Fuel incentive programs

Recently, I attended the PeopleNet user’s conference in Naples, Fla. During a private fleet roundtable discussion, the topic of driver fuel incentive programs came up. I gained some valuable tips from private fleets about how to roll out a successful driver mpg program.

The variance in mpg among vehicles nearly always is due to driver behavior, mostly regarding shifting, speed and idling. Significantly improving mpg requires engaging drivers in the process.

A textbook-style management approach for engaging drivers is to set an average fleet goal for mpg and offer drivers a financial incentive to exceed this goal. Such mpg incentive plans are notorious for hiccups, however. For starters, drivers are leery about incentives tht they feel are unobtainable due to their vehicle model, maintenance needs, geography, payload, weather and other factors.

One proven path to successful mpg improvement and incentive programs is to begin by establishing baselines for each business group and equipment type. Baselines create different categories or groups for measuring mpg. Examples include terminal locations, sleeper cabs, day cabs, trucks with and without auxiliary power units (APUs), etc.

Next, set goals and incentives for the entire group based on the actual results from the top tier of drivers. One of the fleet managers at the meeting, who works for a large flooring manufacturer, said that his company sets mpg goals based on what 25 percent (the top quadrant) of drivers in each group already have met. Its goals aren’t limited just to mpg; they also include idle time.

This company also uses descriptive statistical analysis to determine what vehicles fall outside the 95th percentile of predictability. For each group or baseline, drivers’ mpg follows a normal bell-shaped curve. Statistically, the few trucks that fall outside of the 95th percentile are in the same group, but they are the special cases you should really look at.

Trucks on the low end of the mpg curve might have a mechanical issue. In this case, you could make the operational adjustment and remove a driver’s mpg data from the time period in question, thus returning his average to normal. On the high end, you’ll want to locate the driver or equipment that is performing well, determine why, and then roll out these best practices to the rest of the fleet.

An automated measuring system is another component of successful mpg programs. Drivers should be familiar with your onboard computer system, if you use one, in order to monitor thier own mpg in the cab. It also helps to use healthy and creative competition to motivate drivers to improve. For example, you could post a chart in the office and label the group of drivers in the lowest quadrant the “catfish” for being the bottom dwellers. The next group could be the snails, the lions and then the cheetahs in the top quadrant.

With the right technology tools, analytical skills and even some creative competition, you too can have an effective driver incentive program, attain significant fuel savings and leave no room for driver excuses.

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