One of the challenges of companies that rely on driving is achieving the highest possible fleet asset utilization rate. If companies cannot ever really aspire to a perfect 100% rate, it is also true that the industry average is around 50% and there is, therefore, a good deal of room for improvement.
Fleet asset utilization rate is a very important parameter to consider as it has a big impact on finance and costs. Most companies tend only to recognise costs that are conspicuous or get billed for, but if assets are underused or not used profitably, the impact on your pocket is just as real, and no less serious than the ones relating to fuel receipts…
So, what do you think are the metrics to control if you want to take action and improve your current fleet asset utilization rate to bring it closer to 100% rather than 50%?
Here we list five:
- Vehicles arrival and leaving time on a particular site—to make sure jobs are carried out punctually and are taking an adequate time, but not exceeding it
- Travelling time of a vehicle between different jobs—seeing if this is also accurate or whether there might be delays or even detours
- Actual use of the equipment with engine on (vehicles on the road or working time of connected devices in the case of sweepers or construction machinery, for example)—to ensure there is no waste or that vehicles with specific equipment are not underused
- Vehicles not working for some time of the day or idle in a depot not working at all—to see if having such vehicles is justified, or you might need to consider rightsizing, remarketing or reassignment
- Information on maintenance events and times—to ensure vehicles are available and usable after maintenance has been performed and there is no unnecessary gap
What do you think about these metrics, and how do you currently take control of them? Do you think these aspects are often underestimated?
There is indeed a lot of aspects to consider when thinking about fleet asset utilization rate. If you think about these five metrics, your performance can still vary and might not be close to 100%, but surely by having them strictly under control you can make this rate increase...