Best KPIs every fleet manager should track
Fleet managers can develop KPIs suitable for their fleet based on the three main benchmarks - controlling costs, improving productivity, and enhancing fleet efficiency. It is also important to understand the specific areas in which your fleet requires further improvement.
Let's take a look at the top fleet management KPIs you should be targeting
1) Driver behavior and safety
The safety of fleet drivers is one of the most critical metrics that should not be overlooked. Fleet managers need to set a KPI around driver behavior to ensure the safety and security of both drivers and the vehicles on the road. They can create KPIs based on the number of incidents each quarter.
Close monitoring of their driving style with telematic sensors or dashboard video cameras is essential to determine their performance. Fleet managers can immediately flag any incidences of speeding and hard braking or cornering by their drivers. Moreover, they can even offer safety training for drivers to avoid further traffic violations and mishaps.
2) Vehicle maintenance management
As vehicles are one of the top investments for a fleet owner, it is crucial to prioritize its maintenance. Fleet managers need to ensure timely and proper servicing of their vehicles. They should focus on limiting downtime and cutting repair expenses. A fleet management KPI for vehicle maintenance helps in improving fleet productivity and reduced downtime. Companies can even refer to maintenance software to keep a tab on the vehicle servicing and repairs. GPS fleet tracking allows monitoring of mileage, fuel usage, and daily engine hours. An advanced fleet management software can also send alerts when a vehicle is due for repairs or servicing.
3) Fuel economy
Maintaining fuel costs is the top priority and most challenging job for a fleet manager. It is necessary to monitor fuel consumption and reduce fuel wastage to control fuel costs. Targeting fuel efficiency is essential while setting fleet management KPIs related to fuel. Fleet managers need to track fuel consumption patterns and focus on optimizing routes as well as driver behavior.
Leveraging a fleet management software will help managers record fuel consumption entries and avoid the hassle of maintaining paper receipts. Moreover, this allows them to see fuel entries and expenses in real-time. A fleet management solution also offers optimum routing for the fleet to improve fuel efficiency for your vehicles.
4) Fleet utilization and productivity
One of the key fleet management KPIs should be about asset utilization. It is crucial to understand the productivity and efficiency of your fleet. Fleet managers need to track their assets and garner the most productivity from them for a long time.
A fleet management tool can monitor and measure service hours, total usage, idle hours of fleets. Managers can leverage this data to create a better maintenance strategy for the better performance of their vehicles. This will also explain the actual number of fleets you need to satisfy your customer demands. Asset utilization KPI also helps managers make better fleet management strategies and control costs.
5) Compliance and HOS
Compliance is a major concern for fleet managers irrespective of the size of the fleet. They need to conduct inspections, record the history of Driver Vehicle Inspection Reports (DVIR) logs daily, and meet safety standards. With a fleet management app, drivers can log and complete their DVIRs and check inspection reports in real-time.
Moreover, it is necessary to track Hours of Service (HOS) for the drivers. It is one of the most robust performance KPI that ensures the productivity and safety of fleet drivers. Managers should strictly monitor and forbid drivers to drive the vehicle after they finish their specific hours.
Managers can set their KPIs by considering the goals mentioned above. Leveraging a fleet management solution helps managers to plan strategies and monitor fleet metrics in real-time.
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