Cost-saving measures for fuel and vehicle fleet repair

By Nathan Edwards
September 15, 2009
COMMERCIAL, RETAIL, AUTO, FABRICATION : BUSINESS

Editor's note: This article is the second installment of a two-part series on smart fleet management. See Page 30 of the September 2009 issue for the first.

Smart fleet management not only involves vehicle maintenance, but the efficient use of fuel and execution of vehicle repairs. In an effort to reduce fuel costs, consider using nitrogen in your tires. Currently, I am testing the use of nitrogen in tires at one of my local Glass America shops, and so far, it has proven to reduce tire wear. When cold weather causes tires to deflate and warm weather causes an increase in pressure, the nitrogen helps to keep consistent air levels. As a result, the nitrogen increases gas efficiency by one mile per gallon, a significant cost savings for fuel when multiplied by the 350 vehicles in our fleet. The price of nitrogen may prove to be valuable if we can reduce the frequency of tire replacements. 
Also stay on top of gas purchases; fuel is the most expensive aspect of a vehicle’s cost per mile. It’s tempting for drivers to stop for gas on the highway when they’re running low on fuel and need to fill up before an appointment. An employee who frequents a gas station that marks up its gas by even a few extra cents per gallon can drastically affect the bottom line of a company’s vehicle costs. 
Glass America works with a company called Comdata, Brentwood, Tenn., that provides managers with fuel cards and a fuel processor for their fleet. They can access a Web site that monitors gas prices throughout various regions, tracks gas usage for each van and calculates estimated yearly costs. There are also free resources online, numerous Web sites, cell phone applications and search engines such as MSN and Yahoo! that allow you to find the most affordable gas stations within a particular ZIP code.
Repairs
In large fleets, it’s important to handle vehicle repairs centrally through a key staff member who can structure a plan for each and every car, van or truck. At Glass America, each employee who requires a repair must report to Robbie Price, fleet repair manager. Our AGRSS coordinator, Price also monitors the life expectancy of each vehicle in our fleet. 
Store managers and technicians present Price with an estimate for any repair that costs more than $75. Replacing tires is a typical service request that Price deals with. If there is an opportunity to save $25 per tire, that presents a significant cost savings across the board. Price will recommend a service shop to bring the vehicle to and set a budget for the repair.
If an expensive repair is required--for example, if the transmission goes out on a van--it’s Price’s job to examine the year of the vehicle, the number of miles driven and the general health and lifespan of the vehicle. Then, he decides if the vehicle should be repaired or replaced with a new van.
Glass America utilizes a group of primary vendors that they trust, provide excellent work and offer fair pricing. There are also many vendors that offer our company group discount rates with special pricing. An established list of trusted repair companies saves money, and takes the hassle out of researching appropriate companies when there’s a rush to get that van back out on the road. 

The author is vice president, business support, for Chicago-headquartered Glass America, one of the largest independently-owned auto glass replacement and repair companies in the country. Write him at nedwards@glassusa.com.