Fuel Efficiency Management rules
When federal regulation on emissions for the commercial trucks was switched to focusing on the greenhouse emissions from focusing on NOx and PM, it meant the need for fuel efficiency for trucks went up. Thus, there is need for the Peregrine to enhance its performance through rules that enhance fuel efficiency and social responsibility (Trucking Info, 2016).
Company overview and current situation: Available resources
Peregrine Transportation Company is an active interstate carrier in the transport business that began operations on May 2011 and whose resources can be summarized to include 13 trucks and Company Drivers 18 (Quick Transport Solutions, 2016).
More efficient and socially conscious trucking equipment with fuel saving possibilities
Equipments:
Tires: Should buy tires that are more fuel efficient
Having the tire that is right at the wheel position that is right can improve the economy on fuel by several points in percentage. For each fuel gallon that is consumed, about 13% of it goes to overcoming the resistance in the wheel rolling. This percentage can vary depending on the amount of the load that is on a tire, the pattern of the tread and also the pressure inflation. The senior sales director, OTR and commercial products at the Yokohama Tire noted that, resistance in rolling and consumption of fuel is at about a ratio of 8:1. Thus, a reduction of 8 percent in rolling resistance of the tire will result to a saving of 1% in consumption of fuel. Various positions of wheel have different fuel economy impacts. Further, the Giti Tire USA technical services vice president William Estupinan noted that on combination of tractor-trailer, the contribution of steer tires to economy on fuel is between 15 and 20 percent while that of drive tires is between 30 and 40 percent and that of trail tires is between 40 and 50 percent. In that view, the priority for the fleet interested in significant money saving should start ensuring that there is use of tires that are fuel efficient for their trailer axles.
In addition, the business should seek to buy tires with patterns that are tight rib; 12/32 to 20/32 inch in tread depth, thinner tread and having an advanced compounding as it has made today’s tires very efficient on fuel consumption mainly for the trailers.
Tires: Should upgrade to use of the efficient duals and the wide base singles
Some of the fleets prefer single tires that are wide-base as they find them to work better for the improved efficiency of the fuel, while others have preferred duals which are also fuel-efficiency. The promoters have claimed the essential advantage of the single tires to be fewer sidewalls. By eliminating bead areas and two sidewalls through the switch to the singles that are wide-base, the Company can reduce rolling resistance that is related to flex to nearly half.
Further, for the tires that are less resistance to rolling, various models of tires claim a given saving percentage. If there is a reduction of 10% resistance to rolling claimed by a tire, equipping, the whole truck with these kinds of tires would amount to 1% fuel consumption reduction. The director of engineering support and new market development for the Pressure System International which makes the Monitor Tire Inflation System, Al Cohn, estimated the millage cost for the tires that are typically non efficient on fuel to be 1.1, or about 0.011 cents dollar, while a tire that is typically efficient to fuel to be 1.3, or 0.013 dollar cents. Thus, a saving of 1% in consumption of fuel, going to 6.06 mpg form 6.0, would result to saving of $660 at $4 dollar per gallon for every 100,000 miles. As per Cohn, by losing 10% in the mileage of the tread for dual tires that are fuel efficient, per year would result in savings of close to $460 dollar per year for every truck (Trucking Info, 2016a).
Efficient engines: Cylinder deactivation
This is also referred to as on demand displacement, multiple displacement, variable cylinder management or active fuel management. The technology is meant to deactivate engine’s cylinders at the time they are not in need. The technology temporarily switches an engine with 6 or 8 cylinder into a 3 to 4cylinder engine, resulting to fuel saving summarized as $600 to $1500 Savings over a lifetime of the Vehicle, hence having a potential of 4 to 10 percent on efficiency (Fuel Economy Gov, 2016).
Tractors and Trailers: Should install all trailers with trail skirts
The side skirts on a trailer can offer fuel saving of between 4 to 5 percent at a highway speed; this is according to Environmental Protection Agency’s Smart Way program, with some manufactures claiming the saving to be more. Also, the cost of installing typical trailer skirt had gone down from 2,000 dollar in the year 2008 to about 750 dollar in three years, as per the figures from the Mesilla Valley, hence indicating the installation as a low cost measure.
Tractors and Trailers: Much consideration of the aero fairing
According to Freightliner, classic side fairing cab can add to about 3 percent in economy on fuel.
Fleet Operation: Matching cab and trailer size
According to Freightliner, matching width and height of the cab to that of trailer could result into 10 percent efficiency on fuel. Also, according to Maintenance & Technology Council, the business can save about 15% on consumption of fuel if it operates a full-roof-fairing cab one that is matching the trailers height. With the use of a trailer with lower height than the cab, such as a grain hauler, flatbed, or a tanker the company should consider a mid-roof or flat-roof sleeper as of sleeper high-roof, which is likely to increase resistance (Trucking Info, 2016c).
Where gains used can be used to benefit the company, improve service and add value
The savings from the fuels consumption can be applied in enhancing service and value addition by addressing key issues such as safety and application of more efficient technologies such as GPS. Improvised safety translates to better profitability while the GPS system is used to track the vehicles movement (Coyle, Bardi and Novack, 2011).
