How to Measure the Efficiency of a Fleet

The creation of a fleet is never ending. As the fleet grows, so does the demand for additional vehicles as well as for the latest technology. However, without the ability to evaluate how the fleet is running, waste can continue, and profits will be limited. Fleet utilization is a helpful metric that allows business managers to determine how effective their fleet is performing. By keeping a close eye on the usage of a fleet, a business owner can calculate the return on investment. In addition, fleet utilization can allow a business owner to decrease waste while increasing profit.

As simple as possible, the vehicle utilization rate is the difference between total mileage capacity and actual miles covered. However, determining an accurate vehicle utilization rate could be difficult. Different industries have different metric systems to reveal the potential of their fleet.

For example, a construction company will be more accurately defined by measuring its machines as opposed to its vehicle. Thus, the vehicle utilization rate above would not be effective in determining the efficiency of a fleet of construction vehicles. Instead, the fleet utilization rate for construction companies is best revealed by determining the percentage of the workday in which their vehicles or machines are in use.

And sometimes, the vehicle utilization rate may not be accurate. The more vehicles in a fleet, the larger the capacity needs to be satisfied. For example, a business could improve their vehicle utilization rate overnight, by selling some of the underused vehicles and maybe leasing vehicles during the businesses’ high season. Likewise, a fleet can be the greatest maintained on the planet, but if the demand is low, the fleet may wind up losing money.

The most common methods of determining a vehicle’s maximum potential are to measure the:

• Mileage
• Number of vehicles or machines either in operation or available
• Hours of usage

But then countless factors will cause utilization to fluctuate. For example, hours of usage as well as mileage driven will be far greater during peak hours or season. Likewise, several factors, such as improper scheduling, staffing difficulties, poor vehicular maintenance can all contribute to poor vehicle utilization.

The trick is to properly balance demand and capacity. Nation Safe Drivers fleet tracking software combined with GPS technology provides business managers with the ability to limit waste and increase production. Things like fuel consumption, careless driving patterns, engine idling, vehicle maintenance alerts, and much more will be translated into readable reports that could be used to curtail a fleet to maximize production.
How Can Nation Safe Drivers Improve Vehicle Utilization?

Joining Nation Safe Drivers (NSD) fleet tracking management is all that is required to increase production. Drivers, managers, and NSD representatives are all linked in 24-7 connection. In addition, NSD software as well as GPS technology record countless details of a vehicle’s performance. Industrial leaders feel that an impressive vehicle utilization rate is the best metric to guarantee a fleet is operating as efficiently as possible.

Waste is the single biggest contributor to a poor vehicle utilization rate. A mismanaged delivery schedule will cause much waste in fuel consumption, drivers’ invoices, excessive cargo weight, roadside assistance, and maintenance. Here are some ways that NSD fleet tracking management will improve your fleet.

Fuel consumption

According to American Transport Research Institute, fuel takes up 24% of the fleet’s total operational costs. As a result, ensuring the drivers of a fleet are driving properly and taking the quickest routes is of paramount importance when it comes to vehicle utilization.

NSD fleet tracking will monitor the driving patterns of each fleet, so that everything from idling time to sharp turns will be revealed to management. Drivers will certainly be more hesitant to drive recklessly, knowing that they are being monitored so closely.

Fuel is also wasted when a vehicle takes a longer route or gets into traffic. With NSD fleet tracking management, the driver just needs to glance at the NSD fleet tracking application on their smartphones to discern the quickest possible route.

Popular navigational applications like Map Quest or Google Maps are life savers for individuals, but if a truck tries using them to make a delivery, they will most likely be led astray. For example, the quickest route may lead one through a school district or a one-way street. Such directions may be appropriate for a four-door sedan, but a huge delivery truck will be at a disadvantage. NSD fleet tracking individualizes the most effective route for the particular vehicle being used.

Driver invoices

Eliminating waste in a fleet is a difficult task, because waste can be derived from many different sources. Gas consumption is an easy waste to minimize, because it could be rectified. When drivers tap on a few extra hours every day to their invoices, it is more difficult to catch.

