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Fuel Spend

ARI partnered with a railroad client and used a multi-faceted approach to reduce fuel spend to their vocational fleet of 9,500 light, medium and heavy duty vehicles.

Fleet Background

A large vocational fleet with light duty, medium-duty, and heavy-duty vehicles.

 

Objective

ARI developed a multi-pronged program for the customer that focused on the reduction of fuel costs across the fleet. This program created a partnership between ARI and the client that focused on 4 key elements that are essential in controlling fuel costs.

 

Approach

  • Develop and implement a Fuel Management Policy – this becomes the foundation of the company’s expectations for drivers and operators who are fueling vehicles and equipment.
  • Introduce an MPG improvement plan – through focused reporting and analysis, we were able to identify the “best of the best” and “worst of the worst” in terms of MPG results across different asset groups.  We supported that analysis with consistent communication to the front line with strategies and best practices for improving this important metric.
  • Introduce a CPG (cost per gallon) improvement plan – on any given day, there will likely be a significant variation in retail fuel prices from one merchant to another.  By using some simple tools that we introduced to the fleet, drivers are now able to choose lower cost alternatives.
  • Monitor fuel card use – watching areas of potential abuse and error.  Holding drivers accountable for their fuel card habits has created a “ripple effect” across the fleet.

8,000 Units enrolled on the program since mid-2013.

18 Months in improvement of MPG.

$1M in actual savings.

Projected Savings/ Benefits and Results to Date

With over 8,000 units enrolled on the program since mid-2013, this proactive program has paid dividends to our client in terms of reduced fuel consumption and savings.  We have documented over $1 million in actual savings to the client in 18 months.  This has been accomplished mainly through an improvement of MPG but we have also captured real dollars in a relative (to market averages) reduction of the cost of fuel.  We have truly moved ARI from an administrative supporter of the fuel card program to a true consultative partner as we work together to continue to drive these costs down.

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