30/10/2020 0 Comments
The 6 Key Performance Indicators (KPI) Used by Fleet Managers
Key Indicator: Fleet Utilizing
Used by fleet managers to identify fleets that are either being underused or overused. The Fleet Utilization KPI measures the utilization rate of an active fleet unit.
- Utilizing Rate per Unit = Utilized Hours/Active Hours
For example, if a truck’s total working hour in a month is 300 hours and if it is utilized for 150 hours, then the truck is said to have a utilization rate of 50%.
Key Indicator: Cost per Hour
Used by fleet managers to identify which fleets have higher operational costs as compared to other fleets performing the same duty.
The Cost per Hour KPI incorporates the Utilization Rate and Cost per Unit to compare the operational cost between fleet units.
- Cost per Hour = Utilizing Rate/Cost per Unit
Key Indicator: Cost per Unit
Used by fleet managers to identify the total cost per each unit within the fleet. The Cost per Unit KPI measures the maintenance and operational cost.
- Cost per Unit = Maintenance Cost + Operational Cost
Key Indicator: Fuel Economy per Unit
Fuel Economy KPI as a performance indicator is used by fleet managers to identify fleets with high fuel consumption.
Key Indicator: Empty Miles
Used by fleet managers to optimize asset utilization and reduce empty miles. This indicator gives a clear idea of empty miles and how fleets are used daily.
The Empty Miles KPI, also known as deadheading, is when a truck drives back empty to the original point after making a delivery. The distance travelled when empty is known as empty mileage.
Key Indicator: Preventive Maintenance Compliance
Completing schedule maintenance of fleets promptly is an essential element of fleet management.
As vehicles within any size fleet must be repaired regularly to lower long-term maintenance practices, cost, and fleet downtime, Preventive Maintenance Compliance measures and tracks
preventive maintenance record.
This performance indicator enables fleet managers to schedule and undertake maintenance practices on time.
With the current key indicators’ data of the fleet assets, fleet managers are not only managing but gliding over future risk. Giving their companies the chance to identify and fill potential gaps to minimize downtime and operational cost, they optimize the return on investment.