Fleet management KPIs: Which ones to implement?

Fleet management KPIs can be a complex subject. Especially since each "fleet-using" industry has its own set of metrics to track. Indeed, a last mile delivery company does not pay attention to the same data as a trucking company. In this article, we will review some of the basic KPIs to monitor. These can be used as a starting point for fleet managers to get started on the road to creating specific KPIs. If, at the end of this article, you would like to learn more about specific KPIs for your company/industry, feel free to fill out the form to get in touch with us. We will be happy to help you define a strategy for your KPIs. Let's get started! 

What is a KPI?

We can't talk about fleet management KPIs to track as a manager if we don't start by defining the KPIs. 

KPI stands for Key Performance Indicators. It is a tool used by companies to measure the effectiveness of their performance, and therefore the efficiency with which they achieve their business objectives. You can find KPIs in every business area of the company. They can be defined for an individual or for the whole 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 fleet management, and telematics, KPIs are defined from the data returned by your vehicles' beacons. These beacons can track everything from fuel consumption to speeding, general driver behavior, and much more. From this data, you can define key performance indicators. If speed is an important metric for your business, you'll be tracking it: that's your first KPI.

Let's 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 operating 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 overall fleet costs. Keep fuel consumption at the desired level and limit over-consumption as much as possible. 

Vehicle utilization : Are you using your fleet to 100% of its capacity? Are idle times too high? 

Mileage : Is your fleet using the optimal routes? Is it driving too many miles?

Engine on/off : Do your vehicles' engines stay on when drivers stop?

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

Timeliness: Are the deadlines you define being met? Do you have any problems with 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 overall company operations.

Driver performance KPIs

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

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

Speeding : Speeding creates safety hazards for drivers, in addition to causing overconsumption.

Acceleration and hard braking : data to monitor to ensure drivers are driving smoothly, which is less risky and less expensive. 

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

Behavior in curves

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. Eco-driving is referred to 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 the number is too high, you can investigate the causes.

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

Periodic maintenance: If you establish a schedule, make sure it is followed.

We have just revealed some of the key performance indicators you should be monitoring as a fleet manager. Of course, these are general indicators and the list is not exhaustive. However, it is 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 it easy. Getting all this data was a headache. We've made it easier. Now we can give you access to all the data you need on 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 with the reports we provide. 

KPIs are, as their name suggests, the key to knowing more about your business. You can entrust us with tracking those that concern your fleet, and focus on those that add direct value to your business.