{"id":10576,"date":"2021-04-05T13:41:04","date_gmt":"2021-04-05T11:41:04","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=10576"},"modified":"2021-04-05T13:41:04","modified_gmt":"2021-04-05T11:41:04","slug":"total-cost-of-ownership","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/04\/05\/total-cost-of-ownership\/","title":{"rendered":"Let\u2019s Rethink How Fuel Impacts Total Cost of Ownership"},"content":{"rendered":"<p style=\"text-align: justify;\">Today\u2019s fleet owners and managers understand the importance of looking beyond purchase price and considering the total cost of ownership (TCO) of their equipment. Residual value, insurance, maintenance and repairs, parts \u2014 these and other hard and soft costs factor into the true expense of owning a vehicle.<\/p>\n<div class=\"incontent02Ad\" style=\"text-align: justify;\"><\/div>\n<p style=\"text-align: justify;\">Fuel has always been a big part of that equation, but typically it\u2019s been centered around fuel costs. That\u2019s missing the bigger picture, kind of like focusing on purchase price instead of TCO. Fuel can affect vehicle maintenance and performance. And with fleets increasingly having to hit sustainability targets, emissions should also be a fleet management consideration.<\/p>\n<p style=\"text-align: justify;\">Biodiesel can help lower a fleet\u2019s total cost of ownership in several ways, including by easing maintenance issues, boosting performance and reducing emissions.<\/p>\n<h3 style=\"text-align: justify;\">Meeting Sustainability Goals<\/h3>\n<p style=\"text-align: justify;\">Let\u2019s start with biodiesel\u2019s environmental benefits because sustainability hasn\u2019t traditionally been part of total cost of ownership. It should be, however,\u00a0<a href=\"https:\/\/www.regi.com\/blogs\/blog-details\/resource-library\/2020\/05\/01\/the-current-and-future-state-of-clean-air-regulations\" target=\"_blank\" rel=\"noopener noreferrer\">because clean air regulations are on the rise<\/a>. Also, many private and public sector organizations are adopting sustainability plans, so whether a fleet has its own organizational goals or needs to help a customer meet theirs, the emissions coming from a piece of equipment should be factored into TCO.<\/p>\n<p style=\"text-align: justify;\">Biodiesel reduces greenhouse gas emissions by up to 86% compared with petroleum diesel. Even compared to other alternative fuels, biodiesel stands out. An interesting way to look at it is how much higher greenhouse gas emissions are for other fuel choices versus REG\u00a0<a href=\"https:\/\/www.regi.com\/products\/transportation-fuels\/9000-biodiesel\" target=\"_blank\" rel=\"noopener noreferrer\">B100<\/a><sup>1<\/sup>:<\/p>\n<ul style=\"text-align: justify;\">\n<li>\u00a0580% higher with petroleum diesel<\/li>\n<li>\u00a0435% higher with compressed natural gas<\/li>\n<li>\u00a0195% higher with an electric vehicle with natural gas-derived electricity<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\">Performance Benefits<\/h3>\n<p style=\"text-align: justify;\">Biodiesel can also positively affect maintenance, parts and downtime, which are key components of total cost of ownership.<\/p>\n<p style=\"text-align: justify;\"><em>Fewer diesel particulate filter (DPF) issues<\/em>\u00a0\u2014 DPFs capture particulate matter (soot) in diesel vehicles to prevent their release into the atmosphere. Regenerations used to clear DPF clogging can hurt fuel economy and cause downtime. Biodiesel\u2019s cleaner burn produces less particulate matter, which can help reduce DPF clogging, regeneration and wear.<\/p>\n<p style=\"text-align: justify;\"><em>Added lubricity<\/em>\u00a0\u2014 Fuel pumps and injectors need adequate lubrication or else the metal parts can rub together, creating excess heat, wear and damage. Ultra-low sulfur diesel (ULSD) lacks the necessary lubricity, and additives are frequently used to bring it to spec, adding cost and complexity for fleets.\u00a0<a href=\"https:\/\/www.regi.com\/blogs\/blog-details\/resource-library\/2019\/02\/08\/how-biodiesel-can-help-solve-fleets'-lubricity-problems\" target=\"_blank\" rel=\"noopener noreferrer\">Biodiesel has outstanding lubricity<\/a>\u00a0\u2014 a blend as low as B2 has been shown to give diesel vehicles more lubricity than required by ASTM D975.<\/p>\n<p style=\"text-align: justify;\"><em>Higher Cetane<\/em>\u00a0\u2014 A diesel fuel\u2019s Cetane number is a common indicator of fuel quality. The higher the Cetane number, the shorter the ignition time. Shorter ignition allows more time for complete combustion, which helps engines operate more effectively. The biodiesel ASTM specification for Cetane is a minimum of 47 while conventional diesel\u2019s is 40<\/p>\n<h3 style=\"text-align: justify;\">Integrated Energy Management<\/h3>\n<p style=\"text-align: justify;\">An <a href=\"https:\/\/www.regi.com\/blogs\/blog-details\/resource-library\/2020\/06\/30\/why-you-need-an-integrated-energy-management-approach\" target=\"_blank\" rel=\"noopener noreferrer\">integrated energy management (IEM) approach<\/a>\u00a0is another way fleets can potentially lower TCO. This is a comprehensive strategy in which they consider all available fuel sources and adopt the options that best meet their needs.<\/p>\n<p style=\"text-align: justify;\">IEM lets fleets transition away from fossil fuels while taking into account the market readiness and affordability of various alternatives. This gives them options to meet both short- and long-term business objectives.<\/p>\n<p style=\"text-align: justify;\">If you want to learn more about the role fuel plays in total cost of ownership, and how biodiesel can help, contact REG at\u00a0<a href=\"tel:1-844-405-0160\" target=\"_blank\" rel=\"noopener noreferrer\">(844) 405-0160<\/a>\u00a0or\u00a0<a href=\"http:\/\/connect@regi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">connect@regi.com<\/a>.<\/p>\n<p style=\"text-align: justify;\"><sup>1<\/sup>REG calculations based on REG biodiesel produced from used cooking oil and based on the CA-GREET model.<\/p>\n<p>&nbsp;<\/p>\n<p class=\"p-16-gray\">by Steve Klein, Renewable Energy Group<\/p>\n<div class=\"widget-see-also\">\n<div class=\"byline\">\n<p><span class=\"posted-by\">Source: <a href=\"https:\/\/www.truckinginfo.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.truckinginfo.com<\/a><\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"g-cols wpb_row type_default valign_top vc_inner vc_custom_1585038969469\">\n<div class=\"vc_col-sm-12 wpb_column vc_column_container\">\n<div class=\"vc_column-inner\">\n<div class=\"wpb_wrapper\">\n<div class=\"w-post-elm post_content\">\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-5377\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg\" sizes=\"(max-width: 858px) 100vw, 858px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg 2000w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-300x200.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-1024x682.jpg 1024w\" alt=\"\" width=\"858\" height=\"572\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today\u2019s fleet owners and managers understand the importance of looking beyond purchase price and considering the total cost of ownership (TCO) of their equipment. Residual value, insurance, maintenance and repairs, parts \u2014 these and other hard and soft costs factor into the true expense of owning a vehicle. Fuel has always been a big part&#8230;<\/p>\n","protected":false},"author":3,"featured_media":10577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[184],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/10576"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=10576"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/10576\/revisions"}],"predecessor-version":[{"id":10578,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/10576\/revisions\/10578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/10577"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=10576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=10576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=10576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}