Key Performance Indicators (KPIs) for Fleet Managers
The changing nature of the fleet industry means that fleet managers can easily be over-burdened by their work and in that they may fail to identify performance indicators that matter. There are several key performance indicators (KPIs) that fleet managers can use to achieve optimum efficiency and profitability.
What are KPIs?
So, what precisely are key performance indicators (KPIs)? KPIs are metrics of performance that are used to measure how well a fleet is doing. In fact, today many fleet managers are monitoring their operations through performance indicators like fleet utilisation, cost per mile, deadhead, on-time delivery percentage, driver turnover, among others. Below are some of the critical KPIs for fleet managers:
This is a great KPI to measure how active the fleets have been, i.e. how actively they have been utilized. It compares how much time each unit was inactive and idle mode. For example, if a truck’s total working hour in a month is 500 hours and if it is utilised for 200 hours, then the truck is said to have a utilisation rate of 40%. This is helpful for fleet managers to identify fleets that are either being underused or overused. And in doing so, they can optimize operations to yield optimal utilisation of fleet and maximum profits.
Cost per Hour
Cost per performance indicator indicates the cost that incorporates both how much it costs to operate an individual truck and how frequently that asset is utilised. This indicator is of great help in identifying fleets which are expensive as compared to other fleets which are performing the same duty. Cost per hour indicator places all fleets on the same level, thus allowing fleet managers to replace the ones that exceed the set goals.
Cost Per Unit
Another great KPI is the cost per unit which gives an insight into operating cost each asset within the fleet. Cost per unit helps in examining maintenance cost of each vehicle in the fleet. This can assist fleet managers in removing expensive, unsustainable, problematic, and high maintenance assets.
Fuel Economy per Asset
Using fuel economy and maintenance as a performance indicator can help fleet managers identify fleets which indicate high fuel consumption be behaviours like speeding and unnecessary idling, etc. so that drivers can be trained to avoid them in future.
A truck driving back empty to the original point after making a delivery is known as deadheading, and the distance travelled when empty is known as empty mileage.
Getting a clear picture of empty miles and how fleets are used daily can help fleet managers in optimising asset utilisation and thereby reducing empty miles.
Preventive Maintenance Compliance
Completing schedule maintenance of fleets promptly is an essential thing for fleet managers. Preventive Maintenance Compliance measures this aspect of fleet management i.e. tracks preventive maintenance practices. Vehicles within the fleet must be repaired regularly since it lowers long-term maintenance practices, cost, and fleet downtime. This performance indicator gives fleet managers the capability to schedule and undertake maintenance practices on time.
Any insight fleet companies can get today is an enormous win because it gives these companies the chance to identify potential gaps and improve in areas in which they are at risk. New info and data are regularly passed by trucks and trailer all the time that can help fleet managers measure and manage something they didn’t or couldn’t do previously.
Because each client is unique, we help you to determine whether buy, retain, rent or lease. With our Business Intelligence tool-set, you get reports every week about the KPI’s of your fleet turning your raw data into insight for your advantage. Click here to know more.