Fleet managers should consider KPIs suitable for their fleet, according to specific goals –costs reduction, fleet productivity, and fleet efficiency.
#1 Cost control:
In fleet management, all the expenses should be tracked, in order to measure fleet efficiency and thus understand driver’s behavior and vehicles availability:
- Total Cost of Ownership
- Cost per mile
- Fuel and Tolls Expenses
- Optimal Vehicle Replacement
#2 Maintenance Management:
The fleet is one of the most considerable investments for a fleet manager, so its maintenance must be prioritized. A fleet management KPI will be helpful in improving predictive maintenance and increasing vehicle uptime.
In addition, the use of telematics can help monitor fuel consumption and kilometers, as well as the operation of vehicle components, and the use of fleet management software can play an important role in increasing predictive maintenance, by sending alerts whenever a maintenance service approaches. You can setup a KPI for the number of unscheduled services or for the number of issues reported by vehicle, per example.
#3 Fleet Utilization and Economy
Maintaining fuel costs is the top priority and most challenging job for a fleet manager. This way, it is necessary to monitor fuel consumption and reduce fuel wastage to control fuel costs, while setting fleet management KPIs related to fuel. For that, it is really important to set goals regarding the cost of fuel in order to follow the evolution in terms of economy. Optimizing routes and promoting good practices by drivers, for example, can be a good strategy to save fuel.
On the other hand, by tracking expenses by vehicle (e.g.: maintenance services), it is possible to determine the right timeline for its replacement and thus maintain maximum fleet uptime and reduce unnecessary costs.
Nowadays, it is possible to use user-friendly tools that are able to track all the expenses and allow managers to reach important conclusions about fleet efficiency.
#4 Compliance and Inspections
Carrying out mandatory periodic inspections, keeping track of the history of vehicle inspection reports and complying with safety standards are constant concerns for fleet managers.
Tracking the hours of service (HOS) performed by drivers should be considered, being a strong indicator of productivity and also good safety practices.
#5 Safety and Driver Behavior
The safety of fleet drivers is one of the most critical metrics that should not be overlooked. It´s important to set a KPI around driver behavior to ensure that security standards are being met. One of the KPIs that can be created, for instance, is the number of incidents per quarter, as a measure of success.
Driving behavior must be closely monitored, using sensors or cameras. Safety training can be a good alternative to alert drivers to the importance of their behavior.
Generating reports to keep track of KPIS
Our fleet management software makes it easy to keep track of some KPIS, by generating specific reports on the KPIs you set for your fleet.
One of the most important ways you can use fleet management software to improve your fleet efficiency is by creating reports on the KPI you set for your team. Once you start to introduce data into the platform like incidents, information about maintenance services, costs and expenses, it´s easy to generate reports with the metrics you need to track.
The analysis of this data makes it possible to detect areas where it will be possible to implement improvements and make better purchasing and investment decisions.