Indian construction company reduces fuel consumption by 24%, cuts repairs by 60% and increases mileage thanks to OFeX solutions.
ARSS is one of the fastest-growing construction companies in India, and is currently executing major road and rail infrastructure projects across 14 states. To tackle soaring fuel and vehicle maintenance expenditure, ARSS decided to invest in a fuel management solution. After equipping vehicles with OFeX fuel-level sensors, ARSS experienced a dramatic drop in fuel consumption, repair costs and fuel pump damage incidents.
With a fleet of 2,500+ vehicles including trucks, tippers, tractors, loaders, cranes, excavators and pavers, ARSS needs to keep a tight rein on fuel and repair costs. Fuel and maintenance expenditure was climbing steeply, affecting ARSS’s profitability and cashflow. ARSS decided to take control of costs by installing OFeX fuel sensors in vehicles to accurately monitor and manage fuel usage in real time.
THE NUMBERS
₹1 Crore plus saved per month
24% less fuel consumption in one month
60% reduction in repairs
THE CHALLENGE
As expenditure on fuel and maintenance rose, ARSS became concerned that business was slowing down and that construction projects were becoming less profitable. ARSS needed to optimize their cashflow management in a competitive and challenging environment in order to pay salaries and clear vendor payments on time. In addition, vehicle mileage was extremely below the OEM’s indicated mileage figures. ARSS knew that some of these issues were due to fuel pilferage. Fuel was often drained directly from the tank between journeys, which would eventually cause the vehicle to run out of fuel and result in damage to the fuel pump. Replacing fuel pumps was a major expense.
ARSS needed a fuel management solution to reduce operating costs, prevent fuel pilferage incidents, ensure that vehicles were getting maximum mileage and automate the monitoring of fuel levels, which was previously conducted manually by drivers using a yardstick and paper-based data entry system.
THE SOLUTION
ARSS decided to install OFeX LLS-4 fuel level sensors in two Tata tipper trucks as a test project in September 2019. The fuel-level sensors were integrated with third-party GPS trackers and fleet management software by the technical experts of Nigraani.com to provide a complete fuel and fleet management solution.
“ARSS was so impressed by the results of the test run that they immediately installed OFeX fuel-level sensors in 350 vehicles, and installation on another 200 vehicles is in progress. ARSS plans to equip its entire fleet of 2500+ vehicles with OFeX sensors. ”- Mr. Sumeet Agarwal, Director & CEO Nigraani.com
THE RESULTS
ARSS has reported significant results using OFeX fuel-level sensors:
• In the test project, vehicle mileage increased from 1.7 KM/liter to 3.2 KM/liter
• Fuel pump damage incidents stopped, eliminating major replacement costs
• Repairs reduced by 60% as fuel drains are detected instantly, preventing further damage
• 24% less fuel consumption in October 2019 compared with October 2018
• Saving ₹1Cr/month with 350 vehicles equipped with OFeX sensors
ARSS is able to monitor, analyse and make rapid decisions about fuel usage using live data, which is a significant time saver. Drivers no longer have to measure and enter fuel data manually, which saves time and avoids errors.
Drivers and supervisors are more motivated and experience less stress associated with fuel measurement, breakdowns and frequent refuelling. Now ARSS is able to meet construction project deadlines more easily, which improves client relationships. When ARSS analysed vehicle utilization data they were surprised to find that it was possible to reduce the average number of vehicles on site from 10 to 8, getting more work done with less resources.
Transparent fuel monitoring has increased trust between management and employees, and saving money on fuel has enabled ARSS to increase driver/operator salaries by 200%. The overall atmosphere in the company has improved. Business relationships with vendors are stronger, as more efficient cashflow enables prompt payments, and ARSS now enjoys a shining reputation in the industry.
“OFEX’s solution is not just a fuel monitoring system. It has helped us to maximize our profits, create a happier workforce and increase the brand value of the firm.” – Mr. Rajul Agarwal, Full-Time Director, ARSS Infrastructure Projects Limited.
