How Can Trucking Companies Combat Rising Diesel Fuel Prices?

5 Ways a TMS Can Help Trucking Companies Reduce Fuel Costs

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When diesel prices climb, every drop of fuel becomes a critical line item on your balance sheet. A Transportation Management System (TMS) may act as the central nervous system of your fleet operations, providing high-level visibility and analytics that can be used to limit and eliminate waste. More than just tracking shipments, a modern TMS employs real-time data to ensure that every mile driven has a purpose and every gallon of fuel is used to its maximum potential.

A comprehensive TMS platform helps freight companies save money on fuel via a multi-level approach to efficiency. It can address more than one problem connected to rising fuel costs — it addresses fuel consumption with route and load optimization, mechanical inefficiencies with preventative maintenance measures, and operational inefficiencies by reducing idle time and empty miles. This more comprehensive approach ensures that fuel-saving strategies are consistent across the entire fleet.

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1. Route Optimization Software

Route optimization is about more than just finding the shortest route between point A and point B. A TMS platform with route optimization capabilities uses algorithms to account for multiple variables like road construction, terrain, and traffic patterns that could lead to less efficient driving patterns. For example — by directing a driver to a slightly longer highway route that avoids city traffic, route optimization software helps the truck maintain a consistent speed and minimizes the time spent idling in traffic.

2. Regular and Preventative Maintenance

A truck that isn't running at peak performance is a truck that is burning excess fuel. A TMS has the ability to track engine health data and mileage intervals to automate maintenance schedules. This ensures that filters are clean, tires are properly inflated, and engines are tuned. For example — keeping tires at the correct PSI and ensuring axles are properly aligned can improve fuel mileage by up to 3%.

3. Load Consolidation and Optimization

Maximum fuel efficiency is achieved when your cost-per-mile is at its lowest, which means keeping trailers full. A TMS analyzes fleet shipments and can identify Less-Than-Truckload (LTL) shipments that can be consolidated in an effort to save fuel and reduce costs. By combining two half-full shipments into one trailer, you can reduce the fuel consumption for that freight in half by removing an unnecessary truck from the road.

4. Reduce Empty Miles and Idle Time

Empty deadhead miles are the ultimate profit killer because you are burning fuel without generating revenue. A TMS can combat this by using Backhaul matching, which automatically looks for available loads near a driver’s delivery point to ensure they are loaded for the return trip. In addition, integrated telematics can monitor and report on excessive idling, allowing fleet managers to coach drivers on better driving habits.

5. Optimized Fuel Purchasing

Fuel prices can vary from state to state and even between truck stops on the same highway. A TMS can be programmed with Fuel Networks that will help guide drivers to specific preferred stations where your company has negotiated discounts or where fuel prices are lower. By planning fuel stops as part of the dispatch process, you prevent drivers from buying more expensive fuel at the last minute when the tank hits empty.

READ MORE: 5 Benefits of Automated IFTA Reporting for Freight Carriers

To combat rising diesel fuel prices, trucking companies can rely on a combination of smart strategy and innovative digital solutions. By automating complex logistical decisions, you can take some of the guesswork out of fuel management and replace it with data-driven precision. The goal is to build a stronger operation that can withstand up and down fuel prices without sacrificing service quality.
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Contact TransPlus today for a personalized demo of the TransPlus TMS and find out how we can help you reduce fuel costs!