Data plays a critical role in modern-day fleet management. It gives you all the insights you need for smooth fleet sailing, forecasting, and improving the bottom line. As a fleet manager, you must know which metrics to track to get the most out of your fleet.
To simplify this, we have gathered our top essential fleet management metrics that should align with your business objectives and help you improve operational efficiency.
Fleet data metrics show you how well your fleet is performing. This information helps you manage your vehicles more easily and increase your profits. By focusing on the most important metrics, you can set goals to keep your operations running smoothly. This data also helps you make smarter decisions, like saving money, improving safety, and following all the rules and regulations.
Here are the key metrics to focus on for better, more efficient fleet operations:
You must track the average hours of use for each vehicle per day, the kilometres given, and the idle time. Know how frequently and effectively each vehicle is being put to work to identify those that are underused or overused. Through this, you will pick up if you need more vehicles or need to size down. Monitoring the utilisation rate of vehicles also helps avoid the issues of certain vehicles being more prone to wear and tear, which reduces their lifespan.
Monitoring driver behaviour contributes to a safer fleet, better fuel usage, compliance with regulations, and reducing wear and tear. This can be done through telematics, where you can use the technology to see when drivers are practising risky driving habits, such as harsh braking and speeding or wasting time and fuel by idling for too long. The key is to get reports that show how often these incidents occur so you can notice patterns, train drivers, and reduce the incidents.
Route efficiency directly impacts the overall fleet operations. Without proper planning, there is a higher risk of increased fuel consumption and delivery delays. Find out how many drivers use the recommended routes versus deviations. In doing so, you will see how effective the planned routes are and how much fuel is going down the drain through detours.
Evaluate how reliable and prompt deliveries are by checking the on-time delivery rate or service completion rates, as this is vital for customer satisfaction. Review the number of missed or redirected deliveries and analyse the data to notice patterns which could indicate greater concerns relating to delivery efficiency.
Preventive maintenance refers to performing regular inspections and following regular maintenance schedules to ensure that vehicles remain in top condition and to reduce the chances of unexpected breakdowns. Planned maintenance is key, as unplanned repairs can increase expenses through towing costs, waiting for vehicle parts, overtime for technicians, and operational disruption.
Measuring downtime shows the productivity and operational efficiency of your drivers. Through this, you can identify the root causes of vehicle unavailability. Various reasons, such as repair issues, maintenance delays, and limited availability of vehicle parts, cause downtime. By monitoring this, you, as the fleet manager, can identify patterns that prolong downtime.
Another preventative maintenance measure is to invest in a telematics system that can detect maintenance issues such as oil and water fluctuations, worn brake pads, and a faulty engine. This ensures that you know of vehicle issues before they escalate.
Fuel efficiency is a critical Key Performance Indicator for fleet management as it highly impacts the operational costs of any fleet. With fuel prices constantly fluctuating due to global factors, closely monitoring consumption using the right technology is the best way to ensure that the overall spend is not too far off from the initial budget.
You should know the average litres of fuel each vehicle uses per kilometre as well as the cost per route, per vehicle. A fuel management system makes this possible through telematics technology that automatically calculates these key points for you, giving you a detailed analysis of where your fuel goes. Moreover, you can integrate the fleet management software with fuel cards to verify transactions and quickly spot theft and fraud.
A 2024 study by KPMG, using customer fleet data, reveals that commercial fleet owners and managers are better off performing a closer examination of their total cost of ownership (TCO). The total cost of ownership provides a complete view of all expenses associated with owning and operating fleet vehicles over their entire life cycle. It includes factors such as the initial purchase price, registration fees, maintenance costs, insurance, depreciation, resale value, fuel costs, toll gates, licenses, taxes, and all other expenses of the vehicles between buying and selling them.
To calculate TCO, you must add all vehicle operational costs to the acquisition cost plus the finance interest rate and then subtract the resale value.
One van being used every day for deliveries might seem more cost-effective, but if that van is constantly breaking down, then it’s costing you more in repairs and lost time. Then again, underused vehicles will still cost you a lot of money in terms of insurance, storage, depreciation, and lost sales opportunities.
Monitoring how often each vehicle is on the road and for how long will help you strike the right balance between costs and efficiency, which in turn increases your return on investment and fleet lifespan. Ensure that you track the average kilometres each vehicle travels per day; this makes it easier to keep up with maintenance schedules and helps sustain the fleet size.
Compliance costs, such as those related to safety regulations and emissions standards, also contribute to the overall expenses. It is essential to factor in the costs associated with vehicle inspections, safety training, environmental regulations, licences and permits, as well as taxes. Always know which licences are soon expiring and the number of permits that must be renewed to avoid penalties.
One of the most important aspects of fleet management is safety. Monitor the frequency of accidents, near-misses, the number of injuries, as well as the amount of road violations such as driving over the speed limit. As a fleet manager, you should also measure the average cost per incident to further evaluate the loss in revenue.
How frequently is your fleet business making insurance claims? The more you claim, the higher the premiums, as insurers see you as a higher risk. Know the root cause of insurance claims and pinpoint trends such as problematic locations or driving habits, and assess the effectiveness of safety programmes.
It is important that you analyse the amount of carbon dioxide (CO₂) emissions per vehicle, per trip, or per fleet. This impacts the goal towards sustainability, which could result in higher carbon taxes. It is every fleet business’s responsibility to ensure it emits as few greenhouse gases as possible. Ensure that you choose a fleet management system that can help you calculate carbon emissions.
The most sustainable fuel option is an EV (electric vehicle) fleet, as these vehicles generate zero tailpipe emissions, reducing greenhouse gases. Petrol and diesel engines have higher carbon footprints compared to hybrids. Whichever category your fleet falls under, ensure that you track its progress towards sustainability goals.
The only way to keep up with all aspects of your fleet is by investing in an advanced fleet management system. Through this, you will get all the information you need about your fleet so you can reduce costs and streamline operations.
A fleet management platform gives you a detailed analysis of your fleet in the form of reports, graphs, and other data visualisations, making the information easier to interpret and take action on.
A good Key Performance Indicator for fleet management should be SMART (specific, measurable, attainable, realistic, and time-bound). This will allow you to see where you are performing well and where you need improvement. The KPIs should be based on overall objectives of the fleet, such as cost reduction, safety improvement, and operational efficiency.
Here’s how you can track fleet data metrics with ease using our powerful fleet management system:
Cartrack specialises in all things fleet management; you can trust our reputable system to give you all the information you need to improve your fleet operations. Reach out to us, and speak to a fleet representative.
Boost productivity and efficiency with these top fleet data metrics. Find out all you need to know!
