Fleet Manager Series - 5 numbers every fleet manager needs to know
Like every area of business, key numbers and success measurements are critical in fleet management. For our friend the salesperson, success measurements are usually straightforward and promotions are gained on the back of big numbers, but how does the fleet manager measure his or her successes? This week I look at 5 key measurements which should be front of mind with all fleet managers who are looking to move their fleet forward towards a more efficient and cost effective future.
1. Litres per 100km fleet wide
With most company fleets, fuel is the single largest expense and as such it’s the area which has the most potential for cost saving opportunities. For the fleet manager, knowing the litres per 100km for the entire fleet will allow him or her to understand the impact of driver training, more fuel efficient vehicles and smarter navigation procedures.
2. Vehicle maintenance costs per vehicle
If fuel costs are cost number one, maintenance most certainly has the capacity to be cost number two (this does depend on how the vehicles are used). Knowing average maintenance costs will allow the fleet manager to understand which vehicles are simply too much work and which were worth their initial investment.
3. Number of days out of commission (fleet wide)
Knowing how many days in the year any given vehicle should be out of commission is deeply important especially when you consider the potential costs of replacement vehicles. Knowing this figure may also help your firm negotiate rates with hire car companies on an annual basis.
4. Annual crash/accident cost (can also be done on a per vehicle basis)
This figure should help everyone in the firm understand the importance of safer driving. By displaying this figure (notice boards etc.) it may help employees understand that there is a great deal of sense in safe driving initiatives. The figure will also reinforce the idea that safe driving is a financial initiative as well as a health initiative.
5. Average re-sale price of fleet vehicles as a percentages of total purchase costs
This figure will help the company learn which vehicle and which brands of vehicle end on a sour financial note, and which ones do not. Knowing which vehicles lose their value like a falling stone is critically important as resale values and resale revenue is an extremely important funding source for new vehicles.
While it’s important to understand fleet management from a holistic perspective (health, safety, company image, corporate level approval etc.) it can still help to understand the area in concrete numbers. In the end, gauging your firm’s fleet progress with solid numbers can help motivate everyone involved and equally solid numbers should allow you to plan and prepare in otherwise uncertain times.
Do you watch all these figures for your fleet?
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