In brief
Fleet KPIs are metrics used to manage a fleet, such as cost per kilometer, utilization, damage rate, and availability. They become useful only when compared over time.
Which metrics are meaningful?
- Cost per kilometer, calculated from Total Cost of Ownership and mileage. This is the key measure for comparing vehicles and powertrains.
- Vehicle utilization, meaning the proportion of available hours or days during which a vehicle is used. It underpins every decision about fleet size.
- Damage management metrics, such as the number of damage incidents per vehicle and the average cost per incident.
- Availability, meaning the share of time a vehicle is ready for use.
- CO2 emissions per kilometer as a basis for the fleet's CO2 balance.
- Vehicles per administrative position as a measure of the efficiency of fleet administration.
How are the metrics calculated?
| Metric | Calculation | Basis |
|---|---|---|
| Cost per kilometer | Total costs in the period divided by kilometers driven | Per vehicle and powertrain type |
| Time-based utilization | Hours used divided by hours available | Per vehicle and location |
| Distance-based utilization | Actual mileage divided by planned mileage | Leased vehicles |
| Damage frequency | Number of damage incidents divided by number of vehicles | Per period |
| Claims ratio | Cost of claims divided by premium paid | Insurance contract |
| Availability | Days ready for use divided by calendar days | Per vehicle |
| CO2 per kilometer | Emissions divided by kilometers driven | Fleet carbon balance |
| Vehicles per administrative position | Number of vehicles divided by full-time positions | Fleet administration |
How many metrics are useful?
Just a few, measured regularly. A monthly report with five metrics that shows changes is more useful for management than a report with thirty items produced once a year. The key is for each metric to be tied to a decision.
Why do KPI systems fail?
Because their bases of comparison are inconsistent. If costs are recorded monthly, odometer readings quarterly, and damage when cases are closed, the figures cover different periods and do not form a coherent picture. The first task, therefore, is to establish a reliable set of fleet data with a consistent reporting date, before choosing the metrics.
Further reading
Fleet Management Without Excel Spreadsheets
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