7 Ways to Manage Rising Fuel Costs
| Posted in Bank Blogs
Managing costs is critical to managing your company's cash flow and longevity. But with today's soaring costs, including rising energy costs, that's become increasingly challenging.
Record high-prices at the gas pump, in particular, have resulted in increased operational expenses for businesses of all sizes. Then, there's the pressure on employees who have to contend with higher commuting costs and less cash in their pocket.
The obvious questions is: What can your business do about it?
Here are some strategies:
- Review your company's fuel needs. If you maintain a fleet of vehicles and offer delivery as part of your service, examine your current routes and scheduling to uncover ways to maximize efficiency.
- Ensure maintenance of company vehicles. The condition of your vehicles can greatly impact fuel efficiency. So, make sure your entire fleet undergoes regular maintenance.
- Set speed restrictions for your drivers. According to fueleconomy.gov, each mile driven over 50 mph can lower gas mileage by 7% or more.
- Offer a hybrid work schedule. Rising fuel costs can be challenging for your employees. One way you can help is to offer them the opportunity to work from home. Another way to help your employees defray commuting costs is to create a company sponsored car-pooling program.
- Schedule off-peak driving. If possible, schedule deliveries early in the morning or later in the evening to help reduce the additional time and cost of driving in traffic.
- Use fuel cards. For employees who travel as part of their jobs, provide credit cards that earn rewards that can be used toward gas purchases.
- Budget and plan ahead. When doing your budgeting and forecasting, make sure you plan for today's gas prices and future increases to ensure there are no surprises.