Fleet benchmarking is the process of comparing your fleet’s performance metrics against historical data or external standards. It helps fleet managers evaluate performance, identify inefficiencies, and make data-driven improvements across operations.
In this guide, you’ll learn what fleet benchmarking does, how it works, and why it matters. We’ll cover the difference between internal and external benchmarking, how to choose the right KPIs, the tools that simplify the process, and common mistakes to avoid.
What is Fleet Benchmarking?
Fleet benchmarking is the process of comparing your fleet’s internal performance metrics to those from other sources. Benchmarking helps fleet managers identify performance gaps, set realistic targets for improvement, adopt best practices from high-performing fleets, and uncover opportunities to reduce costs and improve efficiency.
Fleet managers can benchmark against internal metrics or external metrics.
External benchmarking
External fleet benchmarking is the process of measuring your fleet KPIs against those from external sources to learn how your fleet stacks up.
External benchmarking sources include:
- Industry averages
- Government data sets
- Fleets operating in a similar geography
- Fleets of a similar size
- Fleets within or outside of your industry
- Fleets with similar vehicles or applications
External benchmarking example
Let’s say you notice all trucks of a certain make and model in your fleet make frequent trips to the shop for repairs, and it’s increasing downtime. Do all trucks of this make and model have higher downtime than other vehicles, or is this issue specific to your fleet?
External benchmarking can answer these questions and guide you toward the proper action. If you compare your downtime metric for this truck type to other fleets and discover it’s similar, you might consider replacing these trucks with a make/model with better uptime. On the other hand, if you discover your downtime is significantly higher, perhaps maintenance and repairs aren’t being performed properly. In this case, your next move is to schedule technician training with the OEM.
Internal benchmarking
Internal benchmarking involves comparing segments within your fleet to identify performance trends, detect anomalies, and fine-tune decision-making.
Fleets can internally benchmark by:
- Vehicle make, model, or class
- Location/depot
- Time period
- Driver
- Technician
- Parts and consumables
- And more
Internal benchmarking example
Let’s say you know Vehicle A has a fuel economy of 20 mpg. If you compared that data point to the same one three years ago, you might discover its fuel economy used to be 23 mpg. This internal benchmarking could signal that the vehicle hasn’t been maintained properly, the driver is letting it idle too much, or it’s reaching the end of its lifecycle.
When you identify the source of the vehicle’s waning fuel efficiency, you can take action. In this instance, you could get it back on a proper maintenance schedule, discuss idling reduction with the driver, or retire the vehicle.
How fleet benchmarking supports data-driven decisions
Whether you benchmark against internal or external data sources, benchmarking gives you the power to make data-driven decisions for strategic, continuous improvements.
Benefits of Fleet Benchmarking
Fleet benchmarking gives you a fresh perspective on your fleet strategy. Comparing fleet metrics and data insights does more than grade your fleet on its performance.
Benchmarking:
- Turns data into actionable insights
- Drives data-driven decision making
- Uncovers performance gaps, waste, and inefficiencies
- Reveals areas of strength to highlight with leadership
- Helps justify investments to support new fleet strategies
- Informs realistic goal setting
Using benchmarking as a strategic tool yields significant outcomes, including:
- Better routing
- Increased fuel efficiency
- Streamlined fleet operations
- Reduced operating costs
- Safe and efficient driver performance
- Lower crash rates and costs
- Lower insurance premiums
- Better cost control
- Higher compliance rates and fewer fines
- Increased customer satisfaction
- And more
In short, fleet benchmarking is a strategic tool that uses fleet analytics to drive continuous improvement.
What KPIs Should You Benchmark in Your Fleet?
Typically, any metric you collect, you can benchmark. However, common fleet KPIs used to benchmark fleet performance include:
- Total cost of ownership (TCO)
- Cost per mile (CPM)
- Vehicle utilization
- Fuel consumption
- Maintenance costs
- Downtime and repair frequency
- Driver behavior/safety metrics
- On-time delivery rate
- Fleet availability
- Empty miles
Benchmarking doesn’t follow a strict formula — choose the metrics that make sense for your operation and your goals.
Steps to Benchmark Your Fleet’s Performance
Although you can customize fleet benchmarking to your operation, the essential steps for benchmarking all KPIs are the same. Follow these six steps to benchmark fleet performance.
1. Collect and clean your data
Fleet benchmarking is only effective when it’s based on accurate data, so you’ll want to use reliable data sources. These include:
- Telematics platforms
- Fleet management information systems (FMIS)
- Fuel cards
- Maintenance logs
- ELD logs
- CSA scores
- MVRs
It’s critical to get fleet data collection right. Dirty or inconsistent data can lead to incorrect conclusions, so take the time to clean the data (remove duplicates, correct errors, and standardize formats) and ensure that all data is up-to-date, accurate, and consistently formatted across systems.
2. Select relevant KPIs
Before choosing KPIs, think through your goals, the questions you have about your fleet’s performance, and the challenges you’d like to solve. These can guide you to the right metrics to benchmark.
