{"id":2226,"date":"2020-01-06T20:13:42","date_gmt":"2020-01-06T20:13:42","guid":{"rendered":"https:\/\/quicktransportsolutions.com\/blog\/?p=2226"},"modified":"2020-01-06T20:13:44","modified_gmt":"2020-01-06T20:13:44","slug":"which-key-performance-indicators-should-matter-to-trucking-company","status":"publish","type":"post","link":"https:\/\/quicktransportsolutions.com\/blog\/which-key-performance-indicators-should-matter-to-trucking-company\/","title":{"rendered":"Which Key Performance Indicators Should Matter To Trucking Company?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">When it comes to managing a trucking company, there\u2019s a lot to consider. That\u2019s why your best bet is going with a telematics solution that can help you sort through the mountains of data. Even more, you want to be able to evaluate key performance indicators that move the needle of your business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">                                                                     <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You have established your fleet goals, installed the latest technology and collected all-important telematics data. So, what now? Operating a fleet is one thing but knowing whether you\u2019re doing so effectively is a completely different situation. This is where <strong>Key Performance Indicators<\/strong> (KPIs) come into play. KPIs are measurements that help you understand how <a href=\"https:\/\/www.quicktransportsolutions.com\/carrier\/usa-trucking-companies.php\">your trucking company<\/a> is performing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can only improve what you measure. For a KPI to be\nviewed as effective, it must be: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Well-defined and quantifiable. <\/li><li>Communicated throughout the organization and\ndepartment. <\/li><li>Crucial to achieving a specific goal. <\/li><li>Applicable to the Line of Business (LOB) or\ndepartment. <\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">KPIs can differ based on fleet size and the type of industry\n(every fleet has its own unique challenges) but there are certain indicators\nthat every fleet manager should be measuring. Let\u2019s discuss what eight of these\nKPIs are and what they can tell you about your fleet\u2019s performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Speeding<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is no doubt that excess speed increases the risk of\ncar crash-related injuries and deaths. In 2015 it was found that <a href=\"https:\/\/crashstats.nhtsa.dot.gov\/Api\/Public\/Publication\/812409\">27% of\nfatal crashes<\/a> involved at least one speeding driver. Tracking and\nultimately curbing incidents of speeding can greatly decrease the risk of\nfatalities on the road. Not only does speeding negatively impact fleet safety,\nit also decreases fuel economy. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the website, fueleconomy.gov, gas mileage\ndecreases rapidly at speeds above 50 mph. It is assumed that for every 5-mph\ndriven over 50 mph, you are paying an additional $0.18 per gallon for gas. By\nmonitoring and reducing speeding incidents, you are likely to see a fuel saving\nof between 7% and 14%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Harsh Braking and Acceleration<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When more force than necessary is applied to a vehicle\u2019s\nbrake or accelerator, telematics technology will trigger for these events. Both\ncould indicate that a driver is engaging in unsafe or aggressive behaviors on\nthe road. Harsh braking on a regular basis can be due to driver distraction or\ntailgating and is often a sign that the driver is narrowly avoiding crashes on\na frequent basis. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This behavior increases risk to the safety of your fleet.\nRegularly applying unnecessary force to the brake will increase wear and tear\nto brake pads and tires. In turn, it will increase the need for maintenance and\nits related costs. Harsh acceleration and harsh braking go together as the\nformer is usually preceded by the latter. Both are thus equally important to\ntake note of. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Measuring these two indicators can help to identify drivers\nwho need training to curb to learn to drive more smoothly. Smoother driving\nreduces the risk of crashes, wear and tear on vehicles and excessive fuel\nconsumption.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Crashes<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This may be obvious, but crashes of any kind pose a huge\nthreat to the safety of your fleet. It also affects fleet efficiency (because\nof resultant downtime) and, brings on unnecessary costs due to repairs and\npossible insurance claims. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the event of a crash you need to know what happened, who\nwas involved and why it happened. The \u201cwhy\u201d can be viewed as the most\nimportant. Establishing what caused the accidents can help you determine\nwhether the driver was at fault and, if that is the case, provide training to\nprevent the same incident from occurring again. Should the driver not be at\nfault, you have data to back you up when insurance comes into play.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Fuel Economy <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As you may likely know, fuel economy refers to the relationship between the distance travelled by a vehicle and the amount of fuel consumed. There are two ways consumption can be measured. One way is the volume of fuel it takes to travel a certain distance and another way is the distanced travelled per volume of fuel consumed. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">                                                                     <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are a wide variety of factors that influence how\neconomical your fleet is with fuel including: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Speeding <\/li><li>Rapid acceleration <\/li><li>Harsh braking <\/li><li>Excessive idling <\/li><li>Cold weather in combination with frequent short\ntrips <\/li><li>Carrying excessive weight <\/li><li>Driving on hilly terrain <\/li><li>Not doing regular maintenance on brake pads,\ntires, air filters and so forth<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Empty Miles<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Empty (or underutilized) miles refer to instances where\nrevenue-creating vehicles are operating without carrying a load or passengers.