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Fleet Perormance Management
Tool Incorporating CO2
Emission
Calculator
Guide
2009 Edition
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ForewordFreight Best Practice is unded by the
Department or Transport and managed by
AECOM to promote operational eciency and
reduce environmental impact within reight
operations.
Freight Best Practice oers FREE essential
inormation or the reight industry, covering
topics such as saving uel, developing skills,
equipment and systems, operational eciency
and perormance management. All FREE
materials are available to download rom
www.businesslink.gov.uk/reightbestpractice
or can be ordered through the Hotline on
0300 123 1250.
Disclaimer: While the Department or Transport (DT ) has made every eort to
ensure the inormation in this document is accurate, DT does not guaranteethe accuracy, completeness or useulness o that inormation; and it cannot
accept liability or any loss or damages o any kind resulting rom reliance on the
inormation or guidance this document contains.
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IntroductionFreight Best Practice is unded by the Department or Transport and oers FREE and impartial advice to
enable eciency savings.
All FREE materials are available to download romwww.businesslink.gov.uk/reightbestpracticeor canbe ordered through the Hotline on 0300 123 1250. We would welcome comments on use o the tool and
suggestions or improvement: please email [email protected] to give us your thoughts.
Freight Best Practice has produced a ree interactive download called the Fleet Perormance Management
Tool. This practical work based resource has been updated rom the previous spreadsheet version to help
you to implement best practice in your day to day activities. The new 2009 edition tool is a ull application
designed in Vbnet and allows you to monitor your perormance or any number o vehicles, over any
number o years and includes the ability to measure new Key Perormance Indicators including the cost
o PCNs and FPNs, engine idling time and percentage o deliveries on time in ull.
Who Is the Tool Aimed At?The Tool is designed or any organisation that runs a eet, whatever its size and wants to monitor how
well it is doing against Key Perormance Indicators such as mpg and cost per mile. The tool can be used to
record data and produce output reports, graphs and charts.
Installing the Tool
I You Have a Hard Copy o this Guide
To install the Fleet Perormance Management Tool rom the CD in the pocket at the back o this guide
double click on the le marked install, select the number o periods you would like to work to within
each year and ollow the instructions. The tool will work or a year that consists o 12 or 13 periods.
Depending on your accounting procedures, you can choose to work with 12 calendar months or 13 equal
periods o our weeks The tool will automatically install any background sotware (reeware) required to
run rom Microsot. This may require you to input the administrator password or your computer (i you
are unsure what this is speak to your IT department/provider).
Figure 1: Homepage o the tool
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I You Have Downloaded this Guide
To download the FREE Fleet Perormance Management Tool, register or log on to the Resource Centre
owww.businesslink.gov.uk/reightbestpractice. Once you have logged onto the Resource Centre
click on the Fleet Perormance Management Tool. Download the appropriate version o the tool rom the
website.
I You Have Already Downloaded the Tool rom The Website
To install the tool ater downloading rom the website save the tool on your desktop, double click on the
le and ollow the instructions. The tool will automatically install any background sotware (reeware)
required to run rom Microsot. This may require you to input the administrator password or your
computer (i you are unsure what this is speak to your IT department/provider).
One You Have Downloaded the Tool
The Tool will open to the Main Menu as shown in Figure 1. From here you can select which KPIs you wish
to record, input details or your vehicles and start to monitor your KPIs (see Chapter 2).
Measuring Key Perormance Indicators
The enhanced Fleet Perormance Management Tool allows you to actively record Key Perormance
Indicators (KPIs). Perormance measures, or KPIs, are essential tools to help you to manage your business
eectively. Examples include average miles per gallon, maintenance costs or your vehicles and average
cost to deliver a load. By monitoring this inormation you can understand your business costs and decide
where to ocus your eorts to maximise protability. KPIs also provide a consistent basis or measuring
transport eciency across dierent eets and depots, comparing like with like.
The enhanced Fleet Perormance Management Tool allows the recording o up to 30 separate KPIs. You
can choose which KPIs to measure according to how the requirements o your business.
There are 6 KPI Groups:
Cost
Operational
Service
Compliance
Maintenance
Environmental
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How You Can Use the Fleet Perormance Management
Tool to Improve Your Operations Perormance
The Fleet Perormance Management Tool aims to lead the way in encouraging operators to measure and
reduce their costs, uel consumption and CO2
emissions.
The Fleet Perormance Management Tool helps you to record the actual and continuing perormance o
your eet o vehicles. The quality o the inormation produced by the Fleet Perormance Management
Tool depends on the amount o inormation you submit to the tool - the more you put in, the more you
will get out.
Setting targets or your business to achieve will ensure that high standards are maintained and new
eciencies are realised. For example, you may want your operation to achieve 8MPG. This will be your
target or this KPI. The Fleet Perormance Management Tool can compare the perormance o all your
vehicles against this target allowing you to see which vehicles are underperorming or exceeding the
target set and determine a strategy or improvement.
Continuous data entry into the Fleet Perormance Management Tool will allow you to view your
operations perormance over a period o time. This could show improvement or otherwise. The Fleet
Perormance Management Tool also enables you to view the perormance o individual vehicles and o
your whole eet.
