Fleet management KPIs can be a complex topic. Especially as each “fleet using” industry has its own KPIs to follow. In fact, a last mile delivery company will not pay attention to the same data as a haulage contractor. In this article, we will go over some of the basic KPIs that can be used as a base for fleet managers, to launch you on the track of defining your KPIs. If, at the end of this article, you wish to know more about KPIs that are specific to your company/industry, feel free to fill the form to get in touch with us. We will be happy to help you define a strategy for your KPIs. Now, let’s get started !
What are KPIs ?
We can not talk about the KPIs to follow as a fleet manager if we do not begin by defining KPIs.
KPI is an acronym for Key Performance Indicators. It is a tool used by companies to measure how effectively they are performing, thus how effectively they are achieving business objectives. You can find KPIs in each cluster of activity of the company. They can be defined for a person, or for the whole organization. To give a general example, a KPI for this blog is the number of people going through it per week.
Oxford’s Dictionary official definition is the following : “A quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance”
In the subject of fleet management, and telematics, KPIs are defined using the data returned by the beacons in your vehicles. The beacons can track everything from fuel consumption to speeding, including overall driver behavior, and much more. From this data, you can define KPIs. If speeding is an important metric for your company, then you will follow it closely : you got your first KPI.
Now let’s have a look at the basic KPIs that we recommend to any fleet manager.
Efficiency KPIs within a fleet
Efficiency is one of the keys to success, especially for companies that do business in industries where it can be a differentiating factor.
Here are some KPIs to track, on each vehicle and across the fleet :
- fuel consumption : fuel is a major component of the overall costs of your fleet. Make sure that consumption stays on the desired levels, and limit overconsumption as much as possible
- Vehicle utilization : are you using your fleet at 100% of its capacity ? Are dowtimes too weighty ?
- Mileage : is your fleet using the optimal routes ? Is it travelling too many kilometers ?
- On/off engine : are the engines of your vehicles still on when the drivers stop ?
- TCO : the total cost of ownership. We dedicated an article to this subject.
- Schedule adherence : are the schedules that you define respected ? Do you have delay issues ?
Efficiency is very important when managing a fleet. Optimizing it is a powerful tool to save money, time and resources. It is thus important to define and keep an eye on these KPIs. These insights are precious, and should not be neglected, because they have a strong impact on your fleet and overall operations of the company.
Driver performance KPIs
Drivers are important for your fleet, and too often neglected. Giving them the right KPIs, for them to understand what they can do better, and accompanying them in the right direction, is a first step to overall improvement.
For them to see where they can improve, you can follow the following KPIs :
- Speeding : speeding creates safety risks for the drivers, in addition to causing overconsumption
- Acceleration and hard braking : data to monitor to make sure drivers are driving smoothly, which is less risky and costly.
- Idling : excessive idling can be an issue and must be monitored as a KPI
- Corner handling
- Number of accidents : this one seems pretty obvious, but still important
Often, with fleet management solutions like Fleeti’s, and others across the world, these KPIs are gathered together under the “Eco-driving” module. It is called eco-driving because the driving behavior has a huge impact on fuel consumption, and thus on the carbon footprint of the company. Monitoring these KPIs, and implementing eco-driving, helps companies save money and protect the environment.
Maintenance is another important matter of fleet management, and has to be monitored through KPIs :
- Vehicle breakdowns : you need to know how many times your vehicles break down, to be able, if you get a number that is too high, to look for the causes.
- Average downtime when in maintenance : knowing how long your maintenance takes allows you to better organize and adapt your operations when the situation occurs.
- Periodic maintenance : if you create a schedule, make sure that it is respected.
We have now disclosed some of the KPIs that you should monitor as a fleet manager. Of course, these are basic KPIs, and the list is not exhaustive. However, it is a good start, and it can help you get on track before defining KPIs specific to your industry & company.
Fleet management solutions like Fleeti ease your work. Getting all this data was a pain. We made that easy. Today, we are able to give you access to all the data that you need about your vehicles. All of it.
And not only do we do that. We also combine it and make it understandable for everyone in your company, using dashboards and reports. The only thing left to do is to define, with us, the KPIs & metrics you want to follow, and then simply make decisions with the reports we provide you with.
KPIs are, as said in their name, key to know more about your business. You can trust us on monitoring the ones about your fleet, and focus on the ones that bring direct value to your business.
To reach out to us so we can discuss further, you can fill the form below. You can also read more about fleet management here.