Bay & Bay drives major fuel savings with Trimble Expert Fuel and TruckMate TMS
Hauling refrigerated truckload freight across 40 million miles annually, Bay & Bay, a family-owned logistics company founded in 1941, faced the constant challenge of optimizing massive fuel expenditures. To transform its fuel purchasing from a necessary expense into a strategic advantage, Bay & Bay turned to Trimble. Calculating the most cost-effective fueling locations enabled Bay & Bay to realize significant savings—potentially totaling $300,000 annually—and affirming their confidence at every turn.
The challenge
The Bay & Bay fleet of 400 tractors and 1,000 trailers covers 40 million miles annually. It takes about 500,000 gallons of fuel each month— costing about $2.5 million at today’s prices— to keep the fleet moving.
With its expansive operation, Bay & Bay has relied on a number of fuel providers, including most major truck stop chains, to meet its needs on the road. Using discounts negotiated with fuel vendors, the motor carrier has been able to keep costs in check. Additionally, with WEX Fleet Card and Omnitracs mobile communications systems, it has been able to streamline sending details about fuel stops with specific gallon amounts to drivers, and to centralize payment processing.
Despite those effective practices Bay & Bay needed to take fuel purchasing to the next level. The ability to account for the difference between the least and most expensive fuel prices in its network would enable the company to optimize purchases and realize greater savings. By focusing on providers that offer the largest discounts, the carrier could also leverage its purchasing power to find better volume pricing.
The solution
Today, Bay & Bay uses Trimble Expert Fuel, one of the tools within Trimble’s suite of optimization solutions, to drive its fuel purchasing practices. Expert Fuel analyzes routes and selects the best location for fuel purchases based on price, negotiated discounts and quantity needed. Using real-time data and integration with the carrier’s mobile communications system, the optimization software sends fuel stop instructions, including location and the number of gallons to purchase, directly to drivers.
At Bay & Bay, Expert Fuel is also fully integrated with Trimble TruckMate TMS to coordinate fuel stops with dispatch and routing information. Integration with its WEX Fleet Card facilitates payment processing through the financial software in the TMS.
Bay & Bay is now working with Trimble to use information from Expert Fuel and TruckMate, and the carrier’s tractor and trailer tracking systems on locations, miles and gallons purchased, to develop new data models.
The results
The result for Bay & Bay is the ability to make more informed decisions about fuel purchasing and have access to advanced reporting on costs and compliance. By optimizing purchases with Expert Fuel, Bay & Bay can realize:
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- Lower costs of five cents per gallon at the pump generating $25,000 in savings monthly based on purchases of 500,000 gallons. Over the course of a year, those cost reductions could total $300,000.
- With a difference in cost across its network between optimized and non-optimized purchases of 30 cents per gallon on average, the carrier’s potential savings could reach $150,000 monthly.
- By using Expert Fuel to optimize purchases across its nationwide network of vendors, Bay & Bay is able to negotiate more favorable discounts by leveraging its purchasing power with providers offering the greatest volume discounts.
The validation capability built into Expert Fuel that reconciles what was recommended and what the driver actually purchased ensures compliance with the optimized plan. In addition, if the amount of fuel purchased exceeds the recommendation, automated alerts immediately notify Bay & Bay of any potential fuel theft.
With the optimization capabilities of Expert Fuel, Bay & Bay is realizing significantly lower fuel costs, streamlining purchasing practices and enhancing compliance.
“With Expert Fuel we’re spending less by optimizing purchases based on our discounts with providers and the variance in network prices. The optimizer is essential for matching a truck’s route with optimal fuel stops. In our fleet, which uses 500,000 gallons of fuel each month, Expert Fuel is giving us the ability to generate savings of $25,000 each month.”
— Paul Mages, Fuel Manager, Bay & Bay
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Want to save on fuel and gain actionable insights into your operation? Learn more about Expert Fuel and TruckMate TMS, or contact our team for a consultation and demo.
