The high price of diesel this year isn’t the only reason Schneider National Inc. closely monitors the fuel efficiency of its fleet. It is, however, a primary one. Since the Green Bay-headquartered company has scrutinized fuel use for more than three decades, it’s paid off as those costs now reach an all-time high.

“The days of big mile-per-gallon (mpg) gains are probably gone,” says Schneider’s Manager of Tractor Engineering Steve Jarosinski. “Now what we need to do is find an accumulation of small things that make for overall good efficiency.”
The company is a leading provider of truckload, logistics and intermodal services, servicing two-thirds of Fortune 500 companies and 28 countries worldwide. Schneider’s 10,100 company-owned trucks and 1,650 owner-operators consume approximately 200 million gallons of fuel each year, says Vice President of Purchasing Steve Graham.

If diesel held steady at $3.75/gallon, it equates to $750 million merely in fuel costs, every year. “When you think about your own personal vehicle, you think of it in terms of miles per gallon,” Graham explains. “We think of it in tenths and hundredths of miles per gallon.”

Why? “One-tenth of 1 mpg saves us $11 million a year, and that’s huge,” he replies.

With its annual Society of Automotive Engineering (SAE) testing program about to kick off its 22nd season, Schneider is setting valuable standards for fuel conservation and low emissions, not only for its own fleet, but for the industry as a whole.

In the Field

Graham launched the SAE testing at Schneider back in 1989. He was looking for a way to determine which tire would be best for fuel efficiency. After a trip to the Transportation Research Center of Ohio, which was using the SAE testing guidelines, he implemented the same practices at Schneider.

Each summer season, the testing team hits a 50-mile stretch of road in northeast Wisconsin to run anywhere from 12 to 30 trials. The group goes out in low traffic times and tests from all directions, taking into account wind speed, terrain, etc. The bottom line, Schneider is looking to see is how well each new technology will optimize the cost of fuel per gallon as well as the usage per trip.

“Many years ago we realized that mpg has a lot of variables,” says Vice President of Purchasing Steve Duley. “It’s important you understand how you’re going to use the truck, then set up the test so it represents your application as close as it can. You want data that’s going to be useful to you.”

Duley’s purchasing focus is on equipment, including the trucks themselves.

Two trucks from Schneider’s fleet are used in the tests, that is their primary job. One is the control and one is the test. Great lengths are taken to ensure there are no other variables between the trucks, which could affect final scores.

Two drivers, a mechanic and engineer also are hand-picked and asked to work with the testing group for those dedicated months each year.

Each test costs approximately $3,000, but it’s worth it if the decision has a huge impact on the fleet. Schneider also makes sure that the suppliers have done their fair share of testing before the product reaches them.  “It takes a lot of management time and cost to test things,” says Jarosinski.

A few of the items on the 2011-testing roster include low viscosity motor oils, renewable fuel alternatives and low-rolling resistance tires.

“We need to know whose is best and how much it will improve our mpg,” explains Jarosinski. “We have to figure out which [technologies] give us the most benefit.”

Advising the community

If it’s been a competitive product in the trucking industry, chances are Schneider has tested it. If it worked, the company may have implemented it in its personal fleet. Either way, a stamp of approval from Schneider denotes a resource for the entire trucking community to use while making purchasing decisions.

The most valuable test the company has ever run, Duley explains, was on an actual truck body. Schneider’s primary supplier, Freightliner, introduced a new model about three years ago, claiming it had a two to three percent advantage regarding fuel consumption.

The crew took possession of the trucks, tested them out and discovered that the claims were actually just the opposite of the results exhibited on the road. Schneider brought Freightliner the results and worked with them to make changes so that the truck did eventually perform at that two- to three-percent threshold. “In that case we helped ourselves, but also everybody in the industry that buys that truck,” says Duley.

In the past, products such as radial and low-resistance tires have been put through the Schneider testing regiment. So have aerodynamic devices like fuel tank skirts or cab extenders.

Sometimes manufacturers have limited resources, and through the Schneider testing, they might find a prototype is worth bringing to market.

“Quite frankly, they come to us because they know our testing is accurate, we give unbiased data, do well on setup and they can trust the numbers we present,” explains Jarosinski.

Don’t forget the driver

Schneider execs admit that even with the most efficient trucks possible, the drivers play a huge part in overall fuel conservation. This is why drivers must go through rigorous training.

State-of-the-art simulators help drivers understand the relationship between their actions while on the road, and the fuel efficiency and emissions reductions the company strives to maintain. Teaching them to gradually start, gradually stop, manage speed, shift efficiently, minimize idling time and think ahead are all key components of the training. “These are all simple things, but at the end of the day have a pretty big impact in distinguishing a really good driver and an average driver based on fuel economy,” notes Duley.

Another measure Schneider implements with its drivers is speed management. “Speed is a huge variable on how much fuel it takes,” he adds. A solo driver is allowed to cruise at 60 mph.

In the last year, the newest version of in-cab communications was installed in all trucks, offering drivers turn-by-turn directions. This eliminates unnecessary mileage if they become lost during a transport. Drivers are also given the most efficient route at time of dispatch.

He explains the company also cherry-picks the fuel stops a driver will use to refuel based on the routes, special deals at that particular station and distance from refineries.

Schneider also offers drivers monetary incentives to be fuel-efficient. Since 2008, the company has added a monthly bonus for those who achieve a certain level of fuel conservation success. 

What’s to come

As fuel costs continue to stay elevated and maintenance costs increase, the executives at Schneider National know that remaining competitive and efficient is key to survival.

“In my 30 years worth, if you had a one or two percent change in a year, that was a big deal,” says Duley. “So when you start adding zeroes to that, there’s a whole lot of concern about the cost of equipment in addition to the fuel.”

Graham explains that a large consumer goods producer announced something eye-opening for him at a recent Georgia Tech Symposium. He was surprised to hear the producer spends more on supply chain logistics than product manufacturing.

“It really draws focus to the importance of taking down supply chain costs,” says Graham. “That means fuel efficient trucks, using intermodal and working with shippers to load effectively.”

Educating consumers is also a big part of this, he explains. When a driver arrives at a destination, it’s important to make sure he doesn’t have to go through a bunch of red tape before unloading.

“There are a lot of things shippers can do to make our drivers more cost effective, so we can turn around and pass that benefit back to them and eventually to the consumers,” says Graham.

The future of trucking will also rely on the availability and effectiveness of new renewable fuel sources.

Schneider’s trucks are designed for almost no emissions, with all the traps and filters installed on them. That’s why the company has to be very careful with the quality of alternative fuels it chooses. “As long as it’s cost effective, and protects the engine and the engine’s cleanliness, we’re in favor of renewable fuels,” says Jarosinski. 

By Jen Bradley

Jen Bradley is a freelance writer living in East Troy.

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