Case Study:
Fuel Spend Optimisation
Case Study:
Fuel
Spend Optimisation
Case Study:
Client Challenge
A leading logistics provider was looking to reduce their fuel spend, the biggest operating cost item in their business.
A method was needed to identify fuel spend inefficiencies in terms of both fuel price and consumption.
Given the large number of variables which impact fuel price and consumption, how could they accurately identify opportunities across their business to reduce their fuel spend?
The Solution
- Applying concepts from lean manufacturing to the problem, BSC created a framework and tool to calculate accurate baselines that paid respect to the specifics of each trip.
- Examples of wasted fuel (more than baseline) could then be identified and attributed back to specific trips, drivers or trucks to be actioned.
- A digital twin created to retrace each trip identified sub-optimal refuelling strategies in terms of price and litres and made suggestions.
Solution Value
We analysed about 50% of all the KM travelled by their trucks and from that identified savings opportunities that added up to 4% of their total fuel spend, or R60m per annum. Interventions to realise some of these savings are now being implemented across the business.