Improving Fleet Utilization Rates

Fleet utilization measures how effectively you're using your vehicles. Higher utilization means lower per-unit costs.

Understanding Utilization

What is Utilization ?

Percentage of available time that a vehicle is productively used.

** Formula:** Utilization = (Productive Hours / Available Hours) × 100

Industry Benchmarks

- Excellent: > 75 %
    - Good: 60 - 75 %
        - Average: 45 - 60 %
            - Poor: <45%

Why Utilization Matters

Financial Impact

- Underutilized vehicles waste money
    - Each vehicle has fixed costs
        - Better utilization = lower cost per mile

Right - Sizing Decisions

- Identify vehicles to retire
    - Justify new vehicle purchases
        - Optimize fleet mix

Measuring Utilization

Data Points Needed

- Engine hours
    - Miles driven
        - Days in service
        - Trips completed

GPS Tracking Benefits

- Accurate usage data
    - No manual logging
        - Historical trending
            - Vehicle - by - vehicle comparison

Improvement Strategies

1. Identify Underutilized Assets

Look for vehicles with: - Low daily miles - Few trips - Long idle periods - Infrequent use

2. Optimize Scheduling

- Balance workloads
    - Minimize downtime between trips
        - Extend operating hours if needed

3. Share Resources

- Pool vehicles between departments
    - Allow cross - training on vehicles
        - Implement vehicle sharing programs

4. Reduce Downtime

- Faster maintenance turnaround
    - Better spare parts inventory
        - Multiple shift operations

5. Right - Size the Fleet

- Remove chronically underutilized units
    - Replace with appropriately sized vehicles
        - Consider rental for peak demand

Tracking Progress

| Metric | Measure Monthly |

| --------| -----------------| | Average utilization | Target > 65 % | | Vehicles < 40 % used | Minimize | | Cost per mile | Decreasing | | Total fleet size | Right - sized |

** Every unused vehicle is money sitting idle.**