Remember: Just because you have access to a long list of metrics doesn’t mean you should benchmark them all. Focus on a manageable number of fleet KPIs — enough to conduct a fleet performance analysis, but not so many that the process becomes overwhelming.
3. Compare against benchmarks
Now that you’ve chosen relevant fleet KPIs, it’s time to compare your performance against meaningful standards.
Sources for external benchmarking data include:
- Government transportation agencies (e.g., FMCSA, EPA, NHTSA)
- Industry associations (e.g., NAFA, ATA, AFLA)
- Peer fleet data
- Third-party reports from fleet consultants, software vendors, or analysts
You can also perform internal benchmarking—comparing across depots, load type, time periods, truck model, etc.
4. Analyze gaps and identify root causes
How does your fleet compare to the benchmarks you’ve selected? In which areas are you overperforming or underperforming?
Once you answer these questions, you can begin digging into the root causes of performance gaps. Here are some examples:
- External benchmarking: If your fuel costs are higher than average, is it due to idling, inefficient routing, vehicle type, or unsafe driving behaviors?
- Internal benchmarking: If drivers in one region are experiencing higher-than-average accident rates, are drivers exhibiting unsafe behaviors, are mechanical failures causing crashes, are the routes unsafe, or is it because of the geography and/or climate?
5. Develop an action plan
Based on your fleet performance analysis, what changes could you make to resolve the issues you’ve uncovered?
Based on the above examples, changes could include:
- Implementing an idling reduction strategy
- Adjusting maintenance schedules
- Changing to shorter and/or safer routes
- Coaching operators on safe driving behaviors
- Offering technician training
- Replacing trucks with different makes/models
Whichever action you take, you’ll want to set specific, measurable KPIs and goals so you can evaluate the effectiveness of the changes you’ve made.
6. Track improvements over time
Benchmarking isn’t a ‘one-and-done’ activity. Tracking fleet performance is a continuous process. When you regularly track KPIs, you can measure the impact of the changes you’ve made and adjust strategies for continuous improvement.
What Tools Help with Fleet Benchmarking?
Fleet benchmarking tools play a vital role in collecting clean data, comparing it against reputable data sources, and using the insights to make impactful improvements.
Benchmarking tools and resources include:
- Telematics systems track speed, idling, braking, and fuel use — essential data for accurate fleet benchmarking.
- Benchmarking reports from industry associations make it easier to identify external benchmarks
- Fleet management software (FMS) aggregates data from multiple sources — fuel cards, maintenance records, compliance reports — and pulls it into dashboards and reports to make it easier to track performance and spot trends.
- Transportation management systems (TMS) provide comprehensive reporting and real-time analytics on costs, profitability, safety, compliance, dispatching, and routing for trucking-focused insights and actionable intelligence.
- Fuel card programs offer reporting dashboards that break down fuel consumption by vehicle, driver, and location, making it easier to benchmark fuel efficiency, detect fraud and unauthorized purchases, and analyze route effectiveness.
- Consultants can review your findings and help you develop an action plan.
Common Fleet Benchmarking Mistakes and How to Avoid Them
Although there’s no prescribed “right” way to benchmark, it’s wise to avoid these benchmarking missteps.
Benchmarking the wrong metrics
One of the biggest fleet performance pitfalls is tracking metrics that don’t align with your fleet’s goals or operating model. For example, if your fleet is focused on fast delivery, benchmarking cost per mile isn’t as relevant as tracking average delivery times or on-time delivery rate.
Tracking too many metrics
Tracking too many metrics can be overwhelming and lead to analysis paralysis. If you’re mired in KPIs, it will be difficult to focus on the metrics that matter and decide what strategic changes to make. It’s better to carefully choose which metrics to track at the outset so you can stay focused on making meaningful improvements.
Forgetting to update benchmarking metrics
Just as your fleet changes over time, so too should your benchmarks.
Using out-of-date benchmarks can skew comparisons and yield misleading results, which defeats the purpose of benchmarking in the first place.
Updating benchmarks annually is a best practice. Major changes to your fleet operations should also trigger a benchmark refresh (think vehicle replacements, route changes, fuel price fluctuations, and shifting regulatory requirements).
Not involving the team in action plans
Drivers, dispatchers, mechanics, and other frontline staff have an up-close and personal view of fleet operations, so don’t forget to ask for their input when you’re developing action plans. They likely have valuable ideas about why metrics are off and practical solutions for righting the course.
Asking for input also builds buy-in for any changes you decide to move forward with.
Make Benchmarking Easy and Drive More Profitability with PCS Software
Trucking-focused reporting and analytics from PCS Software can help you make smarter decisions with real-time data: Track key metrics, identify trends, and benchmark your performance against your historicals.
Plus, you can uncover hidden costs, optimize performance, and gain detailed insights into profitability by load, driver, and more.
Are you ready to discover the power of an all-in-one transportation management system? Contact us today to schedule a free demo.