For the trucking business, much value is based on the satisfaction of the customers with the future transactions likelihood and current transaction value. That owes to the possibility of developing long-term relationship, enhancing repeat business as well as creating loyal customers. Customers and firms place importance in these relationships as the relationship suggest a transaction risk which is lower. In that view, the savings from the fuel efficiency can be used for value addition via better time and place utility management.
The Intensifying competition, product complexity, rising fuel costs, and the rapid advance in technology as well as changing preferences by customers coupled with the increasing demands regarding productivity, cost reduction, customer service and continuity of supply have greatly broadened the transportation business scope highlighting importance of the transportation, hence elevating the stature at management level. Thus, the business could use the savings in fuel consumption to enhance its management systems and motivation through aspects such as better rewards as transport executives now command more authority in decision-making and implementation of strategies across departments in addition to their increased participation in corporate strategies formulation (Theodore and Terrance, 2008).
Enhancement of utility enhancement
Time utility refers to ability of getting the customers goods from one point to another within the specified time frame. The specified-time options like time-definite, round clock delivery, overnight, as well as expedited delivery could enhance value delivery. The more precise a delivery window, as well as the expedited times of delivery, the greater the actual premium.
Enhancement of place utility
Place utility refers to the competence to get freights to customer’s preferred location. The place utility need the ability to shift a certain kind of cargo, available capacity essential to move that cargo, as well as the geographic range of the operations including the regional, national, as well as international covering both pickup as well as final points of delivery (Bagby, 2015). Thus, the savings can be used for better management such as dedicating significant room on company sites and communications explaining the kind of cargo that it can move as well as the exact assets they own to move the cargo.
Application of better technologies
The basic value proposition in transport carrier business is developed about four themes including place, time, value management as well as value-add. Thus, enhancing the underlying capabilities by investing in other efficient equipment and technology that would enhance the company’s reliability. Those would serve a key role in differentiating the firm’s offering to its clients in the carrier business, where pricing is not a crucial distinguishing factor (Wesley, Randall, Clifford and Stephan, 2010).
Invest in adopting more environment friendly operations
Organization pursuing environmentally friendly operations whether in terms of the focused Green strategy or the broader corporate approach to reduce their carbon footprint as well as increase the environmental effectiveness should take into account their operations carbon footprint hence the business can apply the savings in enhancing its Green office operations that would enhance its image in the market. Key areas to consider would include change towards efficient ICT infrastructure (Calder, 2009).
Management monitoring and tracking of the fuel consumption as well as delivery patterns
The business should apply better accounting and credible efficiency tracking to achieve the EPA's gold standard for both fuel efficiency as well as carbon accounting. That would ensure that the tracking efforts move consistently with the industry excellent practices (EPA, 2016).
There should be use of the scorecards
One way that fleets uses the data that is gathered by the system of telematics is to create scorecards for vehicles, drivers, fleets and terminals. Thus the Company can apply the technology on its fleets for purpose of controlling use of fuel by management of things like idle time, driving habits and speed. The scorecards show the drivers their ranking as per the company standard for idle mpg or time, against the other drivers in their terminal or group, as well as across the entire fleet. Director of the market development at XRS Corp, Ryan Barnett, noted that scorecards are very powerful tools as it is amazing how quick drivers tend to change their own behavior when in a position to see how their rank is amongst other drivers.
The scorecards also can be of use for the drivers’ managers to observe how a group compares to the other groups across the company with fleets having competitions on the fuel efficiency. Also, the fleet-broad scorecards may show the fleet managers how their own operations weigh against the industry benchmarks. Further, the scorecards can be useful for training and coaching drivers. The fleets could gather statistical data on their idle time, speed, hard braking as well as other information for use in developing scorecards, which shows the company drivers the areas that they need improvement. Senior vice president as well as product and operations manager at PeopleNet, Rick Ochsendorf, noted that there’s too much work that is being done using scorecards as well as real-time notification alerts that provide fleet managers with instant information of an unnecessary speeding incident, for instance, which allows immediate coaching for the driver (Trucking Info, 2016c).
An efficient driver may get approximately 30 percent better mileages for every gallon compared to their colleagues who are the least efficient. An average lengthy-haul truck spends over $3,700 for fuel every year idling. The fuel economy reduces with half a mile for every gallon in each five miles every hour (MPH) with an excess of about 55 MPH (Shaw Tracking, 2016).
Further, as the international fuel prices increases, effective use of fuel has since become very urgent as well as the most imperial task. The GPS tracking systems of vehicles with a fuel monitor have become a very useful tool regarding remote fuel supervision by internet connected computer or mobile phone. The GPS tracking tool detect fuel amount distantly and GPS coordinates as well as time. Applying GPS system of fuel monitoring allows the tracking systems of a vehicle to greatly enhance the functionality, supplying the managers with not only information about the speed and location of a truck, but also helps to answer broad range of problems relating to the fuel monitoring
The Company should also employ tanks fueling control
Both the integration and information sharing are increasingly being viewed as means of creating world-class responsive and agile supply chains. The two lead to the enhanced chain performance with technology application playing a crucial role as specific technologies often have positive and key relationship between the integration/information sharing systems investments and the firm performance (Terry and Lisa, 2003). With that, there should be application of better technologies to help with fueling and consumption control
The GPS Monitoring Tracker for Fuel provides the user an opportunity to monitor when, where, as well as the quantity of fuel which was filled to the tank. This dramatically avoids manipulation of the fuel and, as a result, reduces the costs of operation.
