Wednesday, September 1, 2010

Does this stuff actually pay for itself?

Our clients have been getting hit by mandates left and right lately; a GPS requirement from the USPS for some of their contracts, the new EOBR rule, and CSA's impact. I have been using onboard truck technology since 1990, many of our clients have been with us for a long time. Why do they use it?

Fuel Savings:
Controlling Engine Idle. According to the Argonne National Laboratories, the average truck wastes 2196 gallons per year idling. A large diesel engine idling under no load will burn approximately 1 gallon/hour.

Controlling Speed. According to multiple tests by Kenworth, Firestone, and the American Trucking Association, fuel consumption increases by 2.2% for every 1 MPH increase over 55 MPH. If your trucks are averaging 6.6 MPH while running 65 MPH, that will increase to 7.5 MPH if they slow down to 55 MPH.

Controlling shifting and stopping habits. Hard braking is one of the largest contributors to excessive fuel consumption on "governed" trucks where speed is kept lower than normal using the ECM.

Driving Efficiency:
You are able to pay drivers for all work they do, cutting waste and overlapping tasks when possible.

Maintenance Savings:
I was talking to one of our clients last week, who runs his trucks 1 million miles before trading with no major maintenance. The reason, those habits that contribute to fuel economy also help your maintenance costs. Increase in speed from 55 MPH to 65 MPH increases tire wear 5% to 16%, depending on GVW. Increase in speed from 55 MPH to 65 MPH decreases miles to overhaul by 10% to 15%. Increase in speed from 55 MPH to 65 MPH increases oil consumption 15%. Idling for 6 hours = 42 miles of engine wear.

Dispatch Efficiency and Vehicle Utilization:
Each company is different. However, up to 42% of an average fleet's total costs are in vehicle depreciation acquisition costs. A recent Aberdeen Group survey found that reporting fleets averaged an increase in vehicle utilization of 13%

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