Why use KPI's?
Without analysing key metrics from your fleet operations, it is virtually impossible to make improvements. As a fleet manager, you should have a clear understanding of what aspects of your operations are contributing to setbacks, either financially or operationally. At present, there may be many flashing lights in terms of areas for improvement, for example, your damage-only accident rate may be at an all-time high or your fleet’s average fuel spend may be spiralling out of control. By observing quantifiable measurements, you can gain a clearer understanding of which figures need work and can then begin to identify the ways in which these figures can be improved. Once a strategy is in place, fleet managers are able to use these initial figures to benchmark all future results.
Being able to quantify fleet data serves to benefit the business from an internal and external perspective. These metrics can provide valuable business insight at a management level by unearthing fundamental problems within business operations and opening the gates to improvements. On the flip-side, the data produced by monitoring KPI's can also help your business to identify itself as a top performer and can be used to convince prospects that you are the right business to work with. Businesses that can demonstrate that they are serious about meeting targets position themselves in a positive light with customers, new and old.
Which KPI's should I be monitoring?
The answer to this question will differ for every fleet manager and ultimately depends on the goals you are looking to achieve; however, there are some universal metrics that the majority of fleet managers are interested in monitoring when installing fleet management solutions. In a nutshell, the primary goal of all fleet operations is to reduce costs and improve productivity but different businesses will measure different KPIs in order to achieve these goals.
In part two, we will look at some specific examples of which aspects of fleet management KPI monitoring will improve, and which metrics you will need to achieve results.
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