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Quick StartTo start the tool go to your Start Menu and within your Programmes select Freight Best Practice and click
on the Fleet Perormance Management Tool.
Figure 2: Start Up
Basic Commands within the Tool
Help
The tool includes a help system - i you want to know what any input or KPI means simply select the
ollowing symbol rom the top right corner o the sheet click on the heading (or press F1 i you have
clicked with the box) and a short explanation will be provided.
Saving
Whenever data is submitted, you will need to save it. For adding new vehicle inormation, click Add. For
Weekly Input, click Save.
Printing
Where reports and charts are printable, there is a print icon available to click on. It looks like this
Once this button is clicked, a print preview screen appears. This screen will show what the print will look
like.
Deleting Inormation
To delete inormation either delete as you would normally or use the ollowing symbol:
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Import / Export
On the right hand side o the main menu the Import / Export button allows you to download all the
inormation rom the tool to any location within your computer. You can use this to back up your
inormation (in case your computer crashes), or to email inormation easily to another depot.
Identiy Your KPIsThe Fleet Perormance Management Tool allows you to select up to 30 KPIs. You can select as many KPIs
as are relevant to your operation. Not all o the KPIs will be useul to all operations so the tool enables you
to choose to monitor the measures o most relevance to your business.
Table 1 lists the KPIs included in the tool along with a brie description and the unit o measure.
Table 1: Select which KPIs you want to measure by clicking on the KPI Selection button within the
tool.
Cost
KPI Unit Description
Average Cost per Unit Delivered Average cost o delivering a specied unit
Total Whole Vehicle Cost Pence/mileTotal cost o your eet per mile, incorporating
running, standing and driver costs
Average Running Cost Pence/mileThese are the costs incurred or running the vehicles
(uel, tyres and maintenance)
Average Standing Cost Pence/mile Standing costs are those incurred whether or not thevehicle is running depreciation o the vehicle, road
und licence, operator licence ees and insurance
Average Driver Cost Pence/mile Average cost o drivers wages per mile
Total Maintenance Cost Pence/mile Total cost o maintaining the eet per mile
Total Cost o PCNs and FPNs Total cost o Penalty Charge Notices and Fixed
Penalty Notices
Operational
KPI Unit Description
Average MPG MPG Average cost o delivering a specied unit
Total Miles RunThousand
Miles
Total cost o your eet per mile, incorporating
running, standing and driver costs
Total Empty Miles RunThousand
Miles
These are the costs incurred or running the vehicles
(uel, tyres and maintenance)
Percentage Empty Running Total %
Standing costs are those incurred whether or not the
vehicle is running depreciation o the vehicle, road
und licence, operator licence ees and insurance
Percentage Average Vehicle Fill% Average cost o drivers wages per mile
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KPI Unit Description
Percentage Average Time
Utilisation% Total cost o maintaining the eet per mile
Engine Idling Time MinutesTotal cost o Penalty Charge Notices and Fixed
Penalty Notices
Service
KPI Unit Description
Percentage o Late Deliveries % Percentage o late deliveries made by your eet
Percentage o Damaged
Deliveries%
Percentage o deliveries made by your eet where
the goods were either missing o damaged
Percentage o Complaints %Percentage o deliveries made that resulted in a
complaint o any nature
Percentage o Deliveries OnTime In Full
% Percentage o deliveries made by your eet thatarrived on time in ull (OTIF)
Compliance
KPI Unit Description
Total Number o Overloads # Total number o overloads in the eet
Total Number o Vehicle Trac
Inringements# Total number o trac inringements in the eet
Total Number o Drivers HoursInringements
# Total number o drivers hours inringements in theeet
Total Number o Trac Incidents #Total number o trac accidents/incidents in the
eet
Total Number o Load Shed/
Load Shit Incidents#
Total number o load shed/load shit accidents in the
eet
Number o Incidents per
100,000 miles#
Total number o incidents (including trac incidents,
load shed incidents, RIDDOR and recordable
incidents) over 100,000 miles o eet running
Number o Standard OperatingProcedure Failure # This KPI can be used to record operating procedureailures as dened within the business
Maintenance
KPI Unit Description
Percentage o Failed Inspections %Percentage o ailed or overdue saety inspections by
your eet
Percentage o Deects Rectied
Within 24 Hours%
Percentage o vehicle deects reported by drivers
that are rectied within 24 hours
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Environmental
KPI Unit Description
Total Fleet CO2
Tonnes Total CO2
produced by the eet
Average Fleet CO2
Kg/kmAverage CO
2produced by the eet or each kilometre
travelled
CO2
Intensity
Kg/unit
carried per
km
per km Average CO2
produced by the eet or each
unit carried per km
Inputting Data
There are two places within the tool where data should be input. The rst is Vehicle Input which collates
all the details about individual vehicles such as their size, type and xed costs. The second is Weekly
Input where you can input operational and cost inormation or a particular week. In either input, it is not
necessary to record every piece o inormation i it is not relevant.
Vehicle Input
The rst step is to enter the details o the vehicles that will be monitored; this is done through the Vehicle
Input. There is no limit to how many vehicles can be input.
