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The Most Important Metrics You Should Track When Running Your Corporate Fleet

Posted by Viasat Technology on 03-Aug-2017 06:52:00
Viasat Technology

Good fleet organisation can mean an increase in vehicle lifespan or a reduction in its costs. To run a  corporate fleet means being in many places at the same time, organising daily schedules, insuring that the vehicles are running correctly, fitting within the budget, keeping track of the costs for fuel and amintenance as well as many other things. The truth is that without correct information it’s almost impossible to run a fleet successfully.

In this article we will discuss the four most important metrics that will help you significantly in maintaining good practices for fleet management.

 

1 . Available cars

 

Available cars include all vehicles which are available for work at a particular time. The team which is responsible for managing the corporate fleet needs to know which vehicles aren’t available, but as the number of vehicles in a fleet increases so does the chance of errors occurring. Information needs to be easily accessible. The percent of active vehicles devided by categories (cars, trucks, trailers, etc.) should be known at any time. The available vehicles can quickly and easily be kept track of using a real-time corporate telematics system.

 

2. Vehicles in use

 

This metrics shows precisely how many vehicles are currently in use, what class they are and the percentage of used vehicles in a given 24 hour window. One of the main rules for the success is to optimise your corporate fleet to about ninety percent usability. This means that if you have 100 vehicles, 90 of them should be in use. As an addition, in order for a fleet to adapt for easy growth, we should aim for 95% usability and the other 5% ensure quick reaction times in case of  growth. You can check how many vehicles have been used in the last 24 hours using GPS tracking devices. They show which vehicles have been used and which have been idle during the last 24 hours or any other selected time period. 

 

3. Timely maintenance, prohpylactics and servicing 

 

The preventive prophylactics and servicing are two of the most important aspects in managing a corporate fleet and have the biggest significance for reaching the standards for maintenance of good general metrics. If you don’t have a plan for preventive prophylactics in place, now is the time to develop one. Use GPS systems with modules for servicing and maintenance thanks to which you will never forget to service your vehicles.

 

4. Repair costs

 

High quality control and management software should show:

  • Frequency of repairs;
  • Location of the problem;
  • Repeated repais;
  • Origins of the problem;
  • Unexpected vehicles defects;
  • Serious damages to vehicles.

Despite initial precaustions, nothing is forever. From time to time you’ll have to face problem vehicles, but it’s just part of maintaining an active corporate fleet.

Without a proper management plan, the repair costs can rapidly spiral out of control. And again, access to this information could give you a more detailed idea of the process, which will save you money in the long term.

More precise division of repair costs

Because every vehicle has more than 15 000 parts, the process of categorising and diagnosing damages can be very complex. It is vital that you compose a list of the 25 or so most commonly replaced parts of a vehicle, which will save you the time of going through the 15000+ long list of elements. This is where software comes in handy, making your job easier.

 Divide costs by:

  • Parts used for every repair;
  • Vehicle class;
  • Type;
  • Monthly costs;
  • Quarterly costs;
  • Annual costs.

Maintaining a good state of your vehicles while simultaneously keeping repair costs low can be quite difficult, especially if you don’t have a system for sorting information. The important principle here is to aim towards balanced costs for the parts as well as for the labor you’re paying for. If for evert dollar that goes towards a certain part, one more is invested in labour, then you’re doing a good organisational job. It sounds easier in theory than in practice. If you’re dealing with a new fleet, vehicles less than two years old, maintaing a balance is easy, because parts don’t need to be replaced as often. If you’re running a corporate fleet of older vehicles, that ration could be 2:1 or 3:1, because the costs for labour will be higher.

 

The main message from all of this is that you know best how you fleet functions. In order to gain the maximum amount of useful information, both a Corporate Telematics system as well as a powerful organisation and management system, both reducing chaos and helping you focus on what’s most important – your business goals.  

 

 

Topics: fleet management

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