Saving costs and boosting profitability | Infrastructure news

Procuring fuel efficient fleets through reviewing supply chain management systems is how large operations are tackling the high fuel prices due to the volatile oil price.

These fleets will not only cushion the operations against high oil prices but will go a long way to enhance profit margins.

Raymond Abraham , Shell South Africa’s Commercial Technical Manager says, “Although introducing more fuel-efficient vehicles is part of the solution, matching the correct fuel to the vehicle is equally important as this is where operators are able to extract ‘extra kilometres’ from their fleets, as well as reduce maintenance requirements, CO2 emissions and smoke.”

Abraham adds, “Oil is extremely sensitive to developments in the Middle East therefore local fleet managers profits are continually under threat due to fuel price volatility. This makes it difficult to project and maintain margins.”

Abraham concludes, “Product knowledge and choice can make a bottom line difference in this regard, however, as certain products are formulated to deliver savings over the lifetime of one’s vehicles, promoting more efficient engine combustion and protection enables greater engine efficiency.”

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