Fleet Class Coding Explained: The Key to Better Utilization, Budgeting & Replacement Planning
This Q&A is based on a recent episode of The Fleet Success Show podcast. Watch the full episode here:
"If you're going to do any kind of data analytics on your fleet, you're going to need a solid class coding system." – Scott Rood
When it comes to managing a successful fleet, class coding is one of the most overlooked yet mission-critical tasks in a fleet manager’s toolbox. Without an organized, data-informed class coding system, even the best fleet maintenance management software won’t be able to deliver reliable insights on cost, utilization, and replacement planning.
In this Q&A-style deep dive, Marc Canton, RTA’s Head of Product, sits down with Scott Rood, RTA fleet consultant and 100 Best Fleets judge to discuss the why, what, and how of class coding. Whether you're a fleet industry veteran or just getting started, this guide will provide clarity, actionable insights, and some hard-earned wisdom from two of the best minds in fleet management.
Q: What is class coding, and why is it so important in fleet management?
A: Class coding is the process of grouping fleet assets into standardized categories based on characteristics like build type, cost, utilization, and purpose. According to Scott Rood, “Class coding lets you compare like units. Once grouped properly, you can run accurate replacement, utilization, and cost analyses.”
Without it, fleets risk misallocating budgets, over- or under-charging departments, and making flawed replacement decisions. It’s the backbone of all meaningful fleet data analytics.
Q: How granular should you get with class coding?
A: It depends on your fleet size and use cases. If you're too broad, you miss critical nuances (e.g., comparing a compact SUV to a 2-ton dump truck). If you're too granular (like assigning every asset its own class), you lose the ability to track trends.
Instead, use a balanced approach:
- Start with class types (e.g., Light Duty Trucks, Medium Duty Trucks, SUVs, Equipment).
- Then subdivide by cost, build, purpose, or utilization (where appropriate).
- Over time, refine your classes as usage patterns and data evolve.
Scott’s advice: "Err on the side of being too granular initially—you can always roll classes up into categories later."
Q: What classification systems are available to fleets?
A: There are free, widely used systems available:
- NAFA: A simplified 4-digit numeric code system. Great for general-purpose and government fleets.
- APWA: More comprehensive and alphanumeric. Ideal if you need deep classifications (e.g., 4WD vs. 2WD, diesel vs. gasoline).
Most of RTA’s client engagements use a hybrid of NAFA and customized structures tailored to the fleet's unique needs.
Q: What should influence your decision to split assets into separate classes?
A: Here are key factors Scott and Marc emphasized:
- Cost: A $400,000 excavator shouldn’t be grouped with a $75,000 one.
- Build: Utility beds, dump beds, aerials, or flatbeds all affect classification.
- Use case: Public works trucks and facility maintenance vans may look the same but are used differently.
- Utilization patterns: Even if two vehicles cost the same, one might be in constant operation, while the other sits idle.
- Fuel type: Gasoline, diesel, hybrid, and EVs must be treated differently—especially in life cycle planning.
Q: How do I get started building or refining my class codes?
A: We recommend that you:
- Start with broad categories: Automobiles, pickups, equipment, etc.
- Analyze by key variables: Price, build, usage patterns.
- Break down further as needed: Use a “sniff test” on price or utilization to check grouping accuracy.
- Use an existing framework: NAFA or APWA, then modify based on your operation.
- Regularly review and update: Your class coding system should evolve with your fleet.
Scott’s pro tip:
“Don’t try to reinvent the wheel. Start with a system that exists and customize only where necessary.”
Q: How does class coding tie into other fleet management areas?
- Replacement planning: Accurate class codes drive reliable life cycle models.
- Utilization tracking: Properly grouped assets allow for fair and meaningful utilization benchmarks.
- Chargebacks & budgeting: Prevent over- or undercharging departments.
- Fleet maintenance reporting: Enables clean, category-specific reports for leadership.
Final Thoughts
Whether you're managing a city fleet or a national utility, class coding is essential for operational and financial success. Without it, even the most advanced fleet management software or vehicle fleet maintenance software is handicapped from the start.
Ready to elevate your fleet’s performance? Start with your class codes.