The tool does not dierentiate between dierent vehicle types - in terms o either data input or
report outputs. This is important because, i you run a mixed eet, the analysis will have to take into
consideration dierent outputs or dierent vehicles (i.e. a larger vehicle may have dierent uel
consumption rom a smaller one, so thereore direct comparison is not advised).
Vehicle details may be entered in any sequence. However, i you want outputs to be grouped, or
instance, by vehicle type, then these details should be entered in the same order you would like them to
appear.
Further vehicles can be added at any time. I a vehicle is removed rom service simply edit the vehicles
details by clicking on Vehicle List and the edit button or that vehicle and enter the date out o service.
The Vehicle
First o all you are required to enter a Registration Number; this number will be used as a reerence or this
vehicle throughout the tool. Whilst you would normally enter the Vehicle Registration Number, i you use
a dierent reerence system (i.e. a Fleet Number) you can also use this so it matches your existing records.
Once a vehicle is given a unique reerence number you need to enter the make o the vehicle and the
type o vehicle. This is done by using drop down menus; i you cannot nd your vehicle make and/or type
you can add a new make/type by clicking the button next to the drop down menu.
Depending on the vehicle type you have selected you can then enter the Gross Vehicle Weight o the
vehicle.
Payload
Following the vehicle details you need to enter inormation about the type o payload the vehicle carries.
First o all you enter the maximum possible amount o a given payload, ollowed by the type o payload.
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The type o payload is entered using a drop down
menu; i the payload you use is not there you can
enter a new payload type using the Add New
Payload Unit button.
I your vehicle uses a mixed payload you might
want to consider creating this option using the
Add New Payload Unit option.
Service Length
To enter the date into service o the vehicle
you click the drop down list and navigate the
calendar provided. Ater this you should enter
the planned lie o the vehicle in months.
Odometer
The tool will accommodate vehicles with
odometer readings in either kilometres or miles.
However, to ensure that outputs are calculated
correctly, you need to speciy which unit o
measure you are using.
Engine and Fuel Type
As part o the new environmental KPIs, you can
now enter your engine type and uel type. These
are both selected through a drop down list. For
vehicles which use more than 1 type o uel select
Hybrid rom the list.
Depot Selection
I you or your company operates multiple depots
you can now assign a depot to a vehicle. This is
or comparison between depots, adding an extra
level o analysis.
Operating Cost Inormation
Fixed operating costs can be recorded within the
vehicle input section o the tool.
First o all you can record whether the vehicle is
purchased or leased. This will set up dierent
elds in which to enter data depending on the
choice.
Depending on whether the vehicle is leased or
purchased will determine whether you enter
the purchase price or the monthly lease or thevehicle. I your vehicle is purchased you will
need to enter an annual depreciation. Annual
deprecation is a xed percentage o the purchase
price less the anticipated residual value. E.g. a
ve-year vehicle purchased or 40,000, with an
expected residual value o 5,000 would have an
annual deprecation o 7,000:
40,000 - 5,000
5
Where trailers are permanently allocated to
articulated tractor units or rigid vehicles, their
depreciation cost should be added to that o the
drawing vehicle. I a number o trailers are shared
between drawing vehicles, calculate the average
trailer depreciation cost per drawing vehicle and
add that to each drawing vehicles depreciation
cost.
The tool does not include any way o allocating
an overhead cost (yard space, management,
trac oce, etc.) against each individual vehicle.
Where these gures are known and used, they
can be added to the values entered or individual
vehicle depreciation - i this is helpul. It is crucial
to understand that, unless costs or overheads are
included, the outputs rom the tool should not be
used directly or costing jobs:
Road Fund Licence (RFL): enter the annualcost o Vehicle Excise Duty (VED)
Operator Licence: enter the cost o the
specied vehicle ee. Do not enter the cost
o applying or or amending/renewing the
companys Operators Licence
Insurance: enter the annual cost
Other vehicle costs which remain the same
(or similar every week) can also be entered.For example maintenance costs (i you have
a maintenance contract) or driver costs i you
usually use the same driver or that vehicle and
his/her remuneration is xed.
Standard Driver Costs can be entered in the
relevant box speciying their standard hours
and cost per week. Planned maintenance costs
and tyre costs can be entered within the Fixed
Maintenance cost section. These are entered in
weekly units simply divide your annual cost by52.
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To import this data when you are carrying out
your weekly input simply click the Use Deault
button. Data can be modied i required. I you
are working with the 12 period version o the tool
or months which have 5 weeks you will need to
amend that data as appropriate or the 5th (and
shorter) week o the month.
Weekly Input
Each week you will need to input data or each
vehicle in turn. Accessing Weekly Input will
allow you to enter the necessary data. Within this
option you can pick the vehicle and operating
week to enter data.
It may be easier or you to enter data on a
monthly basis; this could apply to costs such asuel and maintenance where such expenditures
might occur on a xed monthly date. Where this
situation arises you can either split the monthly
cost over the weeks in that month, or you can
simply add the cost into the nal week o the
month.
N.B. I choosing to enter monthly costs in the
nal week, this will aect weekly reports and you
have to consider this in the interpretation o your
results.
