Fleet Management (FM)
Fleet management activities is an administrative approach that allows companies to organize and coordinate work vehicles with the aim to improve safety, efficiency, reduce costs, and provide compliance with government regulations.
While most commonly used for vehicle tracking, fleet management includes following the position and recording mechanical diagnostics and driver behavior.
Fleet Management solutions connect vehicles and monitor driver activities, allowing managers to gain an unprecedented level of insight into fleet performance, fuel burned, driver behavior and program maintenance.
Fleet Manager know where vehicles and drivers are at all times, identify potential problems much sooner and mitigate risks before they become larger issues that can jeopardize client satisfaction, impact driver safety or increase costs.
The fleet management market size is expected to grow from USD 13.78 billion in 2017 to USD 28.66 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 15.8%. (Source: Markets and Markets)
Fleet Management Market was valued at $7,755 million, and is expected to reach $34,629 million by 2022. (Source: Global Opportunity Analysis and Industry Forecast, 2014 - 2022)
The global smart fleet management market size is expected to reach USD 565.1 billion by 2025. The market is anticipated to register a CAGR of 7.6% from 2017 to 2025. (Source: Grand View Research)
What which KPIs are crucial in fleet management technology?
1. Reliability and Connectivity: reliable and consistent data right connection to drivers and workers, companies can leverage their fleet as efficiently as possible.
2. Screen the most important information: fleet operators must strive to achieve the lowest possible total cost of ownership (TCO) for their fleets while complying with increasingly stringent environmental and safety regulations.
3. Driver safety. This is always a crucial consideration for fleets, and is a central aspect of their basic duty of care to their employees while they are at work – so close monitoring of driver behaviour is essential.
It is also an important indicator with regard to overall road safety standards.
Drive time and speed violations, rough cornering, harsh braking and tailgating, fuel consumption, route management, driver performance, and vehicle maintenance all play a part in this goal.
Data can also be used to create driver safety scorecards and league tables, with incentives provided for the safest and most-improved drivers
Fuel economy and efficiency. Fuel is a top-three expense for fleet-dependent businesses, and improving fuel economy is a matter of both bottom-line cost savings and environmental impact.
Metrics such as Km per liter, engine percentage used, idle time and unauthorized mileage are important for monitoring fuel.
Armed with a clear knowledge based on these metrics, fleets are likely to be in a much stronger position to make efficiency savings as well as cutting CO2 emissions.
4. Asset utilization: gather valuable data regarding the real-time location and management of the fleet and the complete history of activities of the vehicles. Doing so, it enables to control the activities of the company in order to promote efficiency, encourage customer-satisfaction and increase profitability. This is again highly important with regard to understanding the overall efficiency and performance of the fleet, and also in identifying potential efficiency savings.
If there is room to downsize the fleet without impacting standards of performance or customer service, tracking asset utilization metrics will help to identify that room. For example, where assets are not active for over two days, this may be an indication that there is some slack when it comes to asset utilization.
5. Productivity. It’s essential for fleet managers to evaluate just how productive their fleet is.
Fleet productivity could be measured using a number of metrics, such as average job completion time, time on site and vehicle activity.
Tracking metrics such as these should make it much easier for fleet managers to identify ways in which they can streamline the business and improve service delivery standards.
6. Preventative maintenance compliance. This to reduce the risk of downtime, which is a major threat to fleets and can cause serious disruption and delays – with everything this implies for customer service.
Fleets manager should monitor preventative maintenance compliance – for example, through tracking the number of non-planned maintenance events – to ensure that essential preventative fleet maintenance tasks are being carried out when they should be.