Fuel Management: A Strategic Advantage for Shippers

Fuel costs have always been one of the most significant variables in freight transportation. While we often focus on cost, capacity, and service levels, fuel can quietly become one of the largest contributors to overall transportation spend. With the most recent changes to the diesel prices, it is a challenge we will still need to manage, but it feels like it is impossible to manage the market, fuel and volitivity of it. We need to focus on fuel as a key component to our transportation strategy!

A route that requires additional stops, inefficient in routing, or long idle times/loading times ultimately plays a key role in fuel consumption and transportation costs throughout the supply chain.

These sneaky hidden contributors can allow shippers to identify opportunities that can produce meaningful savings over time.

Optimization

One of the best options to reduce fuel-related costs is by improving network efficiency.

What should we ask to help better optimize this process:

• Are we able to consolidate this shipment, or even use a partial truckload/LTL?

• Checking Transportation mileage and routes

• Can delivery schedules be adjusted to improve fuel pricing?