Top 12 Fleet Management KPIs – Bookmark Before 2024 Ends

Explore the top 12 fleet management KPIs that will help you determine your logistics company’s operational, financial, and strategic achievements.

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:

• Guide their data-driven decisions.
• Ensure efficient and safe operation of their vehicles.

By not tracking fleet management KPIs, as a fleet manager, you can experience:

• Poor visibility
• Inefficiency
• Safety risks
• Increased costs
• Customer dissatisfaction
• Compliance & environmental issues
• Missed opportunities
• Competitive disadvantage with potential financial consequences.

What are Fleet Management KPIs?

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:

• Operating optimally and rationally 
• Achieving cost savings on fuel and maintenance expenses
• Adhering to road safety protocols
• Meeting regulatory compliance
• Winning end customers’ trust and value through on-time delivery 

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.

Top 12 Fleet Management KPIs — Not to Miss

Here are the best KPIs every fleet manager should track.

1. Vehicle Allocation & Utilization

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.

2. Fuel Economy

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:

• Reduce fuel spending.
• Enhance fleet efficiency.
• Lower carbon footprints.
• Improve driving habits & patterns.

You can calculate the fleet’s fuel efficiency by identifying fuel liters consumption per Km.

3. Route Optimization

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:

• Reduce mileage and fuel consumption.
• Minimise the vehicle’s time on the road.
• Improve on-time deliveries.
• Minimise empty miles to enhance overall operational efficiency.

4. Maintenance Costs

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:

• Generate reports to monitor vehicle’s health.
• Schedule vehicles’ timely maintenance by setting reminders.
• Compile expenses related to vehicle repairs and review their invoices.
• Compare costs to budgets for cost control.

5. Driver Behaviour & Safety

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.

6. Driver Productivity

Measuring the efficiency and productivity of drivers is an important aspect. To monitor the drivers’ productivity, set KPIs to evaluate:

• Total distance travelled
• Frequency of stops or halts
• Total trips per driver 
• Successful and timely deliveries

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.

Other Important KPIs for Fleet Management and Maintenance

Here are some other not-so-common but equally important fleet management KPIs that indirectly impact the operational efficiency of logistics, delivery & service businesses:

7. Downtime

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.

8. Compliance with Regulations

Set a KPI wherein you can ensure that your vehicle and drivers are complying with:

• Legal requirements pertaining to permits, licensing
• Emissions and overall environmental standards

Complying with the above will help avoid legal issues, fines, and, in most cases, jail time. 

9. Vehicle Age and Depreciation

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. 

10. Customer Service Metrics

In fleet management, satisfying customers on the receiving end is a huge win. Track customer satisfaction by timely measuring metrics like:

• On-time deliveries
• Updated ETAs and easy PoD (proof of deliveries)
• Safe transportation of time & temperature sensitive goods

11. Environmental Impact

Measuring emissions and fuel consumption is important to track the environmental impact of the fleet and identify opportunities for reducing the carbon footprint.

12. Total Cost of Ownership (TCO)

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:

• Owning and operating a vehicle or acquisition
• Maintenance spends
• Fuel costs
• Insurance

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.

Comprehensive Fleet Management KPIs – A Cheat Sheet!

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	MPG (Miles Per Gallon) Fuel Consumption Rate Fuel Cost per Mile Total Mileage
Vehicle Utilization	Vehicle Idle Time Vehicle Downtime Asset Turnover Ratio
Fleet Maintenance KPIs	Preventive Maintenance Compliance Breakdown Frequency Mean Time Between Failures (MTBF) Safety and Compliance
Accident Rate Cost Management	Driver Compliance with Regulations (e.g., Hours of Service) Inspection and Violation Rates
Cost Management	Total Cost of Ownership (TCO) Maintenance Cost per Mile Total Cost per Vehicle
Driver Behavior	Driver Scorecards Speeding Incidents Harsh Braking and Acceleration
Route Optimization	Route Efficiency On-time Delivery Performance Empty Mileage Environmental Impact
Asset Tracking	Real-time Vehicle Location Asset Utilization Inventory Management Accuracy
Customer Satisfaction	On-time Deliveries Delivery Accuracy Customer Complaints
Predictive Maintenance Accuracy	Equipment Health Monitoring Fleet Age and Composition
Carbon Emissions	Fuel Efficiency Improvement Alternative Fuel Adoption (like biofuel)
Operational Efficiency	Vehicle Turnaround Time Vehicle (Asset) Allocation Optimisation

Turn Your Every Fleet Management KPI Positive with TrackoBit!

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:

• Track assets in real-time
• Optimise routes
• Monitor driver behavior
• And reduce maintenance costs

Turn your fleet maintenance and management KPIs positive with our fleet management software today!

FAQs on Fleet Management KPIs

• What is fleet management KPI?

  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
  

• Why are fleet management KPIs important?

  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. 

• What is the key to optimise fleet operations?

  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
  

• What are important metrics to track in fleet management?

  Driver safety, hours of service, route management, and fuel economy are a few important metrics to track in fleet management.