Peregrine Trucking Co. 2 Peregrine Trucking Co. Fuel Analysis for Cost Reduction. Brandon Ballard Eastern Florida State College TRA 2010-01Z: Introduction to Transport Management Dr. Deana Looney November 16, 2024 Driving profit here at Peregrine Trucking requires a focus on cost reduction. Analyzing the fleet and potential cost reductions will be a beneficial opportunity to enhance the company?s services to its customers, provide a sustainable path for future growth, and develop a more ecofriendly business model. Taking the correct steps in fuel reduction will push Peregrine Trucking to another level above its competitors. A focus to drive the consumption of fuel down for the fleet is imperative as fuel market fluctuations …show more content…
Currently Peregrines route dispatch operations are an archaic pen and paper operation having to be run by multiple people daily. This has a negative effect on dispatching with little turnaround time or foresight into a driver?s whereabouts, route choice or route delays. Implementing a GPS system into the fleet would provide the opportunity to improve route planning operations. This would increase efficiency on the road and would reduce the employee head count that is currently conducting the routing and dispatching operations, reducing overhead costs. According to the American Transportation Research Institute (ATRI) report, fuel costs account for approximately 28% of the average operational cost of commercial vehicles (Linn 2023). With the implementation of the GPS tracking and route planning software, Peregrines fleet can increase fuel efficiency by an additional 15%. This is an additional feature from Teletrac. The price for implementing the GPS system provided by Teletrac will be at a cost of $20.00 per month per truck. Cost per year would be a sum of $240.00 per fleet vehicle, a total cost per year of $4,800.00 dollars. The reduction of fuel at the median rate of 10% would be a cost savings to Peregrines fleet of $150,000.00. If we add in the cost savings using phase …show more content…
A bonus to these TrailerBlade skirts, they are SMARTWAY approved. While the investment upfront is a large cost, we can add a fuel reduction savings of 5%. Figure in the average fuel consumption of $75,000.00 per year, per truck, the 10 trucks having side skirts added would equal a $12,500.00 savings for the first year. A 5-year savings for the 10 trucks is $162,500.00. A good ROI for a $25,000.00 investment for 10 trucks in the fleet Fleet Preventive Maintenance Down time for a truck is lost money by the minute. Implementing a stronger fleet preventative maintenance plan along with technology will be an asset to prevent truck downtime, increase safety, and provide Peregrine with real time data to help keep the fleet running smoothly. As we continue to implement technology into the fleet, Peregrine will gain more control and insight into its fleet?s daily operations. Teletrac provides a software add-on to the already established system that we have in the previous phases. This software is a customizable system providing multiple options depending on the fleet needs. As we continue to invest in the new technology available for fleet management, our fleet is becoming more efficient, safer, and in a way, smarter and more AI-like.