Within the weekly inputs you then have 7
dierent areas where you can enter data. You
can access each area by clicking on the tab with
the relevant heading. I you are not recording or
certain KPIs you can leave some areas blank.
Distance & Time
This section requires trip data in the orm o
distance travelled and time spent travelling and
working. You enter data rom your Odometer
(remembering to enter this data in Kilometres
or Miles dependent on the type o odometer)
or the start o the working week and the end,
including the distance the vehicle travelled
empty.
In dening what Empty means you have decide
how this applies to both mileage and what the
vehicle is carrying at the time the vehicle is
Empty. In terms o mileage you have decide
whether Empty Mileage is:
From the last drop o to the vehicles base
in an own account operation; or
From the last drop-o to the next pick-up
or a hire and reward operator.
In determining what Empty means you have
to decide whether you are going to take into
consideration packaging, pallets and rubbish
rom the deliveries, and whether this constitutes
a load or not. Whatever you decide it has to
remain consistent throughout all vehicles and
inputs.
Ater determining the distance the vehicle
travelled you must then determine the amount
o time that vehicle was available that week, the
amount o time it spent working, and the total
time the vehicle was idling.
Drivers
As covered on page 6 it is possible to enter
standard driving inormation or any vehicle.Under the Drivers tab you can import this
inormation to save you re-entering this every
week; you do this via the Use Deault button on
the right hand side o the page.
You can also edit this data once it is imported.
Otherwise select the driver type (agency or own
sta) and enter driver hours and costs in the box.
You can enter either the drivers wages or
their total cost including holiday pay, nationalinsurance and pension contributions according
to the requirements o your business.
Fuel
This tab is or entering what type o uel has been
used, how many litres used, and how much has
been spent on uel.
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Maintenance
Similar to the Drivers tab, this inormation can be
imported rom the vehicle details, and modied
as necessary. The dierent types o costs
recorded are planned maintenance, unplanned
maintenance and tyres. Select the type o
maintenance using the drop down menu.
Other Costs
Enter all other costs that would not be covered
under xed costs, maintenance, uel or driver
costs, this includes seven dierent types o
cost; Accident Damage, Adblue, PCNs, FPNs,
Congestion Charge, Low Emissions Zone and
Tolls.
Operational
Enter the number o trips completed by the
vehicle. A trip begins when a vehicle leaves the
depot and nishes when it returns. Trips are
important as they measure how much activity a
vehicle has done that week, which is integral to
the outputs rom the tool.
You also need to enter the units carried (i.e.
volume o goods) or the whole week using
whichever units you chose or the vehiclespayload.
I you carry mixed goods, you may have derived
your own unit o measure. For example, a stillage
with dimensions o 2 x 1.2 metres could be
regarded as two pallet equivalents. I this is the
case, you may wish to record what was actually
carried in Comments.
Enter the number o deliveries and collections
or the week. I your vehicles deliver or collectmultiple orders at a single point or customer, this
should be counted as one delivery or collection.
Customer service entails the number o deliveries
or collections that:
Were out o their designated time window,
i.e. late Late deliveries
Were either missing or damaged at the
point o delivery Damages
Resulted in a complaint o any other nature,
e.g. wrong type o vehicle, driver conduct,
etc. Complaints
Were on time and in ull OTIF
Compliance
Compliance data indicates how well the eet
complies with legislative requirements governing
its operation and the saety o those who drive
the vehicles.
For each incident type or inspection due /
overdue simply select the type rom the drop
down box and enter the number or the week.
OutputsThe results o data entry can be displayed in
tables or as graphs and diagrams. The charts are
generated automatically by the tool. A chart is a
very eective way o setting out all the data and
is easy to use and print.
Outputs are reported weekly, monthly and yearly.
These reports allow you to study the outputs
rom the tool in some detail. This can be very
useul when undertaking such tasks as budgetingor planning or the uture.
A number o KPIs are also available as graphs and
diagrams. The charts are automatically generated
and are a very eective o setting out all o the
inormation. They are easy to use and print.
Figure 3
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What to Do with
the ResultsThe inormation in the KPI Report is designed
to provide you with an overview o essentialinormation on the perormance o your vehicles.
This section explains how you can use the
KPI gures to measure the eciency o your
operations and what you can do to improve your
eets perormance i some areas are poor. In
addition, the weekly, monthly and annual reports
provide valuable inormation that can highlight
potential areas or improvement, allowing you to
take action at an early stage.
Setting Targets
The KPI Report shows a measure o each KPI or
the whole eet, which builds month by month.
The Annual Target row allows you to enter a
target or any measure. The report then tracks
how you are doing against the target, showing
your actual gures and the percentage that you
are varying rom your target. I the variation is
better than expected it will be shown in blue, i it
is worse than expected it will be shown in red.
You can use the guidance in Sections 3.2 - 3.8 to
identiy potential areas or improvement and set
yoursel a target to aim or.
Delivery Cost
Cost Per Unit Delivered
This KPI tells you how much in pounds () it costsyou to deliver a unit. You determined the load
unit (e.g. a tonne or a pallet) when you entered
inormation about payload into Vehicle Details.
