Three Tactics to Lower Fuel Costs in 2012
The cost of fuel has gone through the roof, and studies show no signs of changes. In recent years, we’ve endured the highest gas prices of all time, and an increasingly erratic oil industry. In fact, 2011 set the record for the highest fuel costs in one year (accounting for inflation). Unfortunately, expensive fuel costs will carry over to 2012, as noted on the chart to the right, with projected costs of diesel to be $3.85 a gallon (40% higher than 2010).
For the majority of businesses, the raised fuel costs are very problematic. Research from Inbound Logistics notes that fuel is the second largest expense in the logistics industry behind employee payroll.
Now for some good news. Using predictive technology (an example being distribution business software) along with solid planning can lower fuel prices and benefit businesses’ bottom line. Companies managing vehicle fleets can cope with increased fuel costs by implementing three general tactics:
- Streamline fuel procurement
- Improve operations and fleet management
- Better plan delivery routes and shipment loads
A great article found here breaks down these three strategies utilizing great research that explains how costs can be reduced if these tactics are properly implemented.