THE ART OF NEGOTIATION
THE LATEST IN AUTOMOTIVE SAFETY TECHNOLOGY
FLEETS UNDER INVESTIGATION – THE POLICE PERSPECTIVE
Adrian Furnham, professor of psychology, University College London
Matthew Avery, research director, Thatcham
Sgt Patrick Joyce, senior investigating officer, South Wales Police
REDUCING PROCUREMENT COSTS
FLEETS UNDER INVESTIGATION – LICENCE CHECKING
FLEETS UNDER INVESTIGATION – A FLEET CASE STUDY
Simon Boggis, chief procurement officer, CEVA Logistics
Kevin Curtis, Association of Driving Licence Verification
Geoff Wright, chief fleet engineer, CM Downton
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leet News Congress took delegates on a journey through the key elements involved in running an efficient fleet operation, assessing how you negotiate the best deal from suppliers to understanding the needs of your procurement department, and advice on how to better manage driver behaviour to what actually
happens if one of your employees has a fatal crash while driving for work purposes. Held at the Heritage Motor Museum at Gaydon, Congress brought together fleets of different sizes from different sectors to learn and share best practice across all the fleet disciplines. Chaired by former SMMT
chief executive Christopher Macgown, the conference received fantastic feedback from delegates, with several rating it as “the best Congress we’ve attended”. In this digital magazine, you will find some of the top-level advice offered by this year’s speakers. But to benefit from speakers’ full wisdom, you need to attend future Fleet News events in person.
INCIDENT MANAGEMENT
THE ART OF NEGOTIATION
FLEETS UNDER INVESTIGATION – LICENCE CHECKING
THE LATEST IN AUTOMOTIVE SAFETY TECHNOLOGY
FLEETS UNDER INVESTIGATION – A FLEET CASE STUDY
FLEET MANAGEMENT SOFTWARE
FLEETS UNDER INVESTIGATION – THE POLICE PERSPECTIVE
SEMINARS
FUNDING
SERVICE, MAINTENANCE AND REPAIR
FLEET RISK MANAGEMENT
CONTENTS SPEAKERS
REDUCING PROCUREMENT COSTS
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TELEMATICS
VEHICLE AND DRIVER COMPLIANCE
THE ART OF NEGOTIATION
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reparation is the stage of negotiation that many people go through far too quickly and this nearly always causes problems, said Adrian Furnham. He suggested that good negotiators “spend an immense amount of time thinking about what
upbeat, no sulking, always emotionally positive whatever happens.” Negotiation is about “the head” – it’s about logic and analysis – but it’s also about “the heart” and fleet managers that understand the emotional effect can “do some good work”. “Try to get a feel for the person you’re dealing with,” Furnham said. Adrian Furnham, “It’s important to have the skill of professor watching and listening carefully, of psychology, particularly the difference between the University College verbals and the non-verbals – what London they’re really saying and what they mean.” Then comes the proposal. they’re going to do”. “The really clever people put things “Think through exactly, point by point not in pairs, but in groups of conditions,” what you’re prepared to give away, what he said. you’re not prepared to give away, how Furnham advised fleet managers to you’re going to put things together, what make their proposal and then “shut up” they want and how they’re going to because silence is powerful in negotiation. approach negotiation,” said Furnham. “Negotiation is a dialogue designed to “The more you know their agenda, the resolve disputes,” he said. “You want better you’re going to be.” something and I want something and He also advised fleet managers to “go in can we get together and come to an early” and “aim high”. “The more you ask agreement that satisfies us both?” for, the more you get,” added Furnham. Furnham added: “It is an essential skill, It’s important to remain positive during the most transferable of skills. the negotiation stage. “Learn to do this and you can use that “One of the things you notice with skill all the time, everywhere. It’s relatively negotiators and sales people is their easy to learn and, my goodness, it’s positivity,” he said. “They are always important for business.”
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THE LATEST IN AUTOMOTIVE SAFETY TECHNOLOGY
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leets will have access to an ever-greater array of systems on vehicles to help improve safety, although vans are lagging behind, according to Matthew Avery, vehicle safety research organisation director, Thatcham. Thatcham Matthew Avery said vehicle safety has been driven by Euro NCAP ratings and demand for safer vehicles, although a show of hands around the room revealed only three fleet managers demand cars which have achieved the maximum five stars. He also admitted that light commercial vehicles needed to make up ground with HGVs and cars when it came to safety features, as HGV safety has been governed by legislation while car safety has been highlighted by NCAP testing. Avery said LCV procurement is sometimes driven by cost and there hasn’t been the same level of demand to include safety features.
He said: “Electronic stability control is an established life-saver. “It is now a legal requirement on passenger cars and means a vehicle equipped with it is 25% less likely to be involved in a serious or fatal crash.” He also praised the increased take-up of autonomous emergency braking (AEB) by manufacturers, where a car can detect hazards and obstacles on the road and apply the brakes if the driver does not respond to alerts. Avery said: “Analysis of accident claims shows up to a 33% reduction in crashes with AEB-equipped vehicles. “The pressure we put upon manufacturers through NCAP ratings compels them to include the technology. “We’ve seen huge uptake in the UK market. One in three models is now available with AEB and about 10% have it fitted as standard.” Avery added: “Sensors and cameras are often fitted around the vehicle to prevent collisions and to guide and steer vehicles. “This technology can work to avoid crashes when reversing, which is responsible for many low-speed accidents. AEB and lane control will become more important in safety ratings.”
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FLEETS UNDER INVESTIGATION – THE POLICE PERSPECTIVE
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ehicle accident investigation has become a complex and thorough process, but new technology will help minimise disruption to traffic. Sgt Patrick Sgt Patrick Joyce Joyce, senior said historically a investigating sergeant on a shift officer, South and one officer Wales Police would have been the investigating team for a serious or fatal accident. “Now we have a big investigation team,” he said. “This includes a roads policing, senior investigation officer, collision investigator, vehicle examiner and family liaison officer.” He outlined the process of a police
investigation, from preserving the scene of the incident and the impact it has on the road network, to when a driver on business is involved in the crash and checking their employer’s ability to comply with rules and best practice. “A fatal road traffic accident can rapidly turn into a corporate manslaughter investigation,” he said. Using a real-life incident as an example, Sgt Joyce said talking to the company can often reveal its attitude and culture long before any specific questions about the incident have been asked. “The attitude of a company can give strong clues as to how safety is treated within an organisation,” he said, adding: “We are not the enemy. We are very much here to help you. “We would much rather you speak to us before an incident if it will help prevent it.”
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five-step procedure is at the heart of the procurement process for Simon Boggis. A five-time Fleet News Award winner, he took Simon Boggis, over procurement chief at CEVA just after procurement a demerger from officer, CEVA TNT Logistics Logistics and had to pull together disparate practices at a local level into a cohesive global plan. Beginning the process, Boggis would evaluate previous practices; then engage all stakeholders and necessary parties; negotiate with a selection of suppliers who have potential to be a good fit; then implement the chosen product or service; followed by monitoring for the life of the contract. Boggis said ensuring decisions didn’t feel imposed centrally was key – people across the business needed to feel their voice and input was heard, and their expertise was listened to. “Credible savings approved by the finance department are also important”,
he said. “We needed to demonstrate the value of what we were doing, and the achievements of our people. If finance can back it up and understand our savings, that’s great.” Technology and systems were also a big hurdle. With five separate systems, data was hard to view in the early stages of CEVA’s life. New systems to compile that data required investment, but made future savings possible. “Many companies suffered in the recession, but now companies and departments need backing,” added Boggis. But without constant innovation, companies will not be able to cut costs; likewise “bash people for cost savings” too much, and it can stifle innovation. To get that investment, he spoke of building the reputation and credibility of a department internally. “People have their own opinions of procurement, but a positive reputation builds momentum to get others to help. It can help get investment, just as my Fleet News Award wins helped me gain fleet investment years ago.” On working with suppliers, Boggis said: “A good relationship where you can innovate and take advantage of technology and people is competitive, and has value. Only a bad relationship costs you money.”
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FIRST WITH THE FACTS The 2014 Lex Autolease Report on Company Motoring Discover how the company car is bouncing back, why going green is not enough, the truth behind telematics, the challenge of ‘grey power’ and much more in our definitive 80 page report.
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FLEETS UNDER INVESTIGATION – LICENCE CHECKING
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romoting best practice and data security are the priorities for Association of Driving Licence Verification (ADLV), a trade association Kevin Curtis, set up to represent Association of the electronic Driving Licence licence checking Verification industry. Commercial licence checking was introduced in 2003, with the industry growing by approximately 20% every year since. Then, details were checked using paper mandates, faxed to the DVLA, which would fax back the information to the checking agency. Today, licence data is checked electronically within one working day, with batch data requests being sent and received each evening. ADLV’s 16 members process around 1.5 million licence checks every year. An estimated eight million UK drivers take to the roads for business, across 1.7m companies, but Malcolm Maycock,
of ADLV, said the majority of businesses do not check their licences electronically. He believes that many companies do not properly check their licences at all. If a driver hasn’t sent off their licence after a penalty, it may not show their offences, but their licence could have been revoked. “I’m still astonished how many drivers are out there driving with provisional or even no licence at all”, said Maycock. Kevin Curtis, also of ADLV, added: “Creating engagement with DVLA is a priority. “We have a view of the market, so we’re ideally placed to develop technology to meet our customer needs and influence their development plans.” As the paper driving licence is to be abolished in January, the body has been working with DVLA to ensure that there are electronic options in place. Companies within the association are soon to move on to the DVLA’s new integrated enquiry platform, which will enable them to perform real-time checks in the coming months. Other developments planned include the introduction of eConsent, so drivers won’t physically need to sign a paper mandate.
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FLEETS UNDER INVESTIGATION – A FLEET CASE STUDY
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leet operators should never be complacent about safety, said one of the UK’s most experienced fleet managers. Geoff Wright outlined his Geoff Wright, experience dealing chief fleet with two fatal engineer, incidents involving CM Downton at-work drivers from his thenemployers earlier in his career, and warned delegates that it would be a “horrible experience” should they ever have to deal with it. The first incident he spoke about was a company car driver that lost control of their vehicle on an icy road and died in a crash with a lorry, and the second
involved a third party who died in a collision with a lorry on his fleet. He told delegates: “Do not be complacent – it does happen. “And when it does, it’s a horrible experience. No matter who is to blame, you feel no better when there has been a loss of life.” Wright said fleets should ensure they do everything possible to operate in a safe and legal way. “Ensure you have all your information to hand,” he said. “Not just the records, but also the culture in the organisation. “The records are one thing, but the police will also be investigating the company’s approach to the safety of the employees. “They will ask questions that will give them an insight into how the company treats safety.”
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SEMINARS Service, maintenance and repair Presented by BT Fleet BT Openreach is embarking on a major fleet replacement programme after calculating that seven years is the optimum lifecycle for its vehicles. “We have extended the profile and age because of the recession,” said Dave Edwards, senior fleet manager at BT Openreach. “We have got to the stage now where we have tipped the balance; our vehicles are off the road more than we would like them to be.” Openreach is replacing vehicles that are nine years old although they do low mileage – an average of 70,000-80,000 miles when they are defleeted. “We look at vehicle age and mileage and see where the availability drops off,” said Lara Bailey, customer account manager at Openreach’s fleet management provider BT Fleet.
From left, Lara Bailey, Shaun Rowley and Dave Edwards
Incident management Presented by Lex Autolease Fleet managers should be “very clear” about where their accident management provider is making its money. Richard Harper (pictured), director of accident services at Lex Autolease, said: “The challenge is that companies who deal in accident services will make money out of the repairer network, paint rebate, salvage rebate etc. They might be charging fees on rental damage, they might charge you an admin fee, it might be a whole combination. “You really should be looking for somebody to give you ‘open book’.” He advised sitting down with the provider and discussing volume, services required, the margin the provider needs to cover its overheads and how that will be achieved. The agreement should flex. If a supplier is performing well it should get its margin, but if it is underperforming it is questionable whether it should get the margin return it asked for. “Generally in the industry that’s what is happening,” Harper said.
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Telematics Presented by ALD Automotive Rhys Harrhy (pictured), development consultant at ALD Automotive, said the only question companies should be asking about telematics now is ‘is there is a good reason not to implement it?’. According to the company’s data, 35% of fleets with more than 500 vehicles now use the technology and he believes that most companies are at least considering telematics if they do not have it in place already. Harrhy said some businesses were finding the biggest benefit was the ability to log auditable mileage records linked to actual journeys. This was reducing mileage reimbursement costs and preventing pool or commercial vehicles being used for private purposes. While some fleet managers expressed concern at data overload, Harrhy suggested reporting only on ‘exceptions’ to preset rules made data management less of a struggle. Harrhy suggested reporting only on ‘exceptions’ to preset rules makes data management less of a struggle.
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Fleet management software Presented by Chevin Fleet Solutions Data has helped many businesses weather the recession and will continue to help improve performance, according to Chevin Fleet Solutions. David Gladding (pictured), sales director at the fleet software provider, told delegates that the range of data available to businesses has increased dramatically in recent years and that obtaining it for analysis has also become easier. “The recession has been one of the reasons behind the change,” he said. “And people have been asked to do more with less. “Data has helped measure where cutbacks could be made, but it can also be used to help implement growth strategies now the economy is beginning to recover, although we know budgets might still be small.” He said data can be used to show under-utilisation of resources, measure driver performance and help increase savings across a fleet.
SEMINARS Vehicle and driver compliance: Presented by Jaama Compliance with best practice for vehicles and drivers has benefits far beyond a legal reassurance. Richard Evans (pictured), sales manager at the fleet software company, said: “Compliant fleets can reduce costs through lower insurance, fewer accidents, smaller maintenance bills, cuts in downtime and by using less fuel. “Best practice in driving culture promotes a safe workplace and helps protect a company’s image. Staff morale is important because it encourages staff retention. “Software will give fleet operators a head start in managing these factors.” Funding: Presented by Zenith Fleet operators could realise savings by choosing different funding methods for vehicles across their business. Using wholelife cost analysis (including tax, VAT, lease and National Insurance implications), organisations can discover which methods are most suited to certain vehicles and then use a ‘blended funding’ approach to achieve savings. Andrew Cronin (pictured), head of consultancy solutions, said although contract hire is still the most popular funding method among businesses, there was no one-sizefits-all approach. “Multi-funding methods could save money,” he said. Fleet risk management: Presented by AA DriveTech Risk management provider AA DriveTech has commissioned a comprehensive insight into accidents on UK roads, particularly those involving at-work drivers. David Richards (pictured), marketing director. pulled out some key points from the study, conducted by Road Safety Analysis, which divided at-work drivers into four categories: working car drivers, commercial drivers, other working drivers (likely to include van drivers), and taxi drivers. At-work drivers were proportionally more likely than other drivers to be involved in an accident on motorways or dual-carriageways.
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