One way in which Nestlé has maximized its fuel usage is by investing in alternative-fuel vehicles, which now account for nearly 600 of the fleet’s 2,000 vehicles. (Photo courtesy of Nestle)
Lean and Green: Ways to Save Fuel
Fleet managers worldwide have enjoyed an extended period of steady economic growth and low gas prices. But every dollar counts, even when business is booming, and companies are finding new and creative ways to manage fuel costs and reduce emissions. Work Truck sought new insights and strategies from fleet managers around the nation. Read on to pick up some tips and tricks you can apply to your fleet in 2018.
Cox Enterprises
Headquarters: Atlanta
Fleet Size: 13,500
Cox Enterprises is a leading communications, media, and automotive services company. With revenues exceeding $20 billion and approximately 60,000 employees, the company’s major operating subsidiaries include Cox Communications (cable television distribution, high-speed internet access, telephone, home security and automation, commercial telecommunications and advertising solutions); Cox Automotive (automotive-related auctions, financial services, media, and software solutions); and Cox Media Group (TV and radio stations, digital media, newspapers, and advertising sales rep firms).
To service the entire operation, the company maintains a fleet of more than 13,000 vehicles. They have made a point of looking for “green” options whenever possible, according to Jim Bigelow, the company’s senior director of enterprise fleet, investing heavily in hybrid powertrains, for example.
Asked to share tips for smaller fleets, Bigelow noted that every company and fleet has its own characteristics, and he would suggest every fleet manager start there.
“We look at ours, and we go from there,” he said. “Each company should do the same. There are some fleet managers who try to tackle a problem without knowing how their vehicles function. Start at the root of the issue, and then work your way up through that.”
Coloplast
Headquarters: Minneapolis
Fleet Size: 320
Sometimes, fuel management isn’t necessarily a major focus for a fleet. Daniel Warner, fleet administrator for Coloplast, noted that, since his fleet is primarily used for sales, they have to approach things a bit differently. They also allow their drivers to use the cars for personal driving as well, making things a bit more complex.
“We’ve considered telematics,” Warner said. “But with a sales fleet, that is tough to roll out.”
That said, the company does get regular reports on a variety of metrics, including how many times the salespeople need to fuel up, the tank capacity on the vehicles, and whether or not the vehicles have been fueled outside of the established territory. “We don’t have a lot of restraints,” Warner noted.
Benco Dental
Headquarters: Pittston, Pa.
Fleet Size: 370
Benco Dental might be a comparatively small fleet, but that doesn’t mean they don’t take fuel management seriously. The company relies heavily on their telematics system, said Dave Tosh, fleet services administrator. They monitor and audit their fuel usage and purchases on an ongoing basis through the system to try and maximize every mile per gallon.
“We certainly try to optimize our routes, but we found regular auditing and restricting off-hour usage have a large impact on fuel consumption without sacrificing our workload or service level,” Tosh noted. He also noted that some of the best advice he can offer is constant monitoring, ensuring that the fleet as a whole is only purchasing the fuel it needs to operate, and not more than it actually needs.
General Mills
Headquarters: Minneapolis
Fleet Size: 1,600
Fuel management can apply to fleets of all shapes and sizes, including the General Mills fleet. It is about 1,600 vehicles strong, but work trucks are only part of the equation. Much of the fleet is comprised of sedans and SUVs used primarily for sales and executive compensation.
According to Adam Orth, CAFM, who serves as the company’s global business solutions manager for General Mills’ fleet services division, a big part of getting the best fuel usage out of fleet vehicles is by making sure they are all up to date with the latest innovations.
“The best way we maximize fuel usage is by running newer vehicles that have the technology and configurations to limit our consumption and emissions,” he noted. “My oldest vehicles are 2016-MYs.”
Another thing to keep in mind, he pointed out, is taking into account seasonal changes that can impact fuel consumption. These include idling, filling up recreational vehicles, and holidays, which, he said, “can all provide further opportunities for increases in fuel fraud.”
Nestlé Waters North America
Headquarters: Stamford, Conn.
Fleet Size: 2,000
Nestlé Waters North America is the third largest non-alcoholic beverage company by volume in the United States. Some of the company’s offerings include such bottled water brands as Arrowhead, Deer Park, Poland Spring, and Zephyrhills; other brands include Perrier, Pellegrino, Nestea, Sweet Leaf, and Tradewinds.
One way in which Nestlé has maximized its fuel usage is by investing in alternative-fuel vehicles, which now account for nearly 600 of the fleet’s 2,000 vehicles. Each of the “clean” vehicles in the fleet is equipped with a ROUSH CleanTech propane autogas fuel system that provides 55 gallons of usable fuel. The result is an engine that is 75% cleaner than the current EPA standard and 99% cleaner than the diesel vehicles built before 2007.
“Becoming a better steward of our environment is a priority for Nestlé Waters,” said Bill Ardis, national fleet manager for the company’s ReadyRefresh business unit. “We’ve been running propane autogas vehicles since 2014, beginning with five Class 5 vehicles. Based on the proven emissions reduction compared with our older diesel units, and lower fuel and total cost of ownership, we knew this was the right application for us within the alternative fuel space. With propane being domestically produced, it’s proven to have a more stable cost per gallon, while the fueling and maintenance infrastructures are much more cost-effective than other alternative-fuel options.”
What is propane autogas? It is the leading alternative fuel in the United States, and the third most commonly used vehicle fuel, following gasoline and diesel. More than 90% of the U.S. propane autogas supply is produced domestically, with another 7% coming from Canada.
In addition to the fuel savings and environmental benefits, the company has found that going with propane autogas also produces a quieter engine, powertrain performance equivalent to current diesel delivery vehicles, easy fueling, and simple operation.
“Many of our drivers have provided positive feedback for the propane vehicles,” said Robert Austin, director of supply chain for the ReadyRefresh unit. “We are excited about this strategic endeavor that will ultimately drive awareness, efficiency, and sustainability.”
by Tariq Kamal
Source: https://www.greenfleetmagazine.com
I´m a Fleet Management expert, and the manager of Advanced Fleet Management Consulting, that provides Fleet Management Consultancy Services.