The Role of Fuel Economy for Any Logistics Company - Literature review Example

Fuel Efficiency

Fuel efficiency is a major aspect of the logistics business. It is, therefore essential for a logistics company to ensure that there are measures in place to save on fuel consumption. Some of the suggested approaches that can be used to achieve the fuel efficiency include the type of tires that are acquired for the trucks, the engine type and servicing of these engines. The kind of trailers and trucks used and their length of service play also a significant role in controlling the amount of fuel consumed. According to Litman (2015), the operating rules in place for logistics companies also are a major factor in determining the amount of fuel consumption by the vehicles. It is essential for logistics companies to have in place measures that help reduce the amount of fuel consumed in their operations to save on costs.

Tires and fuel consumption

Tires are one aspect that can be used by logistics companies to help reduce the amount of fuel consumption. It is usually not easy for people to understand how this works, but research has shown that the type of tires that are used in vehicles play a vital role in the fuel consumption. It is believed that low rolling and resistant tires help minimize fuel consumption (Sh Kalghatgi, 2014). As studies indicate, most logistics companies that are looking forward to saving on the cost of fuel are embracing tires that are regarded as low rolling and resistant. The tires are believed to minimize breaking for the sake of increasing fuel efficiency in vehicles an aspect that has been supported by many users. It is therefore for important Peregine Company to consider embracing low rolling resistance type of tires in all its trucks. The tires are believed to save on fuel with the range of 1 to 2 miles per gallon. However, to ensure that the tires help in fuel efficiency, it is necessary for the company to make sure that all the tires used in trucks are well inflated. If tires are not well inflated, they are likely to impair fuel efficiency. Breaking performance of tires and handling should be some of the factors to be considered before the company makes any decision to purchase tires for the trucks. The company should also consider the hydroplaning for tires before acquiring any tires for the trucks, and all these should be followed by rolling resistance before making any purchasing decision. This way a company can save on fuel using tires.

Engine and fuel efficiency

It is essential for logistics companies to consider the type of engine they are using in their trucks. With the advancement in technology, trucks that are more efficient are coming into the market. The company can embrace electric powered engines to save on the cost of fuel. Use of electric vehicles means that the company will save on the cost of fuel. However, the company has to compare the cost of electricity to that of fuel before opting for electric powered vehicles in place of fuel powered engines. The difference in the cost of oil and power should be the basis for choosing on either of them for a company. However, the use of electric vehicles has proven to be more environment-friendly than the use of oil engines. Many companies are moving towards the use of electric vehicles to reduce cases of environmental pollution caused by gasses emitted from oil powered engines. Embracing this approach by the company will be a good idea if they find the cost of using electric vehicles more affordable than using oil engines. However, the engine technology continues to evolve, and more fuel efficient vehicles are coming into the market. Vehicles able to travel 35 miles per gallon are being developed to help reduce the fuel consumption while minimizing the level of harmful emissions to the environment. The company should service the vehicles engines regularly to ensure there is a smooth transmission of fuel so that minimum amounts of fuel is used in the operations. Going for vehicles that can perform electric drive transmissions would be a good idea for the company to reduce the cost of fuel. The company should also consider going for diesel engines that have low emissions because diesel is cheaper than petrol. This approach will save on the amount of money spent on fuel for the company. Good drivers with experience are also a good aspect when it comes to fuel consumption. Experienced drivers know how to save on fuel and understand when and where to accelerate. The amount of acceleration is likely between experienced drivers and those that are not experienced. It is, therefore essential for the company to consider this aspect when it is putting up measures to save on fuel.

