Making Sense Of Your Fleet Data

Kate Vigneau Columnist

How to build a Performance Measurement Framework for smarter fleet management.

For fleet data to be useful, the right information has to be shared with the right stakeholders, in the right format, at the right time. Creating a Performance Measurement Framework can help ensure a coherent approach by following the steps outlined below.

The right information

What fleet data is needed to feed decision-making in the organization? Key Performance Indicators (KPIs) can be used to measure performance in these areas. These can be classified as follows:

• Fleet Availability. Many fleets support essential services, and downtime directly affects the organization's ability to provide them. A useful KPI is Vehicle Availability (% of fleet units available for service vs. out of service).
• Maintenance Cost & Asset Lifecycle Management. Fleets are capital-intensive, and a Total Cost of Ownership (TCO) approach is needed to determine the optimal replacement, accounting for both operating and capital costs. Important KPIs to track include Preventive Maintenance compliance (% of PM inspections completed on schedule) and Unscheduled Repair Ratio (Reactive repairs ÷ total repairs)
• Fuel Efficiency & Utilization. Fuel is often the highest operating cost after labour, and deserves careful monitoring. KPIs worth tracking include Fuel Consumption (L/100 km) and Idle Time (% time idling).
  
  
• Safety & Risk Performance. The operation of motor vehicles is a major risk area for an organization. KPIs to track include Preventable Collision Rates (per 100,000 km) and Driver Safety Scores (telematics-based assessments of harsh braking, speeding, and cornering).
• Sustainability Targets. Reducing emissions to support an organization’s sustainability goals can become a key responsibility of fleets. KPIs in this area include Greenhouse Gas (GHG) emissions per km, or Electric Vehicle (EV) adoption rate (% of fleet electrified by class).

Right stakeholders / right format / right time

The best information cannot help an organization reach its goals unless it is shared. A Reporting Matrix is often used to determine who needs what information and how often.

The following guidance can help build a meaningful framework:

• Use standard vehicle classifications to group data. This will facilitate benchmarking with outside organizations.
• Invest in appropriate technology. A fit-for-purpose fleet management system, fuel system, and telematics are critical tools in your reporting strategy.
• Incorporate fleet user information needs. Many benchmarks will be geared toward the fleet manager to support overall program management. User groups, however, can benefit from utilization and cost metrics to enhance their involvement and accountability.
• Educate stakeholders on the metrics being tracked, why they are important and what constitutes best practices.
• Update tracked metrics as data needs change or tracking capabilities improve. As a minimum, the Performance Framework should be reviewed annually. A higher collision rate may indicate the need for closer safety monitoring. Introducing electric vehicles may require a mandate to report greenhouse gas emissions reductions.

As fleet management becomes increasingly reliant on data, you need to carefully consider what information is needed to make key acquisition, utilization, replacement, and maintenance decisions in a timely manner.