Fleet management KPIs

Which KPIs should you track to drive down fleet costs?

fleet management kpis

In recent years, Fleet Management KPIs have played a vital role in monitoring and managing fleet vehicle costs. Unsurprisingly, one of the most significant of these costs is fuel – an expense which, in the last decade, has witnessed a dramatic increase.

Let’s explore which fleet management KPIs will generate the most significant savings for your fleet.

 

How do we measure fuel efficiency for vehicle fleets?

Fuel efficiency defined

In the context of vehicle fleets, fuel efficiency typically refers to how far a vehicle can travel on a specific amount of fuel. In the U.S. and the U.K., this is commonly expressed in miles per gallon (MPG). Elsewhere, litres per 100 kilometres (L/100km) is the norm.

The Role of Telematics Systems

Telematics systems play an increasingly pivotal role in measuring and improving fuel efficiency within fleet operations. They use GPS and onboard computers to collect real-time data on vehicle performance, specifically

  • fuel consumption
  • engine efficiency
  • driving patterns

By providing accurate and automatic data collection, telematics enables fleet managers to:

  • Monitor Fuel Usage
    Track the amount of fuel used by each vehicle and identify trends or deviations in standard consumption patterns.
  • Optimise Routes
    Use GPS data to plan the most efficient routes, avoiding unnecessary mileage and reducing fuel consumption.
  • Improve Driving Behaviours
    Analyse driving patterns to coach drivers on more fuel-efficient practices, such as optimal speed and avoiding excessive idling.

Is it your aim to maximise your fleet’s fuel efficiency? Then, telematics systems will be the tools that get the job done. By making good use of these technologies, you’ll both lower fuel costs and contribute to your broader sustainability goals.

 

Why should we set and measure Fleet Management KPIs?

Key Performance Indicators (KPIs) are essential, quantifiable measurements that give a clear picture of your fleet’s performance. Why do these metrics matter? Well – how else are you going to track efficiency and effectiveness? By setting and measuring fleet management KPIs, you’ll enjoy several benefits. Examples include –

  1. Identifying Areas for Improvement
    Regular monitoring of KPIs helps pinpoint inefficiencies in critical areas such as fuel consumption, driver behaviour, and maintenance schedules. For example, if a KPI indicates higher than average fuel usage, this could signal a need for better route management or driver training to enhance fuel efficiency.
  2. Measuring Progress
    KPIs provide baseline figures from which improvements can be measured. KPIs support the assessment of the effectiveness of newly implemented strategies within fleet operations. By comparing current performance against these baselines, you can gauge the success of your initiatives and ensure they deliver tangible results.
  3. Making Data-Driven Decisions
    The data derived from KPIs enables fleet managers to make informed decisions. This insight is invaluable for optimising resource allocation, tailoring driver training programs, and improving route planning. With accurate data, you’ll be able to prioritise investments and interventions that yield the best returns.
  4. Improving Accountability
    Using KPIs to set clear, quantifiable targets encourages a culture of accountability within the team. Each member understands their role and the expectations in terms of performance. This can motivate them to achieve set objectives. It also fosters a culture of continuous improvement, pushing the team to strive for better results.

The strategic application of KPIs will help you to drive down costs and ensure your fleet remains competitive and responsive.

 

What are the key metrics that a vehicle fleet manager needs to track?

Fuel Consumption

You want to improve efficiency? Tracking total fuel consumption will be your number one priority. By comparing fuel consumption across different vehicles or routes, your fleet managers can pinpoint inefficiencies and implement targeted improvements.

You’ll also find it helpful to compare the fuel usage of your fleet with both the manufacturer’s specifications and industry standards. You’ll then gain a better understanding of whether your vehicles are performing as expected and where improvements could be necessary.

Idling Time

Excessive idling wastes fuel. It also contributes to unnecessary engine wear, reducing the lifespan of vehicles. Monitoring idling time can pinpoint opportunities for reducing fuel waste and extending vehicle longevity.

Driver Behaviour

Poor driving behaviours such as harsh acceleration, braking, and speeding significantly impact fuel efficiency and vehicle maintenance costs.