NSD fleet tracking management collects data for each route, including the times that each route takes. With this data in hand, managers can see, to the second, how long each trip took, and how long the truck was idle.

In addition, invoicing disputes can be resolved by a quick glance to the software’s data history. Instead of taking an employee’s word for the hours that they worked, the NSD fleet tracking software will simplify any invoicing dispute. In fact, NSD fleet tracking software automatically creates the driver’s invoice, and generates detailed reports.

Excessive cargo weight

When a truck is filled beyond capacity, it will take more gas to drive it. NSD GPS load sensors can accurately detect the weight of a vehicle’s cargo, ensuring the weight of each vehicle will optimize fuel efficiency.

All too often, the merchandise received is less than the merchandise that was shipped. When merchandise mysteriously vanishes during a voyage, NSD fleet tracking management will instantly detect it. NSD GPS weight sensors transmit total against location and time.

Maintenance

If a vehicle is spending too much time in the garage of a mechanic, obviously the vehicle utilization rate will be down. NSD fleet tracking management can greatly reduce mechanical disasters by signaling vehicular error codes to both management and NSD.

Sometimes a driver may feel reluctant to alert management about a ‘check engine’ light that has been flashing during the trip. If a driver’s wages are contingent on how quickly he or she could make the delivery, they may choose to ignore any vehicle maintenance alerts.

With NSD fleet tracking software, as soon as a maintenance issue arises, management is notified. As a result, with NSD fleet tracking management, the vehicles in a fleet will avoid wasted time in a garage. Repairs on most vehicular maintenance issues are inexpensive and quick, if they are repaired as soon as the alert has been issued.

Roadside assistance

There is not much a fleet can do to avoid a flat tire. How the fleet responds to this flat tire is 100% in their hands. Breakdowns and flat tires can mean the difference between an on-time delivery and a canceled contract. By partnering with NSD, a business can feel confident that any breakdown will be resolved with the quickest available option.

A consumer will find plenty of options for a fleet tracking manager, however, none are as experienced or successful with roadside assistance. When a truck gets a flat tire or suffers a mechanical breakdown, the clock is ticking. Every second that truck sits idle on the side of the road, fleet utilization is being massacred.

NSD has been in the roadside assistance trade for more than six decades. As a result, NSD constantly ranks as the #1 motor club in the country. In 2016, BestRoadService voted NSD the best roadside assistance provider. Tow411.net voted NSD the best motor club in the country two years in a row! Such accolades were even rewarded over AAA and Progressive!

To NSD, the customer experience is the most important. NSD call center operators have one of the lowest average response times in the industry, at under an hour. Response time is the time that it takes between when the distressed motorist contacts roadside assistance and when they are rescued.

Unlike most other roadside assistance carriers that use inexpensive labor markets across the globe to staff call centers, every NSD call center operator is trained and hired in America.

All NSD providers are certified and equipped with the most effective technology. As a result, when an NSD provider shows up to fix a car, the motorist can be confident that the tow truck has the proper equipment. Lastly, NSD claims department uses metadata reading technology to ensure claims are paid within days, not weeks and months like most other insurance companies.

Today, NSD has more than 15 million new customers and more than$500 million in annual sales.

Conclusion

A fleet of the greatest vehicles armed with the latest technology will only get a business so far. To truly maximize production, a fleet needs to be carefully monitored. NSD fleet tracking management allows any business that relies on a fleet to excel in their trade.

According to industrial leaders, fleet utilization is the most accurate way to measure the efficiency of a fleet. NSD fleet tracking management allows a fleet to reduce waste and increase production. With NSAD a fleet of vehicles get the fleet management software, an excellent fleet management services provider, as well as the most effective roadside assistance package available. Suddenly, a business owner will be able to monitor and correct every aspect of a fleet. Speak with an NSD representative today and find out how they could improve your business.

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Telephone: 1-800-338-2680

Email: sales@nsdmc.com