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ToggleExplore the top 12 fleet management KPIs that will help you determine your logistics company’s operational, financial, and strategic achievements.
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Managing a fleet of vehicles is like captaining a ship. Where Key Performance Indicators (KPIs) are like a ship’s navigational tools. Just like a captain uses tools like compasses, maps, and charts to steer the ship safely to its destination, fleet managers rely on fleet management KPIs to:
By not tracking fleet management KPIs, as a fleet manager, you can experience:
In the context of fleet management, KPIs are metrics that help identify the effective utilisation, overall performance, and efficiency of a fleet operation.
The purpose of setting and evaluating fleet management KPIs is to ensure that all of the company’s fleets are:
As a fleet owner, you can set KPIs for any asset of choice, be it trucks, cars, vans, or other vehicles. Here are a few KPIs for fleet management that you should definitely look through with the best GPS vehicle tracking and video telematics solutions.
Here are the best KPIs every fleet manager should track.
Do you know an average fleet wastes between 5-10% of its annual budgeted dollars – either due to underutilisation of assets or poor compliance with maintenance schedule?
Effective allocation of vehicles can lead you towards good earnings during reselling. Imagine if you have 500 vehicles and dozens of them lying underutilised in the lot – bad, right? With fleet management software, gain visibility of each vehicle, their total available time, total trips covered, and how many of them are idle or inactive.
Additionally, monitoring the idle time of vehicles is important to reduce fuel consumption and unnecessary wear & tear costs.
🔍 Idle time is when vehicle ignition or engine is on, but the vehicle is not moving.
💡 A high utilization rate of vehicles = assets are efficiently utilised. |
Measuring fuel consumption is one of the crucial KPIs in fleet management. It helps ascertain how efficiently vehicles are operating. Timely monitoring and optimising fuel consumption help:
You can calculate the fleet’s fuel efficiency by identifying fuel liters consumption per Km.
It’s important to measure the efficiency of routes taken by each vehicle in the fleet. As it can help look into fuel consumption patterns and speed up delivery times.
By using fleet management software offering route optimization, fleet managers identify and plan the most optimal routes for their delivery agents. Doing so will help:
Setting fleet maintenance KPIs can help you effectively monitor the cost of maintenance and repairs for each vehicle in the fleet. It can help optimise maintenance schedules, increase vehicle uptime, and reduce their breakdown.
With fleet management software, you can:
Do you know that 42% of fleet owners have seen fewer safety incidents ever since they started using fleet tracking software? |
Negligent drivers with incompetent driving skills — not only risk safety on the road but also contribute to vehicle wear & tear, and heavy fuel consumption. Thus, tracking driver behaviour on the road is a must to prevent accidents, incidents, or traffic violations.
Video telematics solutions can help you have a 360-degree view of the driver’s in-cabin activities & conduct on the road.
Read Blog – 8 Tips on How to Increase Your Fleet Safety
Measuring the efficiency and productivity of drivers is an important aspect. To monitor the drivers’ productivity, set KPIs to evaluate:
Set KPIs that help evaluate drivers’ productivity and efficiency in:
👍Completing tasks
👍 Optimising routes
👍 Minimising idle time
👍 Maximising deliveries or services
This will help you timely evaluate good and inefficient drivers. And help coach the underperforming ones and reward the efficient ones.
Here are some other not-so-common but equally important fleet management KPIs that indirectly impact the operational efficiency of logistics, delivery & service businesses:
Establish a KPI that helps you identify the amount of time your vehicles are out of service, either due to bad maintenance/repair schedules or poor allocation. This will help you overview the productivity of each vehicle.
Set a KPI wherein you can ensure that your vehicle and drivers are complying with:
Complying with the above will help avoid legal issues, fines, and, in most cases, jail time.
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Continuously monitoring the age of vehicles will help you plan their timely replacement. And will effectively help record their depreciation rates for better budgeting and revenue.
In fleet management, satisfying customers on the receiving end is a huge win. Track customer satisfaction by timely measuring metrics like:
Measuring emissions and fuel consumption is important to track the environmental impact of the fleet and identify opportunities for reducing the carbon footprint.
Fleet’s true cost goes way beyond just purchasing costs and fuel or maintenance costs. TCO (Total cost of ownership) helps ascertain the actual cost of owning and operating a vehicle.
It helps you evaluate costs associated with:
Timely evaluate the true cost of each vehicle in the fleet and compare it against the ROI to know the progress. Each time, ensure your ROI of each vehicle is higher than the TCO.
🔎 Return of Investment (ROI) > Total Cost of Ownership (TCO) |
Fleet management software and telematics systems are often used to track fleet management KPIs data that helps fleet managers make informed decisions to optimize their resources & operations. However, the choice of tracking specific KPIs for fleet management and maintenance is dependent on the nature of your fleet operations, end goals, and industry type.
Identifying Key Performance Indicators (KPIs) for fleet management and maintenance is very important for optimising your fleet operations and reducing costs. Here are some quick points that can help you develop KPIs for your fleet.
Variables | KPIs |
Fuel Efficiency |
|
Vehicle Utilization |
|
Fleet Maintenance KPIs |
|
Accident Rate
Cost Management |
|
Cost Management |
|
Driver Behavior |
|
Route Optimization |
|
Asset Tracking |
|
Customer Satisfaction |
|
Predictive Maintenance Accuracy |
|
Carbon Emissions |
|
Operational Efficiency |
|
Applying and monitoring the above-mentioned KPIs can help your business find lag in your current fleet’s operations. TrackoBit’s cutting-edge fleet management software lets you:
Turn your fleet maintenance and management KPIs positive with our fleet management software today!
Fleet management KPIs (Key Performance Indicators) are parameters or metrics that help measure and optimise vehicle operations, which further include: 1. Engine performance 2.Fuel efficiency 3. Maintenance costs 4. Driver safety and lots more
Tracking fleet management KPIs lets you identify the gaps in current fleet operations and take corrective actions to improve them — to achieve better effectiveness & efficiency.
To optimise fleet operations, invest in sound fleet management solutions that come with: 1. Driver behaviour monitoring tools 2. Route planning software 3. Video telematics system 4. Fuel monitoring solutions 5. Video telematics system 6. And other customisation your business desires
Driver safety, hours of service, route management, and fuel economy are a few important metrics to track in fleet management.
Nandita is a Content Lead at TrackoBit. She is passionate about writing factual and thought-provoking pieces that help readers remove complexities from fleet management. When she’s not on her desk scribbling words, she’s either sipping tea, dancing, or heading toward gym.
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