5 KPIs TO MEASURE WHEN IT COMES TO FLEET ROI OPTIMIZATION
Once your vehicles head out on the roads, you can be left feeling a little out of touch with them. You don’t know exactly where they are going, or how they are performing. Most importantly, you have no idea what kind of costs they are mounting up on their travels. If this sounds familiar, chances are you are not yet using an effective fleet management software and missing out on massive savings and enhanced ROI. A fleet management software keeps you connected with your fleet and most importantly it can gather data and make it easy to discover specific opportunities for improvement.
But not all solutions are effective enough to help you alter KPIs and generate high returns. Read on to learn how to optimize key areas of fleet performance using Autoload: a powerful fleet management software.
1. Fleet Utilization Rate
This is a great KPI to measure how active the fleets have been, i.e. how actively they have been utilized. It compares how much time each unit was inactive and idle mode. For example, if a truck’s total working hour in a month is 500 hours and if it is utilised for 200 hours, then the truck is said to have a utilisation rate of 40%. This is helpful for fleet managers to identify fleets that are either being underused or overused. And in doing so, they can optimize operations to yield optimal utilisation of fleet and maximum profits.
2. Cost per Unit
There is great importance in having an idea about the cost of operating each vehicle in your fleet. Keep in mind that not all the available industrial or handling assets can give you an idea about exact utilization. Cost per unit is a key performance indicator that is used to analyze the cost of maintaining each individual component of your fleet. This helps you eliminate expensive, unsustainable, and problematic assets that do not add any significant value to your organization.
3. Fleet Acquisition Costs
Pay close attention to data concerning fleet usage. You might discover that you could manage with less vehicles once efficiency is tightened up, or that you could lease extra vehicles at busy times rather than leave permanent purchases sitting idle when quiet. For example, knowing how many jobs each vehicle completes per day against your overall yearly contracts can give a clear idea of how big your fleet should be.
4. Maintenance and Repairs
Do you know how much a vehicle out of action is costing you or how much you can truly afford to spend on it? On top of repair costs, a truck or van that can’t run is costing you greatly in productivity losses. Fleet management analytics can identify exactly what those costs are. Seeing those figures should be all the motivation you need to start speeding up repairs and improving maintenance procedures.
5. Unauthorized usage
This is one of the main reasons fleet monitoring technology first came on the scene. Whether drivers are following unplanned routes, burning through fuel, or prematurely aging your vehicles, you need to know so you can address the problem quickly. Driver and vehicle data will highlight anomalies in performance that could be building up costs. Whether you are reducing accidents, cutting repair costs, or looking after drivers, the data gathered by fleet management software will give you a clear picture of your fleet’s performance and enable you to optimize your ROI.
Incase you are facing challenges in improving the efficiency of your fleet or looking forward to implementing a trip management solution, schedule a demo of our integrated trip management software, Autoload.