This KPI determines the cost-eectiveness o your
eet. The lower the gure, the more ecient your
eet. You should aim to keep this gure low, as it
indicates low transport costs.
The KPI is also an important tool in assessing
the eect o any changes in the other KPIs. Forexample, higher vehicle mileage with a lower
payload may improve (increase) your miles per
gallon KPI, but it is not usually an ecient way to
run a vehicle.
How to Improve Perormance
Scrutinise the other KPIs (particularly thoserelating to costs and operations) to uncover
potential savings in your eet. Improvements
in these KPIs (e.g. increasing average vehicle ll
or reducing running costs) should help to drive
down the average cost per unit.
Operational
Miles Per Gallon
This KPI indicates the average miles travelled or
every gallon o diesel. In this case, a higher gure
indicates better use o uel in terms o distance
travelled.
How to Improve Perormance
The Reports break down uel consumption or
each vehicle by both uel costs and miles per
gallon or.
This means you can compare the uel
consumption o vehicles and identiy any vehicles
that are perorming poorly in terms o miles per
gallon.
You can also monitor uel costs in terms o prices
paid (depending on the source o the uel), and
you may wish to re-assess how you source your
uel supply.
Many actors can inuence uel consumption,including the vehicle specication and
maintenance, the way the vehicle is driven,
the load, the route, trac conditions and the
weather. Use the KPI inormation to identiy
trends
The Freight Best Practice programme has
produced a series o publications oering
independent and authoritative advice on how to
minimise your uel costs and maximise your mpg.
The ollowing publications can help you reduceyour uel consumption:
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Drive It! DVD - This 25 minute lm looks at the eciency measures implemented by dierent
types o companies and champions the important role o the driver. The DVD is designed to be
used or driver briengs and training to help support uel management, training and eciency
initiatives
Save It! DVD - two programmes that provide a general introduction to uel ecient operations
(including vehicle specication and maintenance) and tips or uel ecient driving
Fuel Management Guide - a comprehensive guide covering all aspects o uel eciency
including vehicle specication and driver training
Truck Specication or Best Operational Efciency - this guide provides advice and real lie
examples to help operators motivate their sta eectively and shows how to implement and
manage change more successully.
Saving Fuel Through People- oers practical inormation on truck aerodynamics and
appropriate add-ons
Fuel Ready Reckoner - this is the rst tool o its kind and has been created to provide you
with impartial inormation on the uel savings that can be made by implementing various
interventions on your vehicles. Using this tool you can work out which interventions would be o
the greatest use to your eet and see where a small amount o investment would make the most
dierence to your bottom line. Access the Fuel Ready Reckoner at
www.uelreadyreckoner.org.ukusing your Freight Best Practice log in (you can set this up the
rst time you try to log in).
Miles Run
This KPI shows the total number o miles run by your vehicles in thousands (e.g. 30 means that the eet
has actually done 30,000 miles).
Mileage is important when looked at in terms o the cost o operations and work done. This is best
reected in the KPI, Cost Per Unit, (see Section 3.2, page 9) Empty Miles, Empty Miles %, and Vehicle Fill
KPIs (see below).
How to Improve Perormance
See Maximising Eciency, Section 3.9.
Vehicle Fill
This KPI calculates the percentage o actual load carried compared with the potential capacity o the
vehicle eet. The higher this gure, the more payload is being carried, contributing to the eciency and
cost-eectiveness o the operation.
How to Improve Perormance
See Maximising Eciency, Section 3.9.
Time Utilisation
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This KPI calculates the percentage o time the
vehicle eet was actually in use compared
with the potential time available. A high gure
indicates that you are making good use o your
vehicles.
How to Improve Perormance
See Maximising Eciency, Section 3.9.
Engine Idling Time
This KPI looks at the total time the vehicle eet
spent idling compared with the time it was in use.
A low gure indicates that you are making good
use o your vehicle and minimising emissions.
How to Improve Perormance
Train your drivers to switch o their engine
when stationary
Automatic cut o equipment can be
installed to reduce engine idling
Engine Idling Costs you Money and Gets
You Nowhere - this Case Study highlightshow companies have introduced Anti-Idling
Campaigns and the key points to consider.
Cost
Total Cost
This KPI indicates the total cost o your eet in
pence per mile. This gure includes running,standing and driver costs and you should aim or
these to be as low as possible.
How to Improve Perormance
Look closely at your average running, standing
and driver cost KPIs to help you to identiy
potential improvements.
Running Cost
This KPI calculates the average costs associated
with running your vehicles in terms o pence per
mile. It is made up o the cost o uel, tyres and
vehicle maintenance. Ideally, the lower the gure,
the more ecient the operation.
How to Improve Perormance
High running costs can indicate:
High uel consumption - see advice given
under Miles Per Gallon in Section 3.3
Poor preventative maintenance procedures
- see advice given under Maintenance Cost
later in this section
Poor tyre perormance - The Monthly
Report breaks down tyre costs by vehicle.
