What is the fleet management KPI?
A fleet management key performance indicator (KPI) is a measure of the effectiveness of your fleet management strategy.
This KPI can assist you in the decision-making process and enables you to better plan and forecast.
Some useful fleet management KPIs are:
- Road safety. KPIs around the safety of your drivers, vehicles, properties, and other motorists are a best practice. You can create fleet management metrics and KPIs according to the number of incidents in a given period. Telematics data and dashcam footage are also useful for determining drivers’ performance by flagging unsafe driving practices; developing scorecards, coaching programs, and reward systems; enhancing asset security, etc.
- Total cost of ownership of fleet vehicles. This aggregate KPI totals the vehicle’s procurement price, fuel consumption, licenses, insurance, taxes, storage fees, replacement cost, maintenance and downtime costs, and other associated expenses for vehicle ownership over time. The results give you a complete picture of how much the fleet vehicles cost you. With this data, you can compare the total cost of ownership with income and identify opportunities to increase your fleet’s cost-efficiency. Once you’ve computed the total cost of ownership, set KPIs to determine when to maintain or replace your vehicles.
- Regulatory compliance. Stay on top of your compliance with applicable transport rules. Doing so minimizes potential penalties and legal repercussions. Monitor the completion of daily vehicle inspection reports (DVIRs), track your drivers’ Hours of Service (HOS), and incorporate HOS provisions into your company policies.
- Fleet utilization and productivity. This KPI reveals the amount of time you actively use your vehicles. You can calculate the yearly operating hours and compare them with the driving hours to determine vehicle under- or over-utilization. You can then identify the factors causing it — such as ongoing maintenance — and decide on the best interventions to boost your fleet’s productivity. Apply proper fleet reporting and data management procedures to organize and consolidate utilization metrics and generate accurate productivity reports.