\nFor example, if a truck completes a delivery and then drives back 500 miles\nwithout carrying anything, that truck has driven 500 empty miles. Those miles\nhave then essentially not generated income. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s easy to see that empty miles are a waste of fuel, time\nand money. But many people do not realize that it can also be a safety hazard\non the road. If a truck or similarly bulky vehicle is driving around empty, it\ncan more easily sway and flip over in windy weather conditions which can lead\nto accidents. Even more reason to monitor those empty miles!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Fleet Asset Utilization <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fleet asset utilization is a great way to measure how\nefficiently your fleet is operating. There are several factors you can look at\nto know this KPI and some of these include: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Volume a vehicle can carry versus what is\ncurrently being carried <\/li><li>Driver Hours of Service that are not allocated <\/li><li>Customer service requirements (such as specific\ntime windows for deliveries) <\/li><li>Duration of stops <\/li><li>Empty or underutilized miles <\/li><li>Amount of stops en-route <\/li><li>Maintenance and resultant downtime <\/li><li>Arrival and departure times <\/li><li>Travel time in-between jobs. <\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">When fleet assets are not used to their full capacity at the\nmost optimal times, you end up losing time and ultimately money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Available and Violated<\/strong> <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hours of Service According to the FMCSA\u2019s Hours of Service\nrule (as part of the ELD mandate), operators of commercial motor vehicles and\nfor-hire private motor carriers are limited to a number of daily and weekly\ndriving and working hours. This rule also regulates the minimum amount of time\ndrivers must spend resting between driving shifts. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking Hours of Service helps to achieve and maintain\ncompliance with the ELD mandate and its HOS rule. What\u2019s more is that where\nthere are available Hours of Service, drivers can be assigned more driving time\n(a plus for increased fleet asset utilization) and drivers utilizing too many\nhours can be monitored. Not only does measuring this KPI assist with\ncompliance, it also improves the safety of a fleet. Hours of Service was\noriginally designed to combat driver fatigue. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When drivers are working too many hours and not sleeping\nenough, it can cause drowsiness. Drowsy drivers are less able to pay attention\nto the road, have slower reaction times and cannot make good decisions. The\nNHTSA estimates that up to 6,000 fatal crashes each year may be the result of\ndrowsy driving. Commercial drivers, shift workers and drivers who do not get\nenough sleep due to work are at a higher risk of driving drowsy. Taking all\nthis into account there\u2019s no doubt as to the importance of closely monitoring\nHOS.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Unassigned Mileage <\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When someone drives a fleet vehicle without logging it in an\nelectronic logging device (ELD), this is unassigned mileage. Before the advent\nof the ELD mandate, there were no unassigned driving events as each driver\nfilled out their own paper logs. Now it is compulsory that an ELD must create a\nlog every time the vehicle is moved. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">All unassigned drive time records must either be annotated\nor reassigned to a driver and cannot be left unclaimed. Both drivers and\ncarriers are held accountable for unassigned mileage and non-compliance means\nbeing in violation of the ELD mandate. However, the onus ultimately falls on\ncarriers to resolve the unassigned drive time by properly maintaining all logs\nby checking on them at least once a day. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keeping an eye on unassigned mileage is vital in showing where compliance is lacking. Truck drivers also need to motivate why they are claiming a particular log. These motivations can help put a spotlight on times when vehicles are being misused or simply improperly utilized.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">                                                                     <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We hope that you have found today\u2019s blog on fleet-related KPIs helpful. Bear in mind that this is just the tip of the iceberg. Now that you are a bit more knowledgeable about the basics, you can custom pick which KPIs are best for YOU to measure. For the best results, it\u2019s important to choose the KPIs that align with your current goals, helping you to achieve what you set out to do.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to managing a trucking company, there\u2019s a lot to consider. That\u2019s why your best bet is going with a telematics solution that can help you sort through the mountains of data. Even more, you want to be able to evaluate key performance indicators that move the needle of your business. You have &#8230; <a title=\"Which Key Performance Indicators Should Matter To Trucking Company?\" class=\"read-more\" href=\"https:\/\/quicktransportsolutions.com\/blog\/which-key-performance-indicators-should-matter-to-trucking-company\/\" aria-label=\"Read more about Which Key Performance Indicators Should Matter To Trucking Company?\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2227,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trucking"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Which Key Performance Indicators Should Matter To Trucking Company? - Quick Transport Solutions Trucking Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/quicktransportsolutions.com\/blog\/which-key-performance-indicators-should-matter-to-trucking-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which Key Performance Indicators Should Matter To Trucking Company? - Quick Transport Solutions Trucking Blog\" \/>\n<meta property=\"og:description\" content=\"When it comes to managing a trucking company, there\u2019s a lot to consider. 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That\u2019s why your best bet is going with a telematics solution that can help you sort through the mountains of data. Even more, you want to be able to evaluate key performance indicators that move the needle of your business. You have ... 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