5 Tips to Track and Improve Fleet Fuel Spend

Here at Coast, we have a unique perspective on fleet program trends, managing hundreds of millions in spend across fuel, field operations, and business expenses through our platform.

With access to this data and ongoing strategic discussions with our customers, we’ve gained valuable insights from a wide range of use-cases, allowing us to refine and enhance fleet spend reporting.

Managing your fleet’s fuel costs is essential for controlling expenses and improving operations, regardless of your fleet program’s maturity. Clear, accurate reporting provides the visibility you need to understand where your fuel budget is going and equips you with the insights to make informed adjustments. 

Whether you’re just starting out or have an established program, here are five tips for tracking your fleet’s fuel spend and using that data for improvement:

1. Leverage Automated Reporting Tools

Partnering with thousands of fleet managers, we see how automated reporting tools help fleets gain control over fuel expenses. Manually tracking fuel usage can be time-consuming and prone to errors. By utilizing fuel cards or a fleet management system with automated reporting features, you can streamline the process and gain better insight into your fuel spend.

Here’s how to make the most of automated reporting:

• Break Down Costs: These tools allow you to break down fuel expenses by driver, vehicle, or fuel type, making it easier to spot trends or identify areas of concern. Whether it’s an underperforming vehicle or unexpected fuel usage by a specific driver, automated reports give you the clarity you need to take action.
• Save Time and Improve Accuracy: Automation eliminates the need for manual entry, which reduces the risk of errors and ensures your data is always up to date. With accurate, real-time reporting, you can make faster, more informed decisions.
• Customize Your Reports: Tailor your automated reports to focus on the metrics most important to your fleet, such as fuel cost per mile or fuel efficiency. Customized reporting helps you target key areas for improvement and track the impact of the changes you implement.

By leveraging automated reporting tools, you can enhance your fleet’s fuel management, saving both time and money while gaining a clearer picture of your fuel usage.

2. Measure Vehicle and Driver Fuel Performance

We’ve seen firsthand how tracking both vehicle and driver performance can significantly enhance fuel efficiency in fleet programs. Not all vehicles consume fuel the same way, and driver habits play a crucial role in fuel consumption. Here are some actionable strategies to measure and improve fuel performance:

• Track Vehicle Fuel Efficiency: Regularly monitor the miles per gallon for each vehicle in your fleet. Identify underperforming vehicles that may require maintenance, upgrades, or even replacement to ensure optimal fuel efficiency.
• Evaluate Driver Fuel Consumption: Analyze individual driver performance by examining fuel consumption patterns. Metrics like gallons used per mile and average fuel spend per driver can highlight those who may benefit from additional training on fuel-efficient driving techniques.

• Incorporate Telematics Data: As your program matures, you can leverage telematics data to gain deeper insight into driver behavior. Analyzing factors like harsh braking, acceleration patterns, and speeding can help identify areas for improvement, leading to reduced fuel consumption.

By measuring both vehicle and driver fuel performance, you can gain a comprehensive understanding of your fleet’s fuel efficiency. This dual approach enables you to pinpoint underperforming assets and drivers, ultimately leading to significant cost savings and enhanced operational efficiency for your fleet.

3. Analyze Fuel Purchases by Merchant Location

We partner with many fleets that have achieved significant savings by analyzing fuel purchases based on location. Fuel prices can vary widely from one gas station to another, and regularly filling up at higher-priced locations can drive up costs quickly. By including location data in your fuel reports, you can gain valuable insights into where your drivers are purchasing fuel.

Here’s how to put this data to work:

• Identify High-Cost Locations: Use reporting tools to pinpoint the stations or areas where fuel costs are consistently higher. By analyzing patterns in where your fleet is fueling up, you can identify opportunities to reduce costs.
• Develop Cost-Saving Strategies: Encourage drivers to refuel where you receive the best rewards, at lower-cost stations, and in regions with more favorable pricing. You can provide guidance or set up specific fuel stations or networks where your drivers should refuel to maximize savings.

Pro tip: Use our new blacklisting feature to ensure drivers fuel up where you get the best rewards.

• Monitor Regional Price Trends: Stay informed about fuel price fluctuations by region. Tracking these trends can help you anticipate potential increases and make proactive decisions, such as adjusting routes or fueling schedules to avoid high-cost areas.

Analyzing fuel purchases by merchant location allows you to improve visibility into your fleet’s fuel spend and uncover opportunities for significant savings.

4. Establish Clear Benchmarks

Our customers often share the importance of setting clear benchmarks for effective fleet management. By reviewing your historical fuel data and understanding industry trends, you can establish realistic benchmarks that help you track whether your fuel spending aligns with expectations. Focus on monitoring key metrics such as fuel cost per mile, fuel spend per driver, and overall fleet MPG.

These benchmarks are essential for several reasons:

• Goal Setting: They enable you to set specific, measurable goals for improvement.
• Performance Evaluation: By regularly assessing your metrics against these benchmarks, you can determine the effectiveness of any changes you implement to reduce costs.
• Ongoing Improvements: Identifying trends over time allows you to make data-driven decisions and continuously refine your fuel management strategies.

Establishing clear benchmarks empowers your team to make informed choices, leading to more efficient operations and significant cost savings.

5. Control Fuel Purchases with Smart Tools

We see how crucial it is to manage fuel purchases to keep expenses under control. Utilizing fuel cards with advanced controls allows you to manage spending more efficiently by restricting purchases to specific fuel types, locations, or amounts.

Here’s how to make the most of these smart tools:

• Proactively Enforce Policies: Many programs have set clear parameters for fuel purchases to align spending with their budgets. By operationalizing approved fuel types and purchase locations, you can control costs and eliminate the risk of unauthorized expenses.
• Regularly Review Fuel Reports: Consistent monitoring of your fuel reports is essential to ensure that these controls are being adhered to. Regular reviews help you identify any anomalies or breaches that could indicate misuse or fraud.
• Enhance Budget Management: With these controls in place, you can keep your budget on track while also mitigating risks. Effective management of fuel purchases not only curbs unnecessary spending but also creates a culture of accountability within your team.

Implementing smart tools to manage fuel purchases enhances financial oversight and ensures your fleet runs more efficiently.

With a proactive approach to fuel management—leveraging automation, performance monitoring, and smart purchasing controls—you can keep fuel expenses in check. Regular tracking and optimization will reduce costs, improve efficiency, and strengthen your bottom line.