With fuel accounting for about an average of 40-50% (depending on the routes and operations) of the fleet’s total operating costs, fuel bills have become a nightmare for many fleet operators. The constant rise in fuel prices keep many operators heads in a tail spin, with many not knowing that fuel prices are not the entire picture that causes fuel headaches.
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’s tanks was an unimportant threat facing the industry, thus 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 his isolated business park in Beira, she informed him about the fuel solution that Globaltrack has recently introduced. This was met with much skepticism and disbelief about the effectiveness and efficiency of the solution.
Much of this skepticism was further fueled by limited knowledge of the extent to which fuel theft and fuel wastage is 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 after about 3 days of operation.
After this period of recouping the entire CAPEX (Capital Expenditure), the Monthly Return on Investment (ROI), based on a fuel saving of $525pm and the subscription fee of $30pm, would be approximately 88% . 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 skepticism and doubts were laid to rest by a simple no-obligation demonstration of the Globaltrack Fuel Solution.
But this is how the real magic happens- FUEL COST REDUCTION BY DETERRENCE:
By informing his drivers that there is a fuel detection device in the tanks of the fleet, Mr Lombard set in motion the following possible chain of events.
1. He 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 fuel usage overall.
2. The other HUGE phenomenon is FUEL THEFT. Sometimes, drivers steal fuel from the tanks in small negligible quantities to avoid raising alarms, and thereafter sell the stored quantities on the black market. By informing them of the fuel probe, he possibly deterred some of these small fuel thefts from happening.
Although not manditory, 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 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 Globaltrack and its solutions is to serve clients with reliable solution that drives the 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.