The Annual Report by vehicle and or thewhole eet will allow you to compare the
costs or individual vehicles and across
the eet over a period o time. You can
use this inormation to re-assess the cost,
maintenance and supply o tyres
Standing Cost
This KPI calculates the average standing costs or
your vehicles in terms o pence per mile and, as
beore, the lower the gure, the more ecientthe operation.
Standing costs are those that are likely to be
incurred by the business whether or not the
vehicle is actually running. They are made up o:
Vehicle rental, leasing and depreciation
Road Fund Licence (VED)
Operator Licence (specied vehicle) ees
Insurance
How to Improve Perormance
As some o these costs are xed, it may be
dicult to reduce them. However, you may want
to consider:
Your choice o vehicle, as depreciation
depends on the vehicle make, model andspecication
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The road und licence can only be reduced
by changing the vehicle weight or axle
conguration, or by making it eligible or
a lower rate o duty on environmental
grounds. Inormation on current rates o
road und licences is given in the Driver
and Vehicle Licensing Agency (DVLA)
inormation leaet V149 Rates o Vehicle
Excise Duty, available by calling 0300 790
6802 or visiting www.dvla.gov.uk
Paying Operator Licence ees over a ve-
year, rather than a one-year, period can
reduce the cost, but this may aect cash
ow
Introducing a risk management system
that aims to lower the requency, severity
and cost o claims, and ultimately reducepremiums, can reduce insurance costs. The
ollowing publications may be o help:
Driving at Work, published by the Health
and Saety Executive (HSE), oers guidance
on managing work-related transport saety
(HSE Re. INDG382). Copies are available
ree o charge rom HSE Books (Tel: 01787
881165) or can be downloaded ree romwww.hse.gov.uk/pubns/indg382.pd
The HSE also oers guidance on
workplace transport saety. Find out more at
www.hse.gov.uk/pubns/indg199.pd or
call the Inoline on 0845 345 00 55
Driving style can also play a key role in
minimising the risk o accidents. SAFED or
HGVs: A Guide to Sae and Fuel Efcient
Driving or HGVs outlines the principleso SAFED and provides a step-by-step
guide through the one-day SAFED training
programme. To obtain a ree copy, call the
Freight Best Practice Hotline on
0300 123 1250 or visitwww.businesslink.
gov.uk/reightbestpractice
Visit www.saed.org.ukor more
inormation about SAFED.
Speak to your insurance broker or insurer
to discuss risk-management and insurance
issues
Driver Cost
This KPI calculates the average costs or yourdrivers, including agency drivers, in pence per
mile. By keeping this low you are achieving good
cost perormance rom your drivers.
How to Improve Perormance
Drivers wages are a contractual matter to be
negotiated between employers and employees.
However, the average cost o employing and
hiring drivers may be driven up by recruitment
and retention problems, particularly wherequalied and experienced drivers are in short
supply. Inormation on recruitment and retention
issues can be obtained by:
Contacting the industrys Sector Skills
Council, Skills or Logistics, on
0876 2427314 or by visiting the website at
www.skillsorlogistics.org
Reading the Freight Transport Associations
Solving the Skills Shortage conerencereport - October 2003, available to
download at www.ta.co.uk(go to
Inormation on key issues and click on
Skills development)
Maintenance Cost
The total cost o maintenance (planned and
unplanned) is shown in terms o pence per
mile (ppm). Low gures or this KPI can indicate
ecient and eective maintenance systems.I they are high then there may be room or
improvement.
How to Improve Perormance
The Monthly Report breaks down maintenance
costs by vehicle. There are annual reports or
operations and costs by vehicle and or the whole
eet. You can compare the costs or individual
vehicles and across the eet over a period o
time, with a view to re-assessing the cost omaintenance (whether in-house, contracted out
or both)
http://www.hse.gov.uk/pubns/indg382.pdfhttp://www.hse.gov.uk/pubns/indg199.pdfhttp://www.hse.gov.uk/pubns/indg199.pdfhttp://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.safed.org.uk/http://www.skillsforlogistics.org/http://www.fta.co.uk/http://www.fta.co.uk/http://www.fta.co.uk/http://www.fta.co.uk/http://www.skillsforlogistics.org/http://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.safed.org.uk/http://www.hse.gov.uk/pubns/indg199.pdfhttp://www.hse.gov.uk/pubns/indg382.pdfhttp://www.fta.co.uk/http://www.skillsforlogistics.org/http://www.safed.org.uk/http://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.hse.gov.uk/pubns/indg199.pdfhttp://www.hse.gov.uk/pubns/indg382.pdf7/28/2019 New Fleet Performance Mgmt Tool
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Use the compliance KPIs and their corresponding
reports and charts to monitor the eectiveness o
your maintenance system in terms o:
Overdue and ailed inspections
Deects reported and rectied
MOT ailures and prohibitions
Having an eective preventative maintenance
system is undamental to any transport
operation. It is also an eective way o ensuring
that potential problems are spotted and rectied
early. Poor maintenance systems can lead to
higher uel consumption as well as higher repair
costs, longer vehicle downtime and higher
replacement/hire vehicle costs.
Preventative Maintenance or Efcient
Road Freight Operations - this guide
explains the concepts and benets
o preventative vehicle maintenance
and provides practical help on how to
implement a proactive maintenance
strategy in your business.
