4 Ways to Reduce Cost-per-Mile

Delaware regional trucking companies like us are always looking for ways to reduce cost-per-mile in order to improve margins and the bottom line. As an organization that provides New Jersey regional trucking, Delaware regional trucking, and Pennsylvania regional trucking, we cover quite a bit of miles in the course of a year. Considering this, finding ways to reduce cost-per-mile is crucial to keep ahead in an industry that fluctuates with the fuel prices. Here are a few tips to reduce cost-per-mile:

1. Reduce Fuel consumption
It may seem like an obvious solution, but reducing fuel consumption is one of the most difficult challenges faced by DE regional trucking services. EOBR data can used to generate weekly reports that track each truck driver’s speed, shifting, and idling habits. This information can then be referred to in order to see if drivers are burning excessive or if any vehicles may be underperforming.

When this fuel performance data is translated into competitive scorecards, drivers can be motivated and incentivized to maintain improvement, and encourages an overall team effort for a stronger mpg program. In addition to a fuel program, driver awareness can help increase driving safety as well as reduce vehicle maintenance and insurance costs.

More and more technology is available that reduces both CPM and safety risks.

More and more technology is available that reduces both CPM and safety risks.

2. Reduce out-of-route miles

Reducing out-of-route miles, which burn unnecessary fuel and cause wear and tear on both vehicles and drivers, is a great way to drop cost-per-mile. By generating comparison reports that examine both published miles and actual miles for a strip, flagged driver behavior can be identified,  coached, and tracked for progress.

With the implementation of corrective measures as well as routing software, erroneous address entry would be further eliminated. Additionally, routing applications often feature compliance with pre-planned routes, meaning that routes generated in the back-office can target route-specific fuel stations that offer both the best price and least distance.

3. Reduce reactive maintenance

Expensive, unexpected breakdowns negatively impact drive time, customer service, delivery schedules, and the regional trucking company’s wallet. Relying on on-the-road maintenance to address these issues works, but it isn’t the most efficient solution, which is why Veltri incorporated advocates proactive maintenance. As Benjamin Franklin once pointed out, failing to prepare means preparing to fail. By utilizing a few simple maintenance practices, both fleets and drivers can save themselves from headaches.

For instance, electronic driver vehicle inspection reports (eDIVIRs) automate inspection ticket creation, and automatically red-tags safety-related issues for high priority maintenance. Once the repair finishes, the system notifies the vehicle’s scheduled driver with the relevant information about the mechanic, issue and corrective action, and the vehicle’s soonest availability. Additionally, monitoring fault codes encourages an early-warning system that keeps maintenance aware of vehicle issues. Addressing potential issues early can circumvent some major maintenance costs.

4. Develop a safety program

Unsafe practices so often lead to time-consuming damage control as well as endanger drivers on the road. By investing in an electronic safety tool, you are not only avoiding losses of time and money, you are keeping your staff safe along with other drivers. Electronically monitoring service hours is a great way to get an insight onto whether any of your drivers are succumbing to fatigued driving, the foremost cause of truck accidents. Electronic log systems also help dispatchers pay attention to their drivers’ available hours. This in turn helps target optimal drive time, productivity, and compliance. Additionally, electronic logs are usually waved through roadside inspections, which helps drivers cut down on time sinks and meet their delivery schedules.

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