Reducing Fuel Cost

Holman partnered with a railroad company and used a multi-faceted approach to reduce fuel spend for 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

Holman developed a multi-pronged program for the company that focused on the reduction of fuel costs across the fleet. This program created a partnership between Holman and the company that focused on 4 essential elements for 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 (miles per gallon) 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 frontline 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.
• 18 Months in improvement of MPG.
• $1M in actual savings.

Projected Savings/ Benefits and Results to Date

With more than 8,000 units enrolled, this proactive program has paid dividends to the company in terms of reduced fuel consumption and savings.  Holman has assisted this customer tohave document more than $1 million in actual savings  in 18 months.  This has been accomplished mainly through an improvement of MPG, but also capturing real dollars in a relative (to market averages) reduction of the cost of fuel. Holman has transitioned from an administrative supporter of the fuel card program to a true consultative partner as we work together with the company to continue driving these costs down.

Whether there’s a need for fleet-related expertise, vehicle upfitting, parts and logistics, vehicle sales, insurance or risk management – our seamlessly integrated teams and systems will help you reach the best solution. Contact us today to learn more.