How eco-driving can help SMEs keep fuel costs in check

Richard Lilwall, CEO of Quartix, explores

The highest inflation levels in three decades – up to 7% in April. Interest rates up twice in three months. Supply chain issues. Energy costs up by almost 25%.

All this after two years of coping with the myriad issues created by the pandemic.

It is a given that so far 2022 has proved to be challenging for SMEs. Companies like stability, to be able to plan and forecast accurately. Yet 2022 has thrown SMEs a series of curveballs that mean that they are operating in turbulent times.

Some are seeing their profit levels eroded while others are having to make significant changes to their business models to just break even.

SMEs, in many different sectors, are analysing their businesses to see where cost savings can be made.

For some businesses this rationalisation is their key to survival. Yet I think it is important that even businesses who have thrived in recent times take a look at the way in which they operate. Creating efficiencies now might help to prevent potential issues in the future.

Checking fuel expenditure

One area which is very much under the microscope is fleet management. Soaring fuel prices mean that the cost of running and maintaining vehicles is more expensive than ever before. In the UK the Office for National Statistics (ONS) reported that average petrol prices rose by 12.6p per litre between February and March this year, the largest monthly rise since records began in 1990. It’s a trend that has been repeated across the globe too.

There are however ways in which SMEs, whether they run a fleet of many vehicles or operate using a couple of vans, can rationalise and reduce these costs.

When the right software is combined with an intelligent approach to vehicle management, SMEs can reduce costs and emission levels in a simple and painless way.

There is a concept currently being championed across the industry called ‘eco-driving’. If adopted by SMEs, it could be transformative in a number of ways.

As the name implies, it will cut carbon emissions, which for many companies has become a key challenge in recent years.

Yet as well as its long term benefits for the planet, eco-driving can have a significant impact on the company bottom line.

What is eco-driving?

So what then is eco-driving and how should SMEs employ it? In many ways eco-driving is simply common sense. It is good practice for drivers.

It starts before a driver gets into their car or van. It is about committing to undertake checks we know we should do, but don’t always get round to. Underinflated tyres increase rolling resistance, resulting in up to 5% more fuel consumption, yet how many of us check the pressure of our tyres at least once a month. It is a really good habit to get into.

Fleet owners should also periodically check to see what their drivers are carrying in their vehicles. Storing unnecessary equipment in vehicles can lead to higher energy consumption.

Good driving habits

The big savings in fuel costs often occur when the driver is on the road. The key is to develop sensible driving habits. A good driving style with minimal speeding, instances of harsh braking or acceleration helps reduce fuel consumption. Drivers should maintain a steady speed to limit unnecessary energy and fuel loss and keep a safe distance between your vehicle and others to avoid having to brake suddenly.

Avoid over-revving. Gear changes should be around 2,500 rpm for a petrol vehicle and around 2,000 rpm for a diesel vehicle. By using an engine optimally, fuel spend can be reduced by a significant amount.

There are other ways to cut fuel costs too, such as being smart with the use of air conditioning. There are a couple of golde Another good tip is to avoid unnecessary idling, by turning off the engine once the vehicle is parked or if the vehicle has been idle for more than 20 seconds.

Ensuring best practice

Eco-driving is largely common sense, the difficulty for SMEs is how can they ensure that their drivers follow these guidelines.

Implementing a vehicle tracking solution can help play an important role here, giving companies visibility of how their staff are driving out on the road, enabling them to spot issues and coach drivers where needed. Driving style reports allow managers to analyse the strengths and weaknesses of drivers as part of continual professional improvement.

Some vehicle tracking solutions can be set to assign a driving score to each driver which is calculated using various criteria such as speed, acceleration and braking indexes. This would allow business owners to quickly identify poor driving behaviours through something like a league table. They could then use this data to encourage responsible driving amongst their fleet.

The data not only shows where employees can modify their driving behaviour, it also makes them aware of the impact their driving habits have on the company’s bottom line.

One Quartix client reported to us that a driver with above average speed scores (green) totalled £1200 in fuel consumption, £96 in workshop repairs and just 1.5 hours of workshop labour time over a 3-month period. In the same 3 months, a driver with a poor speed score (red), covering similar mileage to the latter, used £150 extra fuel, cost the company an extra £2120 in repairs and incurred an astonishing 29.5 hours of workshop labour.

There is of course a requirement by 2030 to switch to EV fleet solutions, however, this can be quite complex to navigate as there are many factors to consider to ensure this is both economically as well as technically viable. The good news is that there are savings to be made here by SMEs working to be as efficient as possible.