Why should you care about fuel consumption in logistics?
On average, fuel consumes 60% of a company’s total operating budget (Source: Automotive Fleet). Comparatively, the logistics industry is the most affected by hike in fuel costs and more fuel consumption due to the nature of operations involving multiple heavy load trucks. But a fleet fuel card can help to reduce costs significantly.
The current surge in fuel prices has had a negative effect not just on trucking managers and drivers, but also those who depend on them such as manufacturers who ship their products and customers awaiting their shipments. Therefore, the pressing concern in the logistics industry is to reduce fuel cost for fleet operations.
How logistics companies save money with fuel management?
The implementation of efficient fuel control practices and fuel management strategies or systems can effectively help to lower fuel consumption and reduce fuel cost for fleet operations. There are different ways to save money with fuel management including route optimization, driver behaviour monitoring, fleet management technology and commercial fuel cards for trucks. Comparatively, trucking fuel cards are a more effective way to save money on fuel purchases.
What are fleet fuel cards and how does it work?
Commercial fuel cards for trucks are a convenient and easy way for individuals and businesses in the logistics industry to reduce fuel cost for fleet operations. Fleet fuel cards serve as a comprehensive purchasing system so you can choose when, where and how much your drivers spend. Trucking fuel cards facilitate a cashless payment system with the ability to track all their transactions in one place, allowing them to spend less time on paperwork, record-keeping and to prevent theft or misuse of cash.
4 reasons you need a fleet fuel card for logistics
- Cost Savings: Fuel cards provide huge discounts on purchases made with a particular fuel card even while there’s inflation in the market. Regular transactions are rewarded by additional services for maintenance, gift coupons and special offers that can be used at any time!
- Spend Control: By setting individual limits for drivers, you can avoid exceeding your budget by keeping track of every penny spent by each truck driver on their routes. This will help you save fuel and money at the same time.
- Expense Tracking: Fleet fuel cards are an effective way to track and manage your fuel expenses. You can closely monitor all fuel purchase activity and generate spending reports. By doing so, you can analyze spending patterns and avoid wasting money.
- Fraud Protection: Fuel cards provide more safety than other methods because cashless payments are possible and every transaction is easily tracked through a user-friendly dashboard. You can also set spending limits for each vehicle to prevent misuse of cards.
Let’s Wrap Up!
Fuel consumption is higher for logistics companies, and changes in fuel costs have immense impacts. However, using fuel management strategies can help reduce fuel consumption. Comparatively, commercial fuel cards for trucks are a convenient and easy way to reduce fuel cost, prevent fraud, control spending and track expenses.
Axlerate is a unified platform for logistics management and provides the best commercial fuel cards for trucks with cashless payments, spend limits, fraud protection and expense tracking.