Metrics That Matter In Motor Fleet
“Bang! Every two miles, the average driver makes four hundred observations, forty decisions, and one mistake. Once every five hundred miles, one of those mistakes leads to a near collision, and once every sixty-one thousand miles one of those mistakes leads to a crash. When people drive, in other words, mistakes are endemic and accidents inevitable”
– Malcolm Gladwell, Wrong Turn (2001)[i]
As 2024 begins, we reflect on a concerning statistic from the previous year: a 19% increase in road fatalities in Ireland[ii], with approximately 60 lives lost[iii] and 500 serious injuries[iv] in work-related driving incidents.
Crashes are the visible tip of the iceberg, a tangible marker of incidents and a primary driver of avoidable cost and harm. However, beneath the surface lies a vast expanse of underestimated, measurable forces that mitigate or increase risks. In this article, we'll explore why and how businesses with vehicles on the road can identify opportunities to transform performance.
The Hidden Depths: Realising the Power of KPIs
Since Heinrich’s triangle in the 1930s[v] – in which a relationship of one major injury accident to 29 minor injury accidents to 300 no-injury accidents was calculated – the evidence shows that reducing the number of minor accidents, sees a correlating fall in the number of major accidents.
Similarly, a fleet's true strength lies in managing the hidden depths beneath the surface. By embracing Key Performance Indicators (“KPIs”), conducting thorough risk assessments of its drivers and fostering a culture of proactive safety management, fleets can succeed in reducing business downtime and cut collisions by an average of 20%-60%[vi].
Here are five meaningful metrics which any car or van fleet operator that wants to improve safety, compliance or cost outcomes needs to track and respond to:
1. Incidents per Million Kilometres (IPMK):
Every kilometre driven is a risk taken. This KPI dives deep into the frequency of incidents by quantifying the number of incidents or collisions a fleet experiences over a million kilometres travelled. It provides a comprehensive view of safety performance, allowing businesses to gauge risk and driver behaviour. Top fleets analyse IPMK to identify trends, hotspots and areas for proactive intervention before incidents occur and help ensure continuous improvement in safety performance.
Pro tip: The average fleet crash rate is six per million kilometres[vii]. Identify your CPMK, compare with peers and monitor over time. Recognise this is an average rate across many fleets, so compare like with like e.g. your five-year trend. Also, go deep: one large Irish fleet found their CPMK rate was below five in one business area and greater than 15 in another!
2. Collision Cost per Million Kilometres:
Going beyond incident frequency, this KPI measures the financial impact of incidents, offering insights into the severity of collisions. It considers the economic implications of each event, guiding businesses in implementing targeted measures based on collision cost.
3. Vehicle Maintenance Compliance Rate:
This KPI tracks the compliance rate of scheduled maintenance tasks, including inspections, repairs, and preventive maintenance. A high compliance rate is indicative of a proactive approach to fleet safety which also helps reduce vehicle wear and tear costs. Fleets can also identify unsafe driving behaviour from excess servicing records and promptly intervene.
4. Driver Training Effectiveness:
Driver training programmes and enhancing driver awareness can help prevent incidents. This KPI considers factors such as incident reduction, compliance with safety protocols and feedback from drivers. Crucially, driver training works best when targeted – i.e. based on objective risk assessments - and blended with communicating awareness of company policy, best-practice and relevant updates.
5. Telematics-Based Driving Behaviour Score:
Leveraging telematics, this KPI quantifies driver behaviour based on parameters such as acceleration, braking, cornering and speed. A higher score indicates safer driving habits which often correlate with a lower crash propensity. When high-risk behaviours are identified at a group or individual level, interventions such as goal-setting and feedback, incentives programmes and group-based discussions are found to be more effective than training.
Beyond Telematics – The Age of AI
2022-2023 saw artificial intelligence become mainstream with the launch of ChatGPT and similarly AI is today being used in workplaces to identify near-misses caused by “unsafe vehicle behaviours…enabling you to proactively avert accidents before they escalate”[viii].
While staff driving for work may once have been out of sight and out of mind, AI-driven telematics technology such as Samsara[ix] dashcams have somewhat paradoxically made unsafe driving behaviours not only more measurable but coachable in real-time.
Conclusion
By measuring and monitoring the right KPIs and events, fleet managers can proactively identify and address potential risks, leading to improved safety and reduced losses. The journey towards safer roads begins with informed and proactive management. Let's make 2024 a year of positive change in road safety for Ireland.
Learn more
[i] Wrong Turn, by Malcolm Gladwell: https://www.newyorker.com/magazine/2001/06/11/wrong-turn
[ii] Garda road policing statistics - https://garda.ie/en/roads-policing/statistics/previous-years-roads-policing-statistics/overview-2023.html
[iii] One in three crashes - https://drivingforwork.ie/
[iv] RSA KSI statistics - https://www.rsa.ie/docs/default-source/road-safety/r2---statistics/road-collision-annual-reports/five-year-trend-analysis-of-fatalities-and-serious-injuries-2018-2022b8cf0b0e-ff0e-4638-bfa9-0f125aa0888d.pdf?Status=Master&sfvrsn=87daeacc_3
[v] Heinrich’s triangle - https://en.wikipedia.org/wiki/Accident_triangle
[vi] Sample savings case study - https://www.driverfocus.ie/case-study-list/no-data-no-discount
[vii] Driving for Better Business Survey - https://www.drivingforbetterbusiness.com/articles/accident-frequency-rates/
[viii] Protex AI - https://www.protex.ai/product/vehicle-control
[ix] Samsara dashcams – learn more: https://www.driverfocus.ie/samsara
Note: This blog post is based on our CEO’s January 2024 article of the same name in Irish Broker Magazine – you can read it here: https://irishbroker.ie/january-2024/#irishbroker-df_7280/32/