The Guide to MaintainingRoadworthiness is a ree guide published
by the Department or Transport. It provides
comprehensive advice on establishing
an eective maintenance system. Copies
can be ordered by calling the Vehicle and
Operator Services Agency (VOSA) on
0300 123 9000, or can be downloaded rom
www.vosa.gov.uk(go to the Manuals &
Guides area o Publications)
Also available rom VOSA is the video Checkit Out - Truck Driver, which describes how to
carry out a daily vehicle deect check. Details
are given on www.vosa.gov.uk(go to the
DVD area o Publications) or call VOSA on
0300 123 9000
Total cost o PCNs and FPNs
The total cost o Penalty Charge Notices and
Fixed Penalty Notices is accumulated over theyear. The lower the gure the better this reects
how well your drivers obey highway rules.
How to Improve Perormance
Monitor individual drivers on the level o
PCNs and FPNs each o them accrue over
the year
Determine a penalty system or those whoare repeat oenders
Oer incentives or not obtaining PCNs and
FPNs
Understand why penalties are being issued.
Take the eedback and integrate into
training
Become part o your local Freight Quality
Partnership - this will enable you to provideany eedback on operational problems
which cause you to accrue charges to the
relevant authorities in order that action can
be taken to improve the situation
Service
Percentage o Late Deliveries
This KPI records the percentage o latedeliveries made by your eet. A consistently
low percentage o late deliveries indicates good
perormance in terms o service and suggests
eective planning.
How to Improve Perormance
Investigating the reasons or late deliveries and
improving planning should help to prevent them.
See also the advice on routing and scheduling in
Section 3.9.
Percentage o Damages and
Complaints
The percentage o deliveries made by your eet
that were either missing or damaged is recorded
in the KPI, % o Damages Total.
The KPI, % o Complaints Total, records the
percentage o deliveries that lead to a complaint.
For both o these KPIs, a low percentage indicates
good service perormance; a high gure suggests
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poor perormance and could lead to the loss
o customers or contracts. Missing or damaged
items will usually result in return and repeat
deliveries, which can increase costs.
How to Improve Perormance
Investigate the reasons or the problems and put
in place procedures to try to prevent repeated
poor perormance and repercussions.
Compliance
The seven compliance KPIs record the total
number overloads, trac inringements, drivers
hours inringements, load shit/load shed
incidents, the total number o trac accidents,
number o incidents per 100,000 miles and
number o Standard Operating Procedure
Failures.
How to Improve Perormance
Investigate the reasons or every occurrence and
put in place procedures to prevent repetition and
to ensure compliance with regulations. This may
include:
Introducing new equipment to weigh
vehicles or axles
Training on trac or drivers hours
regulations
See VOSAs ree guide Drivers Hours and
Tachograph Rules or Goods Vehicles in the UK
and Europe (GV262) atwww.vosa.gov.uk(go to
the Manuals & Guides area o Publications) or call
0300 123 9000
Managing risk (see advice on reducing
insurance costs in Section 3.4)
The Health and Saety Executive suggests that
measures or reducing accidents can include:
Follow the Department or Transport Code
o Practice (see below)
Think about how the load can be made
sae or ofoading, as well as while being
transported on the road. Could a load shit
during transit? Could this present a risk
to the driver when they open back doors,
release curtain sides, or undo chains or
strapping?
Ensure drivers have a sae area to observe
rom, not next to the vehicle where there
could be hit by a ork lit truck or alling
load
Never rely on curtain sides to hold a load in
place
Encourage drivers to report near misses and
damaged equipment
Get inormation rom companies you are
delivering or collecting rom about acilities
and o-loading arrangements on their
site, beore your vehicles visit. See the PDF
at www.hse.gov.uk/allsromvehicles/
wpt06.pdor more inormation
The main UK guidance regarding the security o
loads is the ree code o practice The Saety o
Loads on Vehicles and can be ound at:
www.dt.gov.uk/pgr/roads/vehicles/vssaety/
saetyloadsonvehicles.pd
Comprehensive load-specic advice can be ound
in the European Best Practice Guidelines on
Cargo Securing at:
http://ec.europa.eu/transport/road_saety/
vehicles/guidelines_cargo_securing__en.htm
(click the EN (English) link on their webpage)
Maintenance
Percentage o Overdue Inspections
This KPI shows the percentage o vehicle
roadworthiness inspections that are overdue. A
high percentage suggests a poor maintenance
system.
http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing_en.htmhttp://ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing_en.htmhttp://ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing_en.htmhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.vosa.gov.uk/http://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://http//ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing__en.htmhttp://http//ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing__en.htmhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://www.vosa.gov.uk/7/28/2019 New Fleet Performance Mgmt Tool
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How to Improve Perormance
See the advice on total maintenance costs in
Section 3.4.
Percentage o Deects Rectied in 24
Hours
This KPI shows the percentage o deects
reported by drivers that are rectied within 24
hours. With this KPI, a low percentage suggests a
poor maintenance system.
How to Improve Perormance
See the advice on total maintenance costs in
Section 3.4.
