Attention fleet managers! We are about to discuss some of the most important points that should be taken care of while managing a fleet. To learn any subject or topic, we figure out the main parameters that will help us cover that area fully. We ensure that no parameter is overlooked because we can only achieve the best. We need to go through the KPIs to analyze if we are fulfilling the objective by the implemented solution. The parameters which need to be checked while doing any task are known as KPIs or to be precise, Key Performance Indicators. These indicators help to study where the performance needs to be improved to achieve overall success. We will study the fleet management KPI in detail to spread awareness to fellow managers.
6 Fleet Management KPI
Let’s begin the discussion about the fleet management KPI. A manager managing a fleet knows that there are points like vehicle tracking and analysis, cost saving, and efficient operations are some points that need to be taken into account. But having clarity about these points in detail is a must. These pointers are concisely placed here for you to have a clear vision of fleet management KPI.
1. Fleet’s Fuel Efficiency
For fleet managers, fuel is considered one of the major and vital expenses. Fuel tracking and constant monitoring are necessary, as they are valuable resources that a fleet manager has to invest in. Multiple aspects can cause fuel costs to increase. They include potential fuel theft, maintenance issues, fuel costs varying in different locations, untracked refill, and drain events, and maintaining fuel data manually. Advanced fleet management software can be used to overcome these challenges. Using such software, all the above-drawn issues can be resolved from a single application. Fuel monitoring widgets, detailed reports, and instant alert notifications help the manager take corrective actions wherever it is needed.
2. Asset Utilization
The fleet can consist of different assets including both movable and immovable assets. Here’s where we call it asset management. Management doesn’t only include adding and deleting the asset records, but monitoring if they are optimally being used or not. Even if the assets are being used, are they used effectively? Can the allocation of these assets be improved? All such concerns can be addressed through the use of fleet management software. The software can solve the problems and concerns of the fleet manager regarding asset usage. Industries like construction and mining actively need asset utilization insights. This is where the reports from the software are a boon to the managers. The insightful dashboard widgets and the informative reports help to review and take action when required.
3. Fleet Downtime and Maintenance
Fleet maintenance can get overlooked by the fleet manager while managing the other important aspects. Incidents happen and downtime of the vehicle is experienced by the manager. That is the time when vehicle maintenance comes into the picture. The fleet managers will relate, there are such moments when the fleet maintenance is the action of a reaction to the incident which causes the downtime. It rather should be a proactive measure that needs to be taken into consideration. Through technologies like AI and ML the fleet maintenance module now has advanced features like predictive maintenance. This is the proactive step that the managers need to take to avoid and reduce downtime of the vehicles in the fleet.
4. Tire Management and TPMS
Like fuel, tire management also needs equal importance and attention. Without tires being effectively managed and maintained the fleet can face maintenance and operation cost rise. Tire management if done manually can lead to challenges like undetected tire pressure issues, recording tire maintenance costs, tire performance, and inspection measures. These challenges can be overcome with the tire management and tire pressure monitoring system (TPMS). The dedicated tire management module in the fleet management software can be used to effectively manage tires efficiently.
5. Driver Behavior
Without drivers, there won’t be fleets running on the road. This statement weighs enough to make us understand the importance of drivers and driver behavior monitoring while managing a fleet. Monitoring driver’s behavior on the road is important for both safety and accountability. Incidents like harsh acceleration, harsh braking, unnecessary lane departure, etc are primary reasons for increasing accidents on the road. It is next to impossible to manage these things manually. However, fleet management software can help the manager get alert notifications for such activities. Advanced features like video telematics help in detecting such events, that is how driver behavior monitoring works.
6. Expense Management
There are multiple expenses a fleet manager has to bear. Keeping track of every such cost and bill concerning different levels of hierarchy and roles in the business can create mishaps in managing it. Through the expense management feature in the software, the manager can add different expenses, categorize, manage, and attach proofs. Not just the manager but the driver, and technician can also add and manage the expense through their dedicated mobile application. If the expenses rise suddenly, it will be easy for the manager to visualize it through reports and charts in the software. That is how expense management is made easy just by using the software.
Benefits of Fleet Management Software
The fleet management software offers vivid features from which we discussed a few. These features help in making fleet management effective and easy. It helps reduce operational costs and efficiency, increases productivity, and gives peace of mind to the manager.
The Final Thought
Now we know about the Key Performance Indicators i.e. the fleet management KPI. Let’s summarize those by reviewing them:
- Fleet’s Fuel Efficiency
- Asset Utilization
- Fleet Downtime and Maintenance
- Tire Management and TPMS
- Driver Behavior
- Expense Management
Taking these parameters into consideration can bring great profits to the business. Moreover, other aspects like vehicle health monitoring, vehicle inspection, driver management, temperature monitoring, video telematics, GPS tracking software, and route optimization are important too. These features altogether make fleet management powerful. These parameters will help the manager not only generate benefits but will help to focus on different important aspects of fleet management.
