Monitoring cars and drivers is only one aspect of fleet management.

Knowing which metrics to keep an eye on will help fleet managers avoid expensive disruptions and ensure seamless operations.

This post will discuss the essential metrics that all fleet managers should monitor in order to obtain operational insights and guarantee productivity, security, and profitability.

Overall Ownership Expense

Fleet managers must examine both direct and indirect costs when calculating the total cost of ownership. Depreciation, interest, auto repairs, gasoline consumption, upkeep, tires, insurance, taxes, and administrative fees are all considered direct charges.

The best approach to determine how costly the fleet is is to know how much it costs each kilometer. The same parameter should be monitored during the vehicle’s time in service since life cycle costs cannot be ascertained until after a vehicle is sold.

The sole variable is depreciation, which can be computed using either accounting depreciation or the lease depreciation reserve over the course of the vehicle’s service life. The true cost of depreciation is not known until after the sale.

Maximizing the Value of Management KPIs

Raw data is turned into valuable insights by GPS fleet management systems, therefore allowing fleet managers to closely check essential performance indicators (KPIs). These indicators will enable you to spot trends, benchmark performance, and create reasonable goals to raise the general effectiveness and output of your fleet. Using a logistics tracking system will enable fleet managers to make data-driven decisions, improving asset use, driver safety, and fleet management.

Average Cost Per Accident

Accidents impact fleet efficiency. Accidents are expensive and can cause a car to be out of use for a while. Since every accident affects efficiency, it’s critical to keep track of accident frequency. A fleet manager can gain a better understanding of the actual cost of accidents in relation to fleet size and usage by measuring accidents per kilometers driven. One parameter to consider while analyzing efficiency is the frequency of accidents.

The average cost per accident should be measured by fleet managers as well. These expenses must include the costs of liability, renting, and repairs. The frequency and financial effect of accidents can be decreased with the help of an accident avoidance and evaluation program. 

Utilization

One of the most crucial tools available to a fleet manager is the use of a fleet for value-adding operations. The fleet manager could optimize the fleet from a cost, distribution, and disposal standpoint by routinely evaluating utilization. To maximize fleet utilization, it is essential to distribute vehicles among fleet users; nevertheless, the increased anticipated costs resulting from excessive use must be moderated.

Mean Time Between Failures (MTBF)

MTBF is a measure of the general dependability of your fleet. It is the typical interval between two heavy machinery or car breakdowns in your fleet. A higher MTBF indicates a well-maintained fleet with equipment that operates reliably over time.

This KPI is useful for determining how well-adjusted your preventative maintenance periods are. Specific parts or components may wear down more quickly than anticipated if the MTBF is continuously lower than anticipated intervals. You can modify your maintenance plans to avoid failures by using this measure.

Endnote

Data is more important than ever in the fleet management sector.  Your company can maintain its agility, competitiveness, and readiness for the challenges that lie ahead by concentrating on five crucial criteria.