Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.dmtmag.com/i/643476
BY PAT DICKARD, CORPORATE TRAINER LEARN MORE. MAKE MORE. BUSINESS DEVELOPMENT WEBINAR SERIES REGISTER FOR OUR FREE WEBINARS TRUCKSTOP.COM/ EVENTS PAT DICKARD KNOWS MAKING A PROFIT T he trucking industry has been called the driving force behind the political and economic history of the United States. Because of a strong commitment to quality, a passionate focus on customer needs and satisfaction, and a constant push to improve technologies used in everyday business practices and, I might add, just plain old hard work, carriers have been successful at improving truck efficiency and reducing costs. But in today's economy, the driving force must really make major changes to meet the challenges that will surface in the future. e good old days are gone in many ways. Costs continue to rise, and rates aren't keeping up. e fastest way to significantly impact your company's bottom line profitability is not to generate more revenue, but to cut costs. Areas now being considered to reduce costs are longer combination vehicles (triples) providing increased weight with lower fuel consumption per ton-mile, with no impact on infrastructure. Also being tested are 60-foot vans and reefers to haul more cubic feet. Before the recent falloff in crude oil prices, we experienced the highest prolonged fuel prices in history. Introduction of a natural gas network for the long haul truckers was expected to decrease fuel costs. Relocation of warehouses, changing shipper patterns, and improvements in packaging are under consideration by many companies. ese are industry-wide goals on a large scale. What specific methods can an owner operator or small fleet owner do today to improve the bottom line? ere are two areas I wish to address in this article. Fuel, because it is still the highest cost we have, and detention time because 65 percent of drivers are losing revenue to detention. A typical combination truck spends most of its operating time at highway speeds. e impact of speed on fuel economy depends upon many factors, but as a general rule of thumb, increasing speed by one mile per hour reduces fuel economy by about 0.1 miles per gallon. Excessive speed also leads to higher maintenance costs by increasing wear on the engine, tires and brakes. Poor fuel mileage can be a make-or-break proposition for many carriers, and whether you get 6 mpg or 8 mpg depends on your skills and habits as a driver. e way drivers handle their trucks has a major impact on fuel economy. It pays to encourage drivers to adopt the most efficient driving techniques. When starting a truck, don't rev the engine. Let the engine warm up on its own. It takes about 10 minutes to reach adequate operating temperature. Warm-ups longer than 10 minutes, except in subzero temperatures, simply waste fuel. Run at the most fuel-efficient engine speeds. "The fastest way to significantly impact your company's bottom line profitability is not to generate more revenue, but to cut costs."