catalyst ai

Fleets often need to be able to quantify a return on investment for their transportation-related sustainability initiatives, and the ROI can depend on several factors. Determining the ROI begins with understanding a fleet’s motivation. While some fleets pursue cost savings through increased fuel efficiency, others may be motivated by meeting corporate targets or customer and employee expectations.

Fuel economy improvements offer the most direct and measurable return for fleets. Burning less fuel results in reduced emissions and lower operating costs. Fleet operators can achieve fuel savings through a combination of equipment upgrades and operational strategies, such as:

Vehicle conversions: Some trucks in a fleet could burn more fuel than others, and replacing units or changing equipment specs could improve MPG.

Aerodynamic devices: Trailer skirts, tails and other aerodynamic devices can help improve gas mileage for over-the-road fleets. They are less beneficial in urban delivery operations.

Tire maintenance and selection: Tires significantly impact fuel efficiency and something as simple as proper tire inflation can increase fuel economy and reduce wear. Tires running just 10 pounds underinflated can impact fuel economy by as much as 1%. Fleets can also consider spec’ing low-rolling resistance tires depending on their application.

Idle reduction: Cutting down on idling can have an immediate impact on MPG. Understanding why drivers are idling, such as waiting for extended periods at customer locations, can help fleets identify solutions to reduce it. If idling occurs during driver rest periods, auxiliary power units, or APUs, can provide climate control and electronics without idling the main engine, saving fuel.

Adaptive cruise control: Adaptive cruise control automatically applies the brake or accelerator based on the driver’s following distance and reduces the need for sudden braking and acceleration.

Speed governors: Speed governors enforce a maximum speed limit, which can keep the engine operating at the optimal range and improve fuel economy.

Preventive maintenance: A well-maintained fleet ensures equipment works like it should, improving fuel efficiency. For example, air leaks cause the air compressor to run all of the time and worn brake parts or brakes that are out of adjustment can cause brakes to drag, increasing fuel use.

Network optimization: The greenest mile is one that isn’t run, and optimizing routes can help fleets reduce unnecessary mileage.

Backhauls: Filling backhauls helps fleets achieve better fuel efficiency on a freight-ton-per-gallon basis. It also allows companies to make better use of the equipment and drivers already on the road, essentially reducing the need for additional trips and eliminating miles.

Some sustainability strategies don’t deliver immediate financial returns but offer value by helping companies meet corporate commitments or customer-driven environmental targets. One option is transitioning to renewable diesel, a clean-burning, sustainable alternative to traditional petroleum-based diesel. It can be used as a drop-in fuel for diesel and is available in certain markets throughout the U.S.

For fleets that are willing to invest in a long-term solution, adding electric vehicles can contribute to overall sustainability goals. While Class 8 trucks often get a lot of attention, the logical place for many fleets to start is light- and medium-duty equipment.

How Penske Can Help

Penske can help fleets meet their sustainability initiatives and quantify their results through a wide range of reporting and solutions. These include:

Equipment specifications: Penske works with customers to spec the right vehicles for their fleets’ applications and goals. This can include the ideal size of equipment, onboard technology, APUs and tires.

Benchmarking reporting: Fleets can gain access to reporting and benchmarking tools through Fleet Insight™ and Catalyst AI™ to get specific information on fuel efficiency and equipment utilization, and to gain actionable insights to drive improvements. Fleets can look at specific assets and hubs and also compare their operations to similar fleets.

Network optimization: Penske Logistics provides value-based consulting to help fleets optimize their network as well as their routes.

Renewable diesel: Penske currently offers renewable diesel fuel at multiple locations on the West Coast.

Electric vehicles: Penske works with customers to determine where EVs could fit within their network, test EV technology, and validate an operational fit before a full-scale rollout. Currently, the Penske Truck Leasing EV Evaluation Fleet includes a variety of light, medium and heavy duty EVs.

Fleet data is becoming increasingly important in improving performance, managing costs and increasing efficiency, but data alone isn’t enough. Having the ability to analyze current and historical data turns information into knowledge that can uncover actionable insights. Artificial intelligence is taking data analysis a step further and mining enormous datasets to identify patterns and opportunities to improve that would be difficult for humans alone to spot.

Through Penske’s Fleet Insight™, customers can access the AI-driven comparative insights feature, Catalyst AI™. Catalyst AI analyzes hundreds of thousands of datasets and automatically identifies similar fleets so fleet managers can create internal benchmarks while comparing their performance to like operations. There are more than 20 reports within Fleet Insight and Catalyst AI and some of the most useful reports are related to fuel efficiency and utilization.

Improving Fuel Efficiency

Fuel is one of the most significant operating expenses for any trucking company, and even small improvements in miles per gallon can improve margins and sustainability. Several factors affect a vehicle’s fuel economy, from driver behavior and maintenance to idling time.

With Catalyst AI, fleet managers can view MPG for their fleet or by vehicle or operating hub location to see how certain equipment specifications, routes or freight impacts fuel efficiency. The system then compares the fleet’s average miles per gallon to those of similar fleets to help them better understand how they are performing. The system drills down to identify specific vehicles or hubs that are underperforming compared to internal and external benchmarks. More importantly, Catalyst AI recommends specific corrective actions fleets can take to improve their MPG.

Fleets can also run reports in Fleet Insight, Penske’s online customer portal, on idling and maintenance, including maintenance compliance and the status of vehicle maintenance, to help identify how those issues could affect fuel efficiency.

Driving Increased Utilization

Maximizing fleet utilization is one of the most effective ways for fleets to improve profitability without adding equipment or drivers. Utilization can be complex, and it is important for fleet managers to understand not only which equipment is being used but also afc how it is being used. Several factors impact utilization, including routing, load planning, drivers’ hours-of-service and maintenance downtime.

Catalyst AI lets fleet managers view their utilization performance and identify which vehicles are consistently underutilized based on key metrics such as vehicle type and age. It changes hourly and daily utilization to similar fleets and recommends steps to take to improve utilization, such as reassigning underperforming assets or optimizing preventive maintenance.

Turning Insights Into Action

To learn more about how Fleet Insight and Catalyst AI can provide new insights into fleet performance, contact Penske Customer Success at hello@penskecustomersuccess.com or 1-844-426-4555.

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