Fleet utilization metrics do more than just monitor performance. They act as benchmarks to spot inefficiencies and optimize operations. With them, fleet managers can also evaluate and compare the benefits of electric vehicles vs. internal combustion engine vehicles.
So, which fleet utilization metrics are the most important to measure? While your list may differ slightly, here are the most common measurements that fleet managers use.
Eight fleet utilization metrics to monitor
1. Vehicle utilization rate
The vehicle utilization rate measures the usage and productivity of fleet vehicles. It also measures the amount of time that the vehicles are used, which can help identify overused or underutilized ones.
Utilization rates help measure capacity and demand. Capacity is the maximum amount that fleet vehicles can be used (the total available vehicle time), and demand is the amount of work that the fleet is used (the total active vehicle time). The closer you balance capacity and demand, the more efficient your fleet will be and the better your investments are spent.
Vehicle utilization rate formula: (Total Active Vehicle Time / Total Available Vehicle Time) x 100
Most organizations want a utilization rate of 80% or above for peak efficiency.
2. Fuel and energy consumption
Nearly a quarter of fleet operating costs are due to fuel and energy. Tracking fuel consumption for ICE vehicles can help highlight poor performance and rising costs. Measuring energy consumption and costs for EVs also enables you to do a cost-benefit analysis of gas-powered and electric-powered vehicles to save actual costs.
3. Idling time
With telematics installed in your vehicles, you can monitor idling. The EPA estimates that idling consumes more than a billion gallons of fuel annually, emitting 200,000 tons of nitrogen oxide and 5,000 tons of particulate matter.
Excessive idling also uses more fuel and puts more wear and tear on internal engine parts. Telematics can spot inefficiencies with gas-powered vehicles, helping you make the case for switching to zero-emissions EVs.
4. Maintenance and repair costs
You will want to monitor maintenance and repair costs over time. As vehicles age, they tend to need more maintenance. Surging costs help show which vehicles are prime targets for replacement.
EVs generally require less maintenance. Fewer moving parts and fluids eliminate the need for routine maintenance like oil changes, spark plug changes, or air filter replacements. Tracking costs for traditional vehicles and EVs demonstrates the cost-saving potential.
Besides measuring the hard costs, you can use fleet telematics to monitor vehicle health and provide alerts for predictive maintenance.
5. Total cost of ownership (TCO)
Perhaps the most vital metric to track when considering acquisitions is the TCO. By monitoring the lifecycle costs from procurement to retirement, you can make better decisions about the types of vehicles that you buy and the duties that you assign. This metric also helps you evaluate candidates for replacement, reassignment, or retirement.
Despite higher upfront purchase prices, EVs generally have the lowest maintenance costs, resulting in a lower TCO. Hard data helps demonstrate the benefits of fleet electrification.
6. Route optimization
Optimizing fleet miles can significantly reduce costs and extend vehicle life, and fleet software can help customize routes and stops. This is especially important for EVs, which have a limited range and require access to charging infrastructure to power back up.
7. Driver behavior
Another area where telematics can make a difference is in monitoring driver behavior, such as rapid acceleration or hard braking. Erratic driving habits use more fuel and energy and put more wear and tear on vehicles. By monitoring driver behavior, you can isolate poor performance and provide additional training and education for fleet drivers.
8. Charging behavior for EVs
With EVs, monitoring charging patterns and locations can help you find inefficiencies with charging infrastructure and battery degradation. It also helps quantify energy costs for comparison with gas-powered vehicles.
By optimizing charging schedules, you can lower energy costs. Electricity costs vary depending on the charging time and demand, and many utility companies offer incentives for energy consumption during off-times.
Deploying telematics
Telematics streamlines the tracking and monitoring process. By embedding telematics into your fleet and using fleet tracking software, you can measure a broad range of vehicle metrics, including:
- Usage
- Maintenance
- Fuel consumption
- Idle times
- Driver behavior
- Speed and acceleration
Also, telematics eliminates the need to manually track miles, routes, and utilization and ensures that you get accurate data. Fleet tracking software aggregates all the data and alerts you to inefficiencies. This can help you optimize your fleet and compare performance with EVs.
Final note
Sourcewell offers cooperative contracts for telematics, software, consulting, and installation to help you measure and monitor your fleet utilization metrics. You can save time and money by opting into a ready-to-use contract. Sourcewell aggregates buying power from more than 50,000 government agencies and educational institutions to negotiate lower costs than individual entities can achieve on their own.
Switching to EVs can feel overwhelming, but you don't have to do it alone. See how cooperative purchasing can ease the transition, expedite procurement, and help you save time and money with easy-to-access solutions.
