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What is Fuel Management Systems?

Updated at 12 Oct, 2021

— If you are in the fleet operating industry, there is no doubt that fuel management is the most difficult task. Discover more about this task.

What is Fuel Management Systems?

A fuel management system improves visibility into fuel patterns, such as inefficient or unusual behavior such as idling and theft. Statistics show that excellent fuel management may save up to 10% on fuel expenses, which is why optimizing your fleet's fuel efficiency is critical.

What is Fuel Management Systems, and how do they work?

If you are in the fleet operating industry, there is no doubt that fuel management is the most difficult task, in monitoring the overall fuel cost across the entire fleet.

Essentially, fuel management systems are designed to monitor and regulate fuel usage within the fleet, and it employs GPS technology to automatically create various sorts of comparison graphs, based on the distance traveled by the vehicle.

Fuel management systems properly monitor and track gasoline stocks as well as how fuel is delivered. This information can give you with exact information about fuel consumption.

For example, you can identify higher fuel consumption due to wrong tire pressure or the erroneous operation of the heat burners, and so on. Most significantly, it will offer you with critical information on fuel draining, gasoline fraud, and fuel overconsumption.

Fleet Management System

What Is the Importance of Fuel Management?

Fuel management involves being aware of all variables that have a direct and indirect impact on fuel use. In such manner, you may reduce not just your company's costs but also its environmental effect.

It is a hot subject in the business, and it will become much more relevant in the future, given the industry's margins.

Many transportation and logistics experts are still unaware of every single variable that influences fuel use. As previously said, the fuel management system delivers precise data, which is incredibly valuable to fleet managers since it reduces operating costs and, ultimately, the bottom line.

Fuel is frequently one of the most expensive expenditures for commercial fleets. In 2019, fleet managers indicated that fuel expenditures accounted for an average of 24% of overall fleet costs. It is obvious that lowering these expenses may result in significant savings for your fleet, yet managing fuel correctly can be a significant issue.

The cost of gasoline varies depending on where you live. Unpredictable economic circumstances, as well as changeable legislation, add to the problem.

Fuel management systems assist you in lowering your fuel expenses and increasing your fuel efficiency. By tracking inventory and idling time throughout your fleet, these technologies can detect inefficiencies in fuel utilization.

Fuel prices

Despite a significant decrease from 2018, fuel prices remained the second greatest line-item expenditure in 2019. Fuel expenses per mile were 39.6 cents in 2019, down from 43.3 cents in the previous year's study from the American Transportation Research Institute (ATRI) The majority of the fuel cost drop from 2018 to 2019 may be attributable to much reduced diesel pricing in 2019. In 2019, the average price of fuel was $3.06.

Fuel expenditures were the third greatest cost center after labor and equipment investment in private fleets, and stayed stable at 45 cents per mile from 2018 to 2019.

Beyond simple oil market economics, fuel costs are determined by a variety of complicated factors. For example, fleet size may be a significant effect in gasoline costs since enterprises with greater market strength can negotiate better price arrangements with petroleum suppliers. Larger fleets also tend to use newer, more fuel-efficient trucks, lowering the cost of gasoline per mile even further.

Average Fleet Cost of 2019 (US)

The Advantages of Using a Fuel Management System

In the long term, a fuel management system may save you a lot of money by reducing fuel waste, theft, and abuse. Equip your fleet with reliable, real-time data that can assist you in taking your business to the next level.

The following are some of the advantages of incorporating a fuel management system into your fleet:

  • Increased data precision

    Because human mistake in data collecting is prevalent, switching to an automated method ensures that the data is correct and up to date. Your fuel management system will update your data in real-time, allowing you to respond to problems quickly, enhance vehicle performance, and keep your fleet on the road for longer. The information is excellent for analysis and decision-making.

  • Lower fuel costs

    Fuel is one of the most expensive aspects of running a fleet, and a gasoline management system may help you save money on fuel. You will be able to see any irregularities if you have a good understanding of how much gasoline is consumed per car for each travel.

  • Fraud reduction

    Fuel theft is a major problem in the sector. Fuel skimming is a process through which thieves replace card readers at gas pumps with a skimmer that records cardholder data, resulting in fraud charges. And, with a fuel management system, it is possible to keep track of the exact amount of fuel consumed as well as when the fuel is used. You may use this data to identify and address security risks in your fleet.

  • Increase your fuel efficiency

    A fuel management system improves fuel economy, which aids in the prevention of fuel waste. When you track vehicle maintenance and driver routes, you can use this information to make cost-effective decisions like establishing more efficient driving routes and promoting improved driver conduct, both of which will enhance fuel economy.

Discover how to accomplish this with AutoPi TMU device, or explore additional benefits. - Tohnny Van Do

Article by

Tohnny Van Do

Marketing Manager / SEO Ninja

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