Metrics Every Fleet Manager Should Be Tracking

Are you a fleet manager looking to improve efficiency and reduce costs? Here are the metrics every fleet manager should track.

Fleet management is more than just keeping track of vehicles and drivers. For fleet managers, knowing which metrics to monitor can make the difference between smooth operations and costly disruptions. In this blog post, we’ll explore the key metrics every fleet manager should be tracking to gain insights into operations, and ensure efficiency, safety, and profitability.

metrics fleet managers should track

Fleet Vehicle Maintenance

Preventive Maintenance & Costs

Regular maintenance is essential for keeping your fleet in top condition, extending the life of your assets, reducing the expenses associated with major repairs, and increasing your operational efficiency. Whether you handle maintenance internally or use a third-party service provider, keeping an eye on the duration vehicles spend in the workshop ensures that repairs are executed promptly.

Time To Repair

Avoiding interruptions should always be a top priority for fleet managers, so when vehicles are left in the garage for several days, it's natural to worry that this is affecting schedule and potential revenue loss. According to CEREBRUMX, it’s “estimated that fleets lose an average of $448 to $760 a day, per vehicle, or $79.33 per hour due to vehicle downtime.”

Unscheduled vs Scheduled Service

Considering the expenses associated with repairs, it's crucial to recognize how unforeseen equipment failures can affect your financial plan. While unexpected repairs will arise, evaluate them in comparison to your scheduled maintenance and see if they can be done together.

Vehicle Inspections

Inspection Completion Rate

Driver Vehicle Inspection Reports (DVIR) play a crucial role in maintaining compliance and notifying supervisors about any problems with vehicles. However, they also offer a valuable tool for assessing the condition of your assets. By utilizing DVIR information and examining it for patterns among different users or vehicles, you can gain significant insights into the well-being of your assets.. Monitoring the rate at which inspections are completed can assist in verifying that drivers are conducting inspections diligently and that you are gathering essential data points at each asset.

Inspection Pass/Fail Rate

Simply finishing inspections isn't sufficient; recognizing how your fleet's operations connect to the pass or fail rates of your inspections can quickly highlight areas needing enhancement. If vehicles keep passing inspections but eventually need repairs, it might suggest a lack of comprehensive inspections. Conversely, a vehicle that consistently fails inspections might signal that it has reached the end of its service life in your fleet.

Uptime vs Downtime

Regarding planned and unplanned maintenance, the amount of time your vehicles spend not in use is mainly due to maintenance activities. If a vehicle is being kept in the garage longer than it's on the road, it might suggest that it's time to consider replacing it because this could be affecting your ROI.

Milage

Your mileage tracker will help you know when to schedule preventive maintenance and decide when to replace vehicles. Since many preventive maintenance activities are scheduled based on mileage and hours, getting frequent updates on mileage helps you maintain your fleet's performance. Additionally, you can utilize mileage data to better manage your drivers and reduce expenses on fuel.

Monitor Fuel Consumption

Fuel is one of the largest ongoing costs associated with running a fleet, making it essential to meticulously monitor both usage and expenditure. Implementing a system to continuously track and compute the costs of fuel and its usage can enhance your approach to managing fuel. Fuel consumption can be tracked by GPS, telematics software, fuel flow meter, and fuel level sensors.

Fleet Utilization

Fleet utilization is a benchmark to determine the percentage of how much a fleet vehicle is being used in comparison to its maximum potential. Once the percentage is determined, fleet managers can examine existing operations to pinpoint areas of inefficiency and implement any improvements.

metrics fleet managers should track

Fleet Operational Costs

Total Cost of Ownership

Tracking your fleet's actual Total Cost of Ownership (TCO) might be the most crucial and detailed measure you need to monitor. This is a difficult area to keep an eye on and control, yet being aware of your fleet's TCO empowers you to make informed choices based on data. Analyzing your fleet's costs provides insight into your investment's ROI. It also aids in planning for regular maintenance, deciding when to replace vehicles, and choosing between buying or leasing new ones.

Cost Per Mile

Cost Per Mile (CPM) is a measure that determines the expenses related to the operation of a single vehicle or an entire fleet over a certain distance, usually measured in miles. Fleet supervisors use CPM as a key metric to track and control the efficiency and cost-effectiveness of their vehicle fleets. An increase in CPM suggests that a vehicle or fleet may not be as efficient as it once was or it may not be delivering the same value.

Data on CPM helps with budget planning, predicting financial outcomes, and facilitating better management of resources. By grasping CPM, fleet supervisors can identify specific areas of vehicle performance that require enhancement and make informed choices regarding the fleet's composition based on data.

Parts & Inventory Value

If you're in charge of maintenance yourself, it's important to use the right equipment⎯even if it costs more, to lessen the time vehicles spend out of service. Monitoring your inventory of parts is key to preventing shortages and cutting down on the costs associated with excess stock. Consistently checking the history of orders for parts and monitoring the value of your inventory helps make informed decisions about future expenditures.

Driver Behavior and Monitoring

Telematics Data

Telematics data gives important insights into fleet visibility and the condition of assets. This data helps gather driver behavior, vehicle location and activity, and engine performance, allowing for the proactive oversight of driver actions and the detection of anything that could endanger both the driver and the vehicle.

Average Miles Per Driver

While those in charge of fleets concentrate a lot on their vehicles, it's equally crucial to monitor and oversee your drivers. Allocating vehicles to drivers enables you to easily access information about the length and distance of their trips. By connecting other systems such as telematics and fuel cards to a fleet management application, you can gain a detailed understanding of a driver's performance by observing their location, habits, and expenditures.

The future of fleet management lies in data-driven decision-making. By staying ahead of trends and continuously monitoring key metrics, you can ensure that your fleet operations remain efficient, safe, and profitable.