It’s that time of year when I review my KPI’s (Key Point Indicators) that I’ve tracked each month. At the end of each month, I tally up the following:
- Miles driven
- Revenue per mile
- Average fuel cost
- Average fuel mileage
- Fuel cost per mile
- Cost to operate
- National Fuel Price Average
- Nights away from home
Throughout the year, I am focused on the day to day operations and refining the processes involved in being a successful trucking company. At the end of the month, I review the KPI’s to make sure I’m hitting my mileage goals and trying to meet my revenue goals which has been tough lately because of the shaky spot market conditions.
At the end of the year, I have a much bigger view of the data spread across 12 months of varying market conditions, weather challenges and fuel price swings. After I calculated my KPI averages for 2018, I discovered some interesting things:
- My revenue per mile was up .26 from 2017.
- My fuel cost averaged .35 per mile
- My fuel mileage average for the year was 8.1 mpg which was better than 2017 (7.8)
The bottom line was that I made more money in 2018, and I ran less miles to do it. My revenue per mile was considerably higher due to stronger market conditions.
Start 2019 off right by maintaining good records and tracking the important metrics in your trucking business each month. Remember, that which gets measured gets managed.
Thanks to TruckStockImages.com for the use of this photo.