In a fast-moving world of fleet management, knowing what's really going on is important for the operational success. With fleets relying more and more on advanced technologies to streamline operations, it is now imperative that each fleet manager needs to be well-versed in exactly how to measure the performance of those tools. The following article will outline five of the most important metrics that every fleet manager should be considering to measure their fleet technology performance.
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Web PortalFleet technology performance metrics are measurable measures that help in the evaluation of the effectiveness and efficiency of various fleet management tools and systems. In other words, metrics empower fleet managers to make informed decisions in streamlining operations, justify investments in fleet management software, and much more.
Fleet technology performance can best be measured by:
What it measures: Percent completed correctly DVIRs, when required, and compliance with the rules from the Department of Transportation.
Calculation: (Number of compliant inspections/Total number of required inspections) x 100
Why it's significant: High compliance rates indicate that your fleet is actually ensuring to maintain the standards of safety and reduce the chances of violation and penalties. This also indicates that your vehicle inspection software and compliance tools for fleet management are effective enough.
How to Improve:
What it measures: Fuel consumed per mile or kilometer traveled.
How to calculate: Total miles driven / Total gallons of fuel consumed
Why it's significant: Fuel prices are one of the high operating expenses of a fleet. Any improvement in fuel efficiency will translate directly into huge cost savings and less environmental pollution.
How to improve:
What it measures: Percent utilization of a vehicle, available to be used during a certain period. Conversely, it measures the percentage of downtime in vehicles for maintenance or repairs.
How to calculate: (Total available hours - Downtime hours) / Total available hours x 100
Why it matters: A high uptime of vehicles means more working hours and efficient operation of the fleet. It also reflects your efficiencies in preventive maintenance tracking and scheduling of vehicle maintenance.
Improvement areas:
What it measures: Composite score based on several safety-related factors, such as speeding incidents, harsh braking events, and the incidence of non-compliance with hours of service rules.
How to calculate: It is dependent on the specific software being utilized but generally consists of allotting weights to a number of safety factors and then calculating an overall score.
Why it matters: Driver safety directly affects the insurance cost, liability risk, and reputation of your fleet. That indirectly depicts the maturity level of your fleet's safety program and also reflects the adoption level of technology.
How to better:
What it measures: It is the general operating cost of your fleet divided by the total miles driven.
How to calculate: Total fleet operating costs / Total miles driven
Why it's important: This metric gives a good general view of how well your fleet operates and measures financial efficiency in its operations through fuel cost, maintenance, as well as overhead in the office.
How to improve:
Your fleet technology should have the following features to ensure that it can track and improve upon these metrics:
Focusing on these five key metrics - compliance rate, fuel efficiency, vehicle uptime, driver safety score, and cost per mile - fleet managers have a more inclusive view of how the technology is performing and the impact it creates throughout the fleet operations. Using the more advanced technologies associated with fleet management software, companies can monitor those five metrics, increase efficiency, decrease costs, and increase safety.
As the fleet industry continues to evolve, staying ahead of the curve in technology adoption and performance measurement will determine success. By harnessing these metrics and continually fine-tuning their approach, fleet managers can ensure their operations stay competitive, compliant, and cost-effective in an increasingly trying business environment.
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