Contributing author Joey Slaughter is the owner of Blue Ridge Transport, LLC. A Ringgold, VA based carrier. Joey started his company in 2010 after serving time as an unhappy employee with a local trucking company. The time spent there was not fun but, in hindsight, was a turning point that propelled Joey into the wonderful world of being an entrepreneur. Please visit JoeySlaughter.net for more insightful blogging.
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 calculate my KPI averages for 2015, I discovered some interesting things:
- Biggest swing in fuel cost per gallon was .92 ( May 2015-$2.71 and Dec 2015-$1.79)
- My fuel cost per mile for the year averaged at .30
- My fuel mileage average for the year was 7.8 mpg
Start 2016 off right by maintaining good records and tracking the important metrics in your trucking business each month. Remember, that which gets measured gets improved.