5 Metrics you need to measure to optimize efficiency
Source: FleetAnswers How efficient is your fleet? Do you have tangible measurements you can turn to to determine if you are maximizing efficiency?
Metrics help fleet managers know how well their fleets are performing, both internally and externally, and what changes they can make to improve efficiency across various fields. If you are not already using metrics to track your fleet's efficiency, here are five metrics you should start measuring today.
- Salary and other Departmental Costs Per Vehicle
Most fleets have plans in place to track per-vehicle maintenance and fuel costs, but they also should track departmental costs per vehicle. These include salaries, administrative costs, benefits and other types of overhead to keep the fleet up and running. To figure this cost, add up all of the associated salary and overhead costs, then divide that by the number of vehicles in the fleet. This will give you the departmental cost per vehicle. You can then determine if there are any places where you can cut these overhead costs.
- Fuel Use and Costs
Talks about efficiency in fleets tend to focus on fuel efficiency, as this is one of the largest variable costs associated with running a fleet. However, the best metric to use to track that cost is difficult to figure. The metric needs to measure not just fuel consumption, but also how many miles that fuel uses. So, a ratio of cents per mile could be a good metric, as could miles per gallon. The key is to not just measure how much fuel is purchased, but how many miles the fleet can travel using that fuel.
- Frequency of Accidents
Accidents greatly impact the efficiency of your fleet. Not only does an accident create a significant cost, but it also can take a vehicle out of use for a period of time. Recording the frequency of accidents is important because each accident has an impact on efficiency. Measuring accidents-per-mile driven can also help a fleet manager understand the true cost of those accidents as it relates to the size and use of the fleet.
- Average Cost Per Accident
Frequency of accidents is just one metric to measure when analyzing efficiency. Fleets should also measure the average cost per accident. Those costs need to include the obvious, which are the repair costs, rental cost and liability cost, as well as the less obvious, which include downtime and insurance premium increases.
- Tasks Per Hour Completed by Fleet Department
Finally, in order to determine how efficiently your department is working, you need to measure total performance by tracking the number of tasks per hour your department is completing. Tasks may include fleet vehicle operating and maintenance tasks, as well as administrative and clerical tasks, such as answering phone calls or emails. The more of these tasks your team can complete per hour, the more efficiently your fleet management department will be.
Metrics can seem confusing when first implementing them, but soon they will be a natural part of your fleet's operations. With the data you receive from measuring these metrics, you will be able to ensure that your fleet is running as efficiently as possible.
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