Ways for Fuel Cost Reduction in the Peregrine Transportation Company - Research Paper Example

As per the fleet details, the organization has 17 drivers and it operates 10 power units they use trucks, tractors, and tailors as service vehicles. Organizations are facing frequent challenges to find out ways to minimize the operating cost and increase equipment capacity. Many variables are continuously increasing, mostly the fuel prices are rising daily and it leads to a rise in material costs. In response to cost minimization, the business universe has started reengineering its business process. The scarce energy sources are consumed by the transportation industry. In the last two decades, the transportation companies have become intensely competitive. Freight transport demand has grown rapidly and will grow further as the economies recover from the current economic instability. The increased demand for freight transport facilities has put excess pressure on the transport network capacity. The enhanced consciousness about the safety and environmental issues also encouraged the truck companies to innovate socially acceptable methods for cost reduction.

Nowadays, a person realizes that the resources are not limited and there are alternatives for the scarce resources. There are several ways to eliminate fuel costs. Some of the simplest ways are as follows: It is advised to eliminate all useless weights from the vehicle. It is suggested to buy gasoline in the morning when generally the temperature is cold. It is advised to formulate an effective routing plan for the entire day. For saving fuel consumption, the first task is to check the air filter.

Checking of air filter takes a few minutes. One has to remove the filter and has to boost the light; if the light does not pass, the filter should be replaced. Another option is to use the motor oil’s “lungs” with a less thick synthetic or semi-synthetic base. Compared with the traditional mode of viscous “mineral water”, they have almost 6% lower fuel consumption. Checking the pressure of tires is another way to reduce fuel. The presence of the weak slopes increases the rolling struggle and that is the reason, the fuel consumption increases.

The truck should maintain a constant speed even in the jam also. During the rush hours, trucks start hastily and suddenly slow down. This would increase the fuel cost. Careful use of gas pedals can surely decrease the fuel cost. It is advisable not to use a high gear when the vehicle is at low speed. It is important to brake properly which would also help to reduce fuel consumption. Air conditioning consumes 5% to 20% of fuel. Avoiding air conditioners sometimes helps the vehicle to reduce fuel consumption.