A simple demonstration saved this company 10% in fuel
Posted on 25 April 2024 in General
With fuel accounting for about an average of 40-50% (depending on the routes and operations) of the fleet’s total operating costs; the fuel bill has become the nightmare of many fleet operators. The constant rise in fuel prices keeps many operators heads in a tailspin, with many not knowing that fuel prices are not the entire basket that causes a fuel headache. And this was the case with Kobus Lombard of Specialised Transport in Mozambique.
Like many other transporters in Africa, Mr. Lombard was under the impression that FUEL THEFT from his fleet tanks was a negligible threat facing the industry and too incidental to affect his fleet. This was all before he was introduced to Globaltrack’s Fuel Solution by one of the company’s Sales Consultant, Melanie Nunes.
When Melanie first met Mr. Lombard on an isolated business, he informed him about the fuel solution that Globaltrack has recently introduced. This was met with much scepticism and disbelief about the effectiveness and efficiency of the solution.
Much of this scepticism was further fuelled by limited knowledge of the extent to which fuel theft and fuel wastage are affecting the industry in general and crippling many fleet operators.
Mr. Lombard was offered an obligation free demonstration through Globaltrack’s POC (Proof of Concept) programme. Still filled with doubt, he reluctantly allowed Globaltrack to install the Fuel Probes in 10 of his trucks to demonstrate how it works and how it can LOWER the cost of the fuel cost incurred by his trucking company.
Within a few weeks of installing the probes, Mr. Lombard saw a staggering averaged 10% decrease in the cost of fuel per truck. The initial fuel usage was 46l per 100km and this was reduced to 41l per 100km.
Given the cost of the fuel probe and installation as well as monthly subscription, the entire system would pay itself in about 7-8 months in operations.
After this period of recouping the entire CAPEX (Capital Expenditure), the Monthly Return on Investment (ROI) based on fuel saved and the subscription would be approximately 22% . This ROI translates into millions of domestic currency saved monthly.
This was the moment when Mr. Lombard was introduced to the magic of the Globaltrack’s Fuel Solution. This was the moment when his scepticism and doubts were laid to rest by a simple no-obligation demonstration of the Globaltrack Fuel Solution.
But here is how the real magic happens- FUEL COST REDUCTION BY DETTERANCE:
By informing his drivers that there is a fuel detection device in the truck’s tanks of the fleet, Mr. Lombard set in motion the following possible chain of events.
1. He possibly altered the behaviour of his drivers. Driver behaviour is one of the highest contributors to wasteful fuel usage. Knowing that their fuel consumption per trip can be monitored, drivers turn to practice more cautious driving that cuts the fuel usage per trip.
2. The other HUGE phenomenon is FUEL THEFT. Often times driver steal fuel from the tanks in small negligible quantities to avoid raising alarms, and thereafter sell the high stored quantities in the black market. By informing them of the fuel probe, he possibly deterred some of these small fuel theft.
Although not obligatory, but if the Fuel Solution is paired with Globaltrack’s tracking units, the operator will be able to check and be alerted of bad driver behaviour as and when it happens. This combination (Globaltrack’s Fuel and Tracking Solutions) ensure you monitor both possible driver behaviour and fuel theft.
This equips the operator with information of where the problem is and how best to tackle it.
The value proposition that drives the company and its solutions are to serve clients with reliable solution that drive costs of operations down and ensure growth and profitability of our partners (clients)
Globaltrack’s motto is to be “THE DIFFERENCE THAT COUNTS” and with a small demonstration, they were able to demonstrate this to Mr. Lombard and Specialised Transport.
For an NO OBLIGATION of the Fuel Solution, please contact:
Email: [email protected]
Tel: +27 (0) 11 262 6545
Or visit www.globaltrack.com/Landing/FuelDemo.php