Tesco.com has invested in software to optimise the fuel consumption of its fleet and improve driver performance in its 2,000 vehicles.

Rising fuel prices are a growing concern for the online arm of the supermarket giant, which estimates that its fuel bill will reach “significantly more” than £10m in 2008.

Tesco is hoping for a return on its investment in the multimillion-pound GPS-based management project within 12 months, by slashing its fuel spend by between 10 and 12 per cent.

As Tesco’s online business grew, effort was concentrated in areas such as driver recruitment. But fuel management was not an area it had examined closely as price was not such an issue, Tesco.com fleet manager Dino Papas told Computing.

“It became clear that we had to do something significantly better to manage fuel consumption, but if the savings were not deliverable I doubt the project would have gone ahead,” said Papas.

“We had to scale back on some of the things we first intended to do, such as monitoring oil levels and vehicle performance, but preferred to focus on key features working first around fuel consumption.”

The Microlise-supplied GPS/GPRS tracking computer connects to Tesco.com’s data network, which transmits information such as mileage, fuel flow, speed and engine revs. The data, coupled with GPS tracking information, is transmitted in real time via GPRS and enables the firm to assess vehicle activity against delivery schedule as well as driving style and economy.

Armed with this data, the business can produce reports to assess fuel economy as well as safe driving measures.

The system is already fitted in a third of Tesco.com’s 2,000-strong delivery fleet across the UK, with full implementation expected before the end of the summer.

“We could have rolled out the system sooner, but on its own the technology would have limited benefits because we still have to ensure drivers are professionally trained first. The system coupled with proper coaching will be a very powerful combination,” said Papas.