The information on lowering or raising the fuel level coming from the tank height sensor as well as GPS tracker determines the time and location. The fueling volume is determined by use of calibration table that is in a vehicle`s terminal tracking system, or in a vehicle`s tracking system software. Further, control of fuel theft currently is technically carried out as fueling control. The GPS tracking device that is installed on a vehicle receives all the data concerning changes of level in a fuel tank that is detected by a fuel height sensor. The tracking device users know about any unauthorized draining of fuel almost immediately
Measurement of actual engine consumption of fuel
The GPS tracker gains the fuel consumption records directly from a vehicle`s fuel meter in order to avoid any misusage.
Control of drivers quality
With the fuel monitoring data, management teams may can easily observe the consumption of fuel in terms of where, when and why, in order to detect any technological violations, such as falling duration of the heating burners. The fuel tracking devices provides accurate information regarding reel consumption of fuel and enhances prevention of fuel draining, over consumption and fraud (UniGuards, 2016). The following diagram shows an example of a fuel monitoring and control system that can be applied
Source: (Techno ton, 2016)
Fuel level sensor: Designed to gauge the volume of fuel in tank.
The meters of fuel flow: Designed to gauge the flow of oil in the line of engine. It is produced like a direct fuel flow meter, as well as differential fuel flow meter. Currently there are many versions for various ranges of the fuel consumption (Techno ton, 2016)
Conclusion
In view of the proposals, the rules regarding the fuel efficiency in various aspects could enhance savings for the Company to enhance its operations and performance. That could be through use of well designed tires and engines as well as ensuring effective management of the drivers in addition to applying suitable fuel consumption control and monitoring systems.
References
Coyle, J., Bardi, E. and Novack, R. (2011). Transportation: A Supply Chain Perspective. (7th Ed.). Mason, Ohio: Thomson/South Western.
Bagby J. W. (2015). How Standardization Will Balance Sustainability Goals in the Transport Component of Energy Supply Chains: Efficiency versus Environmental Safety. Transportation Journal, 54(1), Special Issue Transportation & Supply Chain Relations (Winter 2015), 136-149.
Calder, A. (2009). The Green Office: A Business Guide. Cambridge: IT Governance Publishing.
EPA. (2016). Smart Way. Retrieved 25 March 2015 from, https://www3.epa.gov/otaq/smartway/forcarriers/index.htm#whyjoin
Fuel Economy. (2016). Advanced Engine Technologies. Retrieved 25 March 2015 from, https://www.fueleconomy.gov/feg/tech_engine_more.shtml
Quick Transport Solutions. (2016). Peregrine Transport Company: Company Overview. Retrieved 25 March 2015 from, http://www.quicktransportsolutions.com/truckingcompany/kentucky/the-peregrine-transportation-company-llc-usdot-2151709.php
Shaw Tracking. (2016). Fleet Fuel Management: Reduce Fuel Costs. http://www.shawtracking.ca/fleet-management-benefits/fleet-fuel-management
Techno ton. (2016). Fuel monitoring in vehicle tracking systems. Retrieved 25 March 2015 from, http://technoton.in/
Terry, L. E. and Lisa R. W. (2003). The Value of Collaborative Transportation Management (CTM): Its Relationship to CPFR and Information Technology. Transportation Journal, 42(4) (SUMMER 2003), Retrieved 25 March 2015 from, 55-65 http://www.jstor.org/stable/20713541
Theodore F. and Terrance L. (2008). Evaluating the Private Fleet. Transportation Journal, 47(4) (FALL 2008), 51-66
Trucking Info. (2016a). Ways to Save Fuel: Tires. Retrieved 25 March 2015 from, http://www.truckinginfo.com/article/story/2014/06/121-ways-to-save-fuel-tires.aspx
Trucking Info. (2016b). 121 Ways to Save Fuel: Equipment. Retrieved 25 March 2015 from, http://www.truckinginfo.com/article/story/2014/06/121-ways-to-save-fuel-equipment.aspx
Trucking Info. (2016c). Ways to Save Fuel: Drivers. Retrieved 25 March 2015 from, http://www.truckinginfo.com/article/story/2014/06/121-ways-to-save-fuel-drivers.aspx
UniGuards. (2016). Fuel Monitoring System. Retrieved 25 March 2015 from, http://www.uniguardgps.com/gps-tracker/fuel-monitoring-system/
Wesley S. Randall, C. Clifford D. and Stephan P. (2010). Value Propositions of the U.S. Trucking Industry. Transportation Journal, 49(3). (SUMMER 2010), 5-23
