Three Ways to Reduce Fuel Costs in 2012
The price of oil has skyrocketed, and trends show no signs of improvement. In the past few years, we’ve seen the highest fuel prices in history, and an increasingly volatile oil industry. In fact, 2011 set the record for the largest fuel price in a given year (inflation-adjusted). Unfortunately, high gas prices will continue in 2012, as noted in the illustration to the right, with experts projecting the price of diesel to be $3.85 a gallon (a 40% increase from 2010).
For most businesses, the increases in fuel costs are very problematic. A recent Inbound Logistics study shows that fuel is the second highest cost for logistics businesses behind employee salaries.
Now here’s the good news. Using predictive technologies (such as distribution business software) along with careful planning can reduce fuel costs and improve businesses’ bottom line. Businesses managing a fleet can handle rising fuel costs by following three general strategies:
- Streamline fuel procurement
- Improve operations and fleet management
- Better plan delivery routes and shipment loads