New rigs and fuel economy

There is a correlation in the type of truck or tractor used by a company and the level of fuel consumption. New vehicles or trucks tend to be more fuel efficient than those that are old. New rigs have efficient transmission systems which enhance fuel efficiency as compared to old ones. The company should make efforts to change the trucks they use after a particular period to save on fuel consumption and increase efficiency. According to Silva, Ross and Farias (2009), old trucks need more maintenance and have a high fuel consumption which means a high operational cost for the company. Changing such trucks for new ones and new models that are fuel efficient. Vehicles with matching engines and aerodynamics have a better chance of enhancing fuel economy than those that do not match. It is also essential for the company to ensure that all measures that can help in fuel efficiency such as having additional aerodynamics on vehicles. The approach helps in reducing the amount of fuel consumption for vehicles. Studies indicate that adding of aerodynamics on vehicles to a certain percentage such as 10% can contribute to increasing the miles per gallon used by a vehicle. Most new vehicles provide for additional aerodynamics as compared to the old models .that do not provide for such. The new models also have a mechanism for detecting the amount of weight that s loaded, unlike the old ones which are likely to have defective systems resulting to overweight which is a contributing factor to high fuel consumption levels in fleet companies.

Operational plan and fuel efficiency

As mentioned in Toth and Vigo (2014), a good operational plan for a logistics company helps in reducing the cost of fuel. How and when the vehicles are released to the road is a good determinant of fuel consumption. It is essential for the company to consider having its operational time during days and hours that are deemed to have minimum traffic. Night travels are good for logistics companies because there are few vehicles on the road to cause traffic. The plan helps in fuel consumption levels because the speed of the trucks can be maintained at the fuel efficient levels. The level of engine idling is also reduced if there is minimum traffic on the road making convenient to save on the cost of fuel. On the other hand, if the company focuses on operating during the regular hours where there are a lot of activities on the road, it is likely to have high fuel consumption levels. It is also necessary for the company to consider embracing an alternative operating time probably at night to help save on the cost of fuel. The approach should also come with proper security mechanism to protect those who are using the trucks at night such as satellite tracking.

Having a single filling station where the trucks can be fueled at a reduced cost and get discounts can help in cutting down the cost of operation. The company should consider developing a long lasting relationship with a fuel company where the vehicles can be fueled at a low cost as compared to regular operational cost. This approach is used by many logistics businesses that develop loyalty for particular companies and end up securing discounts on fuel. Proper coordination, timing, scheduling and assigning vehicles routes where several vehicles can serve a given region at once instead of having several of them using the same route and serving a small section. This helps in reducing the amount of fuel used because the number of vehicles per route and region is reduced significantly due to reduced mileage.

The company should also embark on drivers training to ensure that they are conversant with all the measures necessary in reducing fuel consumption. The drivers should be informed on issues related to saving fuel costs such as idling. It is also essential for the company to embrace computerized operation to reduce mileage cost. Use of computer operations helps in making scheduling easy for a company. Use of computerized systems in operations of the company can assist in keeping records of the amount of fuel spent per truck, and the cost of fuel per mileage can also be tracked easily, while drivers that are more efficient in their services can be identified. Similarly, drivers who are not efficient in their fuel consumption can be identified through computerized systems and be trained further on fuel economy measures.

Maintenance

Fuel cost reduction can also be achieved through proper maintenance of vehicles. Through proper maintenance, vehicles can have a reliable transmission system for fuel which can help in reducing fuel consumption while on the road. Checking vehicles tires, electrical systems, and the cooling systems regularly help to save on fuel cost because defective systems could mean poor transmission which may result in high energy consumption. The air filters should be services regularly. All the fluids used by the vehicles should be maintained at the recommended levels. Ensure wheels are well aligned, and the trucks are kept clean at all times.

Conclusion

Fuel economy is essential for any logistics company. As Greene and Plotkin (2011) suggest, it is essential for such businesses to embrace some measures towards fuel economy. Some of the recommended strategies that can help achieve this include going for the right tires, changing the trucks for new ones after a certain period, having a good operational schedule coupled with a computerized system. Considering engines with low cost such as electric or diesel instead of petrol while observing the emission guidelines. Ensuring proper maintenance of trucks is one of the best approaches towards fuel economy. The strategies can help the company save on fuel cost.