Key Fleet Management KPIs Your Software Should Capture
Depending on the level of sophistication, fleet management software can start from $3.00 to a couple of hundred dollars per month. Generally, the pricier the tool, the better the user experience is and the features are more comprehensive.
Today, there are plenty of options, often claiming they’re the best. This is why it can be difficult for a first-time fleet manager to choose a fleet management software that can cater to their company’s needs.
But at the end of the day, it all boils down to the important KPIs that every organization needs to be able to maximize their investment.
What are KPI’s?
KPI stands for Key Performance Indicator. KPIs are measurable values that describe how effective an organization is in achieving key business objectives. They are important in tracking performance at multiple levels. Establishing KPIs is a must for any organization in any industry because it helps them measure success and devise new strategies to improve weak links in their operations. Without KPIs, success is a vague concept.
Here’s a quick rundown of the KPIs specific to fleet management.
Vehicle tracking is one of the most important features of fleet management software. This function also gives you an important KPI that’s called ‘Utlization’. This main KPI provides data on the amount of time your vehicles are actively being used. Apart from knowing where your vehicles are, tracking helps you make an informed calculation by taking the yearly working hours and comparing them with the hours a specific vehicle is actively working to check if it is overused, as well as if it’s underused. It also let you know if it’s worth selling or not.
Vehicle Inspection Completion
Maintenance is essential for any fleet. Keeping your vehicles in good working condition and complying with preventative checks before a vehicle is used helps eliminate downtime and increase utilization. It’s also a legal requirement itself. Many still do this manually. But, a good fleet management software should be able to help you automate fleet maintenance. The software should ensure that your vehicles never miss another scheduled maintenance. It should allow you to manage the following:
- Preventive maintenance schedules
- Repairs due to accidents or usage
- Engine diagnostics reporting (DTCs)
- Check engine light alerts
- Engine performance parameters (PIDs)
- Maintenance expense tracking
- Expense reporting
- Expense export to ERP & accounting systems
This KPI is not directly related to revenue but it has an impact on your profitability. Improving the safety of your drivers and the fleet helps you eliminate the risk of accidents which can cause untimely accidents and damage to your vehicles. Even though let’s say, your drivers and vehicles are insured, accidents can hamper your productivity, may cause delays, and lost business opportunities due to vehicle unavailability.
Fleet management systems can help you track speeding, rapid acceleration, harsh braking, and harsh cornering. The system helps provide a more accurate safety profile for each driver and helps you decide who to keep, who to train, and who to fire.
For many, tracking for fuel economy is one of the main reasons why they choose to use a fleet management system. Fuel is the top expense and fuel consumption can be reduced if your vehicles are tracked. Not only that, but the environmental impact can also be minimised if fleet managers are effective in managing fuel costs.
Looking to start managing your fleet’s KPIs? Compare different fleet tracking systems today and see which one best fits your requirements.