Fleet Management Glossary

This glossary provides definitions for common terms used in fleet management. Terms are listed in alphabetical order for easy reference. Use this resource to familiarize yourself with industry terminology or as a quick reference guide.

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Acceptance Rate - The percentage of ride requests accepted by drivers, overall or for individual drivers.

Accident Management: The process of handling vehicle accidents from initial reporting to resolution. This process can be automated.

Active Drivers (plan vs. actual) - The current (real-time) number of active drivers in the shift, compared to the number planned

Charging time: Charging an electric vehicle (EV) takes more time than fueling and it is not negligible. Fleets should keep track of time spent at charging stations as well as waiting times as the vehicles are in line for an open charger.  

Completion Rate - The percentage of ride requests and/or tasks that were successfully completed per time unit.  

Compliance: Adherence to laws, regulations, and company policies related to fleet operations.

Deadhead Miles - Deadhead miles are the distance traveled while empty, not carrying a load, passengers, or completing revenue generating tasks. These miles present an inefficient use of resources, and optimizations should be used to minimize them wherever possible with intelligent dispatching and routing.

Depreciation: The decrease in a vehicle's value over time due to factors such as age, market conditions, and technological obsolescence, in addition to wear and tear. It occurs even if a vehicle is not used, reflecting the ongoing reduction in its market value from the moment of purchase.

Downtime: The period when a vehicle is not operational due to waiting, maintenance, repairs, cleaning, or other reasons. Fleet managers should naturally aim to minimize downtime as much as possible, and make sure as much of it takes place during off-peak hours or when the service is not active. 

Driver Behavior Monitoring: Using telematics to track and analyze how drivers operate and drive their vehicles. Driver behavior monitoring can be done in real-time, with alerts issued for dangerous situations, or after the fact by issuing reports.

Driver Safety Program: Initiatives, training, and fleet policies aimed at improving driver behavior and reducing accidents, which may include optimizing routes to limit turns into traffic, enforcing speed limits or geo-fencing zones drivers should avoid.

Duty of Care: A fleet operator's legal obligation to ensure the safety of the drivers and vehicles in the fleet.

Estimated Time of Arrival (ETA): ETA is an estimation of when a vehicle or shipment will reach its destination. ETA is calculated using various factors such as current location, route information, traffic conditions, and historical data. Accurate ETAs are essential for optimizing schedules, customer satisfaction, and improving overall operational efficiency. 

Fleet - A group of vehicles active in the service of a business or organization to serve a transport or logistics purpose. Modern fleets can be owned, leased or operated by gig-drivers who provide their own vehicles 

Fleet Analytics: Fleet analytics describes the analysis process of data related to fleet operations and business objectives. Gathering and analyzing data from various sources such as telematics, GPS tracking, tasks and ticketing systems, invoicing, maintenance records, and customer feedback, to name a few. This data is used to optimize operations, improve efficiency, reduce operational costs, and enhance safety and compliance. As well as to inform strategic decisions, forecast demand, and assess overall fleet performance. Fleet analytics are crucial to managing businesses and to achieve operational efficiency, profitability, and competitive advantage in the market.

Fleet Automations: For fleets, automations refer to the implementation of workflows, alerts or reporting, without direct human intervention. Using predefined rules and algorithms to launch and streamline fleet tasks. Examples include automated maintenance scheduling, automatic dispatch based on real-time demand, dynamic route optimization, automatic alerts for policy violations, and automated reporting. Automations allow fleet managers to streamline operations, improve efficiency, response times, reduce errors, optimize resource allocation, and focus on strategic decision-making rather than routine tasks.

Fleet Benchmarking: Fleet Benchmarking is the process of measuring and comparing a fleet's performance against industry standards, competitors, or internal targets using Key Performance Indicators (KPIs). In professional fleet management, this practice involves the extensive use of data-driven metrics covering various aspects of operations, including vehicle utilization, fuel efficiency, maintenance costs, driver performance, and environmental impact. Analyzing KPIs allows fleet managers to optimize operations, identify areas for improvement, set realistic goals, and implement best practices.

Fleet Electrification: Fleet electrification is the strategic transition from traditional Internal Combustion Engine (ICE) vehicles to Electric Vehicles (EVs). This process encompasses not only the acquisition of electric vehicles but also the careful planning and implementation of supporting infrastructure, such as charging stations. It involves analyzing route patterns, energy requirements, and operational needs to optimize EV deployment. Fleet electrification also includes developing new maintenance protocols, training staff, and often redesigning operational processes to maximize the benefits of electric vehicles while meeting sustainability goals and adapting to changing regulatory environments.

Fleet Management Software (FMS): A software solution used to track and manage various aspects of fleet operations. FMSs range from those who merely provide basic information about the fleet to those that optimize, automate and streamline the entire fleet operation 

Fleet Policy: A document or documents that includes a comprehensive set of guidelines and rules that govern the operation, management, and maintenance of a vehicle fleet. Typically It covers crucial aspects such as vehicle acquisition, driver responsibilities, safety protocols, maintenance schedules, fuel management, and compliance with legal and environmental regulations. 

Providing clear expectations and procedures aligns fleet operations with the organization's overall objectives. 

Fleet Rightsizing: Optimizing the number and types of vehicles in a fleet to meet its tasks and operational needs. 

Fleet Sustainability: Managing and operating a fleet to minimize its environmental impact while maintaining operational efficiency and economic viability. The term usually refers to strategies and optimizations aimed at reducing resource consumption, such as electrification, optimizing routes to reduce fuel consumption, implementing eco-driving techniques, and utilizing renewable energy sources to reduce carbon footprint. It is often driven by the desire to improve long-term cost-effectiveness, corporate social responsibility, and regulatory requirements. 

Fuel Card: A payment solution to manage and monitor fuel purchases and related expenses. While traditionally issued as physical cards, many modern fuel cards use digital platforms, mobile apps, or telematics systems. 

Fuel Efficiency: The distance a vehicle can travel per liter or gallon of fuel. Using fuel efficiency measures and tank capacity gives the range of the vehicle. 

Fuel Management System: A system for tracking and controlling fuel consumption and costs, often using fuel cards 

Green Fleet: A fleet that emphasizes environmental sustainability and reducing greenhouse emissions.. This can be achieved by optimizing routes and tasks, implementing multimodal transportation, and using electric vehicles.

Grey Fleet: A fleet that relies on personal vehicles for business purposes. 

Heat Map: A heat map provides a visual representation of demand, ride requests, breakages or any other metric in a geographical location. Using color to show density. These maps are useful for fleet managers to quickly identify areas of interest or concern and provide a clear, intuitive visualization of data.

Idle Time: The amount of time vehicles spend running while stationary.

Idling: Standing in place with the vehicle's engine running. A practice that is both expensive and enviromentaly harmful.

Leasing: Leasing is a strategic financial arrangement for businesses to acquire vehicles for a specified period, without the full burden of ownership. It allows companies access to newer vehicles with lower upfront costs, and often provides tax advantages as well as improved cash flow and lower upfront investment. Leasing often offers flexibility and allows businesses to adapt to changing operational needs. It also may include maintenance packages that simplify vehicle management and create a more predictable cost structure.

Lifecycle Management: The process of managing a vehicle from acquisition until it is removed from the fleet. 

Mileage Reimbursement: Payment to employees for the use of their personal vehicles (like in a gray fleet) for business purposes.

Mobility Software Management: A comprehensive managerial approach to planning, implementing, and overseeing transportation systems and services. It encompasses a wide range of strategies, policies, and technologies aimed at optimizing efficiency, accessibility, and sustainability of transportation networks.

OEM (Original Equipment Manufacturer): The company that originally manufactured the vehicle. The logo on the hood of the car. 

On time performance (OTP): sometimes also referred to as on time percentage, is a measure of how many rides or tasks were completed within the time constraints allotted to them. It reflects the efficiency and reliability of the fleet and is crucial for ensuring customer satisfaction, optimizing logistics and minimizing operational disruptions.

Payload: The carrying capacity of a specific vehicle in the fleet. it can be measured by volume and/or weight.

Pickup/Drop Off Duration - Picking up a ride or a parcel and delivering it can take some time. Think, for example, of a wheelchair assisted passenger that need help to get in and out of the vehicle. Time spent picking up or dropping off rides should be measured and included in optimization calculations. 

Pool Vehicle: A vehicle shared among multiple drivers or departments rather than assigned to a specific individual.

Pooled Rides: Pooled rides are a method of allowing multiple passengers heading in similar directions to share a single vehicle. It offers increased vehicle utilization and efficiency and can provide significant cost and emissions reduction. In some industries, Pooled Rides are also referred to as Multi-loading

Predictive Maintenance: Unlike preventative maintenance that uses statistics for creating a maintenance policy that is good for most vehicles, predictive maintenance uses data of a specific vehicle to analyze and predict when maintenance will be needed before a breakdown occurs.

Preventive Maintenance: The regular, scheduled maintenance of a vehicle to prevent breakdowns and extend the fleet's life. Making sure a fleet adheres to its prescribed preventative maintenance can save downtimes, time and money 

Rebalancing: The process of redistributing vehicles within the fleet to ensure optimal availability across different locations, typically in response to fluctuating demand or operational needs.

Remarketing: Selling or disposing of vehicles that are no longer needed or have reached the end of their useful life within the fleet. This involves preparing, valuing, and selling these vehicles through various channels.

Residual Value: The estimated value of a vehicle at the end of its lease term or useful life.

Risk Management: Risk management centers on identifying and mitigating potential risks associated with vehicle fleets, such as safety hazards, compliance issues, and financial impacts from accidents or operational disruptions. It focuses on implementing proactive measures like preventative and predictive maintenance, driver training programs, and real-time monitoring systems to ensure operational continuity and minimize potential liabilities.

Route Optimization: Route optimization is the process of determining the most efficient path for a vehicle to take. It considers factors such as distance, time, fuel consumption, additional tasks, delivery windows and even predictive demand to minimize costs and maximize productivity.

Route Re-optimization: Re-optimization is the process of systematically improving the efficiency of planned routes by taking into account real-time parameters such as traffic, new tasks and requests, driver availability and more. By continually adjusting and optimizing routes, fleets can reduce fuel consumption, lower operational costs, improve delivery times, and enhance overall fleet productivity.

TCO (Total Cost of Ownership) - The complete cost of owning and operating a vehicle over its lifetime. It is made up of the vehicle’s purchase (or leasing) price, maintenance, fuel or other energy cost, the cost of insurance and financing and the loss of value due to depreciation. 

Telematics: An IoT (internet of things) technology that tracks diagnostics of the various vehicle subsystems, locations and vehicle and driver behavior. Telematics sends, receives, and stores information related to the vehicle and is used for both real-time operations and historic reporting.  

Toll Management: Systems for managing and paying tolls for fleet vehicles.

Upfitting: Adding equipment or making modifications to a vehicle in preparation for fulfilling its fleet tasks.

Utilization rate: Utilization measures of how efficiently the fleet is being used or deployed. Utilization can be calculated using time (hours active/total available hours), tasks (tasks performed/total tasks) or capacity (which can include things as different as the power capacity of an EV, or the volume and weight capacity for delivery operations). The resulting percentage indicates how much of the total available capacity of the fleet is actually being utilized. 

Utilization rates can be calculated for the entire fleet or for individual vehicles or drivers. 

Vehicle Inspection: Regular checks of vehicle condition and safety features. It can include a detailed examination of the brakes, tires, lights, steering, and fluid levels as well as checking for compliance with environmental standards and maintenance schedules. Vehicle inspections often take into account more than just technical facets and can include how clean the vehicle is and amenities within, as well as equipment needed for fleet tasks. 

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