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The importance of KPIs in fleet management and what to measure

The importance of KPIs in fleet management and what to measure

You can’t improve what you don’t measure. What are key performance indicators and how you can successfully utilize them to improve your fleet’s safety, efficiency and compliance.
The importance of KPIs in fleet management

You cannot improve what you don't measure. For fleet managers to achieve optimum efficiency, there are certain statistical measures that need attention.

One of the big benefits of the move to Electronic Logging Devices (ELDs) is the ease with which fleet managers can now collect data to help improve operations. However, the amount of data collected can be overwhelming to deal with, prompting a lot of questions from fleet managers on what data is most important and how to leverage it effectively.

Even though KPIs do differ depending on fleet size and vertical, there are some that we believe every fleet manager, no matter the industry or fleet type, should track. Here is an overview of the most important KPIs to pay attention to right now:

1.Speeding incidents

Speeding wastes fuel, creates the potential for costly fines and increases the risk of an accident occurring. Alongside this, it also impedes the driver's ability to navigate corners, extends the distance needed to stop and increases the distance travelled.

2.Harsh braking incidents

When a driver brakes harshly on a regular basis, it may be an indicator of reckless driving behavior like speeding or tailgating. This can ultimately result in accidents while increasing the amount of maintenance and potentially raising insurance premiums.

3.Harsh acceleration incidents

Harsh acceleration can be a sign of aggressive or unsafe driving whilst also being uneconomical. Using the accelerator too forcefully (especially when coupled with the aforementioned harsh braking), leads to excessive fuel usage and causes unnecessary damage to the engine.


Crashes not only refer to the most serious of events. It is important to measure all incidents, whether the driver was at-fault, whether the crash was avoidable or not, or whether the damage was significant or not. For optimal results, it is recommended to get data on crashes in real-time.

5.Fuel economy

With fuel being one of the largest expenses transportation companies have, even a small rise in fuel prices can hit hard. Striving towards good fuel economy will save costs and impede potential future risk. Tracking fuel consumption allows you to see what factors play a role in the result and then mitigate those factors in future. Weekly reports on this KPI is suggested by those in the know.

6.Empty miles

It is vital for your fleet to carry the maximum amount of cargo or perform the maximum number of tasks possible with every trip made to optimize efficiency. If, for example, a truck is not carrying a full load when making a trip, those count as empty kilometers. It is recommended to generate weekly reports on this KPI.

7.Asset utilization

How much time is an asset actively being used versus the available time a unit can be used? This KPI helps you to see whether an asset is over- or under-utilized and from there establish how to get the optimal utilization with the least number of assets. ItÕs ideal to get a monthly or quarterly report on this KPI.

8.Available Hours of Service

Hours of Service is one of the main objectives of the ELD mandate so it stands to reason that this should be looked at quite regularly. Real-time data that comes in at least once a day is best practice since Hours of Service can change daily.

9.Hours of Service violations

No matter how minor, paying attention to HOS violations is vital as these may result in fines. Also, if a pattern of violations develops, it can be damaging to your company's safety record. Recording this data is also helpful in case of a DOT audit. A weekly review of this KPI is recommended.

10.Unassigned mileage

Unassigned mileage (alongside Hours of Service) is a key provision of the ELD. All driving time must be captured and any mileage not assigned to a driver must be displayed. If your fleet has exceptions, make sure you are aware of them and get that mileage assigned to a driver before your next audit.

As we enter the era of ELDs, it brings with it a deluge of data. That data has a ton of potential to help fleets improve both safety and operations. However, if fleet managers don't harness that data to implement change, it's all for naught. Make sure that your data always leads to valuable insights with the use of telematics solutions.


Tags: Safety, Compliance, Efficiency, ELD

The importance of KPIs in fleet management and what to measure
The importance of KPIs in fleet management and what to measure
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