Fleet KPI’s are important for any organization that wants to improve fleet efficiency. KPI’s can help you compare your fleet against historical trends, as well as against your industry’s peers. Once your KPI’s are established, you can set goals for your fleet to improve your organization’s financial performance in key areas.
Fleet Utilization KPI’s
Operating a fleet can be very expensive and requires a significant investment for vehicles, tools, training and repairs. There are 4 KPI’s that could be helpful in monitoring the performance and efficiency of your vehicles.
Vehicle cost per mile
This figure looks at the cost of the vehicles based on their utilization. You can quickly identify vehicles that have a higher than normal operating cost, yet low utilization, and make your investment decisions accordingly.
To calculate vehicle cost per mile, use the following formula:
Total vehicle cost / miles driven
Total vehicle cost could include the following: depreciated vehicle cost, lease cost, fuel cost, insurance cost, maintenance & repair cost, and licensing cost. Also, any costs for a maintenance team, facility, and managers directly associated with managing the fleet could be included on a per vehicle basis.
Vehicle Cost per Hour of Use
For fleets that do not operate outside of a small zone or fleets that have continuous stops (i.e. waste collection vehicles), it might make sense to calculate the vehicle cost per hour of use rather than per mile driven.
To calculate vehicle cost per hour of use, use the following formula:
Total vehicle cost / hours of use
Total vehicle cost could include the following: depreciated vehicle cost, lease cost, fuel cost, insurance cost, repair cost, and licensing cost. Also, any costs for a maintenance team, facility, and managers directly associated with managing the fleet could be included on a per vehicle basis.
Fleet utilization
A fleet utilization report could be used to monitor the usage of all of your vehicles to ensure that vehicles aren’t parked for an extended time and wasting money. This measures your fleet’s potential capacity versus the actual fleet utilization.
Calculating the fleet vehicle utilization requires a multi-step formula:
- Total fleet miles driven / number of fleet drivers = average miles per driver
- Average miles per driver X number of fleet vehicles = total mileage capacity
- Total fleet miles driven / total mileage capacity = vehicle utilization rate
Fleet Safety KPI’s
To improve fleet safety, it helps to monitor specific safety metrics on a per mile driven basis. This can be used to establish fleet-wide or driver-specific goals to encourage good driving habits.
Speeding events per mile driven
If your fleet is equipped with a telematics device, you can monitor speeding events and use a simple calculation to determine the number of speeding events per mile traveled.
To calculate speeding events per mile, use the following formula:
Total number of speeding events / miles traveled
Aggressive driving events per mile driven
A fleet telematics device would calculate the number of aggressive driving events during a certain time period. This includes hard stops, hard turns, and rapid acceleration events. These can be totaled up and calculated to determine your KPI.
To calculate aggressive driving events per mile, use the following formula:
Total count of aggressive driving events / miles traveled
Posted speed events per mile driven
Another thing that a telematics device could measure is posted speed violations. These violations could be totaled up and divided by the total miles traveled. The result would give you an indication of your fleet’s likelihood to exceed maximum street speed limits.
To calculate posted speed events per mile, use the following formula:
Total count of posted speed violations / miles traveled
Accident repair costs per vehicle
The accident repair cost KPI would help you average the cost of repairs from accidents across your fleet. This could be used to identify drivers that tend to have higher than usual accident repair costs and coach them accordingly. This calculation could also be used to compare different periods in time to mark improvements in driver safety based in internal initiatives such as driver safety training.
To calculate accident repair costs per vehicle, use the following formula:
Total accident costs / number of fleet vehicles
Fleet Maintenance KPI’s
Measuring fleet maintenance helps you monitor the health of your fleet. You can also use this KPI to quickly identify vehicles that may need to be pulled from service due to excessive repair costs.
Repair cost per mile
You can calculate the repair cost per mile driven to identify the average anticipated repair costs per vehicle based on its utilization. This would help you determine when certain vehicles are becoming too costly to remain in service. It can also help you identify any lapses in preventative maintenance that may be contributing to higher than normal repair expenses.
To calculate repair cost per mile driven, use the following formula:
Total repair costs / miles travelled
Average fleet age
An older fleet will tend to have higher repair and maintenance costs than a newer fleet. Calculating the average fleet age will also help you identify the oldest vehicles in your fleet to be either pulled out of service, used as spare vehicles, or re-allocated to routes with fewer miles.
To calculate average fleet age, use the following formula:
Total age of all fleet vehicles / number of fleet vehicles
FieldLogix can help
We offer various tools that can help you gather the data you need or we can compile the fleet efficiency KPI calculations for you.
This includes:
Mileage Summary report
The mile summary report calculates the total miles traveled by your entire fleet, groups of vehicles, and individual vehicles over a given time period. This could be run for a day, month, quarter, or year.
Fleet Benchmarks report
The fleet benchmarks report calculates the maximum speeding violations, posted speed violations, and aggressive driving events per mile driven for you. It also calculates idle hours per mile driven and gives you the ability to compare your fleet to other fleets in the same industry and region.
Since 2002, FieldLogix has been serving fleets throughout the world to help them improve driver safety, reduce fuel consumption, and improve fleet efficiency. Our novel capabilities include fleet telematics with Artificial Intelligence, dash cameras, route optimization & dispatching, and mobile time keeping.