Leveraging analytics to optimize your fleet management strategy

You hand-picked each vehicle. You treat them with care. You know each time a vehicle leaves your lot, it’s an extension of your business and your brand. Without your fleet, your business would not operate.

But each time these valuable (and expensive) vehicles hit the road, you may be left wondering…

• Where is it really going and is it taking the best route possible?
• How much will each trip cost?
• Is the driver taking care of the vehicle and staying safe?

These questions and more often come up because fleet managers aren’t taking advantage of analytics. It’s difficult to fix problems you can’t see or don’t understand. Businesses can’t improve performance if key performance indicators (KPIs) aren’t measured.

Some typical KPIs measured for fleet ROI optimization include:

• Distance traveled per year
• Mileage - kilometers per liter
• Vehicle usage ratios (business vs. personal kms)
• Fleet acquisition costs
• Maintenance and repair costs

Luckily, fleet management software helps measure all these KPIs! Technology powers everything in our daily lives - and most fleet managers now rely on analytics to do their job. Has your fleet made the transition yet? Powerful data analytics help managers quit the guessing game and make better decisions, faster.

While it may seem overwhelming at first, fleet analytics are actually easy to understand.

Telematics technology monitors individual vehicles and driver behavior. It keeps track of asset locations and activity. This information is automatically recorded and logged on a cloud-based platform. That means managers can access the data from anywhere, at any time. Learn more about Logifleet Vehicle Connect.

Fleet management software like Logifleet gives you just the right amount of insights to run your business.

What kinds of insights? Here are some ways you can leverage analytics to optimize your fleet management strategy.

1. Fuel Management Analytics Improve Fuel Economy

The Chief Editor of Fleet Europe, says, “typically, fuel represents 25 to 30% of the total fleet cost.” (Source: Fleet Europe) That’s a HUGE chunk of the budget. That’s why fleet managers are always looking for ways to reduce this expense. But that’s easier said than done. Without fleet monitoring, managers are often operating blind. A lack of visibility makes it hard for managers to forecast, budget, and reduce fuel costs.

With fuel management analytics, it’s easier to understand which vehicles are using the most fuel and why. Fleet managers can even set up custom alerts to more closely monitor underperforming assets.

Managers can also review idling times, mileage readings, and even driver behavior. This data paints a more accurate picture of how each driver and vehicle is performing over time.

2. Asset Utilization Analytics Reduces Fleet Costs

Every fleet manager knows it’s important to rotate vehicle assignments to prevent under or over-utilization. But when assets number in the dozens or even hundreds, it can be difficult to keep track of everything. Fleet managers are only human! Old school paper logs and spreadsheets take a long time to update. These outdated processes mean more admin work and overtime.

With asset utilization analytics, fleet managers can assign vehicles with minimal effort. Every asset and its usage history is automatically tracked and recorded for easy reference. This data makes it easier for managers to understand their fleet costs and an asset’s total cost of ownership. No more paperwork and headaches!

3. Route Management Analytics Increases Productivity

On the road, every day is different. Drivers must pivot often and rise up to meet new challenges all the time. Route management analytics help fleet managers determine the best route for each vehicle, every single time. Real-time data helps managers make lightning-fast decisions, and smart route optimization tools can come up with new routes in just a few clicks.

Increased productivity doesn’t just reduce wage costs - it also improves customer experience, too. When staff resolve problems faster and deliver better service, your brand reputation grows too!

4. Predictive Analytics Improve Maintenance & Prevent Accidents

Predictive analytics are important tools for daily decision making and risk assessment.

The Independent European Transport Safety Council pointed out that a business may need to make €72,000 just to pay for a €3,600 crash because there are many indirect and hidden costs to accidents.

Fleet management software can help managers monitor and curb unsafe driving practices. This prevents accidents and reduces company liability and exposure. After identifying risky drivers, managers can implement safe driving programs. By openly discussing best practices, managers can encourage better internal communication as well.

Predictive analytics also help managers stay on top of vehicle maintenance. Software like Logifleet can send out reminders when preventative maintenance is required or overdue. Properly maintained vehicles are less likely to experience roadside breakdowns and require emergency repairs. By keeping all the vehicles in top shape, fleet managers extend the lifespan of their biggest assets.

A few final tips...

It’s not enough to have data and analytics - you need to make them work for you. 

• The best way to begin is by choosing an area to focus on. You may want to tackle fuel management first, then work your way down the list of priorities. 
• Start monitoring your fleet with telematics. Find the data you need, keep the information organized and review everything from an unbiased point of view.
• Create a working hypothesis about your problem(s) and see if your data validates it. 
• Once you have some insights, don’t forget to act on them! 

In the past, fleet managers had little to no control over operational outcomes once vehicles hit the road. Nowadays, fleet managers can leverage analytics to directly improve their fleet ROI.

Long-term changes don’t happen overnight, but every change starts with the first step.

Interested in learning more about how Logifleet can help your business? Book a demo call today!

Sources:

https://www2.deloitte.com/content/dam/Deloitte/us/Documents/consumer-business/us-fleet-management-europe.pdf

https://bigdataanalyticsnews.com/fleet-management-with-predictive-analytics/

https://www.automotive-fleet.com/156387/using-predictive-analytics-to-improve-fleet-decisions

https://www.truckinginfo.com/10126064/5-steps-to-get-the-most-from-your-analytics

https://www.fleeteurope.com/fr/financial-models-fleet-strategy-safety-environment/europe-europe/analysis/safety-management-true?a=JMA06&t%5B0%5D=Drivetech&t%5B1%5D=TCO&t%5B2%5D=Safety&t%5B3%5D=SMR&curl=1

https://www.eltis.org/sites/default/files/trainingmaterials/fuel-and-fleet-management-guide.pdf

https://www.fleeteurope.com/fr/events/webinar/how-achieve-efficiency-fuel-management