Reduce driver expenses and fuel expenses
Reducing driver expenses and fuel expenses can bring immediate changes in the profitability of your transport management business.
Challenges in managing driver expenses and fuel expenses
Global factors: Fuel prices in Africa are heavily influenced by global oil prices, which can be unpredictable and prone to sudden spikes. This makes it difficult for companies to accurately budget and forecast fuel costs.
Local taxes and levies: Many African countries have high fuel taxes and levies, further increasing the overall cost of fuel for transport companies.
Driver behavior: Without proper training and monitoring, drivers may engage in practices that increase fuel consumption, such as speeding, harsh acceleration, and excessive idling.
Driver theft: Fuel theft by drivers can be a significant issue in some regions. This can be due to a lack of oversight or deliberate manipulation of fuel receipts.
High driver turnover: Finding and retaining qualified drivers can be challenging in Africa. High turnover rates necessitate constant recruitment and training, impacting efficiency and potentially leading to risky driving habits by new drivers
Fuel-Efficient Driver Training: Equip drivers with the knowledge to save fuel. Train them on eco-driving techniques like smooth acceleration, maintaining optimal speeds, and minimizing idling.
Route Optimization with Technology: Utilize advanced route planning software that considers traffic, road conditions, and distance to find the most fuel-efficient routes for deliveries.
Telematics for Driver Monitoring: Implement telematics systems / geofencing to track driver behavior. Identify areas for improvement, like harsh braking or excessive idling, and provide targeted coaching to promote fuel-efficient driving.
Consolidate Shipments and Maximize Loads: Plan deliveries to fill trucks whenever possible. Reducing the number of trips needed significantly cuts down on fuel consumption, manage empty returns
Embrace Preventative Maintenance: Regularly maintain vehicles to ensure optimal engine performance and fuel efficiency. Proper tire inflation, air filters, and oil changes all contribute to better mileage as part of fleet workshop management
Invest in Fuel-Efficient Vehicles: As budgets allow, consider replacing older vehicles with newer models equipped with fuel-saving technologies like aerodynamic design and engine optimization.
Fuel Management Systems for Visibility: Implement fuel management systems to track fuel purchases, monitor consumption patterns, and identify potential theft. This allows for informed decision-making and cost control.
Automated Scheduling and Dispatch: Utilize automated scheduling software to optimize driver allocation and reduce planning time. This improves efficiency and frees up driver time for core tasks.
Fleet Management with Telematics: Leverage telematics for real-time vehicle tracking. Improve fleet management by identifying unauthorized vehicle usage, optimizing response times to issues, and ensuring driver safety.
Strategic Fuel Purchasing: Explore fuel discount programs or negotiate bulk fuel purchases with suppliers to potentially lower fuel costs per liter
Contact us to learn more about transport management software and freight forwarding software modules related to driver expenses and fuel expenses.
