If you’re not already using Fleet Management Key Performance Indicators (KPIs) to measure performance within your organisation, you’re almost certainly lacking the concrete insight you need to increase performance and reduce costs.
Fleet management software doesn’t just help you manage your fleet, it plays an integral role in helping fleet managers set and measure KPIs. By setting the right KPIs, you can monitor your company’s’ health, measure progress, make informed decisions, analyse patterns, and much more.
What are KPIs?
A Key Performance Indicator is a measurable value that helps users and businesses track, measure, and compare how well they’re performing in relation to strategic objectives and goals. Broadly speaking, KPIs enable an organisation to understand clearly if they are on track to hit their goals. Setting KPIs enables users to identify potential problems early, make adjustments, improve decision making, and ultimately - help to improve performance.
Top fleet management KPIs to track
Safety is always one of the top priorities for fleets. Not only do fleet managers have a duty under the Health and Safety Act to ensure they are acting lawfully, closely monitoring and reducing the number of accidents should always be an objective.
You can set KPIs around driver behaviours such as:
- Number of accidents
- Speeding tickets and other law infractions
- Customer complaints
One of the top uses of KPIs is to measure productivity. There is no better way to get an accurate understanding of how employee hours are being spent, how vehicles are being utilised and so on, than setting and monitoring indicators.
To better measure productivity, you can set KPIs around things such as:
- Number of jobs completed
- Vehicle activity
- Idle time/hours
- Overtime hours worked
Compliance plays an important role in the fleet industry. Fleet managers and businesses need to comply with a number of laws to ensure their staff is safe and vehicles are kept in good condition.
Some of the compliance KPIs you can monitor are:
- Vehicle maintenance and servicing
- Driver working hours
- Driver licences/restrictions
- Tachograph compliance
Fuel is one of the top expenses for fleet businesses and is one of the costs with the most room for making savings.
The larger the fleet, the more potential there is for savings by making small tweaks across the board. The only way to reliably measure how much fuel us being used, and the savings being made due to changes you implement is with KPIs.
Some of the KPIs you can monitor are:
- Average mile per gallon
- Vehicle idle time
- Fuel costs
- Individual driver fuel usage
As you can see from the above, using KPIs can give you a greater insight into how any area of your business is performing. It doesn’t have to be purely financial, you can monitor employee productivity, use of their time, and much more.
It’s one of the many tools fleet management software gives you that pays for itself in the long run.
If you aren’t already using fleet management software you can book a demo of our FleetCheck software here, or call a member of our team to discuss the various other features that will benefit your fleet business.