Fleet management KPIs: Which ones should you implement?

Fleet management KPIs can be a complex subject. Especially since each industry that « uses a car fleet » has its own indicators to follow. Indeed, a last-mile delivery company does not pay attention to the same data as a road carrier. In this article, we will review some of the basic KPIs to monitor. They can be used as a starting point for fleet managers to start creating specific KPIs. If, at the end of this article, you would like to know more about the KPIs specific to your company/industry, do not hesitate to fill out the form to contact us. We will be happy to help you define a strategy for your KPIs. Let's get started! 

What is a KPI?

We cannot talk about the fleet management KPIs to follow as a manager if we do not start by defining KPIs. 

KPI is the acronym for Key Performance Indicators. It is a tool used by companies to measure the effectiveness of their performance, and therefore the effectiveness with which they achieve their business objectives. You can find KPIs in every business unit of the company. They can be defined for an individual or for the entire organization. To give a general example, a KPI for this blog is the number of people who visit it per week.

The official Oxford dictionary definition is: « A quantifiable measure used to evaluate the success of an organization, employee, etc. in achieving performance objectives ».

In terms of fleet management and telematics, KPIs are defined from the data returned by the tags on your vehicles. These tags can track everything from fuel consumption to speeding, to general driver behavior, and more. From this data, you can define key performance indicators. If speed is an important measure for your company, you will follow it closely: this is your first KPI.

Let's now look at the basic KPIs that we recommend to any fleet manager.

Efficiency KPIs within a fleet 

Efficiency is one of the keys to success, especially for companies that operate in sectors where it can be a differentiating factor.

Here are some key performance indicators to track, for each vehicle and for the entire fleet:

Fuel consumption: fuel is a major component of your fleet's overall costs. Make sure that consumption remains at the desired level and limit overconsumption as much as possible. 

Vehicle utilization : are you using your fleet at 100% of its capacity? Are downtimes too significant? 

Mileage : does your fleet use optimal routes? Does it travel too many kilometers?

Engine on/off : do your vehicle engines remain running when drivers stop?

TCO : the total cost of ownership. We have dedicated an article to this subject.

Compliance with deadlines: are the deadlines you set being met? Are you experiencing delays? 

Efficiency is very important in fleet management. Optimizing it is an interesting way to save money, time and resources. It is therefore important to define and keep an eye on these key performance indicators. This information is valuable and should not be neglected, as it has a strong impact on your fleet and the company's overall operations.

Driver performance KPIs

Drivers are important to your fleet, and too often neglected. Giving them the right KPIs, so that they understand what they can improve, and supporting them in the right direction, is a first step towards an overall improvement of your structure. 

To help drivers better understand their areas for improvement, you can track the following KPIs:

Speeding : speeding creates risks for driver safety, in addition to causing overconsumption.

Sudden acceleration and braking: data to monitor to ensure drivers drive smoothly, which is less risky and less costly. 

Idling: excessive idling can be a problem and should be monitored as a key performance indicator.

Cornering behavior

Number of accidents: this data seems obvious, but remains important.

With fleet management solutions like Fleeti's, and others around the world, these KPIs are often grouped under the "Eco-driving" module. We refer to eco-driving because driving behavior has a significant impact on fuel consumption, and therefore on the company's carbon footprint. Monitoring these KPIs and implementing eco-driving helps companies save money and protect the environment.

Maintenance KPIs 

Maintenance is another important aspect of fleet management. It should be monitored through key performance indicators:

Vehicle breakdowns: you need to know how often your vehicles break down, so that if you get too high a number, you can investigate the causes.

Average downtime for maintenance: knowing the duration of your maintenance allows you to better organize and adapt your operations when the situation arises.

Periodic maintenance: if you set a schedule, make sure it is followed.

We have just revealed some of the key performance indicators that you should monitor as a fleet manager. Of course, these are general indicators and the list is not exhaustive. However, it's a good start and can help you get on the right track. It is then up to you to define indicators specific to your sector and your company. 

Fleet management solutions like Fleeti make your job easier. Getting all this data used to be a headache. We've made it easier. Today, we are able to give you access to all the data you need about your vehicles. 

And we don't just do that. We combine them and make them understandable to everyone involved in fleet management, using dashboards and reports. All you have to do is define your fleet management KPIs with us. Finally, simply make decisions based on the reports we provide you. 

KPIs are, as their name suggests, the key to learning more about your business. You can entrust us with monitoring those relating to your fleet, and focus on those that bring direct added value to your company.