Fuel prices are the single most important factor that can affect your delivery business. While fuel prices are unlikely to drop below a certain point, there are many ways you can save money on fuel and keep your business running smoothly.
Smart route optimisation
You can use a route optimisation tool to find the most efficient delivery route for your business. These tools help with vehicle maintenance, fuel consumption, and driver safety by reducing the time spent on the road and ensuring drivers are not exposed to unnecessary risks.
Route optimisation is a service for logistics companies to make their processes more efficient. It helps them to adjust the route of their delivery vehicles more carefully so that there will be less waiting time for the recipient.
Drive safely
Your fleet drivers should also drive safely. When driving, it’s important to avoid distractions, keep your distance from other vehicles, and make sure you have enough fuel to get to your destination.
The next time your delivery driver calls in sick, don’t panic! Instead of handing over a wad of cash for an expensive taxi ride or hiring a new driver on short notice who might not be as familiar with the area as they could be—or worse yet—might not even show up at all (trust me; this happens). Instead consider sending out an email blast informing customers that there will be delays due to “high” fuel prices while offering them 50% off their next order. This way they’ll still come back once you’re able to get back on schedule!
Use the right delivery vehicles
- Use the right delivery vehicles. For local deliveries, use smaller vehicles; for long-distance deliveries, use larger ones. When selecting a vehicle for a route, think about the type of driver you have and what’s best for them and for your company. A smaller car might be more comfortable for some people to drive than a large truck would be. If you can’t afford both types of vehicles at once, consider using used trucks or vans instead of new ones until you’re able to make the switch completely over time (if this is an option).
- Consider alternative fuels in some cases. While diesel may still be cheaper than alternative fuels like natural gas or propane in most situations at this point in time—especially if your drivers are already familiar with how they work—it’s always worth considering whether or not there might be another option that makes sense within certain contexts (e.g., maybe natural gas would cost less per mile when compared against diesel but take up more storage space). This can help save costs on fuel while also cutting down on emissions and noise pollution from engines being run all day long just so someone could deliver food faster than usual!
Utilise fuel cards
Fuel cards are the best way to ensure that fuel usage is recorded and tracked. This becomes especially important when you’re using a fleet of vehicles, or if you operate in multiple states with different fuel taxes.
With a fuel card, your business can keep an eye on its daily spending on diesel, petrol and other fuels. It also allows you to set limits on how much money each driver can spend at any given time. These limits prevent unnecessary spending on gas by drivers who might otherwise use their own vehicle for personal reasons or take too long getting there and back again.
It also makes it easier for you as the owner or manager of the business because it keeps track of every single penny spent on fuel instead of relying solely upon receipts from service stations.
Hire local drivers
If you have a delivery business, you’re probably familiar with the challenges of dealing with high fuel prices. While there are many ways to cut costs, one way you can save money is by hiring local drivers. Local drivers are more familiar with local roads and conditions, so they’ll be able to get your customers’ packages to them faster than an out-of-town driver would. They can also take advantage of local discounts at fuel stations or even in their own neighbourhood (if they live close enough).
In addition, if your drivers live nearby and commute to work every day on their own dime already (instead of using company vehicles), then hiring them is essentially free! Plus, if they have any friends who need jobs too…
Don’t let high fuel prices bog down your delivery business.
It’s not easy to make a profit with fuel prices fluctuating as they are. Fuel costs are one of the biggest expenses for a delivery business and can be difficult to predict. The best way to handle this uncertainty is by finding ways to reduce your overall fuel consumption and find cheaper ways to get around town.
In today’s world, you can pay for your fuel in advance online using a fuel card. This allows you to lock in lower prices before you even fill up at the pump, which saves money. Fuel cards also allow you to track exactly how much gas has been used on each trip so that you don’t overfill; avoiding this mistake could save hundreds or thousands of dollars per year depending on how many trips were taken during that time period.
Assess your budget and staff.
Look at your budget and determine what costs you can cut. Even if you have the best of intentions, sometimes it’s hard to see where the money is going. If you don’t know where your margins are slipping, try creating a simple spreadsheet that tracks expenses over time.
You might find that some of your employees are underperforming or not doing as much work as they could be doing. This is especially true in today’s economy when many people are struggling just to make ends meet—you may need more bodies on deck than ever before!
Optimise your route.
One way to save money on fuel is to consider the route you take. Are you going to places that are not profitable? If so, maybe it’s time to rethink your delivery route and come up with a more efficient one. This can be done by using a route optimisation tool which will analyse your current route and provide suggestions as to how it can be improved.
Also consider using a fuel card instead of buying fuel directly. It’s well worth investing in one because then all the receipts will be automatically completed by the provider of the fuel card and sent directly to you or your accountant without any hassle at all! You’ll also get regular updates on how much money has been spent on each trip so that nothing slips through the net unnoticed; this means less chance of overspending when it comes time for another shipment!
Another thing worth considering is whether or not an app exists specifically designed for this purpose – if so then download/purchase immediately because these apps are brilliant at keeping track of employee mileage (or even just general mileage), which helps keep costs down significantly.”
Use an app to track employee mileage.
The app will track each employee’s vehicle mileage and provide statistics on how many miles they drive in a week, month or year. This information can be used to gain tax breaks and maximise efficiency. The app also lets you monitor your fleet of vehicles with live trip-tracking so you can keep tabs on which drivers are doing the most driving, allowing you to allocate resources appropriately.
Find a cheaper supplier for fuel.
- Find a cheaper supplier for fuel.
- Look for a supplier that is close to your business and has lower prices.
- What to look for in a cheaper supplier: quality, price, and reliability.
Conclusion
With the costs of fuel on the rise, it’s important to find ways to keep your costs down. These tips will help you do just that and ensure your business stays profitable no matter how high fuel prices go up.
Route optimisation improves many aspects of a logistics operation, so it’s a worthwhile investment. Since deliveries will be done faster, both customers and drivers alike. All that matters is finding the right software that works for your company.
If you’re looking for route optimisation software, SolBox has what you need! Our platform has the comprehensive tools and features to help your logistics operation have better routes, all for affordable prices. Simply go to our website to request a live demo!