Let’s look at these in a little more detail –

  1. Speeding
    Driving over the speed limit consumes more fuel and increases wear and tear on vehicles. It can also lead to more accidents, resulting in downtime and repair costs.
  2. Harsh Braking and Accelerating
    Sudden stops and rapid starts waste fuel and strain vehicle components. This can lead to higher maintenance costs and reduced vehicle lifespan.
  3. Idling
    Leaving the engine running while stationary consumes fuel needlessly. Reducing idling time will significantly improve fuel efficiency.
  4. Poor Route Planning
    Drivers who take longer or congested routes increase fuel consumption and vehicle wear. Efficient route planning helps minimise travel time and fuel use.
  5. Overloading
    Exceeding the vehicle’s load capacity increases fuel consumption and causes more strain on the engine and brakes, leading to higher maintenance costs.
  6. Aggressive Driving
    Tailgating, frequent lane changes, and speeding can lead to higher fuel use and increased accident risk, impacting fleet efficiency.
  7. Inconsistent Driving Patterns
    Fluctuating speeds and inconsistent driving patterns reduce fuel efficiency. Encouraging steady driving habits can optimise fuel consumption.
  8. Lack of Vehicle Maintenance
    Neglecting regular maintenance like tyre pressure checks, oil changes, and engine tune-ups can lead to poor vehicle performance and higher fuel costs.
  9. Unauthorised Use of Vehicles
    Using company vehicles for personal trips increases mileage and fuel consumption, impacting the overall efficiency of the fleet.
  10. Lack of Training
    Drivers who aren’t trained in fuel-efficient driving techniques can adopt habits that waste fuel and increase wear and tear on vehicles.

Telematics data will be invaluable in identifying these behaviours. You’ll then be able to design driver training programs that encourage smoother, more fuel-efficient driving practices.

Optimising your Fleet Assets

Assessing how effectively you use your assets can expose areas for improvement. Tracking metrics such as trailer downtime and daily driver hours can help optimise the productivity of each asset. Ensuring that each vehicle and driver is used effectively reduces unnecessary expenditures and increases the overall efficiency of the fleet.

Fuel Cost per Mile

This metric provides valuable insights into the cost-efficiency of fuel usage across your fleet. By tracking fuel cost per mile, your fleet managers can assess the financial impact of fuel consumption on overall operating costs and pinpoint areas where adjustments may lead to cost savings.

Route Optimisation Data

Telematics will help your fleet managers to optimise their routes, leading to minimising ’empty’ miles and improving overall transport efficiency. Typically, telematics will help with –

  • Planning the best routes considering traffic, road conditions, and delivery windows.
  • Monitoring your plans against actual performance.
  • Measure metrics such as –
    • On-time arrival rate
    • Total miles driven versus planned
    • Planned versus actual stops
    • Cost per mile

 

Time to turn Metrics into Action?

So that’s the theory of Fleet Management KPIs and the role they have to play in fleet vehicle management. Now, it’s time to turn that theory into action.

  1. Identify Top Performers and Areas for Improvement

    Analyse the fuel efficiency data to pinpoint which vehicles and drivers are performing best and which are underperforming. This will highlight successful practices worth replicating across the fleet and identify specific areas or teams that require focused improvements.

  2. Implement Targeted Driver Training Programs

    Data on fuel consumption and driver behaviour can be used to develop targeted training programs. Then, you’ll be able to promote fuel-efficient driving habits such as smooth acceleration, appropriate gearing, and speed management. You can customise training based on the specific inefficiencies identified in the data, ensuring that drivers receive relevant and practical advice to improve their performance.

  3. Optimise Routes

    Fuel efficiency data can be critical in route optimisation by identifying routes that consistently result in higher fuel consumption. By analysing this data, you’ll modify routes to avoid traffic-heavy areas, reduce idling time, and cut down on unnecessary mileage. Effective route planning will save fuel while reducing wear and tear on vehicles and improving timely deliveries.

 

Drive your fleet efficiency forward with AddSecure Telematics

Tracking key metrics is crucial for continuous improvement in fuel efficiency within fleet operations. By consistently monitoring data such as fuel consumption, engine load, and idling times, your business will gain valuable insights that will drive smarter, cost-effective decisions.

AddSecure’s telematics solutions offer a comprehensive toolset for your business, enabling you to monitor these essential metrics effectively. With advanced data analytics and user-friendly reporting, AddSecure will help your fleet managers identify inefficiencies, optimise routes, and implement targeted training programs, ultimately achieving significant fuel savings.

Isn’t it time to find out more about fuel-saving strategies?

Download our free white paper on fuel-saving techniques or contact us for a detailed consultation on optimising your fleet’s fuel efficiency.

 

 

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