Fleet management is not an easy task. The number of moving parts in the fleet network makes this a tedious responsibility to manage. But with planning and top-class fleet software, all errors are avoidable. KPIs or Key Performance Indicators are useful insights that help keep the fleet in check. These insights depend on the operations, the application of tools, and fleet vehicles. A fleet, big or small, must take the time to monitor its progress. A manager must take the time to study these insights to help enhance the company’s operations. By implementing KPI reporting software, managers can easily set goals, track them over time, and visualize their performance to improve outcomes. All of this can help businesses stay ahead of the competition. There are also a few other reasons to monitor KPIs. Let’s take a look at them now.
Contents
Need For Key Performance Indicators
Effectively Tracking
The efficiency of a fleet is a significant decider of the company’s performance. Having an effective fleet means on-time delivery, excellent customer support, and an ideal supply chain network. The more well-oiled the fleet, the more immeasurable the business growth.
Safety Tracking
Safety in a fleet service is a two-part problem. The first is that of the crew, and the second is the goods or passengers on board. Having a low safety rating would reduce your business, as fewer consumers can trust the service. Additionally, having low safety implies bad work conditions for drivers and ground staff.
Consumer Branding
Having better performance indicators gives the company the right to brag to the consumer. A firm with better insights and statistics can use these indicators to push sales. Consumers are frequently on the lookout for these numbers when picking new brands.
Business Decisions
A valuable use of the indicators is to steer the business on the necessary path. KPIs work as insights that help the manager find flaws in the system and fix them adequately. Simple decisions like buying new vehicles, hiring new drivers, budgeting promotions, and much more are possible using these indicators.
KPIs For The Fleet
Numerous parameters define the performance of the fleet; here are a few of the prominent factors:
Speed
The driving speed of a fleet vehicle is an elementary parameter to gauge its performance. Many fleet managers use tech, such as speed governors, to monitor the pace of the fleet. This tracking ensures the safety of the driver and the goods. It also guarantees that the violations of speed and safety are in check. As each route has its own set speed limit, a few sophisticated devices can alter the drives about them.
Road Safety
Elaborating on the above points, if we are looking to make a perfect compilation of the performance indicators, road safety is more than just speed. Modern-day trucks have state-of-the-art camera systems. These detect obstacles on the route and work as co-pilots to the driver. Wireless dash cams also keep a watchful eye on the driver and monitor for signs of fatigue. Additionally, lower crashes and road incidences are excellent selling points to gauge a company’s success.
Fuel Consumption
The health of the fleet is very dependent on the fuel consumption of each truck. If a truck/bus consumes more fuel, it could hamper the economics of fleet management. This statistic becomes valuable for the fleet manager, as they can replace or repair low-perforce vehicles. The fuel data can be collected from each vehicle. Modern-day GPS systems send this information in real-time to the fleet dashboard and compile them into workable details.
Load Management
The lack of load management in a fleet is a massic drawback for any company. Fleets want to avoid low loads caused by discrepancies in route planning. This failure forces vehicles to travel with no load for long durations and can cost the company fuel and labor costs without gaining any revenue. The ideal way to avoid low (or empty) load commute is effective route planning. Fleet management tools computer-generated routes for better efficiency.
Service Indicators
The health of a fleet is a significant indicator of fleet progress. Having frequent breakdowns could halt the supply chain, delay deadlines, and also cause you to lose clients. Better vehicle health comes with constant tracking. You can also automate the service based on miles-traveled or months-driven. A logging device on the engine can be programmed to automate triggers and warnings when they notice these service deadlines.
Hours Of Service Compliance
The most important indicator of better driver safety and efficiency is the values of the hos. HOS or hours of service is calculated using an ELD or Electronic Logging Device. These are linked to the truck’s system and track the daily hours of operations of the driver. This device will ensure the drive is well within the legal hours of operations. Tracking HOS is necessary for better health of the driver, comfortable hours of operations, and the manager’s ability to better program shifts. Note that the automated tracking of HOS is a mandate by the government, and using paper logging is no longer a viable option.
Timeliness
A fleet service that does not run on time is always going to be left behind. One small delay or breakdown will lead to a domino effect of errors. The timeliness of a fleet is directly related to the punctuality of the driver. By having a pre-planned schedule for the whole staff, the service will always be on time. This process also includes the crew’s rostering like managers, ground staff, manual labor, and much more. The only way for a fleet to work free from glitches is if all these moving parts work in harmony.
Final Thoughts
These KPIs are valuable for both the company and the consumer. They work as a framework for better decision-making and business practice. An operation that does not halt and introspect the business will definitely perish in the competitive work. Fortunately, using tech has made this process fast and effective. These devices give perfect insights without any calculation errors or delays. In essence, the future of fleets is automation. Fleet software and management tools are a sure way to keep all of these pointers in check. The best-in-class software helps you preempt this information and present them to the management in a very usable format.
