Fleet Management Metrics Trucking Companies Should Track
Fleet management metrics is a vital service that carries across several industries, including transportation, logistics, delivery, and public services roles such as law enforcement and emergency response.
In fleet management, you are often responsible for handling large operational tasks like vehicle acquisition, scheduling maintenance, fuel management, driver management, routing and scheduling, and safety management. These operational tasks often present a big challenge for fleet management teams. Not only do you have to oversee and communicate with several departments, but you also have to track several fleet metrics and make changes or optimizations if and when necessary!
Being the fleet manager at a trucking company comes with a lot of the same responsibilities. With so many vehicles and drivers on the road, it can be hard to keep up with every detail and stay informed so you can make all necessary changes/improvements.
Fortunately, there are specific fleet management metrics that trucking companies can monitor to get a better understanding of how their fleet is performing and if their company is on the road to future success! Let’s look at the most crucial fleet management metrics you should be tracking in order to be successful.
Fuel Costs
Fuel costs are one of the most significant ongoing expenses for trucking companies. So, it only makes sense that you would want to track and improve this metric. Unfortunately, tracking Fuel expenses manually can be nearly impossible for a trucking company.
One way to make tracking this metric easier would be using a fuel card. When using a fuel card, you can set limits for fuel, obtain a history of all transactions, and, in some cases, get discounted fuel rates or savings. Having a system in place like a fuel card or fuel management system can provide fleet managers with real-time monitoring and control over one of their most significant daily expenses.
Fuel Efficiency
Fuel efficiency is also an essential metric worth tracking. When your fleet vehicles burn too much fuel, you’ll end up spending more money than necessary on fuel. To monitor this metric, it is essential to note how far each vehicle has traveled and how much fuel has been used.
You should also pay attention to how much idling time each vehicle experiences, as this will also affect its overall fuel efficiency. Additionally, implementing systems and technology like GPS and telematics into your fleet can help reduce the total miles driven by identifying routes that can reduce total drive miles and also improve driver productivity and behavior.
Maintenance Costs
Another important metric for fleet managers to track is the maintenance costs per vehicle, or per mile traveled. Some of the maintenance costs you should track include preventative maintenance, repairs and replacement costs, and repair turnover.
Knowing and monitoring these numbers can help decision-makers budget for future repairs and replacements and give them insight into whether the current maintenance schedule is adequate. Several software programs can assist in tracking this metric and provide real-time data about each vehicle’s maintenance status and alert you when it needs service or repairs. This software can make it easier to stay on top of regular maintenance checks and ensure that your vehicles are running efficiently and safely at all times.
Driver Performance
Each driver’s performance in your fleet is essential to track! Doing so will help maximize productivity and minimize risk on the road. By tracking key performance indicators like speed, hard braking, idle time, hours worked, etc., you can better understand where drivers need improvement or additional training before they get behind the wheel again.
Furthermore, suppose a driver appears to be consistently underperforming. In that case, it may be worth considering replacing them with someone else who could do a better job while keeping your team safe out on the roads.
Delivery Performance
On-time delivery is critical for customer satisfaction and can be a key differentiator of a successful or failing trucking company. Therefore, fleet managers should make it a priority to track delivery performance metrics! These metrics include average delivery time, delivery accuracy, invoice payment time, and overall customer satisfaction/complaints.
Accurately monitoring and addressing these metrics can ensure that all deliveries are meeting expectations. Also worth noting, using these metrics to make changes to your business model and overall delivery performance will help ensure trucking companies get contracts renewed and new referrals coming in.
Asset Utilization
Lastly, asset utilization is another metric fleet managers and owners should track for future success. It is no secret that investing in a fleet is costly. When investing in equipment, businesses want to see a return on that investment. Tracking the utilization of assets such as trucks and trailers is critical not only for profitability but also for providing longevity to your assets.
With the proper monitoring of your fleet, you can find opportunities to maximize the use of your trucks and trailers and boost your ROI. Also, adequate monitoring can help schedule necessary preventative maintenance, keeping your trucks on the road! Fleet management metrics such as asset utilization rate and revenue per truck can help keep fleet managers informed and help them identify underutilized trucks, trailers, and other equipment, allowing them to optimize their fleet size when needed.
Conclusion
By effectively tracking fleet metrics like fuel costs and efficiency, driver and delivery performance, maintenance costs, and asset utilization, fleet managers or owners can make data-driven decisions on improving their trucking company’s efficiency, safety, and profitability.
Fleet management is no easy task, but understanding these key metrics and implementing some of the technologies and procedures mentioned above can help make it easier for you to manage your fleet and set it up for success! In addition, taking the time to track these metrics can lead to fewer delays, less downtime, and fewer accidents due to poor planning or inadequate training — both of which result in more money saved in the long run!
Ready to find a reliable factoring company for your trucking company? Learn more about factoring with us:
