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Guide and Software

Fleet Performance Management Tool


Incorporating CO2 Emissions Calculator

Acknowledgements
Freight Best Practice wishes to thank the following
organisations for their participation in the working
group that contributed to the development and
production of the first edition of the tool, which has
now been revised, updated and renamed as the
Fleet Performance Management Tool
Incorporating CO2 Emissions Calculator:
Banks Cargill Agriculture Ltd
Brighton & Hove City Council
Freight Transport Association
Henderson McLean Ltd
Lambert Bros Haulage Ltd
Meachers Group Holdings Ltd
National Blood Service
Petty, Wood & Co Ltd
Southern Water Services Ltd

Foreword
Freight Best Practice is funded by the Department for
Transport and managed by Faber Maunsell Ltd to
promote operational efficiency within freight
operations.

This version of the Fleet Performance Management


Tool has been developed to allow companies to
measure and report their CO2 emissions, enabling the
reporting of your companys carbon footprint in
addition to measurement of performance in terms of
operating costs, maintenance and compliance. This
version of the tool has been developed at the request
of the FTA to help companies record and reduce their
impact on climate change. The CO2 reporting function
is designed to measure emissions according to the
amount of diesel used by each vehicle and is based
on Department for Environment, Food & Rural Affairs
(DEFRA) reporting guidelines. The tool is designed
to be quick and easy to use and requires no extra
input beyond the previous version.

Freight Best Practice offers FREE essential


information for the freight industry, covering topics
such as saving fuel, developing skills, equipment and
systems, operational efficiency and performance
management.
All FREE materials are available to download from
www.freightbestpractice.org.uk or can be ordered
through the Hotline on 0845 877 0 877. The aim of
this guide is to:
Introduce key performance indicators (KPIs)

We would welcome comments on use of the tool and


suggestions for improvement. Fill in the form at the
back of this guide, click on Contact Us on the Freight
Best Practice website or email
info@freightbestpractice.org.uk to give us your
thoughts.

Provide detailed guidance on how to use the


accompanying spreadsheet
Assist in the analysis of performance
measurement and identify areas for
improvement
Suggest actions to improve performance
This guide is to be used alongside the Fleet
Performance Management spreadsheet (included
inside the back cover). Additional free copies of the
tool can be obtained by calling the Freight Best
Practice Hotline on 0845 877 0 877. It can also be
downloaded from the programmes website
www.freightbestpractice.org.uk

This guide was produced originally by AEA Technology plc and the Freight
Transport Association under a contract with the Department for Transport. It
has subsequently been amended by Faber Maunsell Ltd.

While the Department for Transport (DfT) has made every effort to ensure
the information in this document is accurate, DfT does not guarantee the
accuracy, completeness or usefulness of that information; and it cannot
accept liability for any loss or damages of any kind resulting from reliance on
the information or guidance this document contains.

iii

Contents
1

Introduction

1.1
1.2
1.3
1.4
1.5
1.6

What are Performance Measures?


How was the Fleet Performance Management Tool Developed?
Who Is this Tool Aimed at?
How Should this Tool be Used?
Manual Structure
Data Requirements

1
1
2
2
2
2

What Are the Key Performance Indicators (KPIs)?

Essential Information

3.1
3.2
3.3
3.4
3.5

4
4
6
6
6

Data Input
4.1
4.2
4.3
4.4
4.5

Practical Information About the Tool


Tool Structure
Moving Around the Spreadsheet
Saving the Spreadsheet
Printing the Spreadsheet

Vehicle Details
Vehicles in Service
Weekly Input (Ops & Costs)
Weekly Input (Compliance)
Rented Vehicles

8
10
10
14
15

Outputs from the Spreadsheet

16

5.1 Reports
5.2 Charts

16
20

What to Do with the Results

26

6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9

26
26
26
28
30
30
30
30
31

Setting Targets
Delivery Cost
Operational
Cost
Service
Compliance
Maintenance
Maximising Efficiency
Where to Now?

Appendix 1 - Abbreviations and Acronyms

32

Appendix 2 - Conversion Factors

32

Appendix 3 - Input Requirements for the Different KPIs

33

Feedback Form

36

Introduction

Key Performance Indicators for the Pallet


Network Sector

To manage a commercial vehicle fleet you need to


have a good understanding of your operation and be
able to identify areas for improvements. Whether you
run a single vehicle or are responsible for a
medium-sized fleet, using performance measures
can help you better understand your operation.

Key Performance Indicators for Non-Food


Retail Distribution
Key Performance Indicators for the Food
Supply Chain

1.2

The Fleet Performance Management Tool will provide


you with a consistent basis to measure vehicle
performance in terms of cost, operation, customer
service, compliance, maintenance and CO2 emissions.
The results indicate whether improvements could be
made that will reduce your costs and improve
efficiency.

1.1

What are Performance


Measures?

Performance measures, or key performance


indicators (KPIs), are essential tools to help you to
manage your business effectively. Examples include
average miles per gallon, maintenance costs for your
vehicles and average cost to deliver a load. By
monitoring this information you can understand your
business costs and decide where to focus your efforts
to maximise profitability.
KPIs provide a consistent basis for measuring
transport efficiency across different fleets, comparing
like with like. Freight Best Practice has run a number
of projects that measured five KPIs (vehicle fill, empty
running, time utilisation, deviations from schedule and
fuel efficiency). A summary of the results from some
of the projects is presented in Table 1 below. Fuel
efficiency is dependent upon the vehicle type and
therefore results have not been presented.
Table 1 Summary of KPI Project Results

73%
8%
46%
35%

The Small Fleet Performance Management Tool was


jointly developed and launched in 2005 by the Freight
Best Practice programme and the Freight Transport
Association. Following the update of the Fleet
Performance Management Tool in November 2006
additional environmental KPIs have been added to the
tool to enable companies to measure their
performance in terms of CO2 emissions in response to
the increase in the number of companies wishing to
report CO2 emissions.
The tool uses KPIs, developed by a working group of
industry representatives, which are based on tried and
tested performance measures already used in the
freight industry. The tool was also tested at a series of
events, Top Tips to Cut Costs, during November and
December 2004 and January 2005. Feedback from
these events was very positive, with comments from
delegates including: This is an ideal tool to use in day
to day life and will give me the facts I need.

The Fleet Performance Management Tool was


independently tested by Commercial Motor
magazine in March 2007. They gave it an overall
score of 9 out of 10 and deemed it an excellent tool
for any fleet operator.
Commercial Motor, 1 March 2007

Pallet
Non-food
networks
retail
Vehicle fill
Empty running
Time utilisation
Deviations from schedule

How was the Fleet


Performance Management
Tool Developed?

51%
11%
38%
19%

Food
retail

I think that the spreadsheet provides about the


right level of information for an operation of our size
and we will definitely want to use the system on a
regular basis to monitor operational efficiency and
cost-effectiveness. It will be complementary to other
management arrangements that we have recently
introduced.

53%
19%
28%
29%

Further information can be found in the


Benchmarking guides listed below:

Martin Murray, Plastica

Key Performance Indicators for the Next-day


Parcel Delivery Sector
Key Performance Indicators for the Builders
Merchants Sector
1

1.3

Who Is this Tool Aimed at?

I found the spreadsheet to be well set out, well


presented and professional in its design. For the
small to medium sized operator, it will provide a
useful means of measuring performance.

The tool is designed for any organisation that runs a


small or medium-sized fleet, up to 25 vehicles.
Companies operating more than 25 vehicles could
use multiple versions of the tool to record
performance at individual depots or for groups of
similar vehicle types. The tool can be used to record
data and produce output reports, graphs and charts
for two years of activity.

1.6 Data Requirements

1.4

You will need to collect some data before using the


spreadsheet.

How Should this Tool be Used?

The tool consists of two parts: this manual and an


Excel spreadsheet which allows you to record and
monitor your performance in a workable format.
Follow the instructions in the manual or go to the
introduction page in the spreadsheet for more
information.

1.5

I would give it 9 out of 10 for professionalism.


Peter Harris, UPS

What you need to do is:


Identify which outputs are important to your
operation
Consider which inputs you have data for
Decide how you will use the information from
the spreadsheet to improve the performance of
your fleet

Manual Structure

The manual is structured in the following way:


Section 2 contains information about the KPIs
measured by the tool

Appendix 3 lists the different inputs required to


generate the 24 KPIs. Section 6 discusses how the
various KPIs can be used to identify opportunities for
improvement.

Section 3 provides information about the


structure of the spreadsheet and guidance on
moving around, saving and printing the
spreadsheet

The spreadsheet provides a comprehensive set


of KPIs for many operators - not just the smaller
operator. Indeed, some of the mid to large
operators do not have the level of KPI detail
provided by this spreadsheet, so it will appeal to a
much wider audience. The spreadsheet is easy to
understand and easy to use - overall a great piece
of work!

Section 4 guides you through putting data into


the spreadsheet
Section 5 describes the reports and charts that
the spreadsheet generates
Section 6 provides guidance on how to use the
information you gain to improve operational
performance, and is designed to guide you
through the process of monitoring and
managing your performance

Graham Boughton, Royal Mail

Once you have entered all the information


required for your vehicles, the spreadsheet works
everything out for you. Our transport team now
operates as professionals. Thanks to the tool, we
are now seeing rewards in reduced fuel use,
greater staff retention and much better overall
operational efficiency.

Appendix 1 provides a list of the abbreviations


and acronyms used in the manual and/or
spreadsheet
Appendix 2 provides conversion factors (e.g.
miles to kilometres)

John Claffey, A1 Paper Plc

Appendix 3 provides details of the data


requirements for each KPI

Clearly, not all of the measures will be useful to all


operations, so the spreadsheet enables you to
choose to monitor the measures of most relevance to
your business.

What are the Key


Performance Indicators
(KPIs)?

The information that you enter into the spreadsheet to


produce your KPIs is displayed in weekly, monthly
and annual reports. These reports will give you
essential information, e.g. cost breakdowns (fuel,
tyres, maintenance, insurance, etc.) by vehicle and by
fleet. They will also allow you to identify potential
improvements and measure aspects such as
seasonal trends.

The KPIs included in the tool are listed in Table 2.


They are designed to be relevant and appropriate to
small and medium-sized operations and focus on the
most important aspects of vehicle operation. The 24
KPIs cover six core areas:
1

Costs

Operational

Service

Compliance

Maintenance

Environmental

Table 2 KPIs Used in the Tool


KPI

Description

1 Costs
Average cost per unit delivered ()
Total whole vehicle cost (pence per mile)
Average running cost (pence per mile)
Average standing cost (pence per mile)

Average driver cost (pence per mile)


Total maintenance cost (pence per mile)
Total maintenance cost (000)

Average cost of delivering a specified unit (e.g. a pallet or tonne of goods)


Total cost of your fleet per mile. Made up of running, standing and driver costs
Average cost of running your fleet per mile. These are the costs incurred for running the
vehicles (fuel, tyres and maintenance)
Average standing cost for your fleet. Standing costs are those incurred whether or not the
vehicle is running - depreciation of the vehicle, road fund licence (vehicle excise duty),
operator licence fees and insurance
Average cost of drivers wages per mile
Total cost of maintaining the fleet per mile
Total cost of maintaining the fleet

2 Operational
Average miles per gallon
Total miles run (000s)
Total empty miles run (000s)
Percentage empty running total
Percentage average vehicle fill
Percentage average time utilisation
3 Service
Percentage of late deliveries total
Percentage of damages total

Average fuel consumption rate for your fleet


Total number of miles run by your fleet
Total number of miles run by your fleet without a payload
Percentage of distance run by your fleet without a payload
This calculates the percentage of actual load carried against the potential capacity of the
vehicle fleet
This calculates the percentage of time that the vehicle fleet was actually in use against the
potential time available

Percentage of complaints total

Percentage of late deliveries made by your fleet


Percentage of deliveries made by your fleet where the goods were either missing or
damaged
Percentage of deliveries made by your fleet that resulted in a complaint of any nature

4 Compliance
Total number of
Total number of
Total number of
Total number of

Total
Total
Total
Total

overloads
vehicle traffic infringements
drivers hours infringements
traffic accidents

5 Maintenance
Percentage of failed inspections total
Percentage of defects rectified in 24 hours
total
6 Environmental
Total fleet CO2
Average fleet CO2

number
number
number
number

of
of
of
of

overloads in the fleet


traffic infringements in the fleet
drivers hours infringements in the fleet
traffic accidents in the fleet

Percentage of failed or overdue safety inspections for your fleet


Percentage of vehicle defects reported by drivers that are rectified within 24 hours

Total CO2 produced by fleet (tonnes)


Average CO2 produced by fleet (kg/km)

Essential Information

3.1

Practical Information about the


Tool

Before you start collecting data it is a good idea to go


into the spreadsheet and simply play around with it.
You can get a feel for how the spreadsheet works and
prevent errors occurring when you input the real data.
A basic knowledge of how Excel works will also be
useful.
The tool will run on any PC running Windows 98 or
later, and Excel 97 or later. At the end of a year, the
file is not expected to be bigger than 15 MB. It should
therefore be able to be backed up on Zip disk, CD,
DVD or USB-based memory stick. Using software to
compress the file will reduce its size to approximately
4 MB.
The tool is spreadsheet-based and consists of a
number of worksheets. These worksheets contain
cells where data can be entered. It is opened, altered
and saved in exactly the same way as any other
Excel spreadsheet. More detailed information can be
found in Section 3.4, Saving the Spreadsheet.
Tip - When you try to open the file you may see a
security message. Respond by pressing the
Enable Macros button.

There is a Help option available in Excel . This can


be found in the top right-hand corner of the
spreadsheet, denoted by a question mark in a speech
box. Details on how to print the information can be
found in Section 3.5, Printing the Spreadsheet.

I believe that for a small haulage operator the


spreadsheet would be spot on.
I believe that many smaller operators who need to
measure transport performance as an entity will find it
useful.
Keith Ormonde, Bassetts Farm Contracts

3.2

Tool Structure

The first page provides an introduction to the tool and


presents a summary of information contained in this
manual. You can skip the introduction and go straight
to the menu page using the button on the right side of
the screen. The Menu page (see Figure 1, page 5)
shows the main structure of the tool. You can return
to this menu sheet by clicking on the green cell in the
top left-hand corner of each worksheet.
The tool covers financial areas, operational areas,
environmental performance and compliance as well
as service and maintenance. It has three main
elements:
1

Data

Reports

Charts

Data
To produce KPIs for your business, you enter values
and information into the four worksheets making up
Data, (see Figure 1, page 5). These are (left to
right):
Vehicle Details
Vehicles in Service

The size displayed on your screen can be altered


using the zoom control in the Excel toolbar. It will
also depend on the size and resolution of your
computer monitor. You may find that, with some of the
larger worksheets, a setting that allows you to read
easily will not allow you to display all the columns on
your screen. In such a case, use the manual and/or
the scroll bars to familiarise yourself with the contents
of the whole worksheet.
Tip - Adjust the size of your screen for each
worksheet before you begin. With the exception of
the Menu page, all the sheets will require a
setting of at least 70% for ease of reading.
Adjusting the resolution of your computer monitor
may also help.

Weekly Input (Ops & Costs)


Weekly Input (Compliance)
The first two of these worksheets will also provide you
with a useful summary of your fleets characteristics.
However, you dont have to record every piece of
information on the worksheet if it is not relevant to
you. The data you have to input in order to determine
a particular KPI is listed in Appendix 3. How to enter
the data is explained in Section 4, Data Input.

Figure 1 Menu Page

Menu

DATA
Vehicle Details

Vehicles In
Service

Weekly Input
(Ops & Costs)

Weekly Input
(Compliance)

REPORTS
Weekly Report
(Ops & Costs)

Monthly Reports
(Ops, Costs &
Environmental)

Monthly Report
(Compliance)

Annual Fleet
Report
(Ops, Costs &
Environmental)

Annual Report By
Vehicle
(Ops, Costs &
Environmental)

Annual Report
(Complaince)

KPI Summary
Actual Vs Target

Compliance

Maintenance

Environmental

CHARTS
Delivery Cost

Vehicles
Operations

Vehicle Costs

Customer Service

Introduction

KPI targets into this worksheet. See Section 5.1 for


further details.

New users should not be put off by the number of


spreadsheets and their size. Only a few require
data input and they are quite easy to navigate
around. The user guide is particularly clear and
helpful and must be read before starting to use
the spreadsheet. The product looks good, and is
user friendly.

Charts
A number of measures are also available as graphs
and diagrams (referred to as charts). The charts are
generated automatically by the spreadsheet. A chart
is a very effective way of setting out all the data, and
is easy to use and print. Listed below are the seven
main chart types:

Ray Shave, Southern Water

Reports

Delivery cost

Outputs are weekly, monthly and yearly. These


reports allow you to study the outputs from the
spreadsheet in some detail. This can be very useful
when undertaking such tasks as budgeting or
planning for the future. If you can see the information
clearly you will have a better understanding of your
performance. The following reports are generated
automatically by the spreadsheet:

Vehicle operations
Vehicle costs
Customer service
Compliance
Maintenance

Weekly Report (Ops & Costs)

Environmental

Monthly Report (Ops & Costs)


The outputs from the spreadsheet are explained in
more detail in Section 5.

Monthly Report (Compliance)


Annual Fleet Report (Ops & Costs)

The spreadsheet is a good piece of work and


should deliver the result intended. It is
comprehensive and will give useful measures. I
found moving around the spreadsheet easy using
the various quick links.

Annual Report by Vehicle (Ops & Costs)


Annual Report (Compliance)
KPI Cumulative Summary List (Actual v Target)

The charts will be particularly useful for small


transport operations that are part of a larger
organisation when presenting the KPI results to
senior management.

These can be printed out and used as required. The


most important report is KPI Cumulative Summary
List (Actual v Target) since you can enter your own

Duncan Maclean

3.3

Moving Around the Spreadsheet

The Menu screen (see Figure 1, page 5) shows how


the various inputs and reports relate to one another. It
also forms the basis for moving around within the
spreadsheet. Clicking on any of the boxes on this
worksheet will take you to the input, report or chart
defined by the box.

3.5

You may wish to print input sheets, charts or reports.


To print charts, click on the Print Chart button
provided in the relevant chart spreadsheet.
Tip - Do not click on the Print icon, as this will
result in the whole worksheet (up to 64 pages)
being printed.

Within Worksheets
In a weekly input or report sheet, you will be taken to
a grid at the top of the sheet with cells containing
dates for periods 1 to 26. Clicking on any of those
cells will take you to the section covering the selected
period or vehicle.

Printing the Spreadsheet

In order to print a report or any other sheet, follow the


steps below:
Go to the worksheet containing the table or
information you wish to print
Highlight the information to be printed by
clicking the mouse on it and dragging it across
its full area

Clicking on any cell containing Top will take you


back to the top of the sheet.
If you are in the KPI Cumulative Summary List
(Actual v Target) sheet, clicking on the cells within
the Quick Links to Charts column will take you
straight to the selected chart.

Select File, choose Print Area and then Set


Print Area
Select File again and choose Print Preview.
This will allow you to see how the information
you have selected will appear when printed. If
you are not satisfied with the planned print
output, then rearrange the print area using the
setup, margins etc buttons visible under Print
Preview

If you are working within any of the input sheets or


looking at any of the reports or charts, you can return
to the Menu page by clicking on the green cell in the
top left-hand corner of each worksheet.
Tip - You can move around any worksheet using
the horizontal and vertical scroll bars.
Alternatively, click on the arrow buttons at the end
of the scroll bars. Ctrl+Home will take you to the
top of any worksheet. You can move sequentially
between worksheets by using Ctrl+Pg Up or
Crtl+Pg Dn as required.

Tip - One of the most common alterations made


when using Print Preview is to change from
Portrait to Landscape - do this by selecting
Setup and choosing preferred orientation.
Close the Print Preview and click on Print

3.4

Saving the Spreadsheet

Tip - You can save on the use of colour cartridges


by choosing to print in black and white. You can
do this in one of two ways:

You will need to save the spreadsheet onto your PC.


To save, select the File option which is located on
the toolbar at the top left-hand side of the
spreadsheet. Select Save as and create a new file
name, for example, Performance Tool 2007. For
more details access Excels help option (see
Section 3.1, page 4).

Go to File, select Page Setup from the dropdown menu, click on the Sheet tab and select
the Black and White box
Go to File, select Print from the drop-down
menu, click on the Properties button, click on
the Advanced tab and select the Print in
Grayscale box

You will also need to save data as you enter it,


otherwise it could be lost when closing the
spreadsheet or due to power failure. Use Save from
the toolbar menu and remember to do this regularly
as you enter data.

You will need to enter data in four worksheets:

Data Input

Vehicle Details - i.e. registration number,


make, type of payload, purchase price, licence
costs, insurance cost, etc

The spreadsheet is structured so that information can


be entered weekly for a maximum of 25 vehicles for
two years. This eliminates entering a large amount of
data at month end and also means you can see a
small number of critical KPIs on a weekly basis.

Vehicles in Service - i.e. which vehicles are


used in each period

White cells are for data entry

Weekly Input (Ops & Costs) - this takes data


directly related to the vehicle operations (e.g.
distance run, vehicle fill, fuel used, etc.)

Pale yellow cells contain a drop-down list for


you to select from or customise according to
your circumstances (see Tip below)

Weekly Input (Compliance) - this relates to


compliance with servicing and other legislative
requirements

There are four types of cells in the spreadsheet:

Cells with blue text require you to decide what


measurement you will use (e.g. when
measuring Empty running what do you classify
as empty?)

Data entry for each of these sheets is explained


below with the aid of screen shots showing example
entries.
The only output worksheet (reports and charts) where
information can be entered is KPI Cumulative
Summary List (Actual v Target). This is where you
can enter your KPI targets and is covered in
Section 5.

All other coloured cells contain data or


formulae and are protected to prevent data
entry
Tip - If necessary, you can click the grey add
new buttons to customise your choices of
vehicle, make, type or payload. These can be
found at the bottom of the columns.

Tip - The spreadsheet is not case sensitive. For


example, you can use Y or y when denoting
yes. It makes no difference if you have the caps
lock on or off.

Figure 2 Vehicle Details

4.1

Vehicle Details

The first step is to enter the details of the vehicles that will
be monitored in the Vehicle Details worksheet (see
Figure 2, page 7).

Payload
When you click on the cell for Payload, you will be
offered a drop-down list that provides a number of
options. You can add your own units by clicking on the
add new payload unit button.

The tool does not differentiate between different


vehicle types - in terms of either data input or report
outputs. This is important because, if you run a mixed
fleet, the analysis will have to take into consideration
different outputs for different vehicles (i.e. a larger
vehicle may have different fuel consumption from a
smaller one, so therefore direct comparison is not
advised).

Choose the most appropriate type of payload


for the vehicles normal use from the list offered
If you are using two types of payload, e.g.
weight and pallets, you may want to consider
grouping vehicles using the same payload on
separate spreadsheets in order to compare like
with like. If you dont use separate
spreadsheets, comparisons will be misleading,
but can still be used to show general trends in
the results

The spreadsheet is designed to handle from 1 to 25


vehicles. You may also find it useful to consider
grouping similar vehicle types together on separate
spreadsheets. Whatever approach you use, you will
need to be aware of the different types of vehicle as the
spreadsheet will not flag them up.
Vehicle details may be entered in any sequence.
However, if you want outputs to be grouped, for
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, up to a
maximum of 25. If your fleet has more than 25
vehicles, the easiest way of coping with this is to
create a second copy of the spreadsheet.

If your vehicles carry mixed goods, you may


want to use your own unit, which gives a fair
representation of the vehicle fill being achieved
Enter the capacity of each vehicle (i.e. what it
is capable of carrying) in your chosen units

Date into Service


Enter the date (dd/mm/yy) on which the vehicle
came into service in your fleet.
Tip - It is not essential to complete the columns
headed Make, Type and Date into Service.
These are included as a potentially useful place
to keep such information and to provide a
complete picture of your fleet. It is also not
necessary to enter data for Planned Life
(months) and Purchase Price, but this
information may help you to determine
depreciation (see Annual Costs).

Details of how to deal with rented vehicles (temporary


and additional vehicles) are given in Section 4.5.

The Vehicle
Start by entering the vehicle registration number
Regn number. This will automatically be carried
through the whole spreadsheet as required.

Annual Costs

You can change the vehicle reference (Vehicle ref) if,


for instance, you want to continue with an existing
sequence of fleet numbers rather than use 1 to 25.

In order for the spreadsheet to work, it is essential to


enter the operating costs associated with each
vehicle.
Rent/lease/depn: enter either the annual rental
or lease cost or depreciation. There are a
number of options for depreciation, including:

Make and Type


When you click on the cell for Make or Type, you
will be offered a drop-down list that provides a
number of common options for each category. If your
make and vehicle type are not shown, click on the
grey buttons called add new makeor add new
type, which will display the cells where you can add
the relevant details.
8

The figure set for the vehicle by your


accountant or accounts department

A fixed percentage of the vehicles book value,


giving a diminishing depreciation amount

A fixed percentage of the initial purchase price,


e.g. one fifth if the vehicle is expected to be in
service for five years

A fixed percentage of the vehicles purchase


price less the anticipated residual value, e.g. a
five-year vehicle purchased for 40,000, with
an expected residual value of 5,000 would
have an annual depreciation of 7,000:

If the vehicle has an odometer reading in miles,


leave blank the appropriate cell of the column
headed: Odometer (Enter Y or y if kms,
otherwise blank)
Tip - Conversion factors are given in Appendix 2.

Year

40,000 - 5,000
5
Where trailers are permanently allocated to
articulated tractor units or rigids, their depreciation
cost should be added to that of the drawing vehicle. If
a number of 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 of allocating an
overhead cost (yard space, management, traffic
office, etc.) against each individual vehicle. Where
these figures are known and used, they can be added
to the values entered for individual vehicle
depreciation - if this is helpful. It is crucial to
understand that, unless costs for overheads are
included, the outputs from the spreadsheet should not
be used directly for costing jobs:
Road Fund Licence (RFL): enter the annual
cost of Vehicle Excise Duty (VED)

Data for two years can be recorded in the tool.


However, it is not necessary to start recording data in
line with your companys financial year or calendar
year, although the beginning of a month or accounting
period is best.
If, for example, you start in August, you can decide if
this is:
Period 1 (i.e. the first period you start collecting
data)
Period 8 (i.e. aligned with the calendar year)
A period number that aligns to your companys
financial year
When you have decided the start date, enter this into
the Year From cell using dd/mm/yy format (e.g.
01/01/06). The Year To cell will update automatically
depending on your start date.

Accounting Periods

Operator licence: enter the cost of the specified


vehicle fee. Do not enter the cost of applying
for or amending/renewing the companys
operators licence
Insurance: enter the annual cost
To ensure that the spreadsheet functions properly, it
is important to complete all of the Annual cost cells.

The cells or fields for entering data have been


arranged so that the spreadsheet will work for a year
that consists of 12 or 13 periods. Depending upon
your accounting procedures, you can choose to work
with 12 calendar months or 13 equal periods of four
weeks.
You can choose from the drop-down list 12 or
13 in the cell next to PERIODS to specify the
number of accounting periods you wish to use. If
you change from one option to another (i.e. from
12 to 13 periods), the tool will take a few seconds
to adjust to the correct format and the worksheets
will appear to flicker on the screen - this is
perfectly normal and you will be able to proceed
using the tool after this procedure finishes.

Odometer
The spreadsheet will accommodate vehicles with
odometer readings in either kilometres or miles.
However, to ensure that outputs are calculated
correctly, you need to specify which unit of measure
you would like to use.

Warning! - It is recommended to save the


spreadsheet before doing this.

If the vehicle has an odometer reading in


kilometres, enter Y or y for yes (it does not
matter which) into the appropriate cell of the
column headed: Odometer (Enter Y or y if
kms, otherwise blank)
9

Tip - To ensure that the spreadsheet produces


accurate information, this selection has to be
correct. If you have chosen 12, you must only
enter data for 12 accounting periods. You must
choose either 12 or 13 periods. This cell cannot
be left blank.

First Period
If you have chosen to use 13 accounting periods, you
will be asked to choose from a drop-down list to
select the first month for recording data. This function
allows users to start using the tool part way through
the financial year.
Warning! - All of the above information about the
year, the period and the first month should be
filled in correctly. If any of these cells are left
blank an orange box will appear, with text to
remind you that you have to fill in this information.

4.2

If a vehicle is disposed of during the year, do not


enter Y against that vehicle for the remaining periods
within the year. This will stop the spreadsheet from
accumulating standing costs for that vehicle.
If a new vehicle is acquired, you will need to enter the
details into the Vehicle details spreadsheet (see
Figure 2, page 7). Then enter Y into each period
following its acquisition. This will ensure costs are
properly calculated.
In the example shown in Figure 3, data gathering is
based on 12 calendar months, starting with January.
The first vehicle on the list was disposed of during
March and no vehicle was introduced to replace this
one.
If vehicles are off the road for any length of time, they
should still be shown as being part of the fleet. This
should continue until they have been permanently
disposed of or are no longer incurring any standing
costs.

Vehicles in Service

The spreadsheet can accommodate additions or


disposals from the vehicle fleet. These are controlled
using the Vehicles in Service spreadsheet.
At the start of each period, enter Y or y (denoting
yes) for each vehicle that is part of the fleet during
that period.
The spreadsheet will allocate standing costs to each
vehicle for each week and period.

4.3

Weekly Input (Ops & Costs)

Each week you will need to complete this worksheet


for each vehicle in turn. The registration numbers you
entered previously will appear automatically in the
orange cells at the left-hand side of the sheet (see
Figure 4, page 11).
If you want to record any information, for instance, a
note to remind you why a cost (e.g. maintenance)
was high during a week, enter this in the Comments
cell at the bottom of the sheet.

Figure 3 Vehicles in Service

10

Figure 4 Weekly Input (Ops & Costs)

Period

Odometer

You will have previously selected the number of


accounting periods you wish to use (see Section 4.1,
page 8). Before entering data, select the period you
want by clicking on the appropriate box at the topright of the spreadsheet. Periods can be either 4
weeks or 5 weeks.

Enter the odometer reading at the start of the week in


the column headed Open and the reading at the end
of the week in the column headed Close.

Date
The start date entered in the Vehicles Details sheet
will automatically be displayed in the Date cell and
will be carried through the spreadsheet to help enter
the information for the right week. Please note that
the date shown represents the week commencing
date and not the week ending date.

11

There is no need to convert from kilometres to miles;


the spreadsheet will do it for you from the information
you supplied in Vehicle Details (see Section 4.1,
page 8).
If a new odometer is fitted during the life of a vehicle,
you will need to:
Add any distance travelled in a part-week to
the final weekly reading of the old odometer
Enter the reading at the start of the first full
week that the new tachograph/odometer is in
use in the appropriate column headed Open

Empty Mileage

Own Driver and Agency Driver

During the development of the tool, the working group


felt that empty running should be recorded in miles as
this is an accepted industry standard. If you have
data in kilometres use the conversion factors in
Appendix 2 to convert the data before entry.

For your own driver and/or an agency driver, enter


the hours worked Hrs and the cost incurred Cost in
providing the driver for the week.

Enter the empty mileage for each vehicle (in miles) in


the column headed Empty. As the spreadsheet is
aimed at all types of vehicle operation, you will need
to establish your own definition of empty mileage and
decide how you intend to gather these data.
Examples of empty mileage could be:

For hourly paid drivers, use the cost of the hours


worked. If the driver is salaried, use the annual cost
divided by 52. You will need to decide whether to
enter the drivers wages/salary or the total cost of
employment, including any employers pension
contributions and National Insurance Contributions
(NICs).

The miles from the last drop-off to the vehicles


base in an own account operation

For temporary drivers, use the actual cost, if


available, or the estimated costs based on the drivers
timesheet.

The distance from the last drop-off to the next


pick-up for a hire and reward operator

Fuel

Similarly, you may need to decide your own definition


of empty. Certain operators consider that returning to
base carrying packaging, containers or roll cages is
classified as loaded. Others believe it to be empty. It
is your decision, but remember to be consistent.
Tip - The column headed Empty is shown in
blue to remind you that you need to decide how
you will measure this. You will need to be
consistent with all vehicles.

The spreadsheet allows you to select two sources of


fuel; for example, one could be a bulk tank and the
other the use of an agency card or perhaps a
bunkering service. For each source, enter the litres
drawn Ltrs and cost incurred Cost.
If your fuel bills are monthly, you will need to decide
whether to:
Enter the whole months fuel cost for each
vehicle in the final week of the period. This may
be the simplest method, as you do not have to
divide up your costs over each week, however,
all the costs will appear in the final week of the
period

Vehicle Hours/Shifts
Enter the time for which the vehicle is available Av.
for work and then the time during which it was
actually working Wkd. The unit for these two pieces
of data can be either hours or shifts but the total
should cover the whole week.
The unit chosen should take account of the expected
working pattern for the vehicle. For example, a vehicle
that is expected to work five 8-hour shifts per week
would be available for five shifts or 40 hours, so either
5 or 40 could be entered in the Av. column. If this
vehicle is unavailable for a shift due to servicing or
other issues, then its maximum working time can only
be four shifts or 32 hours. So either 4 (if shifts were
chosen for Av.) or 32 (if hours were chosen) should
be entered in the Wkd column.
Again, remember to be consistent, otherwise you will
have two different sets of data - one based upon
vehicle hours, the other based on shifts.

Enter the fuel cost weekly, by dividing the bill


by four or five weeks, retrospectively, when the
bill is received. Alternatively, if you know your
fuel price with reasonable accuracy, you may
prefer to calculate the cost based on the litres
drawn and enter the calculated figure on a
weekly basis
Tip - You may want to note your choices for Fuel
source 1 and Fuel source 2 in the cell labelled
Comments at the bottom of the first worksheet.

Maintenance - Tyre Cost


Enter all tyre-related costs for the whole week.
Include all work done (replacements, repairs,
alignment checks, etc.) regardless of whether they
are carried out on-site or on the road.

12

Maintenance - Planned/Not Planned

Deliveries and Collections

Enter all the cost of maintenance and repair work, but


keep planned maintenance separate from unplanned,
i.e. the cost of servicing should be shown under
Planned and the cost of breakdown repairs under
Not Planned.

Enter the number of deliveries Dels and collections


Cols for the week. If your vehicles deliver or collect
multiple orders at a single point or customer, this
should be counted as one delivery or collection.

Customer service
Minor consumables such as bulbs, wiper blades and
top-up oil should be included in planned
maintenance. However, you may find it simpler to
include a fixed monthly sum for each vehicle based
on overall expenditure on consumables divided by the
number of vehicles.
If maintenance bills are received monthly, you will
need to decide whether to:

Enter the number of deliveries or collections that:


Were out of their designated time window, i.e.
late Late dels
Were either missing or damaged at the point of
delivery Damages
Resulted in a complaint of any other nature,
e.g. wrong type of vehicle, driver conduct, etc.
Complaints

Enter them monthly as a single cost in the last


week
Divide the bill by the number of weeks and
show a weekly maintenance cost
Entering maintenance costs each month as a single
cost is likely to be simpler, but it does mean that all
the maintenance costs shown in Weekly Report
(Ops & Costs) will be in the final week of each
month.

Trips
Enter the number of trips completed by the vehicle. A
trip begins when a vehicle leaves the depot and
finishes when it returns.
The number of trips is the parameter used to control
the way in which the spreadsheet works in many of
the output reports. It is therefore important to fill it in
as it indicates how much activity the vehicle is
carrying out.

Units Carried
Enter the units carried (i.e. volume of goods) for the
whole week using whichever units you choose in
Section 4.1 Vehicle Details - Payload.
If you carry mixed goods, you may have derived your
own unit of measure. For example, a stillage with
dimensions of 2 x 1.2 metres could be regarded as
two pallet equivalents. If this is the case, you may
wish to record what was actually carried in
Comments.

13

Figure 5 Weekly Input (Compliance)

4.4

Weekly Input (compliance)

Compliance data indicate how well the fleet complies


with legislative requirements governing its operation
and the safety of those who drive the vehicles. During
the research phase, the working group thought that
compliance was an important factor affecting
performance and advised that there should be a
separate KPI to measure it (see Figure 5).

Defects
This section deals with vehicle defects reported by
drivers each week and how soon they are put right.
Enter the total number of defects reported Number
and the number rectified:
Within 24 hours Rectified in 24 hrs
Within seven days Rectified in 7 days
In more than seven days Rectified in greater
than 7 days

No of Inspections
Enter the number of planned safety inspections due
that week Due and those that were not carried out on
time Overdue. This should be a strict measure so
even if the inspection is only one day late it should
count as overdue. The important thing is to be honest
about your operation in order to get a clear picture of
your performance.

Also, enter any incidence of a vehicle failing its


annual HGV test inspection or any vehicle prohibition
notice (whether immediate or delayed). These
compliance failures are entered as one figure in the
MOT failures/prohibitions column.

14

Vehicle Infringements

4.5

Enter any recorded incidences of vehicle overloads


No of Overloads. This should include all
occurrences - for instance, where the issue is
discovered on an internal or private weighbridge,
including both gross weight or individual axle loads.

Although the spreadsheet is aimed primarily at


recording and reporting vehicles that are part of your
normal fleet, you may want to capture costs for rented
vehicles. Such vehicles are usually hired and fall into
two categories:

Enter all known occurrences of infringements against


road traffic legislation Traffic Infringements. This
should include Road Vehicles (Construction and Use)
Regulations and all traffic offences such as speeding
or improper parking.

Rented Vehicles

Temporary vehicles
Additional vehicles

Temporary and Additional Vehicles


Drivers Hours/Records
Enter the number of known instances of infringements
of the rules governing drivers hours
No. Infringements. The number should cover all
types of infringements and include all of those
identified rather than just those that result in
prosecution.

Traffic Accidents
Enter the number of traffic accidents for each vehicle,
separating them into those:
Where your driver was apparently at fault
Blame worthy
Where the blame apparently lay with a third
party Non-blame worthy

Accidents/Incidents
Record the number of accidents and incidents that
occur to your driving staff. These should be separated
into those that:
Fall within the Reporting of Injuries and
Diseases and Dangerous Occurrences
Regulations RIDDOR
Are less serious but which have been recorded
in an accident book Recordable
Tip - For further information on reporting and
recording accidents visit www.riddor.gov.uk or
call the Health & Safety Executive Infoline on
0845 345 00 55.

15

Temporary vehicles are those brought in for short


periods to replace vehicles that are off the road for
repairs.
The hire period could range from a day to perhaps
8-10 weeks in the case of an accident.
Additional vehicles are those brought in for short
periods to cover peaks in operational demand.
If you decide you want to capture data for these
vehicles, you can distinguish them from your own
fleet by inputting their registration numbers in
brackets in the Vehicle Details spreadsheet.

Outputs from the


Spreadsheet

This section describes the different reports and charts


that the spreadsheet generates using the data you
have entered. Most of the input cells within the
spreadsheet can be left blank without creating
difficulties. However, the quality of the information the
reports and charts contain depend on the inputs and
so incomplete inputs will result in some reports and
charts being unavailable.

5.1

Reports

The spreadsheet produces a number of weekly,


monthly and annual reports:

Monthly Report (Ops & Costs)


Monthly Report (Compliance)
Annual Fleet Report (Ops & Costs)
Annual Report by Vehicle (Ops & Costs)
Annual Report for the Entire Fleet
(Compliance)
KPI Cumulative Summary List (Actual v Target)
Each of these reports is explained below.

Weekly Report (Ops and Costs)


This report (see Figure 6) gives a simple overview of
the fleets activities during a specific week in terms of
operations and costs.

Weekly Report (Ops & Costs)

It highlights vehicle utilisation in terms of


vehicle fill, time utilisation and empty mileage

Figure 6 Weekly Report (Ops & Costs)

16

It summarises running and standing costs for


the whole fleet, total units carried and cost per
unit. Furthermore, it presents the operating
costs and costs per unit

Vehicle maintenance
Vehicle infringements
Drivers hours
Traffic accidents

Monthly Report (Ops and Costs)


This report (see Figure 7) is more comprehensive and
provides more detail of the activity of each vehicle
during the month.
In addition to trips and units carried and the
vehicle utilisation in terms of fill and time and
miles run, it shows miles per gallon,
environmental KPIs and customer satisfaction
levels

Annual Fleet Report (Ops and Costs)


This report (see Figure 9, page 18) will build as the
year progresses.
For each period, it aggregates the data and
gives information on:

The report allows comparison between vehicles


and, because it is monthly, the information it
provides tends to give a better overview than the
weekly report

Monthly Report (Compliance)


This report (see Figure 8, page 18) summarises
individual vehicle performance across the whole
range of compliance KPIs:

Operational performance

Operating costs

Customer satisfaction

Environmental performance
The report shows a cumulative figure for the
year YTD row, either total or average,
according to the performance measure,
towards the bottom of the report
Over the year, you will be able to see trends
develop and identify areas where performance
can be improved

Vehicle inspections

Figure 7 Monthly Report (Ops & Costs)

17

Figure 8 Monthly Report (Compliance)

Figure 9 Annual Fleet Report (Ops & Costs)

18

Figure 10 Annual Report by Vehicle (Ops & Costs)

Annual Report by Vehicle (Ops and Costs)

Annual Report - Whole Fleet (Compliance)

This report (see Figure 10) contains a section for


each vehicle in the fleet:

This annual report (see Figure 11) provides


aggregated compliance performance across all
measures for the whole fleet.

It shows each vehicles level of activity, its


operating costs, its environmental performance
and the percentage of customer complaints
Each section accumulates monthly performance
figures for each vehicle. The report also shows
a cumulative figure for the year YTD row, either
total or average, according to the individual
performance measure

KPI Cumulative Summary List


(Actual V Target)
This final report (see Figure 12, page 20) is the most
important one produced by the spreadsheet. This is
the only output worksheet where your personal KPI
targets can be entered.
It shows, on a monthly basis, each KPI for the
fleet as a whole

Tip - See section entitled KPI Cumulative


Summary List (Actual v Target) for details on
whether KPIs are average or total values.

The KPI names in blue indicate average values


The KPI names in black indicate total values

Figure 11 Annual Report - Whole Fleet (Compliance)

19

Figure 12 KPI Cumulative Summary List (Actual v Target)

You can enter your personal target for each of


the 24 KPIs (in the Annual Target column). If
you enter a target for any measure, the report
will show the variation of the actual figure
against the target in the column labelled
Var %

graphically. These charts are positioned in the


spreadsheet after the KPI Cumulative Summary List
(Actual v Target) worksheet. They are also shown on
the Menu page (see Figure 1, page 5).
For simplicity, the charts are grouped by
category. Table 3 lists the charts found on each
worksheet along with its content

The values in Var % will be displayed as:




Positive, if the actual figure is higher than the


target

Negative, if the actual figure is lower than the


target

Blue, if the variation is better than expected,


e.g. there is less empty running than budgeted

Red, if the variation is worse than expected,


e.g. running costs are higher than budgeted

Many of the charts display more than one KPI.


Where appropriate, the chart shows the target
KPI
Each chart displays the information for the 12 or
13 periods in a year. Twelve financial periods
have been used in the examples shown in the
manual and therefore period 13 will be blank or
have a zero value
There is a chart in Vehicle Costs (see Figure
15, page 23) where the results are shown as a
pie chart. This is to demonstrate what
percentage of the vehicle costs are Own Driver
and Agency Driver, Standing and Running
costs

There is a quick link at the right-hand side of


the worksheet to the corresponding charts (see
Section 5.2)

5.2

Charts

The charts can be printed by clicking on the


grey Print Chart buttons which are next to the
charts

As data accumulates, the spreadsheet automatically


creates charts that display trends and changes

20

Summary List (Actual v Target) report (see Figure


12, page 20).

Clicking on the green cell in the top left-hand


corner of the worksheet will return you to the
Menu page

Vehicle Utilisation
Clicking on the green cell in the top right-hand
corner of the worksheet will return you to the
KPI Cumulative Summary List (Actual v
Target) report

The Vehicle Utilisation chart (see Figure 14, page


22) summarises the Average Vehicle Fill and
Average Time Utilisation by period.

Each of the charts is explained below.

Vehicle Costs

Delivery Cost

This worksheet contains two charts:

Cost per Unit Delivered ()

Whole Fleet Cost (ppm)

This chart (see Figure 13) displays the Average


Cost per Unit Delivered, in pounds (), by period
and provides comparison with the target you set in
the KPI Cumulative Summary List (Actual v
Target) report (see Figure 12, page 20).

The Whole Fleet Cost chart (see Figure 15, page


23) summarises, by period, the:
Total fleet cost
Average running cost
Average standing cost

Vehicle Operations

Average driver cost


This worksheet contains three charts:
YTD Vehicle Costs
Fuel Consumption (mpg)
This chart (see Figure 14, page 22) displays the
Average MPG for every gallon of diesel consumed
by period and provides comparison with the target
you set in the KPI Cumulative Summary List
(Actual v Target) report (see Figure 12, page 20).

The YTD Vehicle Costs pie chart (see Figure 15,


page 23) provides details of the percentage of costs
attributed to:
Running costs
Standing costs

Vehicle Mileage (000s)

Own driver costs

The Vehicle Mileage chart (see Figure 14, page 22)


incorporates Total Miles Run and Total Empty
Miles Run and provides comparison with the Total
Miles Run target you set in the KPI Cumulative

Figure 13 Delivery Cost

21

Agency driver costs

Customer Service

Compliance

The Customer Service chart (see Figure 16, page


24), shows by period, the percentage of:

The Compliance chart (see Figure 17, page 24)


shows, by period, the number of:

Late deliveries

Overloads

Damaged deliveries

Drivers hours infringements

Delivery complaints

Vehicle traffic infringements


Traffic accidents

Figure 14 Vehicle Operations

22

Table 3 Charts Produced by the Spreadsheet


Worksheet name

Chart title

KPI

Delivery Cost

Cost per Unit Delivered ()

Average Cost per Unit Delivered

Vehicle Operations

Fuel Consumption (mpg)

Average Miles per Gallon

Vehicle Mileage (000s)

Total Miles Run


Total Empty Miles Run

Vehicle Utilisation

Percentage Vehicle Fill


Percentage Time Used

Whole Fleet Cost (ppm)

Total Fleet Cost


Average Running Cost
Average Standing Cost
Average Driver Cost

YTD Vehicle Costs

Running Cost (% of total)


Standing Cost (% of total)
Driver Cost (% of total)

Customer Service

Customer Service

Late Deliveries (%)


Damaged Deliveries (%)
Delivery Complaints (%)

Compliance

Compliance

Number
Number
Number
Number

Maintenance

Maintenance Performance

Percentage of Overdue Inspections


Percentage of Defects Rectified in 24 Hours

Environmental

CO2 per km
Total Fleet CO2 Emissions
CO2 Performance by Vehicle

CO2 emissions produced by fleet per km run


Total CO2 emissions produced by fleet
CO2 emissions produced by each vehicle per km run

Vehicle Cost

Maintenance Performance
The Maintenance Performance figure shows (see
Figure 18, page 24) by period, the percentage of:
Overdue inspections
Defects rectified in 24 hours
Figure 15 Vehicle Costs

23

of Overloads
of Drivers Hours Infringements
of Vehicle Traffic Infringements
of Traffic Accidents

Figure 16 Customer Service

Figure 17 Compliance

Figure 18 Maintenance Performance

24

Environmental Performance
The CO2 per km chart (see Figure 19) shows by
period, the average amount of CO2 emissions
produced by the fleet as a whole per km.
The Total Fleet CO2 Emissions chart shows by
period, the total amount of CO2 emissions produced
by the fleet as a whole.
The CO2 Performance by Vehicle chart shows for
the year so far, the average amount of CO2 emissions
produced by each vehicle per km.

Figure 19 Environmental Performance

25

What to Do with the


Results

The information in the KPI Cumulative Summary


List (Actual v Target) spreadsheet is designed to
provide you with an overview of essential information
on the performance of your vehicles. This section
explains how you can use the KPI figures to measure
the efficiency of your operations and what you can do
to improve your fleets performance if some areas are
poor. In addition, the weekly, monthly and annual
reports provide valuable information that can highlight
potential areas for improvement, allowing you to take
action at an early stage.

6.1

Setting Targets

The KPI Cumulative Summary List (Actual v


Target) report shows a measure of each KPI for the
whole fleet, which builds month by month. The
Annual Target column allows you to enter a target
for any measure. The report then tracks how you are
doing against the target, showing your actual figures
and the percentage that you are varying from your
target. If the variation is better than expected it will be
shown in blue, if it is worse than expected it will be
shown in red.

How to Improve Performance


Scrutinise the other KPIs (particularly those
relating to costs and operations) to uncover
potential savings in your fleet. Improvements in
these KPIs (e.g. increasing average vehicle fill
or reducing running costs) should help to drive
down the average cost per unit

6.3

Average Miles Per Gallon


This KPI indicates the average miles travelled for
every gallon of diesel. In this case, a higher figure
indicates better use of fuel in terms of distance
travelled.
How to Improve Performance
The Monthly Report (Ops & Costs) (see
Section 5.1, page 16) breaks down fuel
consumption for each vehicle by both fuel costs
and miles per gallon. The spreadsheet also
provides annual reports for operations and
costs by vehicle (see Figure 10, page 19) and
for the whole fleet (see Figure 9, page 18)
This means you can compare the fuel
consumption of vehicles and identify any
vehicles that are performing poorly in terms of
miles per gallon

You can use the guidance in Sections 6.2 - 6.8 to


identify potential areas for improvement and set
yourself a target to aim for.

6.2

Operational

You can also monitor fuel costs in terms of


prices paid (depending on the source of the
fuel), and you may wish to re-assess how you
source your fuel supply

Delivery Cost

Average Cost Per Unit Delivered

Many factors can influence fuel consumption,


including the vehicle specification and
maintenance, the way the vehicle is driven, the
load, the route, traffic conditions and the
weather. Use the KPI information to identify
trends

This KPI tells you how much in pounds () that it costs


you to deliver a unit. You determined the load unit (e.g.
a tonne or a pallet) when you entered information
about payload on the Vehicle Details worksheet (see
Section 4.1, page 8).

The Freight Best Practice programme has


produced a series of publications offering
independent and authoritative advice on how to
minimise your fuel costs and maximise your
mpg. The following publications can help you
reduce your fuel consumption:

This KPI determines the cost-effectiveness of your


fleet. The lower the figure, the more efficient your
fleet. You should aim to keep this figure low, as it
indicates low transport costs.
The KPI is also an important tool in assessing the
effect of any changes in the other KPIs. For example,
higher vehicle mileage with a lower payload may
improve (increase) your miles per gallon KPI, but it is
not usually an efficient way to run a vehicle.
26

Delivered (see Section 6.2, page 26) and the Empty


Running and Average Vehicle Fill KPIs (see
below).

Save It! DVD - two programmes that


provide a general introduction to fuel
efficient operations (including vehicle
specification and maintenance) and tips
for fuel efficient driving

How to Improve Performance


See Maximising Efficiency, Section 6.8

Drive It! DVD - This 25 minute film


looks at the efficiency measures
implemented by different types of
companies and champions the important
role of the driver. The DVD is designed
to be used for driver briefings and
training to help support fuel
management, training and efficiency
initiatives

Empty Running
Two KPIs are used here - total empty miles run and
percentage of empty running total. These indicate the
number of miles that vehicles have run without a
load.
You will have specified your own definition of empty
(see Section 4.3, page 10) before you entered your
data, but it is likely to be when the vehicle is not
carrying a productive load.

Fuel Management Guide - a


comprehensive guide covering all
aspects of fuel efficiency including
vehicle specification and driver training

This figure should be kept as low as possible, as


running a vehicle empty costs the business without
contributing a direct benefit to the business.

Truck Specification for Best


Operational Efficiency - offers practical
guidance on producing the most
appropriate specification for new vehicles

How to Improve Performance


See Maximising Efficiency, Section 6.8

Truck Aerodynamic Styling - offers


practical information on truck
aerodynamics and appropriate add-ons

Average Vehicle Fill


This KPI calculates the percentage of actual load
carried compared with the potential capacity of the
vehicle fleet. The higher this figure, the more
payload is being carried, contributing to the efficiency
and cost-effectiveness of the operation.

The Safe and Fuel Efficient Driving


(SAFED) manual - outlines the elements
of the SAFED driver training course and
includes the full content of the one-day
SAFED course

How to Improve Performance

Fuel Saving Devices - provides


practical tips to assess the fuel savings
claims made for numerous products on
the market

See Maximising Efficiency, Section 6.8

Average Time Utilisation

To obtain free copies of these


publications, call the Freight Best
Practice Hotline on 0845 877 0 877 or
visit www.freightbestpractice.org.uk

This KPI calculates the percentage of time the vehicle


fleet was actually in use compared with the potential
time available. A high figure indicates that you are
making good use of your vehicles.
How to Improve Performance

Total Miles Run

See Maximising Efficiency, Section 6.8


This KPI shows the total number of miles run by your
vehicles in thousands (e.g. 30 means that the fleet
has actually done 30,000 miles).
Mileage is important when looked at in terms of the
cost of operations and work done. This is best
reflected in the KPI, Average Cost Per Unit
27

6.4

Cost

Whole Fleet Cost

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 of:
Vehicle rental, leasing and depreciation

This KPI indicates the total cost of your fleet in pence


per mile. This figure includes running, standing and
driver costs and you should aim for these to be as
low as possible.

Road Fund Licence (VED)


Operator licence (specified vehicle) fees
Insurance

How to Improve Performance


Look closely at your average running, standing
and driver cost KPIs to help you to identify
potential improvements

How to Improve Performance


As some of these costs are fixed, it may be difficult to
reduce them. However, you may want to consider:
Your choice of vehicle, as depreciation
depends on the vehicle make, model and
specification

Average Running Cost


This KPI calculates the average costs associated with
running your vehicles in terms of pence per mile. It is
made up of the cost of fuel, tyres and vehicle
maintenance. Ideally, the lower the figure, the more
efficient the operation.

The road fund licence can only be reduced by


changing the vehicle weight or axle
configuration, or by making it eligible for a
lower rate of duty on environmental grounds.
Information on current rates of road fund
licences is given in the Driver and Vehicle
Licensing Agency (DVLA) information leaflet
V149 Rates of Vehicle Excise Duty, available
by calling 0870 240 0010 or visiting
www.dvla.gov.uk

How to Improve Performance


High running costs can indicate:


High fuel consumption - see advice given


under Average Miles Per Gallon in Section
6.3

Poor preventative maintenance procedures see advice given under Total Maintenance
Cost later in this section

Poor tyre performance - Monthly Report (Ops


& Costs) breaks down tyre costs by vehicle.
The Annual Reports (Ops and Costs) by
vehicle and for the whole fleet will allow you to
compare the costs for individual vehicles and
across the fleet over a period of time. You can
use this information to re-assess the cost,
maintenance and supply of tyres

Driving at Work, published by the Health


and Safety Executive (HSE), offers
guidance on managing work-related
transport safety (HSE Ref. INDG382).
Copies are available free of charge from
HSE Books (Tel: 01787 881165) or can be
downloaded free from
www.hse.gov.uk/pubns/indg382.pdf
The HSE also offers guidance on
workplace transport safety. Find out more
at www.hse.gov.uk/pubns/indg199.pdf
or call the Infoline on 0845 345 00 55

Average Standing Cost

Driving style can also play a key role in


minimising the risk of accidents. SAFED for
HGVs: A Guide to Safe and Fuel Efficient
Driving for HGVs outlines the principles of
SAFED and provides a step-by-step guide
through the one-day SAFED training
programme. To obtain a free copy, call the
Freight Best Practice Hotline on 0845 877 0
877 or visit ww.freightbestpractice.org.uk
Visit www.safed.org.uk for more
information about SAFED

This KPI calculates the average standing costs for


your vehicles in terms of pence per mile and, as
before, the lower the figure, the more efficient the
operation.

28

annual reports for operations and costs by


vehicle and for the whole fleet (see Figure 10,
page 19 and Figure 9, page 18 respectively).
You can compare the costs for individual
vehicles and across the fleet over a period of
time, with a view to re-assessing the cost of
maintenance (whether in-house, contracted out
or both)

Paying operator licence fees over a five-year,


rather than a one-year, period can reduce the
cost, but this may affect cash flow
Introducing a risk management system that
aims to lower the frequency, severity and cost
of claims, and ultimately reduce premiums, can
reduce insurance costs. The following
publications may be of help:

Use the compliance KPIs and their


corresponding reports and charts (see Section
6.6, page 30) to monitor the effectiveness of
your maintenance system in terms of:

Speak to your insurance broker or insurer to discuss


risk-management and insurance issues

Average Driver Cost


This KPI calculates the average costs for your
drivers, including agency drivers, in pence per mile.
By keeping this low you are achieving good cost
performance from your drivers.
How to Improve Performance
Drivers wages are a contractual matter to be
negotiated between employers and employees.
However, the average cost of employing and
hiring drivers may be driven up by recruitment
and retention problems, particularly where
qualified and experienced drivers are in short
supply
Information on recruitment and retention issues
can be obtained by:


Contacting the industrys Sector Skills Council,


Skills for Logistics, on 0876 2427314 or by
visiting the website at
www.skillsforlogistics.org

Reading the Freight Transport Associations


Solving the Skills Shortage conference report October 2003, available to download at
www.fta.co.uk (go to Information on key
issues and click on Skills development)

Total Maintenance Cost


The total cost of maintenance (planned and
unplanned) is shown in two KPIs in terms of pence
per mile (ppm) and total costs in pounds (). Low
figures for these KPIs can indicate efficient and
effective maintenance systems. If they are high then
there may be room for improvement.
How to Improve Performance
The Monthly Report (Ops & Costs) (see
Section 5.1, page 16) breaks down
maintenance costs by vehicle. There are
29

Overdue and failed inspections

Defects reported and rectified

MOT failures and prohibitions


Having an effective preventative maintenance
system is fundamental to any transport
operation. It is also an effective way of
ensuring that potential problems are spotted
and rectified early. Poor maintenance systems
can lead to higher fuel consumption as well as
higher repair costs, longer vehicle downtime
and higher replacement/hire vehicle costs

Preventative Maintenance for Efficient


Road Freight Operations - this guide
explains the concepts and benefits of
preventative vehicle maintenance and
provides practical help on how to
implement a proactive maintenance
strategy in your business.
The Guide to Maintaining
Roadworthiness is a free guide
published by the Department for
Transport. It provides comprehensive
advice on establishing an effective
maintenance system. Copies can be
ordered by calling the Vehicle and
Operator Services Agency (VOSA) on
0870 606 0440, or can be downloaded
from www.vosa.gov.uk (go to the
Manuals & Guides area of Publications)
Also available from VOSA is the video
Check it Out - Truck Driver, which
describes how to carry out a daily vehicle
defect check. Details are given on
www.vosa.gov.uk (go to the DVD area of
Publications) or call VOSA on
0870 606 0440

See VOSAs free guide Drivers Hours and


Tachograph Rules for Goods Vehicles in the
UK and Europe (GV262) at www.vosa.gov.uk
(go to the Manuals & Guides area of
Publications) or call 0870 606 0440

6.5 Service
Percentage of Late Deliveries
This KPI records the percentage of late deliveries
made by your fleet. A consistently low percentage of
late deliveries indicates good performance in terms of
service and suggests effective planning.
How to Improve Performance
Investigating the reasons for late deliveries and
improving planning should help to prevent them.
See also the advice on routing and scheduling
in Section 6.8

Percentage of Damages and Complaints


The percentage of deliveries made by your fleet that
were either missing or damaged is recorded in the
KPI, % of Damages Total.
The KPI, % of Complaints Total, records the
percentage of deliveries that lead to a complaint.
For both of these KPIs, a low percentage indicates
good service performance; a high figure suggests
poor performance and could lead to the loss of
customers or contracts. Missing or damaged items
will usually result in return and repeat deliveries,
which can increase costs.

6.7

6.6

Compliance

The four compliance KPIs record the total number of


overloads, traffic infringements, drivers hours
infringements and the total number of traffic
accidents.
How to Improve Performance
Investigate the reasons for 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 traffic or drivers hours regulations

Maintenance

Percentage of Overdue Inspections


This KPI shows the percentage of vehicle
roadworthiness inspections that are overdue. A high
percentage suggests a poor maintenance system.
How to Improve Performance
See the advice on total maintenance costs in
Section 6.4

Percentage of Defects Rectified in 24 Hours


This KPI shows the percentage of defects reported by
drivers that are rectified within 24 hours. With this
KPI, a low percentage suggests a poor maintenance
system.
How to Improve Performance
See the advice on total maintenance costs in
Section 6.4

How to Improve Performance


Investigate the reasons for the problems and
put in place procedures to try to prevent
repeated poor performance and repercussions

Managing risk (see advice on reducing


insurance costs in Section 6.4, page 28)

6.8

Maximising Efficiency

Making the best use of your assets, such as vehicles


and driving time, has the potential to reduce costs
and environmental impact much more significantly
than by reducing fuel consumption alone. Increasing
miles per gallon will save a percentage of the fuel
cost of 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 effectively is key to
minimising mileage while continuing to meet customer
demands. Automating decision-making processes
makes the best use of resources, reduces planning
time and makes it easier to accommodate last minute
changes.

30

6.9 Where to Now?

Computerised Vehicle Routing and


Scheduling (CVRS) for Efficient
Logistics - describes the various types
of system available and will help you
decide whether introducing computerised
vehicle routing and scheduling is
worthwhile. It describes real-life case
studies and will guide you through the
process of selecting and introducing a
system.

Now that you have a set of data from the Fleet


Performance Management Tool and understand what
this means to your operation, it is important to start
thinking of the future. You may like to set new or
long-term targets e.g. reducing your average driver
costs, or increasing your average vehicle fill.
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
for a period of time (e.g. six months) then look back
and see how close you are to those targets.
Performance management is a long-term
commitment and requires a structured approach to
fleet management. The rewards can be:

Information Technology for Efficient


Road Freight Operations - t his guide
provides an overview of the available and
relevant systems, covering their uses,
likely benefits, issues to consider and
associated costs.

Reduced fuel use

Telematics

Improved operational efficiency


Higher service levels

Telematics is the use of 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 efficiently.

Increased customer loyalty


Greater staff retention
Reduced CO2 emissions
and ultimately increased profits and maintaining, or
improving, your companys competitive edge.

Telematics Guide - provides information


on the types of system available, how
they can be used and which issues you
should watch out for when buying a
system
Visit the Resource Centre on
www.freightbestpractice.org.uk to
download support materials to help you
maximise use of the Fleet Performance
Management Tool

Maximising Load
Making the best use of the available load space in
every vehicle trip can be achieved by back loading,
consolidating loads, load stacking and the use of
multiple-decked vehicles.

31

Appendix 1 - Abbreviations and Acronyms


000s

thousands (e.g. an entry of 30 means 30,000)

Av.

Available

Cols

Collections

Dels

Deliveries

depn

Depreciation

DVLA

Driver and Vehicle Licensing Agency

Hrs

Hours

HSE

Health & Safety Executive

kms

Kilometres

KPI

Key Performance Indicator

Ltrs

Litres

MPG

Miles per Gallon

O licence

Operators Licence

Odo

Odometer

Ops

Operational/Operations

ppm

Pence per Mile

Regn Number

Registration Number

RFL

Road Fund Licence (= Vehicle Excise Duty)

SAFED

Safe and Fuel Efficient Driving Standard

Var

Variation

Veh

Vehicle

VOSA

Vehicle & Operator Services Agency

Wkd

Worked

Y or y

Yes (not case sensitive)

YTD

Year to Date

Appendix 2 - Conversion Factors


To convert

To

miles

kilometres

Multiply by
1.609344

kilometres

miles

0.621371

litres

gallons (UK)

0.21997

gallons (UK)

litres

4.54609

gallons (US)

gallons (UK)

0.83268

gallons (UK)

gallons (US)

1.20094

litres of diesel

kg of CO2

2.63

To convert fuel consumption expressed in miles per


gallon (MPG) to litres per 100 kilometres (Ltrs per
100kms) divide 282.5 by the MPG figure. To convert
the other way, divide 282.5 by the Ltrs per 100kms
figure to find the MPG figure.

32

Appendix 3 - Input Requirements for the Different KPIs


This appendix provides details of the input requirements for each KPI. If this information is not entered into the
spreadsheet the reports and charts will display inaccurate information.
Please note that odometer readings are needed for some KPIs that are not directly related to distance, e.g.
total number of overloads. This is because many of the KPIs use the distance as a basis for calculations.
KPI (output)
KPI
no.

Single input

Weekly inputs

Vehicle Details

Vehicles
in Service

Ops & Costs

Average Cost per Unit


Delivered ()

Regn Number
Rent/Lease/Depn
RFL
O Licence
Insurance
No. of Periods

Periods in Service

Own Driver Cost


Agency Driver Ccost
Fuel Cost (1)
Fuel Cost (2)
Tyre Cost
Maintenance Cost (planned)
Maintenance Cost (unplanned)
Trips
Units Delivered

Average MPG

Regn Number
Odo (kms?)

Odometer Opening
Odometer Closing
Fuel Litres (1)
Fuel Litres (2)
Trips

Total Mles Run (000s)

Regn Number
Odo (kms?)
No. of Periods

Odometer Opening
Odometer Closing

Total Empty Miles Run


(000s)

Regn Number
Odo (kms?)
No. of Periods

Odometer Opening
Odometer Closing
Empty Miles

% Empty Running Total

Regn Number
Odo (kms?)
No. of Periods

Odometer Opening
Odometer Closing
Empty Miles

% Average Vehicle Fill

Regn Number
Payload

Trips
Units Carried

% Average Time Utilisation

Regn Number

Time Available
Time Worked
Trips

Total Whole Vehicle Cost


(pence per mile)

Regn Number
Rent/Lease/Depn
RFL
O Licence
Insurance
Odo (kms?)
No. of Periods

Average Running Cost


(pence per mile)

Regn Number
Odo (kms?)
No. of Periods

Periods in Service

Odometer Opening
Odometer Closing
Own Driver Cost
Agency Driver Cost
Fuel Cost (1)
Fuel Cost (2)
Tyre Cost
Maintenance Cost (planned)
Maintenance Cost (unplanned)
Trips
Odometer Opening
Odometer Closing
Own Driver Cost
Agency Driver Cost
Fuel Cost (1)
Fuel Cost (2)
Tyre Cost
Maintenance Cost (planned)
Maintenance Cost (unplanned)
Trips

33

Compliance

KPI (output)
KPI
no.

Single input
Vehicle Details

Weekly inputs
Vehicles
in Service

Ops & Costs

Compliance

10

Average Standing Cost


(pence per mile)

Regn Number
Periods in Service Odometer Closing
Rent/Lease/Depn
Odometer Closing
RFL
Trips
O Licence
Insurance
Odo (kms?)
No. of Periods

11

Average Driver Cost


(pence per mile)

Regn Number
Odo (kms?)

Odometer Opening
Odometer Closing
Own driver Cost
Agency driver Cost
Trips

12

Total Maintenance Cost


(pence per mile)

Regn Number
Odo (kms?)

Odometer Opening
Odometer Closing
Maintenance Cost
(planned)
Maintenance Cost
(unplanned)

13

Total Maintenance Cost


(000s)

Regn Number
Odo (kms?)
No. of Periods

Odometer Opening
Odometer Closing
Maintenance Cost (planned)
Maintenance Cost
(unplanned)

14

% Late Deliveries Total

Regn Number
Odo (kms?)

Odometer Opening
Odometer Closing
Trips
Deliveries
Collections
Late Deliveries

15

% Damages Total

Regn Number
Odo (kms?)

Odometer Opening
Odometer Closing
Trips
Deliveries
Collections
Damages

16

% Complaints Total

Regn Number
Odo (kms?)

Odometer Opening
Odometer Closing
Trips
Deliveries
Collections
Complaints

17

Total Number of Overloads

Regn Number
Odo (kms?)
No. of Periods

No. of Overloads

18

Total Number of Vehicle


Traffic Infringements

Regn Number
Odo (kms?)
No. of Periods

Traffic Infringements

19

Total Number of Drivers


Hours Infringements

Regn Number
Odo (kms?)
No. of periods

No. of Infringements

20

Total Number of Traffic


Accidents

Regn Number
Odo (kms?)
No. of Periods

Blame Worthy
Accidents
Non-Blame Worthy
Accidents

21

% Failed Inspections Total

Regn Number
Odo (kms?)

Odometer Opening
Odometer Closing
Inspections Due
Inspections Overdue/
Failed

34

KPI (output)
KPI
no.

Single input
Vehicle Details

Weekly inputs
Vehicles
in Service

Ops & Costs

22

% Defects Rectified In
24 Hours Total

Regn Number
Odo (kms?)

23

Total CO2 produced by fleet (tonnes) Regn Number


Odo (kms?)

Odometer Opening
Odometer Closing
Fuel Litres (1)
Fuel Litres (2)
Trips

24

Average CO2 produced by fleet (kg/km) Regn Number


Odo (kms?)

Odometer Opening
Odometer Closing
Fuel Litres (1)
Fuel Litres (2)
Trip

Compliance
Odometer Opening
Odometer Closing
Number of Defects
Defects Rectified in
24 Hours

35

Odometer

Feedback Form
Please photocopy and return this form
Freight Best Practice would welcome comments or suggestions for improvements to the Fleet Performance
Management Tool. Please photocopy the form below, fill it in and return to: Freight Best Practice, c/o Faber
Maunsell, Lynnfield House, Church Street, Altrincham, Cheshire, WA14 4DZ or fax to 0161 927 8399.
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Organisation .............................................................................................................................................................
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Address ....................................................................................................................................................................
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E-mail .......................................................................................................................................................................
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If no, please give reasons ........................................................................................................................................


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If no, please give reasons ........................................................................................................................................


Do you have any other comments on the Fleet Performance Management Tool, or suggested changes that
would make it more useful? .....................................................................................................................................
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Please explain .........................................................................................................................................................


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Would you like to see other KPIs?

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Freight Best Practice will process your personal details for the purpose of supplying you with independent information and advice
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37

Visit the Resource Centre on


www.freightbestpractice.org.uk
to download support materials to
help you maximise use of the
Fleet Performance Management
Tool

Enclosed within this pocket is a CD-ROM containing


the Fleet Performance Management Tool Incorporating
CO2 Emissions Calculator.

Freight Best Practice publications, including those listed below, can be obtained
FREE of charge by calling the Hotline on 0845 877 0 877. Alternatively, they can
be downloaded from the website www.freightbestpractice.org.uk

Saving Fuel

Operational Efficiency

Fuel Management Guide

Make Back-loading Work for You

This is the definitive guide to improving the fuel


performance of your fleet. It gives step-by-step
explanations of the key elements of fuel
management, how to measure performance and
how to implement an effective improvement
programme.

This guide shows you how to find and choose


backloads in order to improve your fleet efficiency.

Developing Skills
Safe Driving Tips
Written especially for commercial vehicle drivers,
this pocket-sized guide provides essential safety
hints and tips on all aspects of driving safely.

Equipment and Systems

Performance Management
Performance Management in Freight
Transport Operations
This guide explains the process of measuring
performance effectively. It includes advice on how
information is best collected and interpreted to
allow informed decision making in order to
achieve operational efficiency improvements.

Public Sector

Truck Aerodynamic Styling

Efficient Public Sector Fleet Operations

This guide offers practical information on


aerodynamically effective styling for trucks
including appropriate add-on features.

This guide is aimed at fleet managers in the


public sector to help them improve operational
fleet efficiency.

September 2007.
Printed in the UK on paper containing at least 75% recycled fibre.
FBP1086 Queens Printer and Controller of HMSO 2007.

Performance Management