVL: A Guide to Selecting a More Effective Mobile Workforce Management Solution
Automatic Vehicle Location (AVL) is being used extensively in virtually any industry that employs a fleet of vehicles. The benefits of AVL technologies are clear: AVL is a tool fleet managers and office staff can use to access real-time location information for every vehicle under their care. It can also indicate the status of each vehicle as well.
The information provided by using AVL helps managers make more efficient use of their resources; it also enhances the efficiency and effectiveness of fleet operations. While these are all great benefits for any fleet-based operation, AVL is only one part of a complete mobile workforce management solution. A mobile workforce management solution addresses not only vehicle location and status information, but goes further to streamline work order management, improve field operator safety and reduce manual data entry, as well as operating costs.
AVL is a small piece of a more important technological framework that mobilizes and automates your workforce. This white paper will discuss what a comprehensive mobile workforce management solution includes, the benefits of a complete mobile workforce management solution and provide guidance on how to select the right solution for your business.
Components and Benefits of a Complete Mobile Workforce Management Solution
A technology investment is meant to reduce costs and increase efficiencies, and a mobile workforce management solution that includes AVL will have a greater impact than an AVL-only system. According to a September 2010 Integrated Solutions article, a mobile workforce management solution “provides you with concrete data about the performance of your mobile workers and assets instead of wondering what happens when your workers drive away each morning… [and] real-time information allows you to make informed decisions on the actual use of your fleet instead of relying on guess work.”
The value of a mobile workforce management solution lies in its ability to mitigate common challenges faced by fleet managers, while at the same time, improving efficiency to increase revenue and reduce operating costs.
There are a number of components that make up a complete mobile workforce management solution. In its simplest form, it will consist of software in the office, a mobile computing device with integrated GPS in the vehicle and a cellular and/or satellite connection that exchanges data between the vehicle and the office. A mobile workforce management solution can also integrate with back-end platforms such as accounting, payroll, operations and maintenance.
Let’s take a closer look at the different components of a mobile workforce management solution and how they work together to improve your bottom line. Read more
Find Your Destination and Get Help Quickly with GPS
When you think of GPS, improving driver safety probably isn’t the first thing that comes to mind, but this KITV4 news story might make you think twice. This is one story of how GPS is being used to not only help drivers get to their destinations faster, but is keeping them safer as well.
Charley’s Taxi in Honolulu, Hawaii, has recently implemented in-vehicle mobile computers equipped with GPS for their nearly 200-vehicle fleet. This system not only helps Charley’s Taxi dispatch cabs to customers faster, but they are also realizing the many additional benefits of using such technology – namely, improving driver safety. The in-vehicle computers feature a panic button and GPS-based vehicle tracking capabilities so dispatchers can instantly locate vehicles and send assistance.
Now, instead of Charley’s taxi drivers declining trips at night time, or if they are concerned about their safety, they can take the fare and feel confident knowing that their system will help to improve their safety. As Charley’s Taxi driver Malig Williams says in the news story, “Now with the computer system I know that somebody else is watching for my back besides myself.”
To watch the entire news story go here. To learn more about the automated taxi dispatch and tracking technology that Charley’s Taxi is using, click here.
Defining Rugged: What is Rugged and Why You Need to Know
In the world of handheld and in-vehicle computers, “rugged” is often used to describe these devices and is used quite a lot as a buzzword – but what does “rugged” mean exactly? We’ll break it down for you.
From a user’s perspective, rugged refers to the device’s ability to operate under all exposed working conditions for the life of the unit. Since there are many different working environments, rugged means something different to each user. For example, a mobile computer used in a warehouse situation will most likely be exposed to dust and be dropped a lot, but won’t be used in extreme temperatures or rain; whereas a field service worker will need a mobile computer that can withstand extreme temperature fluctuations and protection from water ingress.
There are different levels of rugged, and these levels are best defined by its environmental specifications. The three most common and useful specifications are:
- Temperature range. This specification defines the operational temperature range of the unit. Working with a unit above or below this spec may cause the unit to fail.
- MIL-STD-810F/G. This is a standard issued by the United States Army’s Developmental Test Command and consists of a series of various environmental tests to prove that equipment qualified to the standard will survive in the field. Initially designed specifically to test military equipment, this specification is commonly used to test a wide range of both military and civilian products, such as mobile computers.
- IP (Ingress Protection. Defined by the international standard IEC 60529, an IP rating is used to specify the level of environmental protection of electrical equipment against solids and liquids. It determines what amount of size of solids or liquids can get inside the enclosure and possibly damage the device.
The importance of knowing if your mobile device is rugged, and to what extent it is ruggedized, gives you essential insight as to how a device will function in your work environment today and down the road. It also gives you the confidence that your mobile device will work when you need it, where you need it.
To read more about the benefits of rugged devices and why they are a smart decision from a TCO perspective, download this free whitepaper.
Listen Up: Vehicle Telematics 101 Podcast
We have another informative podcast for those of you looking to learn more about vehicle telematics and how vehicle telematics technology can impact your business. This podcast will provide listeners with a comprehensive overview of how a vehicle telematics solution can increase efficiency, scheduling flexibility, customer service, and fleet transparency while saving your organization money.
Also discussed in this podcast are common money-draining issues of monitoring speed and idling, hard braking and rapid acceleration, as well as engine diagnostics, vehicle maintenance, route optimization, vehicle location and minimizing unauthorized use.
Gain greater insight into how these technologies combine to help fleets reduce empty mileage, minimize fuel consumption, and optimize vehicle use to save money.
Listen Up: Resolving Key Mobile Workforce Challenges Podcast
Here’s an informative podcast that discusses ten common challenges faced by fleet managers today, and ways to resolve them using strategies that are within reach of any company. Learn from an industry expert with hands-on experience helping companies in the fleet management industry find solutions to issues such as:
- Data management
- Inefficient communication
- Asset tracking
- Driver behavior
- Operator safety
You will also hear how similar companies have improved the efficiency and safety of their fleets by using strategies offered in this podcast.
Listen and learn how you can boost productivity, increase safety and reduce operating costs by downloading the podcast here .
Watch It: Fleet Management Trends
Are you wondering what’s next for fleet management? RedBoard Biz™ has been tracking down the latest in technology solutions that will give companies a competitive advantage and provide them with tools and knowledge to improve their bottom lines.
Check out this video from the Roger’s Technology Showcase. RedBoard Biz caught up with Kurtis McGeachy, Director of Enterprise Sales at Mentor Engineering where he provides some insight into what the next big thing is for fleet management technology.
If you are interested in learning more about fleet management technology systems and how they can improve efficiency and more, go here.
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