Key Takeaways

Key Performance Indicators or KPIs, are crucial for fleet management. Thanks to these indicators managers can measure the impact of strategic and tactical decisions and take steps towards improving productivity and results. In this article we will cover the most important KPIs every fleet manager should include in their measurement plan, such as operations, service delivery, driver behaviour and vehicle performance.


KPIs for Operations and Productivity in Fleet Management

The KPIs included in this section have an impact on productivity and help managers to measure variations in this particular metric. The most important KPIs in this category are Task Management and Cost Analysis.

checking fleet management kpis in tablet

1.Task Completion Levels

Defining the number of tasks completed by the team and developing an indicator which involves monitoring the task completion rate, will allow managers to secure a solid record of productivity levels. This record can be used to analyse current productivity levels and define actions and projects that need to be implemented in order to improve efficiency and the tasks/hour ratio.

2.Cost Analysis and Deviations

Total Cost Analysis is also an important indicator for operations. Being able to define deviations on budgets and the source of such deviations will lead to adjustments in the use of human and material resources which will significantly impact results.

Service Delivery

Measuring service delivery is key for fleet success as it ensures efficient tracking of data which provides important information that has a considerable positive impact on return and company results.  The essential KPIs in this regard are scheduling adherence, delivery times and client’s satisfaction. 

1.Scheduling Adherence

Tracking vehicle locations through GPS tracking devices allows fleet managers to have access to data about drivers’ adherence to schedules. Fleet managers are able to monitor whether drivers begin their shifts late or deviate from the schedule. This enables fleet managers to ensure that drivers keep to the schedule and cargo is delivered on time. 

2.Delivery Times

Analysing delivery times for different vehicles, cargo and routes will help managers make important decisions towards improving efficiency, this will lead to better delivery times and client’s satisfaction.

3.External and Internal Client Satisfaction Levels

Recording satisfaction levels for clients is important for any business. However, if fleet managers combine this information with records of the satisfaction levels among interacting departments they will enable additional measures to improve efficiency. 

Driving Behaviour and Performance

Monitoring driver behaviour and performance is crucial for fleet managers because the ways in which drivers conduct themselves on the road has an impact on fuel consumption, vehicle maintenance and their safety. Safe driving practices ensure that cargo and services are delivered safely on time. Masternaut has implemented a Drivers Incentive Scheme, where drivers' behaviours are separated into three scores, Smoothers (Harsh events), Safer (Speed) and Cleaner (Idling).

The Masternaut platform also hosts two driving behaviour dashboards which provide a clear overview of driver performance. One of the dashboards provides a fleet overview and one is for individual drivers. The fleet overview dashboard shows the average score in each of the three categories across a whole fleet. The individual driver dashboard displays top performing drivers who score the highest for each category, as well as the three lowest scoring drivers who may require extra training.

Driver performance and operations can be broken down into different KPIs:

1.Harsh Acceleration and Braking (Smoothers Score Category)

Harsh acceleration and braking are key indicators of poor driving practices. Fleet managers are able to measure how many harsh events (over-acceleration and over-braking) a driver commits on average. These practices also contribute to vehicle degradation, incurring more costs for the maintenance of vehicles.

2.Speeding (Safer Score Category)

Speeding puts your vehicles and drivers in danger and therefore, it is important to ensure that your drivers are adhering to the legal speed limit. In order to monitor drivers’ speeds, fleet managers can implement Masternaut solutions to have access to data such as the percentage of the total distance travelled at safe speeds. Fleet managers are then able to compare vehicle speeds with local speed limits, which in turn means that they can identify speeding infractions. This data allows the implementation of specialised training in order to increase driver and vehicle safety. 

3.Excessive Idling (Cleaner Score Category)

Excessive idling leads to increased fuel consumption and therefore increased costs. Fleet managers can monitor the percentage of time spent driving while the engine is on, allowing them to accrue data and observe trends in driver performance. Once again this data could be used to implement specialised training, in order to improve driver performance and decrease costs.

Vehicle Performance

Vehicles and their management are essential for companies working with fleets as analysing their performance and how much value they provide allows managers to make strategic decisions that will reduce costs and improve productivity. 

1.Vehicle TCO (Total Cost of Ownership)

Monitoring costs is one of the more important indicators of good business performance, as it informs fleet managers of the expenditure and profit margins associated with their fleet. A major cost in maintaining a fleet is the TCO of vehicles. This refers to all costs associated with vehicle ownership such as initial cost, maintenance, fuel consumption and licensing fees. Monitoring the total costs associated with vehicles allows fleet managers to identify areas where they are losing money and therefore enables them to maximise cost efficiency. 

2.Vehicle Utilisation and Replacement 

Vehicle utilisation refers to the added value each vehicle provides for the business. For example, how many miles a day a HGV travels compared to its TCO. This takes into account how useful a vehicle is to the fleet and whether it is reaching its full potential and helping generate enough profit. Ensuring vehicles are efficient is an important KPI to monitor. 

Vehicles degrade over time and eventually require replacing as the fleet needs to be efficient and capable of work. Tracking how much is spent on replacing vehicles is an important KPI as it provides data which helps fleet managers set a realistic budget for maintaining an efficient and modern fleet. 

3.Vehicle Breakdowns

Breakdowns can occur due to accidents or malfunctions. These should be avoided if possible as they reduce fleet efficiency. If maintenance issues are left unchecked, vehicles are susceptible to breakdowns.  For this reason,fleet managers should monitor total vehicle breakdowns across their fleet, tracking trends should they appear as these could suggest issues with the maintenance programme. 

4.Maintenance Downtime

Vehicles requiring maintenance are not available for use, and the longer they are out of action, the more they reduce the efficiency of the fleet. It is crucial that fleet managers monitor the downtime of vehicles to ensure they are out of action only as long as necessary. 

5.Fuel Consumption

Fuel consumption is inescapable and represents one of the most important expenses in any fleet. Although it is true that it is an expense that cannot be avoided, it is possible to develop strategies to improve its use. The tracking of the consumption of our vehicles will allow us to determine what type of actions are necessary to improve productivity. For example, modifying routes and specific training for drivers to improve their driving styles.

6.Empty Miles

Empty miles are one of the most common causes of resource-wasting in the road freight industry. Using this KPI and measuring distances covered by each vehicle will help to design better routes that reduce empty miles by vehicle and improve efficiency.

We hope that this article has improved your understanding of KPIs and how they help fleet managers to improve efficiency and productivity. If you have more questions or if you would like to book a demo to learn how our solutions help fleets to improve their results, please do not hesitate to contact us.

By Masternaut on Oct 19 2021

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