Entrepreneurs are always looking for ways to cut costs as it is an essential part to make a business more profitable. If you own a business that involves home deliveries to customers, then you might be worried about making profits due to high fuel costs. Telling your drivers not to use more fuel is surely not an answer. Read on to know how you can save huge $$ easily.
United States Weekly Retail Gasoline Prices
There is a lot of fluctuation in the gas prices over the period of time but problems like employee fraud, fuel theft, projecting accurate fuel costs are top pain points which have tremendously affected companies in delivery/transportation business.
Prevent fuel frauds and thefts becomes an important task and hence there are many management softwares which monitor and identify the problem and help improve fuel efficiency for drivers. One such software is Tookan – an intuitive delivery management software that empowers you to manage and track the dynamic field workforce. With Tookan’s tracking functionality you can increase fuel efficiency by identifying the room for improvement. Once you know the loopholes you can take steps to reduce fuel costs. Let’s list out some effective points by which delivery management software helps you boost the fuel efficiency by as much as 30%.
Avoid aggressive driving
“Jack-rabbit” starts and hard braking can increase fuel consumption by as much as 40%. Tests show that “jackrabbit” starts and hard braking reduces travel time by only four percent. The proper way is to accelerate slowly and smoothly, then get into high gear as quickly as possible to save fuel.
Avoid idling your vehicle
Idling wastes fuel, gets you nowhere and produces unnecessary greenhouse gases. Paying attention over idling you can reduce time by 45 minutes per vehicle per day. Tookan gives you an idea of when your vehicle is in transit for a delivery or is moving idly. This can help you cut down the extra miles travelled by your drivers.
Service your vehicle regularly
According to the manufacturer’s instructions. A poorly tuned engine can use up to 50% more fuel and produces up to 50% more emissions than one that is running properly and gets services regularly.
Whether you are going across town or across the country, following shortest route with the help of Tookan’s route optimization will help you combine several errands in one outing, saving you a lot of fuel. Delivery management softwares like Tookan provide you with best optimized route according to the type of vehicle with live traffic status for chosen route.
Fuel card integration
Fuel cards can be used to help control fuel costs. Integrating fuel cards with tracking system gives the complete visibility over the amount of fuel spent. Tracking of fuel cards help manage costs by vehicle and/or driver.
Benefits of using a Delivery Management Software:
Earlier, managers used to rely on pen and paper or spreadsheets and often do a lot of guesswork to put the things together, but with Tookan you’ll see a lot of improvement related to budgeting, maintaining database, monitoring employees and distance travelled.
Let’s say you have 10 drivers who collectively complete 150 tasks a day. On average if they travel 5 miles for a task without a delivery management software, a good solution in place which provides route optimization can reduce the distance to an average 4.4 miles a task.
So the total distance travelled in our hypothetical month without using a delivery management software is 750 miles a day. On the other hand, if you use Tookan the distance travelled is 660 mile a day. Nailing down:
- 90 miles a day
- 2700 miles a month
- 32,400 an year
Assuming that average comes out to be 4 miles per gallon and price per gallon for the period is $3, you can make a huge saving of:
By now you know how Tookan can automate a lot of guesswork out of the equation providing great insights into drivers operations. Apart from this, Tookan can help you save huge on your fuel costs.