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Measuring performance

Suggested performance aims, benchmarks and data sources for measuring performance in a range of fleet management areas.

Vehicle specification

Performance aim:

Fleet specification skills are employed to purchase safe and functionally efficient vehicles meeting Occuational Health and Safety obligations and the whole of life cost interests of the organisation.

Performance benchmark:

The estimated whole of life cost for the vehicle selected is reconcilable to within reasonable limits of the actual whole of life cost at the time of vehicle disposal.

Data source:

Estimated and actual whole of life costs.

Replacement planning

Performance aim:

The replacement plan is linked to the organisation's business plan and includes replacement schedules. Schedules are adhered to including on-time quotations for replacement of vehicles.

Performance benchmark:

  • Replacement schedules are provided to the appropriate manager at least 14 days prior to the date approval is required by the fleet management area.
  • Replacement schedules are followed and quotes for replacement are received on time.

Data source:

  • replacement schedules
  • replacement records.

Purchasing and delivery

Performance aim:

The purchasing process ensures the right vehicle is delivered on time and to the location agreed at the minimum cost. Control over the order/delivery process is maintained to ensure that sufficient time is available to consider the replacement options and for the order to be placed and the new vehicle delivered at the replacement due date. Best price on offer is negotiated.

Performance benchmark:

  • Vehicle delivered on time to specification as ordered and compliance plate date of manufacture is not greater than 30 days prior to delivery.
  • Best price on offer is negotiated.

Data source:

  • quotation, order and delivery records
  • delivery checklist
  • Red Book average price for used vehicles
  • Red Book recommended retail price and actual price comparison.

Disposal

Performance aim:

The disposal process is linked to the pre-determined residual set at the time of delivery. A vehicle condition report is completed in the presence of an organisation representative and excess wear and tear costs are identified and suitably costed.

Performance benchmark:

Resale price is greater than $750 less than the residual determined at the time of purchase.

Data source:

  • resale price and estimated residual value comparison
  • disposal condition reports
  • excess wear and tear costs.

Fuel

Performance aim:

Fuel on-cost is minimised by the use of an oil company fuel card and information system to distribute costs, report usage exceptions and provide odometer readings. A fuel card is supplied with or immediately after delivery and a record kept of all fuel purchases and costs.

Performance benchmark:

Delivery of fuel card within 5 days of delivery of new car or of a report of lost/damaged card. Claims for petty cash reimbursement because of failure of fuel card to be issued to driver are minimal. Fuel consumption rates are maintained within acceptable standards.

Data source:

  • fuel use by vehicle
  • fuel card and other fuel transactions
  • fuel cost by vehicle
  • fuel efficiency – odometer vs. fuel use.

Service and repairs

Performance aim:

Service and repair costs are minimised by control measures that do not increase repair authorisation or administration costs. Fleet service and repair costs are contained within industry standards for major fleet owners. Servicing is completed to industry accepted standards.

Performance benchmark:

Repairs subject to maintenance agreements are not passed to organisation for payment.

Data source:

  • repair costs
  • maintenance costs
  • servicing records.

Fringe Benefits Tax (FBT)

Performance aim:

FBT cost is minimised by applying usage controls, recording days not available for private use and employees making a contribution toward private use.

Performance benchmark:

Quarterly report to organisation with advice on any action required to reduce FBT costs.

Data source:

  • FBT cost comparison
  • records of vehicle use
  • records of employee contributions.

Registration and traffic infringements

Performance aim:

The fleet information system identifies vehicles due for re-registration and drivers of vehicles subject to traffic infringement notices.

Performance benchmark:

All vehicles are registered on time and in accordance with local state requirements. Bulk registration of vehicles where appropriate is implemented. Traffic infringement notices are recorded and passed to the driver concerned who pays the fine.

Data source:

  • registration schedule
  • traffic infringement notice records.

Fleet management information systems

Performance aim:

Fleet management information systems are used to record essential information and calculate costs to assist the organisation to achieve fleet cost reductions and to allocate costs to business areas responsible for sharing the costs.

Performance benchmark:

Maintain an accurate record of fleet details including vehicle information, driver name and cost centre. Information is interpreted and monthly reports provided recommending actions to improve fleet administration efficiency and reduce costs for replacement planning, fuel consumption, repairs, cumulative costs by vehicle and other as required. Reports are self-explanatory, timely and show benefits of recommended actions.

Data source:

  • report on vehicle, driver and cost centre details
  • replacement planning costs
  • fuel consumption costs
  • repair costs
  • whole of life costs
  • monthly reports.

Fleet strategy

Performance aim:

The organisational fleet strategy ensures that business objectives, control measures, administration and information flow minimise fleet costs.

Performance benchmark:

Twice each year options are considered for reducing fleet ownership and administration costs. Departments are not required to supplement fleet administration processes or to intercede in interpretation of reports or to resolve concerns of drivers.

Data source:

Six-monthly fleet costs reports.

Adapted from:


Supported by the Community Sector Investment Fund (external link - opens in a new window).