Peregrine Trucking Co Research Paper Example | Topics and Well Written Essays - 1250 words

Peregrine Trucking Co - Research Paper Example In 2008, a total of 758 companies in the trucking business went out of business because of rising fuel prices. This shows how crucial this issue is in any trucking company. With the uncertainty in the prices, companies lose a lot of money when there is a spike. This is why it is important to reduce the costs as much as possible. This document tries to evaluate available methods of reducing fuel costs in the company by using equipment that is the most efficient and socially conscious. It also looks at other ways that relate to rules and software which the company can employ. It also considers efficient operating methods that can help achieve this saving. Finally, it looks at the results the company can expect from employing the different methods. Body Looking at Peregrine Trucking Company, the fuel price is one of the highest direct costs it incurs in its operations. This is because it is in the transportation industry. These costs affect the performance of the company in terms of pro fits where an increase in costs leads to a decrease in the profits (Taylor & Weerapana, 2009). This is the reason why it is important to evaluate the potential of reducing fuel cost to gain a competitive advantage. ... Another rule is for employees to ensure that the mile-per-gallon is as high as possible. To ensure that they abide by this rule, the company can motivate employees by providing incentive plans in form of rewards for providing the best records over a period of time. Employees also need proper driving skills through training as some may be forceful when hitting the brakes, while others may tend to drive fast around corners, which results to an increase in fuel consumption. Training also helps reduce the period that the trucks idle as employees will learn to appreciate the effects of doing this. It is important for drivers to be informed of the importance of turning off the engine when the truck is not moving, in order to avoid burning up fuel unnecessarily (United States, 2008). Drivers are also required to be trained on avoiding shifting too many gears and try to keep the vehicles continuously moving instead of stopping and then starting again. They also need to be trained on the impo rtance of avoiding overspeeding and the use of natural speed instead of the accelerator when going up and down hills. All these will help to reduce fuel consumption. Training results in better drivers and efficient working. Looking at the equipment, the company can adapt, first and foremost, the use of speed governor. It may seem as be increasing the expenses of the company; however, the long term benefits are visible. Speed governor reduces the maximum speed in trucks, thus preventing drivers from overspeeding. An extra mile or two per hour that can be saved as a result of using the speed governor can save fuel, which, in turn, reduces the costs incurred by the company. The company can also adapt