11 Benchmarks Fleet Managers must know to Improve Profitability
Benchmarking is an important tool for fleet managers to improve their business’ bottom line. As Peter Drucker famously said, “What gets measured gets improved,” and we couldn’t agree more.
We can define benchmarking as the process of comparing different systems and metrics to others in your industry, or various internal departments. You can also use it to compare business performance over time. Establishing benchmarks within your fleet is one of the best ways to improve its management.
For benchmarking to be effective, it’s essential to have regular and consistent digital reporting data so you can accurately measure improvement. While this may have been difficult to do in the past, new systems and technology now make it a seamless part of fleet operations.
Forum Connect, our fleet management solution, provides you with an array of data sets and tracking technology for benchmarking. Here are 11 of our favourites that can help boost your organisation’s fleet performance and productivity.
11 benchmarks to establish to run a more efficient fleet
Meeting health and safety compliance is critical for fleet management, especially in industries operating at high levels of risk. From a business perspective, this is becoming more of a priority with recent increases in Chain of Responsibility requirements and penalties for breaching them. The below metrics contribute to safer driver behaviour and overall business safety:
1. Travelling speeds.
Speeding is a high-risk factor for accidents on the road, especially where larger vehicles are involved. Real-time speed monitoring ensures that drivers are driving safely and legally on their routes.
2. Monthly speeding occurrences.
Expanding on the point above, reducing the number of speeding events can help reduce accidents and infringements. Identifying the ‘who’, ‘where’ and ‘why’ of speeding events can provide better insights for preventing them.
3. On-road mobile phone use or fatigue.
Taking action to reduce distraction improves driver safety within your fleet, as both phone use and fatigue remove focus from the road, even if for only a few seconds at a time, and contribute to accidents. Benchmarking these numbers can show improvements in driver safety, as well as the positive effect of safe driving initiatives.
4. Pre-start checklist completion.
Getting this as high as possible plays an important part in keeping vehicle maintenance up to date and helps prevent drivers overlooking potential issues before heading out on the road.
As quoted above, ‘what gets measured gets improved’. It’s hard to know exactly what an efficient fleet looks like for your business if you don’t have the numbers to validate your benchmarks. There are several areas you can analyse for more efficient fleet operations:
5. Fuel efficiency.
Fuel is a significant contributor to fleet expenses and, while you can’t operate with fuel, you can certainly manage it. Measuring average fuel consumption per 100/km helps you optimise routes to minimise fuel wastage for greater long-term savings.
6. Job completion rates.
We doubt there’s a fleet manager who enjoys having to take responsibility for delays, or failure to meet project deadlines. Creating logs to measure jobs completed per day allows your manager to plan jobs effectively. Additionally, route optimisation can help fleet managers create more realistic schedules for the team.
7. Asset utilisation.
Knowing the number of fleet vehicles on the road at once and – equally important – the number of vehicles not operating, gives you a better understanding of supply and demand for vehicles in your fleet. With this knowledge, you can ensure greater utilisation of your fleet, including potentially disposing of unused assets to reduce running costs and improve cash flow.
8. Vehicle servicing history.
Do you know when your vehicles were last serviced and when they’re next due? Having this information keeps vehicles on the road and ensures they receive the proper care and maintenance for their distance travelled to prevent breakdowns and safety issues.
9. Mass management.
With strict transport regulations in place in Australia, keeping records of loads for each truck for weight compliance is essential.
Employees are a vital part of successful fleet operations and taking measures to ensure their safety benefits everyone.
10. Driving hours.
Recording the hours drivers have worked and setting up systems to prevent drivers from working overtime and breaking safety and legal compliance reduces potential risks such as fatigued driving.
11. Break adherence.
Technology can prompt drivers to take their required breaks, giving them a chance to rest. It can also help you monitor compliance and help persuade drivers from taking breaks that are too long, which impacts productivity and job timelines.
Start setting benchmarks for your fleet
None of the benchmarks mentioned above operate in isolation. Combined, however, this rich pool of information accessible via leading technology can exponentially improve your fleet management. It can help create a safer and more efficient workplace to benefit staff and clients and increase your company’s profitability.
Claim your no-obligation consultation and demo to find out how Forum Connect fleet management solutions can help you run a more efficient fleet.
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