Royal Jones President & CEO of Mesilla Valley Transport shows that a little math and costless bonus systems saves money and increases revenue and a fleet wide commitment to a fuel savings program.
I incentivise the Driver Managers to take their fleet of 50 trucks and if they have reached certain milestones they get a bonus. Where it really gets interesting is that if they save money they will only get a percentage of it based on compliance. So if they only have 70% compliance they will only get 70% of the bonus.
Yes, the system knows that the price might be cheaper in Oklahoma but if you burn it in Missouri, it knows you now owe Missouri money and that might end up costing you more.
With technology I can find out so much more information such as what the fuel mileage is on every one of my trucks right now and it is because of this type of information that is available the systems are making decisions to save the company money.
How are you getting buy in from Driver Managers and drivers?
I incentivise the Driver Managers to take their fleet of 50 trucks and if they have reached certain milestones they get a bonus. Where it really gets interesting is that if they save money they will only get a percentage of it based on compliance. So if they only have 70% compliance they will only get 70% of the bonus.
Does it work with fuel taxes?
Yes, the system knows that the price might be cheaper in Oklahoma but if you burn it in Missouri, it knows you now owe Missouri money and that might end up costing you more.
How has technology improved for fuel purchasing decisions?
With technology I can find out so much more information such as what the fuel mileage is on every one of my trucks right now and it is because of this type of information that is available the systems are making decisions to save the company money.
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