Environmental
Total Carbon Dioxide Produced
(tonnes)
This KPI shows the amount o CO2
produced by
the eet over the year. A high number means
your vehicles are producing a high amount o
emissions.
Carbon Dioxide (kg per km)
This KPI shows the level o carbon dioxide in
kilograms per kilometre. A high number means
your vehicles are producing a high amount o
emissions.
Carbon Dioxide Intensity (kg per
unit carried per km)This KPI shows the level o carbon dioxide in
kilograms per unit carried per km. This is the most
accurate measurement o carbon perormance
as it directly relates the emissions produced to
the work carried out by your eet. A high number
means your vehicles are producing a high
amount o emissions.
How to Improve Perormance
You can improve your environmental
perormance by reducing the amount o uel
you consume, improving your vehicle ll and
rate o backloading or by switching to a more
environmentally sustainable type o uel.
Monitoring and Understanding CO2
Emissions rom Road Freight Operations
- This guide provides step by step advice
or creating a comprehensive CO2
inventory
and the benets this can bring. It provides
templates to enable the reader to monitor
the amount o CO2
produced by its Trucks,
Vans, Warehouses, MHE and Company Cars.
Maximising Eciency
Making the best use o your assets, such as
vehicles and driving time, has the potential
to reduce costs and environmental impact
much more signicantly than by reducing uel
consumption alone. Increasing miles per gallon
will save a percentage o the uel cost o all
journeys, but reducing the mileage that is done
to carry out a job will save even more.
Routing and Scheduling
Routing and scheduling vehicles eectively is
the key to minimising mileage while continuing
to meet customer demands. Automating
decision-making processes makes the best use
o resources, reduces planning time and makes it
easier to accommodate last minute changes.
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Computerised Vehicle Routing and
Scheduling (CVRS) or Efcient Logistics
- describes the various types o system
available and will help you decide whether
introducing computerised vehicle routing
and scheduling is worthwhile. It describes
real-lie case studies and will guide you
through the process o selecting and
introducing a system.
Inormation Technology or Efcient
Road Freight Operations - this guide
provides an overview o the available and
relevant systems, covering their uses, likely
benets, issues to consider and associated
costs.
Telematics
Telematics is the use o computers to monitor
and control remote devices - usually contained
in vehicles and trailers. Systems such as vehicle
tracking, on-board navigation, and real-time
vehicle, driver and consignment data can provide
an opportunity to manage your assets more
eciently.
Telematics or Efcient Road Frieght
Operations - provides inormation on the
types o system available, how they can be
used and which issues you should watch out
or when buying a system.
Maximising Load
Making the best use o the available load space
in every vehicle trip can be achieved by back
loading, consolidating loads, load stacking and
the use o multiple-decked vehicles.
Where to Now?
Now that you have a set o data rom the Fleet
Perormance Management Tool and understand
what this means to your operation, it is important
to start thinking o the uture. You may like to
set new or long-term targets e.g. reducing youraverage driver costs, or increasing your average
vehicle ll.
These targets are totally up to you. You will know
what is achievable in your business. However,
it may be worth remembering not to be too
ambitious and to plan all changes. When you
have been using the tool or a period o time
(e.g. six months) then look back and see how
close you are to those targets. Perormance
management is a long-term commitmentand requires a structured approach to eet
management. The rewards can be:
Reduced uel use
Improved operational eciency
Higher service levels
Increased customer loyalty
Greater sta retention
Reduced CO2
emissions
and ultimately increased prots and maintaining,
or improving, your companys competitive edge.
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Freight Best Practice publications, including those listed below, can be obtained
FREE o charge by calling the Hotline on 0300 123 1250 or by downloading
them rom the websitewww.businesslink.gov.uk/reightbestpractice
Fuel Management Guide
This is the denitive guide to improving the
uel perormance o your eet. It gives step-by-
step explanations o the key elements o uel
management, how to measure perormance and
how to implement an eective improvement
programme.
Saving FUEL
Perormance Management or Efcient
Road Freight Operations
This guide explains the process o measuring
perormance eectively. It includes advice on how
inormation is best collected and interpreted to
allow inormed decision making in order to achieve
operational eciency improvements.
PerformanceMANAGEMENT
Sae Driving Tips
Written especially or commercial vehicle drivers, this
pocket-sized guide provides essential saety hints
and tips on all aspects o driving saely.
Developing -SKILLSTOP provides practical every day support material
to help operators implement best practice in
the workplace and acts in direct support o tasks
essential to running a successul uel management
programme.
Multi-MODAL
Truck Specication or Best
Operational Efciency
A step-by-step guide to the process o correctly
speciying an ecient and t or purpose vehicle.
Equipment & SYSTEMS
There are over 25 case studies showing how
companies have implemented best practice and the
savings achieved. Check out the ollowing selection
o case studies:
OwnerDriversandSmallFleetOperators...Simple, Cost Eective Ways to Improve Eciency
(SFPMT)HelpsA1PaperImproveEfciency
PowerToYourPeopleMotivationBreeds
Success.
Case STUDIES
April 2010.
Printed in the UK on paper containing 100% recycled bre.
FBP1102 Queens Printer and Controller o HMSO 2010.
http://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpractice