Fleet Van June 2012 by Fleet News

FleetVan B E S T P R A C T I C E F O R B R I TA I N ’ S L I G H T VA N O P E R AT O R S

June 2012 fleetnews.co.uk/fleetvan £5 where sold

DAWN OF A ‘NEW ERA’ FOR VANS Why importer Jim Tyrrell believes Chinese vans like the Loadhopper are set to shake up the UK van sector

MINIMISING VEHICLE OFF-ROAD TIMES

Best practice advice from FTA members

IN PROFILE: BREEZEMOUNT How fleet software is saving time and money

Editorial Editor Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Associate editor Trevor Gehlcken trevor.gelken@bauermedia.co.uk Deputy editor Simon Harris 01733 468308 simon.harris@bauermedia.co.uk Contributors John Charles, Tom Seymour Production Acting head of publishing Luke Neal Production editors Andrew Ryan Alan Salt Advertising Commercial director Sarah Crown 01733 468320 Group advertisement manager Sheryl Graham 01733 468256 Account managers Lucy Herbert 01733 468800 Heidi Rogers 01733 468269 Lisa Turner 01733 468345 Marcus Woods 01733 468269 Business development manager Stuart Wakeling 01733 468342 Project managers Leanne Patterson 01733 468332 Angela Price 01733 468338 Kerry Unwin 01733 468327 Telesales/recruitment b2brecruitment@bauermedia.co.uk 01733 468275/01733 468328 Events Event director Chris Lester Event manager Sandra Evitt 01733 468123 Event organiser Kate Howard 01733 468146 Publishing Managing director Tim Lucas 01733 468340 General manager Ian Richardson 01733 468555 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Printing: Headley Brothers Ltd, Kent ÂŠ 2012 Bauer Media ISSN 0953-8526. No part of this magazine may be reproduced in any form without the written permission of the publisher. You can purchase words or pictures for your own publications. Phone 01733 465982 or email syndication@bauermedia.co.uk. Fleet News will not accept responsibility for unsolicited material. Editor cannot accept responsibility for statements by advertisers and contributors whose views do not represent those of the publisher. Member of the Audit Bureau of Circulation Copyright: Bauer Automotive

CONTENTS JUNE 2012 4 I Best practice: Vehicle off road management

Most fleets fail to properly measure the true cost of their vans being unavailable for work.

6 I Environment: Emerald t-001 hybrid

The manufacturers of a unique British designed and built van have global ambitions.

9 I Legislation: benefit-in-kind

HMRC clampdown means more work for fleets.

10 I Risk: driver training

Attitude towards pyschometric testing is changing as fleets look to reduce risk.

15 I Environment: European legislation

As the EU tightens up on emissions, manufacturers are struggling to comply.

19 I Remarketing: routes to market

How you sell your van depends on how much time and effort you put in.

54 I Industry spotlight: Breezemount UK

Major system changes had to be implemented to give Ikea the service it needed.

58 I Industry spotlight: TomTom Business Solutions

Boards want to see a calculated business case before investing in a telematics system.

60 I Cover feature Interview: DSFK

Importer Jim Tyrrell believes Chinese vans will make a big impact in the UK.

64 I Van tests

Isuzu D-Max, Mitsubishi L200, Volkswagen Crafter, Nissan NV200 crew-cab, Ford Transit long-termer.

ALSO INCLUDED Supplement: Managing an effective van fleet

fleetnews.co.uk/fleetvan June 2012 3

B e n c h m a r k i n g b y t h e F TA Ve h i c l e o f f r o a d m a n a g e m e nt

HIGH COST OF UNPLANNED VE Most fleets fail to properly measure the true cost of their vans being unavailable for work By Mark Cartwright, head of vans and LCVs, FTA ast month’s article looked at the various strategies van operators adopted in the control of fuel costs. This month we turn our attention to another significant source of cost and disruption to van operations and look at the impact of vehicles being unavailable. Planned and unplanned ‘vehicle off road’ (VOR) time disrupts service provision and adds cost to operational budgets. Despite this statement of the obvious, only 36% of respondents to a recent FTA Van Excellence survey measured their van fleets’ VOR time. Several respondents assigned a cost to each day their vans were unavailable. This will, of course, vary from operation to operation but the costs are significant. Many civil engineering companies put the cost in the region of £3,000 to £4,000 per day. Lee Jackson, fleet manager at HSS Hire, puts the cost to their business as being around £1,500 per day. “This takes into account not just the downtime of the vehicle itself but also the cost of lost business,” said Jackson. In exploring this issue it is useful to distinguish between planned and unplanned VOR time. We would include regular service/maintenance and ‘duty of care’ inspections as planned and time off

road due to breakdown, collisions, delays in Despite this, the consensus of those operators service/maintenance and repair schedules as who measured their fleets’ VOR was that there being unplanned. were very clear benefits to the adoption of robust Planned VOR time should, in the words of daily vehicle checks coupled with regular prevenDonald Rumsfield, be a ‘known, known’. tative maintenance/duty of care inspections and Operators of heavy commercial vehicles have driver training. Catching a maintenance issue in long mastered the use of a simple year planner to the bud could prevent a long period of unplanned manage services, preventative maintenance VOR at a potentially difficult time. inspections, VED dates etc. Morgan put the equation When looking to minimise the succinctly: “Good driver training impact of planned events there leads to reduced incidents and are a number of recurring strate- cost of vehicle off-road time less wear and tear which in turn to HSS Hire each day gies reported. demonstrably reduce VOR time.” “We liaise carefully with the We asked operators what they lease provider to schedule mainconsidered an acceptable tenance out of hours where it will number of unplanned days of have the least disruption to our VOR each year. business,” said Rory Morgan, Reduction in Iron Mountain’s The average answer was national logistics general around three. Interestingly, for maintenance costs manager at Iron Mountain. many the actual number of days by managing vehicle “We also look at how we can experienced was more than off-road time move vehicles within the fleet to double. even out use. By adopting a pro-active approach we’ve reduced our maintenance costs by 4.5% in What else can be done to increase vehicle 2011 while minimising the disruption of planned availability? VOR and maintaining high safety standards”. As you’d guess, the reduction of collisions was Accidents and breakdowns were identified as high on the agenda, with the expected feedback the causes of most unplanned disruptions to around driver assessment and training, use of vehicle availability and, perhaps understandably, telematics etc. they were seen as being more difficult to manage. Reducing breakdowns was seen as vital. Timely

Managing planned vehicle off-road time for events such as servicing can minimise disruption

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£1,500 4.5%

VEHICLE DOWNTIME fleet replacement is important despite many fleets delaying replacement. The costs and business disruption must be factored into the decision on when to replace vehicles. Minimising the operational stress on the vehicle and ‘engineering out’ potential causes of VOR time also need to be considered. Several operators reported benefits with the adoption of automatic transmissions, speed/ rev limiters and more easily repairable vehicle specifications. Interestingly, a number of respondents reflected some frustration on the ability of maintenance and repair providers to expedite their work. Andrew Pettiford, fleet manager at Wales and West Utilities, said: “You have to check and recheck on progress on every job. It is so important to have open communication with the providers to ensure clear expectations on vehicle availability.” Glen Williams, transport manager at ALD Logistics, agreed. “Our work is time critical delivering newspapers,” he said. “We must have accurate guidance from dealer service departments and repairers on when our vans will be back on the road. You must agree 40 downtime with the provider and have clauses agreed in the case of a late return.” And these views were echoed by Van Excel30 lence Partner LeasePlan. Mark Lovett, head of commercial vehicles at LeasePlan, said: “Our research with oper% 20 ators during the development and launch of our Uptime product supports the findings of the FTA’s Van Excellence survey. 10 “Operators need to both reduce the incidence of VOR time and, importantly, ensure they get the best possible assistance from % 0 service and repair agents to get the van back Unplanned Planned on the road. We identified cost savings of up to 60% ” There is a clear common theme around each of the best practice strategies identified 80 and it boils back down to the old management axiom – you can’t improve what you don’t measure. 60 VOR cost can be significant and unavailability of vehicles can disrupt operations with the obvious results. 40 % are There often ways to better plan your planned VOR and there are certainly clear, proven ways to reduce unplanned VOR.

Duty of care inspections

Simon Harris, deputy editor, Fleet News

Does your organisation measure planned/ unplanned VOR time?

t’s a phrase that’s often trotted out to illustrate the determination of Chinese 15 vehicle manufacturers to appeal to a global audience. It12goes along the lines of the Japanese manufacturers taking 9 20 years to establish themselves, % while the Koreans took 10, but the 6Chinese will take just five. Two Chinese vehicle 3 manufacturers have featured in Fleet Van recently: Great Wall’s Steed 0 pick-up truck was reviewed Unplanned Planned in the previous issue and this issue takes a closer look at DFSK’s Loadhopper. The company’s micro panel vans are imported by a team with expertise as an importer and distributor in the UK. And it seems the price is right.

Unplanned

Planned

Do you attribute a typical VOR cost to your operation? 80

40 9 30

% 6

12 0

Duty of care inspections

Vehicle service/ planned maintenance9 %

0 10

Unplanned

Planned

Vehicle service/ planned maintenance

3 0

Unplanned

What do you forward plan for? Planned

“You must agree downtime with the provider and have clauses agreed in the case of a late return”

EDITOR’S COLUMN

Duty of care inspections

Vehicle service/ planned maintenance

“These vans occupy a small niche in the UK market with a loyal following” However, these vans occupy a small niche in the UK market that had a small but loyal following Unplanned Planned with the Suzuki Carry, and Daihatsu Hijet and Extol. When these vans disappeared there was no alternative to fill the void at that price. It’s relatively easy for Chinese manufacturers to make inroads with products in sectors with little competition and we believe there are great opportunities for Chinese component suppliers to make clever wins with emerging technology such as EVs. But we reserve judgment on how they can tackle big volume.

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Env ironment Emer ald t- 0 01

HYBRID AIMS HIGH

The makers of a unique British designed and built van have global ambitions

By Trevor Gehlcken s sales of electric vans remain almost non-existent, it is becoming increasingly clear that electric power alone is not the panacea for all transport ills that was once imagined. Cost and range difficulties are seemingly insurmountable objects – so now the experts are looking at new hybrid solutions that will bridge the gap between true zero-emissions motoring and full-on diesel power. One such solution is about to be unleashed on the LCV world – and when we say it is unique, we truly mean it. For the Emerald t-001 is like no other van on the road anywhere in the world. And it has been designed, sourced and built in Britain. The van pictured here – and so far there are only two in existence – is the culmination of three years’ work by two companies, Revolve and IE-LEV, and has been partly funded by the Government’s Technology Strategy Board. It uses an electric motor and a diesel engine which cuts in when battery power gets low and in tests has returned 232 miles per gallon and over 400 miles on a six-gallon tank of fuel, while emitting just 31.4g/km. Payload is a meaty 1,400kg and load volume is 5.2 cubic metres. The van is designed to gain a five-star rating in Euro NCAP crash tests. But there is more to this vehicle than pure technology. It is a brand new van from the bolts upwards and the company set up to bring it to market – Emerald Automotive – plans to sell it right across the globe. As ambitions go, they don’t get much bigger than this. Right from the start, experts got two big van fleets – DHL and Royal Mail – involved to ask them exactly what they wanted and expected from a low-emission vehicle. Hardly surprisingly, both required a vehicle that was fuel-efficient, had a full range on offer, had no penalty on payload and wasn’t prohibitively expensive. As pure electric vehicles only tick one of those four boxes, they had

The Emerald t-001 is like no other van in the world

been largely ruled out as a credible alternative to diesel power. From this starting point, the plans began. IE LEV was responsible for developing the original concept for the vehicle, the specification of vehicle requirements, overall project management and the development of the plans for commercialisation of the product. Revolve was responsible for the engine calibration work, integration of the vehicle systems, thermal and electrical systems engineering and vehicle build. Revolve built an aluminium chassis for the van and made all the panels from plastic rather than metal. It then sourced front and rear suspension, differential, brakes, steering and cooling and

“We won’t be selling to retail buyers and there will be no dealer network” Andy Tempest

6 June 2012 fleetnews.co.uk/fleetvan

heating systems from the Ford Transit, along with a 1.4-litre diesel engine from the smaller Fiestavan. Other parts come from British companies Multimatic, Axeon, Eve-Electric, Ricardo, Penso, RDVS and Umeco. At the launch of the Emerald t-001, Andy Tempest, chief executive officer, told Fleet Van: “This vehicle is designed purely for large fleet delivery use. We won’t be selling to retail buyers and there will be no dealer network. We are planning to sell around 5,000 vans when we launch fully in late 2014 and we expect that as word gets around about what a great vehicle it is and how much money can be saved, prospective buyers will come to us.” Tempest pointed out that the van was a handbuilt premium product, so surely there would be a huge price to pay for it? Not so, he told us. He said: “We are expecting a price of around £32,000. With the incredible fuel economy offered by this van, fleets will get a payback within 24 months and that is what they have all told us they expect from a low-emission vehicle. And that figure doesn’t include such things as going into the London congestion charge zone or possible Government grants. We don’t count things like that in our equation. We reckon if each van drives 100 miles per day, it will save £7,200 a year in fuel. If the Royal Mail replaced all its vans with these, it would save them £250 million a year on fuel.” So far the vans have cost £6.4 million to produce, £3 million of which was provided by TSB. By launch, Tempest believes costs will hit £100 million.

L egi sl at ion Benef it-in-kind tax L egi sl at ion Benef it-in-kind tax

van FLEET fLeet TAX tax TIPS tips VAN HMRC clampdown on BIK tax paid by van drivers means more work for fleets HMRC clampdown on BIK tax paid by van drivers means more work for fleets By Trevor Gehlcken By tTrevor Gehlcken was Daniel Defoe who asserted in 1726 that tnothing was Daniel Defoe who in and 1726taxes. that was certain in lifeasserted but death nothing washowever, certain in life but death and taxes. He did not, comment on how complex He not, however, thedid taxation systemcomment could be. on how complex theBenefit-in-kind taxation system be. a company van taxcould on using Benefit-in-kind on using a company van for private use was tax a pretty simple equation until for private a pretty simple equation 2005 whenuse thewas Government changed things.until 2005 the Government changed things. car Thiswhen was largely to clamp down on company This was largely to clamp downand on company car drivers such as estate agents accountants drivers such as estatechoosing agents and who were increasingly LCVsaccountants such as the who were increasingly choosing LCVs as the Nissan Navara and Mitsubishi L200 such double-cab Nissan and double-cab pick-upNavara trucks as anMitsubishi alternativeL200 to a company car pick-up trucks as andeal alternative to a company car and saving a great of money. and saving a greatin dealaddition of money.to hitting the Unfortunately, Unfortunately, in addition to things hitting much the go-getters, the changes also made go-getters, the changes also made things much more complicated – and more expensive – for van more complicated – and more expensive – for van drivers and their employers. drivers their out employers. Even and working whether or not your drivers Even working outtheir whether or not your drivers are actually using vehicles for private use is are actuallya using vehicles for private use is no longer simpletheir matter. noThe longer lawa simple states:matter. “Employees pay tax on a The lawvan states: tax family on a company if they“Employees or a memberpay of their company van if they a member or household makeor private useofoftheir it. family If the or household make of it.journeys If the employee has the vanprivate mainly use for work employee hasdelivering the van mainly work journeys (for example, goodsfor or making calls to (for example,and delivering making calls to customers) the onlygoods privateor use is commuting, customers) thepay. only private use is commuting, there is no and tax to there is no tax to pay.private use, tax is payable “If there is other “If there otheruse private use, tax is payable unless thisis private is insignificant.” unless this private is insignificant.” Just exactly whatuse constitutes insignificant use, Just exactly what constitutesOfficially, insignificant use, though, is open to discussion. the rules though, is open discussion. Officially, the rules laid down are astofollows: laid down are as follows: Insignificant use. A driver who: Insignificant use.mattress A driveror who: n Takes an old other rubbish to the n antwice old mattress tipTakes once or a year or other rubbish to the tip once or twice a year

What drivers drivers pay pay What n For private use of a van, drivers are

n For aprivate of a van, drivers area given £3,000use charge, which means given a £3,000 will charge, 20% taxpayer pay awhich total means of £600a 20% taxpayer will pay a total of £600 per year per year is a further £500 charge if free n There n There is aprovided further £500 charge if free fuel is also fuel is also provided

Government tax changes will Government tax use changes will clamp down on the of trucks clamp on the use of trucks asdown company car alternatives as company car alternatives n Regularly makes a slight detour to drop off a n Regularly makes a slight detour to on drop a child at school or stops at a newsagent theoff way child at school or stops at a newsagent on the way to work to n work Calls at the dentist on the way home from work n Calls at the dentist on the way home from work Significant use. A driver who: Significant use. A driver n Regularly uses the vanwho: to do the supermarket n Regularly uses the van to do the supermarket shopping shopping n Takes the van away on a week’s holiday n the van van for away on aactivities week’s holiday nTakes Uses the social n Uses the van for social activities It may sound straightforward but obvious gaps It may sound straightforward obvious to gaps exist. Would a driver who takes but a mattress the exist. Would a driver a mattress to the rubbish tip, say four who timestakes a year, be expected to rubbish tip,Probably say four times cough up? not. a year, be expected to cough up? Probably not. In practice, the vast majority of van drivers do In pay practice, the vast majority of van drivers do not BIK tax. notBut payif BIK tax. from HMRC comes knocking at the man But door if the in man from to HMRC comes knocking at your relation this question, could you your doorsay in relation to this question, could you honestly you could prove that your drivers honestly you could prove probably that yournot. drivers were tax say exempt? Once again, were tax exempt? again,are probably Detailed mileageOnce records crucialnot. for van Detailed mileage are they crucial drivers to be able torecords prove that did for not van use drivers to be able to prove that they did notjouruse their company-provided vehicle on private their journeys,company-provided because the onus ofvehicle proof ison onprivate the company neys, onus of proof is oncalling. the company whenbecause the manthe from HMRC comes when the man from HMRC comes calling.

The best way of avoiding problems is to have the The best waysoftware of avoiding to have thea correct fleet in problems place andisthere are correct software place and there are a numberfleet of firms whichinoffer this. number firms which offer this.a system called Jaama,of for example, offers Jaama, for example, offersManaging a systemdirector called Key2 Vehicle Management. Key2 Managing director JasonVehicle FrancisManagement. said: “One key benefit of these Jason Francis said: “OneHMRC key benefit of these systems, which meet guidelines on systems, which meet HMRC guidelines on expense claims/submissions, is that mileage and expense claims/submissions, that mileage and journey details can be easily is recorded to enable journey details recorded to enable a detailed travelcan logbe to easily be compiled. a detailed to bethat compiled. “This willtravel help log ensure vans are only driven “This will help ensure or that vans are private only driven for business purposes ‘allowable use’ for purposes or ‘allowable use’ andbusiness not driven to supermarkets whileprivate the weekly and supermarkets while the weekly shopnot is driven carriedtoout.” shop is carried out.”approval, the tax office’s forms Following HMRC Following HMRCand approval, the tax office’s can be completed submitted online in aforms single can be completed and submitted onlineconnection, in a single transaction across a secure internet transaction across a secure internet via the Government Gateway – the connection, centralised via the Government Gateway – the centralised registration service for e-Government services in registration the UK. service for e-Government services in theWith UK. tax revenues falling as more and more With tax falling as more more people arerevenues thrown out of work, tax and inspectors people are thrown out of taxbreaches inspectors are increasingly looking at work, plugging of are looking at plugging breaches of the increasingly law. theAnd law. BIK tax on vans is one of the subjects under And BIK taxat onpresent. vans is one of the subjects under the spotlight the spotlight at present.

fleetnews.co.uk/fleetvan June 2012 9 fleetnews.co.uk/fleetvan June 2012 9

Risk Driver training

PROFILING IS KEY TO IM Attitude towards psychometric testing is changing as fleets look to cut risk

By John Charles “Fleet managers must ask if the at-work driving risk management uman error is a factor in at least 90% of road crashes so, argue processes they have in place will withstand scrutiny from the police service,” road safety experts, changing driver behaviour is key in any occusaid Sgt Morgan. pational road risk management strategy. “Psychometric profiling encourages drivers to reflect on their thoughts and Historically, driver training for all was viewed as the mechachange their driving behaviour. It delivers behavioural and attitudinal change nism for reducing the number of work-related road crashes. But and by coaching and mentoring, improvements can be benchmarked that while that approach works ‘temporarily’, it does not change behaviour and are recognised by the courts.” driving skills for life. Sgt Morgan is a recent graduate of Cranfield University’s specialised Driver A more scientific approach is now being advocated to improve driver behavResearch Unit. The Fleet Driver Risk Index product was developed by Craniour underpinned by a robust driver licence checking regime, supported by field with input from fleet driver training provider Peak Performance. psychometric testing, which is viewed in some quarters as superior to online Company managing director Richard Hill said: “In the early days many assessments, driver, vehicle and journey management customers were sceptical about any form of psychometric programmes and telematics. testing, but that attitude is slowly but surely changing. Online driver assessments initially showed that typically “It’s proved time and time again to be highly accurate, 25% of an employer’s drivers were deemed to be ‘high risk’. Number of accidents LCVs were enabling us to target appropriate training, so that customers But a greater awareness of occupational road risk manageavoid wasting money on training that isn’t needed.” involved in during 2010 ment, coupled with legislative changes to combat crash However, Graham Hurdle, managing director of risks, means the number of ‘high risk’ drivers is now estiE-Training World, argues that assessing drivers online not mated to have reduced to about 20%. only provides a risk rating but delivers an immediate According to data from the Department for Transport, in improvement to their behaviour by encouraging them to 2010 LCVs were involved in 12,242 crashes (2% fewer than think more about their own driving. Number of van occupant in 2009). Those accidents resulted in 169 fatalities (3% fewer A greater focus on changing driver behaviour is also casualties in 2010 than in 2009), 1,666 serious injuries (4% fewer than in 2009) advocated by Navman Wireless, which has 6,000 and 15,106 slight injuries (3% fewer than in 2009). customers. Monitoring and improving driver performance The number of van occupant casualties in 2010 was 5% lower at 4,494 than when embedded in a safety culture that places greater or at least equal in 2009 (4,793) and 32% lower than the 1994-98 average (7,424). Deaths emphasis on driver performance as it does on vehicle condition, has the among van occupants reduced to 34 in 2010 from 36 in 2009, which reprepotential to greatly reduce human error and therefore greatly reduce the sents a 48% decrease compared to the 1994-98 average (65 deaths). number of road traffic accidents, says the company. The decline in casualties comes at a time when light commercial vehicle Steve Blackburn, European vice-president of Navman Wireless, said: “The traffic increased 1% in 2010 to 42 billion vehicle miles – 44% higher than the commercial fleet industry, working together with technology/software 1994-98 average (29 billion vehicle miles), according to the department. providers, can help prevent these needless casualties by making a driver “Ninety per cent of accidents are as a result of human behaviour,” Sgt behaviour focused safety culture a corporate social responsibility priority. Gareth Morgan, supervisor of South Wales Police Driver Training, told the “Driver behaviour is a key factor in crashes. We need to place the emphasis recent annual conference of fleet operators’ organisation ACFO. on monitoring and improving driver performance in order to eliminate ‘at He advocates psychometric profiling as a successful method to enable risk’ driver behaviour. We may then see a reduction in the so-called ‘big three’ drivers to self-evaluate their behaviour on the road and organisations to incident types, which include rear-end collisions, intersection crashes and develop and implement at-work driving risk management strategies. lane change/merge collisions.”

12,242 4,494

SIX STEPS TO A SAFER FLEET Top tips for operating a safe LCV fleet from Tracey Scarr, fleet and road safety manager at Arval and winner of this year’s Fleet News Safe Fleet of the Year Award Right vehicle for the job Take into account the load carried, the environment drivers operate in and mileage. Using the ‘wrong’ vehicles impacts on driver safety and can also damage the van, increasing maintenance costs.

Don’t overload If it is occasionally necessary to carry a larger than usual load, hire a short-term rental vehicle.

10 June 2012 fleetnews.co.uk/fleetvan

Overloading not only makes the vehicle less safe, the weight will also reduce MPG and, over time, the need for unplanned maintenance will increase. Racking systems offer a safe and efficient tailor-made restraint mechanism. Driver assessment and training All drivers should be risk-assessed and receive some level of training linked to their road risk. As well as reducing collision likelihood, changing behaviour will reduce fuel consumption, excess wear and tear costs and the likelihood of speeding offences.

Clear fleet policy A well communicated fleet policy that is focused on safety will reduce driver risk. It may include measures such as a ban on hands-free mobile

phones and fitness-to-drive advice which we believe significantly reduces a driver’s road risk. All businesses operating a van fleet should engage with the FTA Van Excellence programme, which is an industry-led initiative to raise standards and improve the image of the van sector Check the tyres Tyres should be checked on an ongoing basis for both tread and pressure. Damaged, worn or under inflated tyres not only increase the chances of a collision but MPG will suffer.

Satellite navigation systems Fitting vehicles with basic technology such as sat nav means drivers can concentrate on the road rather than trying to work out where they should be going.

MPROVING BEHAVIOUR

Light commercial vehicle traffic was 42 billion miles in 2010, Department for Transport figures show

It’s a view shared by Adrian Walsh, director of RoadSafe, which manages the Driving for Better Business campaign. He said: “If a company starts to manage its crash damage then improved driver behaviour will follow and the business will be more effective. “Crash damage is a bigger indicator of occupational road safety than the number of people killed and injured – not all crashes involve personal injury – and bent metal costs businesses money.” Of course, ensuring a van is fit for purpose is a key part of any road safety strategy, as highlighted by Tracey Scarr, Fleet News Awardwinning fleet and road safety manager at Arval (see panel). Although an increasing number of vans include a wide range of safety features as standard, electronic stability control (ESC) is billed as the most significant life-saving feature since the introduction of the seat belt more than 50 years ago. Since November last year all new commercial vehicles models must be equipped with ESC, which is also known as electronic stability programme (ESP), and from November 2014 the technology will be mandatory on all new models. RoadSafe is a supporter of so-called eSafety technology and Mr Walsh said: “There has so far been a low take-up of Adaptive ESC (ESP), but it is essential because it compensates for any shift in load when a vehicle is on the move.” Iron Mountain, which helps business organisations around the world reduce the costs and security risks associated with information protection and storage, has won a number of awards for its occupational road risk management, including one from Fleet Van, sister publication of Fleet News. The company, which started its drive to cut road incidents in 2008, operates 290 light commercial vehicles within an overall fleet of 430 units and employs five dedicated driver trainers across the country. Its national logistics general manager Rory Morgan, an ex-lorry driver, said: “Our driver training links everything together. When a driver comes for an interview they go through a stringent process of training and vetting. The probation period is accompanied by assessments and further training in all

aspects from driving to customer interaction. We also carry out refresher training, reactive training if drivers have had an accident, proactive training and courses to keep driving efficiencies and savings.” But the company has also introduced GreenRoad technology, which uses in-vehicle software to deliver improved driver performance and at-work driving safety by measuring a wide range of so-called ‘risky manoeuvres’ such as speeding, harsh braking and acceleration, cornering and lane changing. An additional spin-off benefit is improved fuel economy. The company’s joined-up approach to driver safety has seen a 65% incident reduction in the three years to the end of 2011, a 60% reduction in own-damage costs and a 38% fall in third-party premiums. Last year, Iron Mountain achieved a 14% reduction in its insurance premium, which has been frozen for 2012. Morgan calculates its raft of measures has delivered – including a near-10% fuel saving – a £1.9 million saving to Iron Mountain’s bottom line. Most recently, Iron Mountain has introduced GreenRoad’s speed zone element which monitors drivers’ speed and has witnessed a 95% reduction in the number of speeding violations in 2012. Blackburn argues that objective data from telematics systems can significantly heighten awareness of unsafe driving habits, and provide impetus and direction for taking actions to improve. The secondary benefits, such as reduced fuel and maintenance costs, also make for healthier company finances. RWE npower, which operates more than 1,200 vans in its Energy Services Division, introduced Fleet Support Group’s online RiskMaster programme 14 months ago. It has at its heart licence checking and a Driver Operating Life Report with telematics now available following the company’s acquisition late last year by Automotive Resources International. Anthony Marcou, RWE npower’s supplier performance manager, said: “RiskMaster has changed the mindset of drivers who are behind the wheel of RWE npower vehicles, and that is not only making them safer, but is delivering financial benefits to the company and improving productivity due to reduced driver and vehicle downtime.”

“Crash damage is a bigger indicator of occupational road safety than the number of casualties”

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Environment European legislation Environment European legislation

Paying the price in the quest for ‘green’ vans As As the the EU EU tightens tightens up up on on emissions, emissions, manufacturers manufacturers are are struggling struggling to to comply comply

By Trevor Gehlcken By Trevor Gehlcken U bureaucrats are U bureaucrats increasingly turning are the increasingly turning the environmental screw environmental screw on vehicle manufacon vehicle turers, forcingmanufacthem by turers, by law to produce everforcing cleanerthem internal law to produce ever cleaner internal combustion engines. combustion As a result,engines. even van fleet operaAs who a result, fleetenvironoperators don’teven carevan about tors who don’t care environmental concerns willabout be affected as mental concerns be affected as invariably, the costwill of the technology invariably, thetocostproduce of the technology cleaner to produce engines will be cleaner passed engines will be passed on to the customer. on to the customer. Much is written in the Much is written in the

pages of Fleet Van about Euro4, pages and of Fleet about Euro4, Euro5 evenVan Euro6 emissions Euro5 andand even emissions standards it’s aEuro6 subject that will standards that will run and and run it’s asa subject manufacturers run and run as manufacturers increasingly struggle to meet their increasingly struggle to meet their targets. targets. Nigel Emms, director, brand and Nigel Emms, director, brand and communications at Iveco, pointed communications Iveco, out: “Demanding at Euro5 andpointed Euro6 out: “Demanding Euro5is and Euro6 emissions standards a law of emissions standards is a law of diminishing returns, because when diminishing returns, when you go on doing thisbecause long enough, you end go on this long enough, you updoing in a position where the you endachieved up in a becomes position where the benefit marginal benefit becomes marginal and theachieved costs astronomical.” He has and the costs He and has a point. It wasastronomical.” relatively cheap a point. It was relatively cheap and

easy to make the dirty diesel engines easy makecleaner. the dirty diesel engines of theto1990s ofBut the today’s 1990s cleaner. offerings are so clean Butit’s today’s offerings so clean that difficult to seeare how techthat it’scould difficult to see how technology improve them greatly. nology them Iveco’scould tackimprove has been to greatly. offer a Iveco’softack has environmentallybeen to offer a range more range ofalternatives more environmentallyfriendly such as CNG friendly alternatives such as CNG and electric-powered Dailys, but and far electric-powered Dailys, so both have not sold but in so far both have not sold in great numbers. great numbers. In fact, Iveco sold no electric Dailys sold no to electric Dailys atIn allfact, lastIveco year, leading doubts over at all last year, leading to doubts over whether electric vehicles will ever whether aelectric vehicles ever become main part of the will van fleet become a main part of the van fleet scene. scene.

Iveco sold no electric Dailys last sold electric Dailys last year,Iveco leading tono doubts over whether year, leading to doubts electric vehicles willover everwhether become electric vehicles will ever become a main part of the van fleet scene a main part of the van fleet scene

fleetnews.co.uk/fleetvan June 2012 15 fleetnews.co.uk/fleetvan June 2012 15

Environment European legislation Back to the diesel engine – which increasingly looks like being the default choice for fleets for many years to come – and the EU has more plans ahead for cleaning up Europe’s air. Eurocrats are planning to force manufacturers to have an average CO2 figure across their ranges of 175g/km phased in between 2014 to 2016 and then 150g/km by 2020. There is an obvious flaw in this plan which none of the environmental experts seem to have taken into consideration – while Ford can bring down its average CO2 figure by having vans such as the lowemitting and diminutive Fiestavan on offer, other makers such as Iveco and Mercedes-Benz, who at present only sell large vans – cannot. As large panel vans tend to pump out more than 200g/km of CO2, it will be virtually impossible for these two manufacturers to meet the EU demands. Particularly scathing of the EU’s plans is Steve Bridge, director of van sales and marketing at Mercedes-Benz. He told Fleet Van: “The EU targets have been set in the same way as car targets are set, but vans are not

cars and they shouldn’t be treated as such. Rather than setting limits for grams per kilometre, they should be set for vans on a grams per kilometre per tonne carried.” The problem with the present targets is that these would be achieved if, say, fleets abandoned vans that carried one tonne of cargo and transported that load instead in three smaller vans carrying 333kg each. Although the target of CO2 reduction would be achieved, those three vans would in fact produce more CO2 than the one original van. Bridge said: “The danger is that this legislation could well push fleets into smaller vans which would achieve the EU targets but the CO2 emissions are higher.” One way that Mercedes-Benz is aiming to toe the EU’s environmental line is by launching a new small van this year. The Citan is basically a Renault Kangoo which has been “Mercerised” with various tweaks and twiddles. As the Kangoo is offered in electric format – with a CO2 figure of zero – this will help to cancel out the heavier CO2 emissions of the larger Sprinter.

“Demanding ever lower emissions is a law of diminishing returns”

“CO2 limits should be set for g/km per tonne of cargo a van carries”

Nigel Emms, Iveco

Steve Bridge, Mercedes-Benz

Green focus has an unexpected silver lining for fleets Van fleet operators may well have to pay more for vans which emit lower amounts of CO2, but there is a silver lining – less CO2 means greater fuel efficiency. And at a time when fuel is at record prices, that can’t be a bad thing. The manufacturers are all offering a variety of fuel-saving gadgets on their vehicles and fleets are reaping the benefits. The Fiat Doblo Cargo, for example, has a stop-start device

as standard which cuts out the engine when idling and with the gear lever in neutral. A dab of the clutch sees the engine fire up again. Fiat reckons that in urban use, stop-start can save around 16% of fuel. Meanwhile Ford offers an Econetic version of the Transit which has, in addition to stopstart, features such as a 70mph speed limiter and low rolling resistance tyres. The

Fiat Doblo Cargo has a stop-start system as standard

16 June 2012 fleetnews.co.uk/fleetvan

effect is that this model boasts an official combined fuel consumption figure of 43.3mpg, something unheard of even a few years ago. In fact fuel has now become the number one concern of van fleet managers, according to a recent survey by telematics provider Trimble, with 85% of those questioned saying it was at the top of the list. There are basically two ways of cutting fuel costs – by driving more sensibly and by cutting down the number of miles driven. And Trimble believes that both avenues can be exploited fully by the use of telematics systems, which surprisingly are still only used by around 18% of van operators. A spokesman for Trimble said: “The key to achieving fuel savings is to track real-time data from individual vehicles linked to specific drivers. “Telematics systems can achieve this, alerting drivers that they are driving too aggressively or braking too harshly, by

offering real-time feedback. Knowledge is key – identifying where problems are and then implementing best practice to mitigate them is a huge step forward in helping organisations to truly understand their fuel efficiency. “Fleet management and telematics solutions enable fleet managers to make intelligent decisions using real-time field status information, which can lead to a significant reduction in wasted fuel and reduce carbon emission-causing activity such as speeding, excessive idling and route deviation. Unsafe driving behaviour is bad for fuel economy – using telematics to monitor for safe driving can also result in fuel savings of 10-20%. “Giving drivers target-based incentives to go easier on the pedals and conserve their fuel during a day’s work is an idea that should be explored. Bonuses or salary rises are an obvious choice for rewards, but they could also include material gifts.”

Advertisement feature

Used values keep climbing But buyer confidence is fragile says BCA

sed LCV values improved across the board for the second month running in May, rising by £99 (2.3%) compared to April to reach £4,370. Average age and mileage fell slightly month on month, while CAP performance declined by nearly a point to 98.19%. Year-on-year, May 2012 was £152 (3.6%) ahead of the same month in 2011, despite the average age climbing by six months and average mileage being 6,300 miles higher at 77,000. Performance against CAP also improved year-on-year, up by more than two points. Average values have been relatively higher since last September and reached a 20-month high in January. May saw values rise in all three sectors – fleet/lease, dealer part-exchange and nearly new – but supply and demand remains finely balanced. Duncan Ward, BCA’s general manager – commercial vehicles, commented: “There is steady demand for the best examples in the wholesale arena, but sellers need to be aware that buyer confidence is quite fragile despite the relative shortage of stock.

‘Sellers need to manage

the supply of similar models as it can have a direct impact on price’ Duncan Ward, BCA

“Buyers are sensitive to mileage and condition, and excessive mileage or damage will significantly impact the price performance. The best prices are paid for vans in good colours with a high specification and any rare or unusual vehicles will generate the most attention. Sellers also need to manage the supply of similar makes and models, because it can have a direct impact on price performance – even for attractive retail-quality vans.” Ward added: “Now is the time for volume sellers to really get back to basics. Ensure that vans are given the best opportunity to sell the first time they are offered. This means full documentation and service histories for vehicles being sold, pre-sale preparation and presentation, valuing stock in line with market sentiment and effective sale day representation to make swift decisions on provisional sales. Make it an easy choice for buyers to purchase your vans.” Fleet & lease Values remained virtually static in the fleet & lease LCV sector in May, rising by just £5 compared to April. Performance against CAP dropped by a point to 98.1% over the month, while retained value against Manufacturer Recommended Price over 44 months and 70,000 miles was 32.76%, up slightly on last month. Looking at the year-on-year figures, however, shows there has been a significant value evolution across the fleet & lease

Average used values 2010-2012

Source: BCA

£5,000

£4,000

£3,000

Apl

May

Feb

Mar

Jan

Dec

Oct

Nov

Sep

Aug

Jul

Jun

Apl

May

Mar

Jan

Feb

Dec

Oct

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Apl

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£2,000

Buyer confidence is quite fragile despite the relative shortage of stock sector. May 2012 was £442 (9.4%) ahead of the same month last year – despite the average van being nearly three months older and 4,000 miles higher this year. Part-exchange Part-exchange values improved by £165 (5.9%) in May, the biggest month-on-month increase since September of last year and the second month running that values have climbed. CAP comparisons dropped to 98% from 98.2%. Again the year-on-year comparisons underline the value evolution in the LCV sector. Values for part-exchange vans were ahead by £465 (18.9%) in May – a similar uplift to that seen last month and a reflection on the demand for ‘budget’ priced vans, particularly from sole traders and new small business start-ups. Nearly-new Nearly-new values rose by £671 (up 5.8%) to £12,059. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor. CAP performance fell by nearly half a point to 100.52%.

Europe’s No.1 vehicle remarketing company log on to www.british-car-auctions.co.uk or call 0844 875 3480

Remarketing Routes to market

Auctions are a fast, efficient way of disposing of used vans

Explore the alternatives How you sell your vans depends on how much time and effort you put in

By Trevor Gelken f you lease your vehicles, then the thorny subject of remarketing will not raise its head. At the end of the lease period, your provider will simply take the vehicles away and provide you with some nice shiny new ones. Leasing relieves the busy van fleet operator of many of the headaches involved with getting shot of end-oflife vehicles. But it doesn’t come cheap and although your company won’t have money tied up in its vehicles, leasing will ultimately cost more than the straight purchase of a fleet in the long run. So just what do you do with vans you want to get rid of? The answer to that question depends very much on how much time and energy you are prepared to invest in making sure you get the best possible price for those vehicles. The obvious – and probably most hassle-free – solution is to sell through an auction house and indeed the argument for using this route is getting stronger by the year as the big auction houses offer new and better services. Duncan Ward, BCA’s business development manager – commercial

vehicles at BCA, said: “If you are a business looking to sell a used commercial vehicle, a quick, hasslefree service and guaranteed return of funds makes for an appealing combination. “Auction is the fastest, most efficient way to convert a valuable, but depreciating asset into cash. Current true market value will be achieved and – more importantly – funds are guaranteed and will be back on the company bottom line in days. “With a range of routes to market – physical auction and web-based channels such as BCA’s Live Online, Bid Now, Buy Now and e-Auction – the modern remarketing company reaches more buyers at the same time than ever before. Comprehensive online cataloguing and stock locator services mean buyers can easily find the vans they want to buy and then bid in the auction hall or via the internet. “Remarketing companies offer a range of value-added services to make the seller’s life easier and the sale process more efficient. This includes end-of-life inspection, appraisal and valuation, and collection and transport of both running

“Auction companies offer services to make the seller’s life easier” Duncan Ward, BCA

and non-running stock. “Pre-sale vehicle preparation will add value to any van and ranges from a simple powerwash to specialised ‘ready to retail’ processes, including trade name deletion and vinyl wrap removal – all done at the point of sale to save time and money. “Our seller customers range from one or two vehicles a year, to several thousand. Every one has access to a full range of services that suits their needs. “For volume sellers this might entail inventory and document management, dedicated marketing support and a branded sales programme with discreet online sales. For a small business, it could mean the collection and delivery of a light van to the nearest BCA centre, where it is valued, valeted and sold in the next LCV sale.” But don’t run away with the idea that auctions are the only route for selling vans. Just as the internet has opened up the possibility of more bids for firms such as BCA and Manheim, it has also given individuals the opportunity to chance their arms on websites

fleetnews.co.uk/fleetvan June 2012 19

Remarketing Routes to market

UNDER THE HAMMER By George Alexander, editor, Glass’s Guide to CVs In an ever more challenging LCV marketplace, franchised dealers have struggled to remain profitable. With the Olympic Games and the Queen’s Jubilee celebrations going on, it had been hoped that the domestic economy would show signs of improvement. Thus far, there has been little spin-off for our industry, or indeed the wider economy. For April, SMMT statistics revealed that sales of light commercial vehicles were sharply down and, after the first four months of 2012, the YTD total stood more than 15% lower than for the corresponding period last year. In sharp contrast, big gains have been posted in the truck sectors above 3.5 tonnes. In April, the improvement in registrations was close to 18% which lifted their YTD position by an impressive 27%. If the heavies are doing little more than making up lost ground, what is the explanation for such a dire performance from LCVs? Following a strong close to 2011, it has become progressively more concerning to note just how sharply the downturn in new van sales has been.

such as Auto Trader and eBay. Selling vans by such routes is as simple as filling in a form, but there are some important points to remember. It is essential that you tell the truth. If your vans have been used to lug bricks and cement around for three years and are not much more than mobile rubbish skips, don’t flag them up as being in good condition. A prospective buyer will soon see through your ruse and will warn other buyers, so that your name will soon become mud and your vehicles won’t sell. But just because you tell the truth, don’t necessarily assume that everyone else does. There are a million and one scams involved with buying vehicles so make sure you have the cash in the bank before handing over the keys. A cheque is not cash, even when it has seemingly been ‘cleared’ by your bank. You may well get involved in other hassles too after the vans have been sold, especially if they suddenly

break down days after you’ve sold them. After such an occurrence you will have to send time and effort sorting such problems out – and it may be time that you can ill afford to lose. One disposal route that many fleet operators tend to forget about is a simple trade-in with your local van dealer. This can be particularly lucrative for those who operate solus badge fleets. If you buy, say, 100 Ford Transits every two years, it will be very much in your local franchised dealer’s interests to keep you sweet and coming back for more. There are plenty of rival manufacturers, after all, who would give their right arms for such business. So if your dealer doesn’t show any inclination to cough up a good price for your used vans it might well be advantageous to give the impression that a rival dealer is interested in your fleet, even if this isn’t actually true. The thought of losing valuable ongoing business could well persuade him to offer you a much better deal.

“A general wake-up call is needed if things are not to go from bad to worse” From Christmas onwards, dealers selling lightweights have reverted to ever-stronger language to describe their predicament. Although too early to send out an SOS, especially as 2012 will probably claw its way back to parity with 2011, a wake-up call is needed if things are not to go from bad to worse. Against the backdrop of a gloomy economic outlook, it will be necessary to adopt a proactive stance when developing the strategies needed to get sales moving in the right direction. As the first half draws to a close, if dealers do not address what in some cases were overly optimistic budget forecasts and prepare for several difficult months to come, there could be casualties. The current recession features a unique set of factors, and this makes the outcome very unpredictable. Due to the huge quantities of cash that were splashed by the last government, disguising the true plight we all faced, many gained a false sense that things were not that bad and would soon be better. As trillions of dollars, euros and pounds flowed towards the abyss, the scale of the debt that bankers had saddled us with was beyond comprehension. We now realise that recovery is not just around the corner and that there is possibly even worse to come.

20 June 2012 fleetnews.co.uk/fleetvan

Sites such as Auto Trader and eBay are becoming more and more popular for selling used vans

Managing an effective van fleet A B E S T PR AC T I C E G U I D E

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fleetnews.co.uk/fleetvan The Fleet Van website is packed with information to help you choose, manage and sell your company vans Van reviews Find out what we think of the latest vans on the market today. Tools The Fleet Van section includes numerous tools designed to make a fleet manager’s job easier. It includes a van running cost calculator, where you can compare models and manufacturers and calculate your current fleets overall running costs, a van tax calculator, the latest fuel prices and a ‘find a van’ tool, where you can search by a whole range of criteria, including transmission, payload, MPG and CO2 emissions to help find the right van suitable for your business. Latest news Keep up to date with the latest news and goings-on in the fleet van industry, from manufacturer news to the latest legislation changes and monthly used van values. Best practice The latest best practice advice and top tips to help your van fleet improve efficiency and reduce costs, from eco driving to van maintenance and accident reduction. Case studies Read how other companies in the industry are managing costs and improving efficiencies with a range of initiatives. Read the latest issue If you missed the previous issue of Fleet Van, you can read it in full online. II fleetnews.co.uk/fleetvan

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B E S T PR AC T I C E: C O N T R AC T H I R E & L E A S I N G

Managing your light commercial vehicle fleet more effectively Many firms are losing large amounts of money from poor practices Often called the ‘workhorses of the fleet’, light commercial vehicles (LCVs) and vans are purchased to create wealth. However, the sad reality is that many businesses lose money on their fleets through out of date management and poor practices. For fleets that are outright purchased there is a natural temptation to retain the vehicles as long as possible in order to

he last 10 years have seen a noticeable increase in the number of vans on our roads. Much of this has been down to growth of the internet, our changing shopping habits and an increase in smaller service industry companies. At the same time there has been a significant increase in corporate legislation and responsibility. These have had an impact in three key areas: vehicle choice and suitability; running and in-life costs and increasingly, duty of care. Vehicle choice and suitability Vehicle manufacturers have seen sales grow and have been keen to benefit from increasing demand. The once dominant position of Ford and Vauxhall has been eroded due to platform sharing among nearly all manufacturers. Five years ago no-one would have expected Nissan to have one of the largest van offerings available. With this growth, manufacturers have improved the standard equipment they offer to tempt potential buyers. Companies are also using this improved specification to attract and retain employees. Going forward, it is conceivable that specification could form part of a health and safety policy to ensure a driver’s workplace needs are met. Vehicle selection is also important for a company’s image. Vans of various shapes, sizes and stylish trims can add value. Equally the vehicle needs to support a company’s brand values and culture positively. The choice of engines available allows companies to match usage to the most appropriate power unit. In the world of LCV, diesel is king and dual fuel vehicles have found little favour outside of the London

maximise their use. However, fleet managers need to consider a raft of best practice guidelines to ensure they are running a safe and efficient fleet. Here, Dave Freeman, LCV specialist at Alphabet, looks at the latest thinking when it comes to savvy fleet management for LCVs.

congestion zone. As with all engine types the temptation could be to take the cheapest option, but in terms of total costs this can be a mistake. A “wholelife cost” approach needs really to be applied. Running and in-life costs Discounts on LCVs can at times be staggeringly high. Vans tend to be part of a volume strategy with manufacturers often keen to support incremental sales. This may be good news if the intention is to keep the vans until the end of their useful life, but as part of a managed fleet can lead to issues when trying to organise orderly bulk defleets in terms of resale value. In today’s market the value a van achieves tends to be within very clear price bands based on size, age and mileage. Currently only the condition has an effect outside of these three areas and that is normally downwards, as buyers tend to expect good condition. However there are signs that this is changing. Vehicles without ply-lining are not perceived to have been looked after as well. Vans that have had seat covers ensure the interior is better presented and are gaining appeal. Certain levels of specification are being actively sought out by used buyers such as side loading doors, power steering and central locking. Again, to those looking to hold on to their vehicles as long as possible, depreciation may seem irrelevant but age and mileage will have a huge impact if careful and accurate maintenance provisions aren’t accrued. Tyre use can be very high for hard working vans and routine maintenance can prove extremely costly for high mileage vehicles, not to mention associated high value components. Remembering

“Going forward, it is conceivable that specification could form part of a health and safety policy to ensure a driver’s workplace needs are met”

IV fleetnews.co.uk/fleetvan

that a van is making no money while off the road, the ability to have a budgeted courtesy van might have real appeal for businesses. Duty of care The increasing responsibility for the fleet operator to be compliant over a wide range of duty of care issues can be bewildering. Racking is a good example of this with issues relating to fit out, weight and ease of use impacting safety and health considerations. Other formal requirements need to be managed. Driving licence checks should be carried out to ensure the right kinds of licences are held for the right type of vehicle. Driver risk assessments are also increasingly important. Large fleets should seriously consider driver profiling and training as their exposure to accidents are obviously higher. Accidents can have significant impacts in terms of repair costs, insurance premiums, vehicle downtime, negative PR and potential legal action.

Ensuring drivers are familiar with their vehicle in terms of size and weight is also good practice. A simple sticker or guide can avoid costly mistakes in terms of over ladened vehicles and width/height restrictions. It is little wonder that with the growing complexities of managing an outright purchased LCV Fleet, in terms of choice, wholelife costs and compliance means that many are choosing the outsourcing route through this particular labyrinth. Fair wear and tear – what you need to know about assessing the condition of light commercials and vans The voice of the light commercial vehicle driver can sometimes go unheard, especially when they form a minority of a business’s total fleet. However, with over a million of these vehicles under five years old on the UK roads, it is important for fleet managers to understand the key differences between traditional car and LCV leasing, especially at the end of the lease term. Dave Freeman, explains the concept of ‘fair wear and tear’ and how it applies to vans and light commercials. “One of the key differences between car and LCV leasing is the application of what is considered to be ‘fair wear and tear’. There has, in the past, been a misconception that the BVRLA’s fair wear and tear guidelines do not apply to LCVs; this is simply not the case. With any leasing agreement, it is important for the organisation running the fleet to take measures to maintain the maximum residual value of the vehicles and avoid any unnecessary repair costs or fines at the end of the contract. “The BVRLA’s guidelines provide practical advice to maintain vehicles and outline the degree of deterioration judged to be reasonable when a fleet vehicle is returned at the end of a contract. This covers appearance, documentation, paintwork, vehicle body, bumpers, tyres, mechanical condition and the vehicle’s interior. The simplest way to avoid additional costs at the end of an agreement is to carry out regular vehicle maintenance – keeping to manufacturer maintenance and servicing schedules. Additionally, fleet managers and drivers should take steps to prevent damage, for example, seat covers should be provided to protect upholstery, liners should be used in the load area and tyre tread should be monitored. A few months before the contract is due to terminate, carry out a full inspection of the vehicle to identify any damage that does not constitute fair wear and tear. Arrangements should be made for repair and it is important that these repairs are to a high standard. If any parts have to be replaced then they should be of the same specification as the originals. “Adhering to LCV wear and tear guidelines is achievable and the steps to avoid additional costs are straightforward. Fleets need to ensure they are clearly managing both the day-to-day treatment of vehicles, as well as regular maintenance and checks to keep contracts running smoothly from start to finish.” fleetnews.co.uk/fleetvan V

B E S T PR AC T I C E: C O N T R AC T H I R E & L E A S I N G Good leasing companies do not want to bill for fair wear and tear, as it is always an emotive charge, so anything fleet operators can do to avoid these changes helps all the parties involved. Minimising your van fleet’s carbon emissions just got easier… Monitoring – and so reducing – carbon dioxide emissions among van fleets is often overlooked by the fleet industry and businesses alike. In a move to address this issue, Alphabet has developed an easy-to-use, online system designed to help businesses choose the most fuel-efficient and low carbon vans and light commercials. Called GreenCARE, this award-winning fleet analysis tool was originally developed for car fleets. The latest version of the tool, GreenCARE 3.0 now features extensive commercial vehicle data to help organisations cut their CO2 emissions and fuel costs, while benchmarking performance against Alphabet’s ‘average’ and ‘best in class’ fleet performers. Dave Freeman comments: “Company car fleets have found the data and benchmarking available through GreenCARE invaluable in managing costs. We wanted to extend those same benefits to our commercial vehicle customers.” The original GreenCARE product was launched in late 2009, as the industry’s first comprehensive online analysis tool allowing companies to access data on the environmental performance of their fleet. Detailed information on CO2 emissions, vehicle manufacturers, fuel type and engine size allows customers to benchmark their fleet performance and work out where savings can be made. The product was awarded the Environment Award in the 2010 Fleet World Honours. GreenCARE 2.0, which introduced sophisticated scenario planning to the package, was introduced in late 2010. The predictive modelling function enables fleet managers to build a realistic fleet policy and phase out certain vehicles over a set period to reduce CO2 emissions, MPG and business cost. Organisations are able to plot how changes to vehicles – such as adjusting manufacturer and model, engine size and fuel type – affect the fleet’s performance. GreenCARE 3.0 now allows light commercial vehicle operators access to the same reporting and analysis capabilities, helping them make better informed decisions when it comes to the management of their fleet. Mix and match – time to review your fleet profile? Alphabet believes that many businesses running light commercial fleets could save significant sums of money by changing their vehicle mix. There are no hard figures available, but most fleet experts would estimate that at least 30% of UK businesses are running LCV fleets that are no longer wholly appropriate for their needs. In other words, there is a sizeable number of van fleets driving around the country that are no longer ‘fit for purpose’. It may be that your delivery profile has changed since the recession – and you’re often ‘empty running’ with half full Transits. Alternatively, it could be that your product range has evolved to such an extent that half of your vehicles are redundant as they are not kitted out to carry new stock. In short, a large proportion of UK light commercial fleets need to stop and take stock. We are finding those fleets that have taken a step back from their day to day operations, to undertake an independent audit of their LCV fleet, have made savings and achieved measurable fleet efficiencies. In recessionary times, good fleet management is all about maximising the utilisation of your vehicles. By undertaking a review of van usage, we can quickly VI fleetnews.co.uk/fleetvan

ascertain whether you need to bring forward a vehicle replacement plan, rather than run a fleet that no longer fits your business need. We recently worked with an industrial maintenance business that operated an old fleet of 3.5-tonne vans. Their overloaded vans often took drivers over the legal weight limit, which could have led to prosecution. The company was also aware of the fuel costs associated with operating such large vans, so wanted to review the situation. After an initial audit, we discovered that operating a fleet of smaller vans was actually much more efficient, once we had analysed what equipment engineers actually needed to take on the road. All too often, drivers were taking every conceivable item out to jobs, when a much more compact and lighter core toolbox covered 99% of jobs. Once we looked at what was actually needed by the business, we recommended a smaller van to carry a single tonne load. This switch reduced fuel costs, improved driver safety, reduced monthly rental costs and also enabled easier parking due to the new vehicles’ smaller size and manoeuvrability. Are you LOLER legal? Research carried out by Alphabet revealed widespread confusion about the Lifting Operations and Lifting Equipment Regulations (LOLER), when it was last reviewed by the HSE in 2010. Unsurprisingly evidence suggests there is still a high proportion of LCV fleet managers that are unaware of the practical aspects of the

Savvy fleets are cutting miles

With fuel prices reaching historic highs in the UK and the market showing signs of further increases, fleets of every size are looking at savvy ways to reduce annual mileages. Alphabet shares its tips on ways SMEs can learn from their corporate counterparts and cut down on vehicle use. Paul Hollick, sales and marketing director, said: “As most smaller fleets are not administered by a full-time certified fleet manager, they tend to suffer from a lack of overall direction and clear policy when it comes to things like transport planning. Often though, a lot can be achieved by simply ensuring drivers are aware of the issue of high mileage and its cost to the business.” Dave Freeman, who specialises in advising LCV fleets at Alphabet, believes it’s not just a question of miles travelled, but the efficiency of vehicles and the loads they carry. He said: “In my experience the majority of smaller LCV fleets are blissfully unaware of the amount of unnecessary equipment their sales engineers, mechanics and craftsmen are habitually carrying round in the back of their vans. This is also true of the lack of understanding some transport managers have regarding the affect unused roof bars have on a vehicle’s fuel efficiency. “If I had one tip for LCV fleet managers, it would be to undertake a fleet review to assess whether they are running the most efficient size of vehicle for their needs and also whether their drivers are carrying around equipment unnecessarily. Of course, it’s obvious that a mobile engineer will need a complete set of tools to each job, but if they are carrying round two sets of heavy jacks or lifting gear, you need to ask; is this really necessary? It could be adding significant sums to you annual fuel bill. And if you’ve got a fleet of 20 or more vans, this mounts up over a year.”

LOLER regulations and how checks to lifting equipment should be carried out and reported. Dave Freeman said: “The findings highlighted some really interesting and important points about the day-to-day realities of the regulations. Despite a lot of work by the HSE and the leasing industry to educate the market, I suspect there are still a lot of smaller fleets operating hydraulic tail lifts and ‘mini mounties’ that are not regularly checking the safety of this equipment. When we asked fleets about their awareness of LOLER, we found that 75% of respondents said they had heard of the regulations and knew about their implications to fleets – which was positive. However, when we asked how often businesses examined the lifting equipment on their vehicles, there was little evidence of uniformity in the responses. “This is clearly a matter of concern. While 50% of businesses said they checked their lifting equipment on vehicles annually, 16% said quarterly and 33% monthly.” The latest LOLER regulations require vehicles up to 3.5-tonnes with electronic and hydraulic equipment to be serviced at least every six months and tested annually. Freeman said: “We are finding when talking to customers that this is not clear. Many believe that when vehicles are taken in for service and MoT, this takes care of LOLER testing, but this is simply not the case. Responsibility for the testing of lifting equipment lies with the vehicle operator and not the garage operator. What’s more many (particularly smaller) dealerships are not set up to perform tests on

lifting equipment. Worryingly, the research has highlighted that at least 50% of those businesses could be putting themselves at risk of prosecution. Fleets running vehicles with lifting equipment need to make sure their examination procedures are clearly set out and adhered to without exception.” Both employers and employees should fully understand the implications of LOLER. Get ready for type approval New legislation will change the way van and light commercial fleets work with body shops and other suppliers. In Dec 2009, it was announced that Euro NCAP would start assessing light-commercial vehicles and car-derived vans from mid-2010. While this is yet happen, it is only a matter of time before it does. In the meantime, fleet managers will need to get their heads around the recent change to the Type Approval Framework Directive (2007/46/EC), which will bring trailers, buses, coaches and certain special purpose vehicles (such as wheelchair accessible vehicles) into the European regime. Trucks and minibuses have already fallen under the Directive, with light commercial vehicles to follow in the next 12 months. The key objective behind all of these legislative changes is safety – the prevention of the adding on ‘unsuitable’ body work. Going forward, both the conversion company and the manufacturer must fleetnews.co.uk/fleetvan VII

B E S T P R AC T I C E : C O N T R AC T H I R E & L E A S I N G take responsibility for the safety and structural durability of the vehicle from point of production. This means that manufacturers will become far more heavily involved in supporting the conversions – and smaller conversion companies may struggle to get official manufacturer backing. A lot of work is being carried out across the conversions industry to prepare for the assessment of bodywork changes. This move is fundamentally positive for fleets, as it will ensure converters comply with legislation and the market will be a lot more controlled. However, there will be a greater obligation on fleet managers to check that the companies they work with going forward are registered to deliver on Type Approval. It is important that fleet managers start to speak with their vehicle providers and conversion companies now to ensure that action is taken to meet the incoming legislation. Taking a longer term view, when it comes to the sale or auction of a vehicle once it leaves the fleet, it will be essential to ensure the paperwork registers the correct Type-Approved vehicle. For example, a van that has been converted into a minibus without Type Approval will display inconsistent paperwork, which may affect the sale price. It will be this financial impact that eventually ensures compliance.

commercials can reduce down time during service, maintenance and repairs (SMR). Vehicle downtime is probably the most important factor that needs monitoring when it comes to LCV fleets. While time off the road is a minor inconvenience for car drivers, vans stuck in repair bays mean non-deliveries and potentially lost business. While the trend of mobile servicing seems to wax and wane, there is no doubt LCV fleet managers can significantly improve their fleet utilisation by taking a more proactive and planned approach to vehicle servicing. While there is clearly still reticence on the part of some managers to use mobile service providers – due to the misconception they offer limited capability compared to traditional garages – this option should not be overlooked. Mobile or on-site servicing can be undertaken while engineers are on site, thus eliminating any vehicle downtime. Alternatively, many now offer early or late opening which can help to reduce time off the road, as vans can be serviced out of hours. However, the key consideration in making mobile or flexible servicing work is planning. Without careful preparation and scheduling this approach usually falls down, as it’s not the kind of servicing that can be obtained at short notice. In our experience, those LCV fleets adopting a more flexible approach to SMR achieve far higher utilisation rates.

“Manufacturers will become far more heavily involved in supporting the conversions – and smaller conversion companies may struggle to get official manufacturer backing”

Service, maintenance and repair considerations for the LCV fleet Here, Alphabet looks at how businesses running vans and light

Electric LCVs – keeping the lights on While the Government’s plug-in grant for vans has been well received, and we’ve seen some exciting new electric vehicle (EV) launches in recent months, the leasing market is still wary of such vehicles, says Dave Freeman, LCV specialist at Alphabet. When I attended the Low Carbon Vehicle (LCV) event in 2010, there was a real sense that we’d turned a corner and it was simply a matter of time before electric vehicles became an integral part of fleets. Whilst I have been involved in the introduction of EVs to a number of customer fleets, progress since then has been slow. So, why have EVs not yet taken off? In my opinion, it is down to several issues, but three main challenges stand out where the widespread adoption of EVs is concerned – finance, infrastructure and the availability of alternative technologies. Having attended key industry events and spoken to businesses about the future of commercial EVs, it is clear that many fleet managers think that ‘pure’ electric fleets are unlikely to stack up. We are far more likely to see flexible approaches taken which embrace pure electric, hybrid and low emission diesel vehicles within the same fleet. As such, it will be important for fleet managers to undertake a comprehensive audit of their vehicle requirements and work patterns to ensure the most efficient vehicle is being utilised for each role. Additionally, infrastructure, or lack of it, still halts the uptake of EVs. Electric LCVs work well in cities such as London and Oxford,

VIII fleetnews.co.uk/fleetvan

where there are numerous charging points – or in cases where delivery companies have their own private charging networks. The adoption of EVs where businesses can work on the basis of defined delivery routes is also easier as the likelihood of vans running out of power is vastly reduced. The problem for other businesses, which typically need to transport people and things around the country, is one of vehicle range. The Government needs to sort out charging points and also improve allowances to ensure total cost of ownership and whole life cost calculations stack up in favour of EV technology. Undertaking a fleet audit to assess your fleet’s profile and needs in terms of alternative fuel solutions is a good discipline that all businesses should be undertaking. Lastly, the issue of infrastructure continues to be seen as a constraining factor for the widespread adoption of EVs. While the dots are certainly being joined here, concerns about the availability of charging points still remain a key hurdle. Clearly, knowledge is power here and a detailed understanding of the current and planned state of the UK charging network is important. The future of EVs is not yet clear. This new technology is hugely exciting and offers organisations with the right fleet profile, distribution patterns and culture, genuine opportunities. However at the moment, commercial EV adoption is set to remain stagnant until much stronger incentives are introduced.

Specialist solutions for specialist vehicles.

At Alphabet, we understand your business may need a variety of commercial vehicles to suit your everyday needs. Whether itâ&#x20AC;&#x2122;s a car-derived van or a specialist modiďŹ ed vehicle, our dedicated commercial vehicle team can assist in delivering the right solution to meet your every need. From the intricacies of ply lining, cranes and tail lifts, to corporate livery, we can offer a tailored solution for your business. Find out more: Tel: 0870 50 50 100 Email: alphabet@alphabet.co.uk www.alphabet.co.uk

B E S T PR AC T I C E: AC C I D E N T M A NAG E M E N T

Maintenance and repair: effective van accident management A 10-step guide to this essential part of your van fleet operation By Steve Thompson, Managing Director, Nationwide Network Services

f you are the manager of a fleet which consists of, or contains, commercial vehicles, then this is the essential 10-step guide to reviewing your accident and repair management.

Step 1 –Fair wear and tear A consideration of vehicle financing is undoubtedly the stringent set of return standards at the end of the contract period, which often reflect those laid out by the BVRLA for ‘Fair Wear and Tear’. If the vehicle is returned and it does not meet the standards laid out in the contract, then the operator will be liable for the remedial charges – which, from our experience at Nationwide, will often be more expensive than if the operator organises the repair work itself before the vehicle is returned. The BVRLA recommends that fleet managers appraise their vehicles 10 to 12 weeks before the return date in order to have time to arrange for any damage to be repaired with minimum disruption and off-road time. This gives ample opportunity to get an acceptable quote and avoid issues of parts delays. For a fleet manager, a vehicle inspection can often be time consuming and difficult and, unless they are professionally trained, may require a second pair of eyes to be fully objective. To ensure consistency, Nationwide offers professional de-fleet checks as part of service agreements where required. The cost of these professional estimates can be included in the on-going service contract or deducted from any resulting remedial work. A professional estimator will advise what repair work is required to ensure every vehicle meets the standards set by the finance company, and also ascertains what damage would be covered by fair wear and tear, or which would be uneconomical to repair. A professional estimate means that only essential work is carried

out, and the fleet manager will have a qualified report in case the return standards are disputed by the finance provider. Every day a commercial vehicle is off the road costs money. So, at the end of a lease or contract hire contract, it is always critical to take a commercial vehicle through the de-fleet process as quickly as possible. For many of our fleet customers at Nationwide, we arrange the hand-over of the de-fleeted vehicle back to the finance provider directly from our local repair centre as soon as the work is completed; removing the stress, inconvenience and cost of transporting the vehicle backwards and forwards completely. It is definitely worth requesting this service as part of your accident management support. Step 2 – Disposing of owned commercial vehicles For organisations which own their vehicles, low mileage, clean vans perform much better at auction and have stronger residual values. Mileage is often something which organisations can do very little about within the constraints of normal business requirements, although even small changes on a daily basis, such as route planning, can have a dramatic impact on mileage and fuel consumption over the life of the vehicle. However, the condition of the bodywork, regardless of age or mileage, can materially impact the value achieved whatever the disposal channel. Ken Brown, Editor of CAP Red Book LCV and Motorhomes, explains: “You would be amazed at the number of vans I see at auctions that haven’t even been cleaned. I’ve seen dirty vans with little or no body panel damage go for less money than cleaned and polished vans that are actually in what we would class as ‘CAP Below Average’ condition in terms of body panel damage. “Auctions are emotive places and, since it often takes less than a minute for a van to be exhibited and sold, buyers have very little time to make up their minds. A van that has been prepared for sale will always stand out from the crowd and send a signal to the potential buyer that it’s been well maintained and looked after so it

“A vehicle inspection can often be time consuming and difficult and, unless they are professionally trained, may require a second pair of eyes to be fully objective”

X fleetnews.co.uk/fleetvan

must be worth more.” This is because the standard of bodywork often gives an impression of the overall level of the maintenance of the vehicles and how hard a life it has had, and therefore can be critical in achieving optimum return. Many of the customers of used vehicle sales outlets, such as auction houses, tend to be independent business owners trying to buy good quality commercial vehicles and these buyers are looking for vans which look like they have plenty of life left in them. Therefore, every fleet operator needs to access the financial feasibility of refurbishment, even for vehicles which have been used as work horses during their working life, before the vehicles are sold on. Heavy use, age and mileage will eventually render a vehicle beyond economic viability to fully refurbish. However, it is always worth getting a professional estimate as repair costs may be significantly lower than expected, particularly as repair technology and innovation develops rapidly. The cost of cosmetic work is also often completely recoverable. Even if a full refurbishment does not make sense, there are usually small jobs which would add real value at resale. A used commercial buyer may allow up to £500 or £600 for a cracked windscreen however this could be repaired for free if you have fully comprehensive insurance or for a small fee if you have a glass partner. The same can be said for tyres and items such as lights, mirrors and plastic mouldings – all of which could be replaced quickly and easily before resale. Ken Brown of CAP says that: “Metallic pain often achieves a premium residual value when the paint is in good condition. However, metallic paint can be notoriously difficult to match when even a small paint repair is needed. “It is often necessary to re-spray the whole side of a vehicle to achieve an acceptable finish. Professional buyers know this only too well and they will often factor in the cost of repainting the whole side of a vehicle even if there is only a relatively minor amount of damage on a single panel. This can have a dramatic effect on the value of a vehicle at auction.” It is also worth looking at the condition of the interior. Broken trim and ripped seats will give the impression of a hard life, impacting on the residual value by far more than the cost of the parts alone. Trim parts are readily available and are often surprisingly inexpensive to replace on many commercial vehicles. For fleets which maintain the bodywork of their vehicles to a high standard and return them to market in consistently good condition there can be unexpected benefits. Some large van operators, particularly utility companies, have built strong reputations for disposing of good quality second hand vehicles. The fact that these vehicles have been well cared for makes them immediately desirable on the second hand market, and this element of trust can add pounds to the residual value. This is reflected by the fact that CAP is consistently recording that high quality used vans are regularly achieving above expected prices, whilst some less desirable vehicles are simply not selling at all. This coincides with a higher proportion of damaged vehicles appearing on the used car market, generally felt to be due to the

longer contract and ownership periods the industry is witnessing because of the ongoing economic situation. Although there have been an increasing number of newer vehicles appearing on the market from companies which have folded or from individuals who have defaulted on their repayments, there have been fewer batches of daily rental vehicles flooding the market. This scarcity of vehicles in market clean condition has pushed up prices for commercial vehicles which fit the bill. CAP is quick to stress that each van should be treated on its own merits and obviously the mechanical condition needs to be weighed up alongside the cosmetic appearance, but in a market short of good quality vehicles, it is a golden opportunity for fleet operators to make sure that de-fleeted vehicles are presented to the highest possible standard. A good accident and repair management provider will be happy to work with a fleet manager to identify the best strategy for your fleet and evaluate vehicles on a case-by-case basis. Step 3 – Regular checks during vehicle life Whether you are disposing of vans yourself or returning them to a contract hire or leasing provider it makes sense to check your vehicles regularly to avoid expensive repair bills at the end of the life cycle. However, all fleets, whether you have three or 1,000 vans, should have processes in place to monitor the condition of vehicle regularly. This care and attention also reinforces to drivers that the organisation expects vehicles to be kept in good condition. Small dents and paint issues can be rectified quickly and simply by high quality mobile repair providers, such as our market-leading Nationwide Mobile Repair service which ensures that any repairs are carried out to body shop standards. Damage and wear and tear should be recorded, as should servicing requirements and mileage – all of which can help to identify drivers who offer the most risk. Within the Freight Transport Association (FTA)’s Van Excellence Code, van operators are encouraged to perform a daily vehicle defect check (or when a vehicle passes into the use of a new driver if different users within a day) and to ensure that “vehicles are maintained in accordance with an appropriate and agreed programme by competent providers”. It is proven that a dedicated driver is more likely to report damage to a vehicle, compared to drivers who drive multiple vehicles. fleetnews.co.uk/fleetvan XI

B E S T PR AC T I C E: AC C I D E N T M A NAG E M E N T Step 4 – Branding, rebranding and wrapping Whether you have one van which covers your local area, or thousands of commercial vehicles which travel across the globe, the appearance of your vehicles can offer a valuable marketing opportunity during their life on the road because of the huge number of people who see them. If a van is damaged or dented, how does this reflect on your business and the pride taken in the services you offer? However, for branded vehicles, it is worth considering which areas of the vehicle are most likely to get knocked and scraped before the graphics are being commissioned. Avoiding decaling those particular areas prone to damage can help avoid expensive rebranding costs if the vehicle is involved in an accident. If you don’t have access to this information, speak to your vehicle buyer or to a Nationwide Repair Centre for a professional opinion. Vinyl wrapping is a very exciting development of recent years. It is a brilliant way to get your branding and message in front of the millions of drivers who use our roads every year, particularly if your branding has a key colour which isn’t a standard paint option. Wrapping your vehicles will invariably be cheaper than a full re-spray and, when it comes to reselling the vehicle, you should be able to remove the wrap to reveal the protected paintwork underneath. With wraps designed to last between one day and five years, wrapping can offer a flexible approach to creating consistent, impressive branding. However, in practice, this doesn’t always work economically. Fleets which go to the expense of vehicle wrapping often also aim to keep their vehicles in good condition. However, if one of these vans needs a bodywork repair, the vinyl has to be removed and then a new one replaced after the work is complete – potentially adding considerable cost to the repair. Fleet managers should be careful to check with their insurers that the replacement of wraps is covered within their policy. Even in cases where traditional large lettering has been

applied, there are few potential buyers who would pay for a van with the shadow of the last owner’s branding on the side and this could pose a problem for the person whose job it is to de-fleet it. However, if an organisation is going through a rebranding exercise with an existing fleet, wrapping can prove a viable solution to a complete livery change. At Nationwide, we recently worked with a well known utility company to rebrand their entire fleet over a three month period. The whole process was managed centrally and we liaised with individual drivers to organise the rebranding work at the most convenient time and location for them. If you are planning a large rebranding exercise it is worth discussing the logistics of the operation with your repairer or accident management provider to ensure that the rebranding work takes place seamlessly around your driver network with minimal disruption. It is also worth investigating the impact of the colour of your vehicles on your remarketing regardless of the branding strategy. For example, although good quality black vehicles and metallic paint can achieve a premium price at resale, in practice the residual value of black paint can often be less because it shows up every dent and scratch and damaged metallic paint is considered to expensive to repair.

“Even in cases where traditional large lettering has been applied, there are few potential buyers who would pay for a van with the shadow of the last owner’s branding on the side”

When it comes to reselling the vehicle, you should be able to remove the wrap to reveal the protected paintwork underneath XII fleetnews.co.uk/fleetvan

Step 5 – Consider professional accident management As insurance premiums continue to rise, professional accident management providers can minimise repair costs, organise non-insurance work, and help to protect future insurance premiums. More and more large fleets are outsourcing their accident management as they realise that this can be an area for significant efficiencies, improvements and cost savings. The first step to an effective accident management programme is to have clear focus on your objectives and should include: n Keeping drivers on the road n Organising replacement vehicles n Protecting future insurance premiums n Administering self-insurance or higher excess levels n Reducing administrative burden n Creating savings through outsourcing n Maximising residual values n Specific help, such as first notification of loss (FNOL) or claims expediting n Safe guarding against expensive third party personal injury claims (Third Party Capture) n Uninsured Loss Recovery ULR n Consolidating and upgrading management information and operating data to identify areas of risk and potential savings n Improving safety records n Standardising service across the UK n Defining critical repair times (particularly important for contractual utility and service vehicles) n Including mobile repairs as part of a flexible repair strategy For busy fleet departments, accident management companies can offer genuine savings in areas such as fleet administration,

particularly where there are claims to be expedited and managed from the first notification of loss (FNOL). A professional accident management provider will be able to project your accident management and repair costs for the year ahead based on your historic figures, and then demonstrate the predicted savings. All of these service providers should back up their support with real-time, flexible online reporting which allows you to track claims, repairs, costs and estimates as well as analysing risk and areas for improvements. For companies which self-insure or have high excess levels, a professional third party capture service can save thousands of pounds for companies which experience fault-accidents. This is simply because they contact the other driver and offer assistance ideally before the third party has had chance to start progressing an expensive body injury claim with their insurance provider or another claims handler. In addition, these self-insured companies would also benefits from FNOL services, so that drivers can contact someone 24/7 to report damage to a vehicle. A professional accident management provider will be able to evaluate the damage immediately, including ascertaining whether the repair is below the excess level, assist the driver and arrange a prompt repair accordingly. This avoids unnecessary and costly delays while the driver waits to speak to the fleet manager and saves time, money and stress. Step 6 – Look for nationwide repair coverage and flexible repair options Always make sure that the geographic area covered by your repair provider reflects the spread of your fleet. If you have a national fleet, or if your drivers travel across the country, it is critical that your accident management provider has a network of bodyshops covering the UK. Not only is this invaluable for accident repair work, when it comes to de-fleeting your vehicles all estimating and remedial work can be handled locally near the driver to avoid undue expense and driver inconvenience. Nationwide offers market-leading mobile repairs across the country and has LCV repair facilities at every repair centre. Plus we have a complete UK network of HGV specialists. Fleet managers are increasingly looking for flexible repair options, such as mobile bodywork repairs, from the accident management providers to help reduce costs and off-road times. Even auction houses are increasingly using mobile repairs to repair vans so that the sale of the vehicle is not held up. Mobile repairs have moved ahead significantly in recent years and are capable of offering much more than just smart repairs – even quite big repairs can now be handled in less than one day by companies such as Nationwide Mobile Repairs, and are to the same standard as those carried out in a bodyshop. These can be invaluable for van fleets as they can dramatically reduce the time a vehicle is off the road.

Step 7 – Aim to reduce risk through information, policy and telematics The ultimate aim of any accident management strategy should be to have zero accidents. No accidents mean far fewer repair costs, less administrative burden, lower insurance costs and, most importantly, no injuries or fatalities. Effective safety schemes in the work place can have dramatic effects and be far reaching. A safety scheme can include a range of policies. Younger drivers are statistically more likely to have accidents so many fleets, of both passenger and commercial vehicles, insist upon minimum ages for drivers. In addition, a clear set of standards should be laid out within the human resources policy documentation about mobile phone usage, the implication of driving offences, and attitudes to driving to ensure that the company’s expectations are clear. Some fleets offer free eye-tests to drivers, or make them compulsory as part of regular audits alongside driving licence checks, and others have bad-weather policies containing clear guidelines about reducing non-essential travel in very poor driving conditions. Once the standards are in place, comprehensive reporting is critical for effectively tracking this risk and monitoring the results of the measures you have in place. You may be surprised at the information available to you. Alongside any in-house reporting, you should also be able to ask your colleagues, suppliers and partners for their information about your fleet. These may include your insurer, your HR and finance team, a fleet management company or accident management providers, finance supplier and your telematics operator. Commercial vehicle fleets have led the way in terms of telematics, to the extent that the vast majority of operators already use telematics to a track vehicles, plan deliveries and record vehicle data. However, telematics can also be an invaluable source of driver analysis and risk information. Telematic systems can indicate which drivers are more likely to be involved in an accident by monitoring driving styles. They also can highlight problem areas, such as heightened risk in a particular department or under a certain manager, which may

“A professional accident management provider will be able to project your accident management and repair costs for the year ahead based on your historic figures”

fleetnews.co.uk/fleetvan XIII

B E S T PR AC T I C E: AC C I D E N T M A NAG E M E N T

indicate that culture could be a factor. The driver information recorded using the telematic system can then be used to offer targeted driver action plans and training to high risk drivers which can be significantly more cost effective than offering blanket training across the entire fleet; this saves both the cost of training and the time out of the business. Some van fleets have also introduced driver attitude and psychometric testing and simulator trials to encourage good driving skills and pinpoint areas of weakness or increased risk. Step 8 – Have a clear level of standards and support in place with your repair provider As every company is different, so are their requirements. One organisation may require all of the vehicles to be immaculate and are happy to pay for guaranteed courtesy vehicles and out-of-hours express repairs. Others may happily keep vehicles on the road with minor damage and only take a vehicle to a bodyshop if absolutely necessary. Some companies may prefer a mobile repairer to come to one particular site to estimate repairs for many different vehicles at once, whilst another organisation will prefer to encourage relationships with repair centres within a chain so that damage can be rectified locally but with consistent pricing. In addition, different applications have different life spans. An ambulance or a van with a platform fitted, such as a cherry picker or toilets and washing facilities, may be operated for over five years. Some of these vehicles are an expensive conversion but are used very little so they incur minimal accident management; however, they may require ‘body-off, body on’ services at the start and end of the vehicle life, where an approved repairer will remove the customised parts of one vehicles, replace it with standard parts to get it through auction, and then re-fit the conversion onto the next new vehicle coming through. Regardless of the type of fleet you operate, you should have a clear set of standards in place for your organisation. If your policy is to keep vehicles pristine then make sure this is written down, if you expect all damage to be reported then make sure drivers are aware of this. Likewise, ensure that the service level agreement in place with any fleet support, accident management companies or repairers is clear and is designed to fit your demands exactly. Do not be afraid to ask for bespoke levels of support within your service level agreement as most companies will be happy to provide you with a clear quotation for services which go above and beyond their standard service offering.

If a sub-standard repair is carried out on a fleet vehicle you could end up paying twice: once for the repair itself and again when you come to defleet the vehicle; either because the contract hire and leasing company demands that you pay for remedial work, or at resale because a buyer knocks off the estimated cost of rectifying the shoddy repair from the offer price. When considering mobile repairs for your commercial vehicles, always make sure that the service provider has a relationship with a fixed-site bodyshop so that you have confidence that, should the repairer arrive on site and realise that the damage is unsuitable for mobile repair, they will refer the vehicle to a repair centre rather than attempt unsuitable work.

“A clear set of standards should be laid out within the human resources policy documentation about mobile phone usage, the implication of driving offences, and attitudes to driving to ensure that the company’s expectations are clear”

Step 9 – Quality of repair Whatever the repair options available to you, whether mobile or fixed site, always look for the British Standard approval PAS 125. This will give you peace of mind that repairs are carried out to the highest standard and with the appropriate equipment and expertise. Surprisingly only 1/3 of all bodyshops in the UK are PAS 125 accredited. XIV fleetnews.co.uk/fleetvan

Step 10 – Courtesy vehicles Because vans are used for so many different purposes, many with bespoke racking or fixtures, it would be uneconomical for most repairers to have a range of courtesy vehicles, including everything from an LCV to an HGV, to cover every option. Therefore, most fleets accept the need to hire replacement vehicles if and when a vehicle goes in for repair. However, if a claim is non-fault then the third party should cover the cost of rental of a suitable van. If you require a specific courtesy vehicle, your accident management provider may be able to give you preferential or favourable rates so it is worth checking with them to see whether they can help you with this. n For more information about Nationwide’s accident management services for commercial van fleets, please contact– tel: 01606 562352 email: info@nationwiderepairs.co.uk website: www. nationwiderepairs.co.uk

Summary

Nationwide is the UK’s leading automotive group. With 64 repair centres, which all have LCV capabilities, plus 27 HGV bodyshops, and a fleet of Nationwide Mobile Repair and Motorglass engineers across the UK, Nationwide offers insurers, rental companies, and fleet managers the most extensive, integrated repair coverage in the UK. Nationwide handles approximately 275,000 accident notifications every year across the group, many of which are dealt with directly through Nationwide Network Services, Nationwide’s accident management division, one of the few automotive accident management providers which can triage repairs at the point of FNOL between fixed site and mobile repairs, plus can seamlessly manage cross-referrals between each division at every point of the repair process using its bespoke, integrated IT platform. All of this helps to ensure consistent and comprehensive reporting and keeps the key to key time for each and every repair to a minimum, saving the customer time and money.

You got the most out of it.

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The only complete defleet solution in the UK. We’ll maximise the defleet value of your vehicle. Repairing over 200,000 vehicles every year, Nationwide is the UK’s leading vehicle body repairer. We offer you unrivalled expertise through the largest network of wholly owned PAS 125 bodyshops, backed up by market leading mobile body repair and automotive glass services. Wherever you are, we go. We’re the UK’s No 1 at repairing and preparing your fleet vehicles for onward sale with a comprehensive range of defleet services to maximise their value. From wing mirrors to wheels, exterior damage to interior trim. Get the most out of your van. Get in touch with us.

For more information, call our Business Support Team today on:

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BEST PRACTICE: FUEL CARDS

Fuel cards key to reducing operating costs Rising costs make a robust fuel management strategy more vital than ever

uel is accounting for an increasing share of a fleet’s total cost of ownership and that percentage is forecasted to rise still further. The change – due to the rising cost of fuel – represents a huge shift in fleet economics and means an increased accent on more efficient fuel use if costs are to be kept in check. As a result, van fleet operators must use every tool in their armoury to keep fuel costs under control and eliminate any unnecessary expenditure. It is crucial, therefore, that companies have in place a robust fuel management strategy to ensure that fuel bills are kept to a

minimum, otherwise potential savings will not materialise. After van acquisition/depreciation, fuel is typically the second biggest vehicle expense facing businesses, potentially accounting for at least 25% of fleet expenditure. Yet, industry experts suggest that by taking note of the ‘fuel eternal triangle’ – miles driven, the volume of fuel purchased and the cost of fuel – all underpinned by a disciplined fuel card regime, valuable financial savings of 15-20% can be achieved. Interestingly, anecdotal evidence suggests that some fleet decision-makers believe that fuel is an unmanageable cost and that few cost-saving actions can be taken in the face of rising prices.

But, the opposite is true with fuel cards and the associated online management that come with it; enabling fleet bosses to take control over forecourt expenditure, gather accurate data about vehicle use, and then analyse that information to deliver savings. The impact of fuel bills on overall van fleet operating costs can be minimised by issuing a fuel card to drivers, allowing managers to see up-to-the-minute information on purchasing patterns and vehicle MPG performance. Consolidated online fuel card management reports are typically available to customize and download, and provide detail on fuel purchases and usage. These enable managers to study exact fuel use on a

Fuel card benefits

Improved engine efficiency, lower fuel bills

Determine which fuel is bought, from where and at what price. Capture accurate business (and private) mileage to obtain a handle on exactly how many miles are being travelled by staff. Individual driver fuel/mileage reduction targets can be set and savings identified. Drivers with poor MPG records can be identified and improvements prescribed. Vehicles with a poor MPG record perhaps due to weaknesses in vehicle servicing/maintenance schedules can be identified and remedial actions taken. Fraudulent transactions can be identified and eliminated through monitoring refuelling patterns.

Last year, Shell teamed up with the Royal Society for the encouragement of Arts, Manufacturers and Commerce (RSA) and The AA to challenge 18 cab drivers across 10 UK cities to become more fuel efficient by changing the way they drive. It saw them reduce their fuel use by an average 20% in a month – meaning a saving of more than £1,550; equivalent to more than 1,100 litres of fuel if they retain their ‘smarter driving’ focus for 12 months. The cabbies smashed their 10% fuel saving target by putting into practice a range of fuel economy driving tips:

1 2 3 4 5 6

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Inner city n Maintain momentum n Drive smoothly n Avoid excess idling n Avoid using air conditioning – open window instead n Rreduce the load in boots On motorways n Keep your distance n Use higher gears n Keep speed down n Use air conditioning instead of opening windows n Use cruise control

Phil Williams, UK sales manager for euroShell, says: “Taxi drivers are driving professionals like many of Britain’s van drivers. If they can significantly reduce their fuel consumption, then it provides compelling evidence to fleet operators that van driver behaviour can be a key factor in managing fuel economy.”

Drivers will be able to use the euroShell Card at more than 1,100 UK fuel stations before the end of this year

per driver/vehicle basis. Using these reports to highlight poor consumption figures will help identify costly driving habits that can be remedied through management action, ranging from highlighting the problem with the employees concerned to a comprehensive driver training programme. Similarly, an underperforming vehicle will highlight that action could be needed to remedy a specific mechanical fault. This is where the euroShell card comes in. With more than 50 years’ worth of fuel card expertise, we have a solution for you, whatever the size and type of your business. To further aid fingertip fuel management, Shell has developed Shell Card Online, which provides van fleet decision-makers with even greater control over budgets alongside flexibility and convenience when managing their vehicles. Fleet managers can use the dedicated online portal to improve fuel management by: n Ordering new cards and, if necessary, blocking the use of current cards n Creating personalised fuel card activity reports and reports on individual vehicle/ driver consumption rates n Obtaining invoices when required n Using a number of ‘smart settings’ to

improve control over the type of fuel purchased, fuel price and forecourts used n Using ‘smart alerts’ to prevent fraud by keeping tabs on fuel purchase types and values, dates, times, areas and vehicle numbers to identify refuelling patterns. There is a misnomer among fleet operators that having more than one fuel card is a fleet essential. This is not the case; the euroShell Card can be used by drivers at more than 850 Shell branded sites throughout the UK, with this number growing by the end of 2012 to more than 1,100 once the re-branding of 250 Total sites purchased in 2011 is completed. The euroShell Card can also be used in more than 2,500 Esso, Texaco and Total stations, offering a compelling network coverage. Additionally, last year Shell became one of the first card issuers to co-operate with M6toll - offering toll charge payments on euroShell Card. Phil Williams, UK sales manager for euroShell Card, says: “Every organisation looking to reduce fuel bills should issue fuel cards to drivers and use the related management reports as the basis for implementing a fuel-saving strategy. Significant financial savings can be made by acting upon data gathered from fuel card reports.”

Using the right fuels

Another key consideration to efficient and effective fuel monitoring and management programme is using the right fuels for your fleet. Fuel management and fuel quality should be a major issue for all businesses, but thousands have yet to fully understand the impact. Shell’s fuels are designed with performance and economy in mind. FuelSave Diesel and Unleaded will help deliver real fuel saving benefits for our customers, at no extra cost. We know that keeping your fleet running is vital to your business. That’s why our high quality fuels are designed to be as efficient as possible for peak performance. n Designed for efficiency, to help you save fuel n Lubricates inside the engine to reduce energy loss n Keeps inlet valves clean to maintain performance n Helps protect against the buildup of deposits which can reduce efficiency n Designed to burn and ignite more effectively for efficient combustion.

To find out more about the euroShell Card and our quality fuels, visit www.shell.co.uk/euroshell fleetnews.co.uk/fleetvan XVII

B E S T PR AC T I C E: T E L E M AT I C S

Technology holds the key to cost-effective fleet management Telematics offers solutions to a whole host of van fleet problems Giles Margerison, Director UK & Ireland, TomTom Business Solutions, answers your telematics questions

How can businesses use fleet management technology solutions to become more profitable? Today’s highly competitive business environment, combined with rising costs and tight margins, has put companies under increasing pressure to scrutinise their operational performance. Fleet management technology systems, often referred to as telematics, offer one of the most logical options for maximising efficiency and reliability for companies of any size. These solutions have evolved over recent years to become extremely sophisticated management tools, helping forward thinking companies to drive down costs, increase business productivity and boost standards of customer service. Not only do they monitor vehicle activity, from location and mpg to idling and speed, but they can also monitor and measure driver performance behind the wheel to promote greener, safer driving. In fact it is reasonable to claim a fleet that does not employ a telematics system cannot be expected to operate at maximum efficiency. Having the tools to monitor and manage fuel consumption alone – arguably the biggest cost for any van fleet operation – can potentially save thousands of pounds. When tough business decisions have to be made to boost company balance sheets, and in some cases even ensure business survival, these operational savings can prevent job losses allowing valuable resource levels to be retained. The examples of fleets that have seen staggering cost savings following the adoption of this technology are many, yet surprisingly a large percentage of companies have yet to introduce it. In their early guises, vehicle tracking systems did little more than what they said on the tin, relaying positional data back to the central office PC. For many organisations, the ‘fleet visibility’ provided by track and trace information still proves to be the most valuable

aspect, albeit that the accuracy and ways in which it is relayed have become increasingly advanced. This real-time visibility for managers, clearly displayed on-screen via fleet management software, enables them to locate their drivers and direct them to the next nearest job in seconds. This means vehicles travelling fewer miles and drivers being able to complete more pick-ups and dropoffs in a day. Significant efficiency and productivity gains can consequently be realised at the touch of a button. Companies however should establish what it is that they’re looking for in a fleet management technology system before they invest. In some cases, they should consider such systems alongside the introduction of wider change management programmes, where technology can be used to monitor and aid progress. Where tracking, messaging and navigation technologies have been integrated, for example, the possibilities for fleet operations are taken to another level that starts to make wider areas of the business more efficient through quicker flow of information between each other. Sat navs are, of course, an obvious tool for drivers that can typically reduce journey time in unfamiliar areas by 10 per cent. This is further enhanced by live traffic information being relayed automatically to drivers en-route, which means time savings can increase by up to 15 per cent. When extrapolated across a fleet, this can make a considerable difference to business performance, while improving service to customers. When these sat navs are connected to a telematics ‘black box’, the performance bar is raised yet further in terms of the potential efficiency gains. The data from the vehicle is relayed to managers by Global Packet Radio Services (GPRS) via a fleet management software package – most of these packages are web-based and therefore accessible from anywhere. Messaging is two-way which means reduced dependency on costly mobile phones. Businesses can now send job instructions to their workforce via text message to their in cab sat nav units and route drivers to their destination in one fluid motion.

“A fleet that does not employ a telematics system cannot be expected to operate at maximum efficiency”

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Many companies integrate their telematics systems with their workshop data because systems deliver accurate mileage reports, which can then be compared to servicing records. Vehicle maintenance planning tools are even available with some systems, which can automate this task, reminding the fleet manager of impending vehicle service requirements and helping them with Duty of Care compliance. By ensuring fleets are well-maintained and that driver performance is optimised, the energy efficiency of vehicles can be improved by as much as 10 per cent, according to recent research by the Centre for Climate and Energy Solutions. Tom Tom’s combined system has realised improvement of up to 30% for business customers. And this is just the start of a wealth of driver and management tools that can make such advanced systems must-have, rather than nice-to-have, technology solutions. The sophistication of the latest fleet management technology innovations, which increases the visibility and flow of information throughout the business, has made the potential returns on investment ever more compelling. So what recent technology developments have there been that have proved particularly valuable to fleet managers? Innovations have led to systems enabling businesses to cut fuel costs and promote greener, safer drivers in ever smarter ways. On-board diagnostics, for example, can enable fleet managers to measure and reduce fuel costs and carbon footprint by taking live data direct from vehicles. This information – from fuel consumption, CO2 emission and RPM to gear selection and idling – can be relayed and reviewed in real time so managers can assess performance at any time during a driver’s journey. Management reporting functions enable this data to be measured against pre-defined business targets. Not only does this directly impact the bottom line, it can help managers establish safer, greener

Christie Intruder Alarms (CIA) reduced its fuel consumption by 12,000 litres in just 12 months

driving policies. According to the Department for Transport driving at 70mph uses 15 per cent more fuel than at 50mph, while cruising at 80mph can use up to 25 per cent more fuel than at 70mph. Fleet management systems not only allow fleet operators to monitor driver speeds by offering detailed speed analysis reports, this information can now even be monitored in relation to road speed limits. Traditionally, fleet management systems have allowed operators to set a benchmark speed, triggering a warning whenever a driver exceeds that figure. Speed by road type functionality allows fleet operators to get a handle on what is happening in different speed zones across all road types, which is important as most accidents occur on minor roads rather than motorways. Further recent advancements include real time driver feedback to employees’ in-cab sat nav devices. This means the van drivers themselves can now see their fuel efficiency, or be warned of speeding or excessive steering and braking, by a simple alert on their sat nav – a significant step in giving tools to the driver to facilitate learning whilst driving, and putting the responsibility with the driver to improve their driving style in line with efficiency and safety targets. When businesses use this technology in conjunction with driver training, they are able to establish sustainable driver improvement programmes for their fleet with training targeted where it is most needed, rather than the traditional one-size-fits-all approach. Telematics software systems are now also available on smartphones and tablets, so managers on the move have more flexibility to manage their fleet. Can you give examples of companies that have made big savings? We have a wide range of customer overseeing fleets of all sizes, from 3 to 3,000 vehicles, which have demonstrated considerable bottom-line financial benefits from introducing telematics, not to mention substantial returns on investment. Security installation company Christie Intruder Alarms (CIA), for example, reduced its fuel consumption by 12,000 litres in just 12 months. The company introduced a fleet management system to cut fuel costs, simplify admin and prove vehicle usage for tax purposes by accurately differentiating business from private mileage. Through improved routing between customers, reduced engine idling by avoiding traffic congestion, reduced speeding and the better allocation of vehicles to jobs, the company recorded a £22,000 saving in its first year of using the technology. CIA, which operates a fleet of 80 vehicles, installed TomTom fleetnews.co.uk/fleetvan XIX

B E S T PR AC T I C E: T E L E M AT I C S tracking units paired with GO navigation devices for two-way messaging and live traffic information through our HD Traffic service. Audible alarms on the sat nav devices prompt drivers to switch them on when they enter their vehicles and to select whether they are making private or business journeys. CIA has also mounted the devices in the dash for ease of use. Business mileage reports can then be generated by management at the touch of a button within fleet management software system TomTom WEBFLEET. CIA is also generating daily reports on driver speeds, enabling them to work with drivers to correct the behaviour for those found guilty of regularly flouting speed limits. Cleaning and hygiene specialist Zenith Hygiene Group installed TomTom’s vehicle tracking, navigation and ecoPLUS fuel monitoring devices across 119 vehicles and within four months was benefiting monthly to the tune of £10,000 in fuel savings. It achieved this while maintaining between 22,000 and 24,000 deliveries per month. In terms of fuel economy the average vehicle mpg has soared from 26 to 43 in three months. This fantastic improvement was due to driver behaviour being monitored, dramatically reducing incidents of speeding, idling and harsh braking and cornering. Zenith’s carbon foot print consequently reduced by 27% from 33lbs to 24lbs per day, a significant boost to its green credentials. Within just four months of installing a fleet management solution, gas and electrical services company City Technical Services (UK) enjoyed a seven per cent fuel saving and is expecting this to rise further over the coming months. Have businesses also been able to demonstrate improved customer service? Improved vehicle routing and the better allocation of drivers to jobs has been shown to result in quicker customer response times, raising standards of customer service and satisfaction. In addition, telematics can add an extra dimension to customer service relations by sending a message to the customer to let them know that the vehicle transporting their goods is nearby. This manages expectations and reduces frustration, culminating in a better experience for the customer and a strengthening of the company’s reputation. The benefits are particularly evident where businesses are tied to service level agreements (SLA) and where there are financial implications to achieving these SLA targets.

Telent’s investment in an integrated tracking, navigation and communication fleet management system led to average response times being slashed by 80 per cent, from 75 minutes to 15 minutes XX fleetnews.co.uk/fleetvan

Business mileage reports can be generated by management at the touch of a button within fleet management software system TomTom WEBFLEET

Technology services company Telent is a good example of the potential efficiency gains that can be realised – and how it is possible to over-achieve on strict customer service SLAs. Telent’s investment in an integrated tracking, navigation and communication fleet management system led to average response times being slashed by 80 per cent, from 75 minutes to 15 minutes. This, in turn, has resulted in cost savings and more competitive pricing. The reduction in time to allocate jobs has been critical for the company in meeting the expectations of clients, who regularly require accurate updates on progress. Its clients are also able to acquire accurate ETA’s and can obtain an internet login to see exactly when an engineer is going to arrive at a job using TomTom WEBFLEET. This gives customer an almost unprecedented level of visibility, which helps manage expectations as they are in the loop should anything happen to delay the delivery. How can telematics systems help fleet managers meet their Duty of Care obligations and ensure their drivers are safe? Workplace Health and Safety Regulations and Duty of Care (DoC) obligations have become increasingly important, especially with van fleets which are viewed as working tools for business. So what exactly is DoC? The law requires employers to develop Health and Safety (H&S) policies to minimise the risks to the health and wellbeing of employees while at work - this is a company’s ‘Duty of Care’. In 2008, the Corporate Manslaughter and Corporate Homicide Act came into force – and never had a piece of legislation lead to such widespread calls to action for companies to introduce systems to manage road risk. This legislation makes it easier to prosecute organisations and corporate bodies for failures that result in a person’s death. This becomes all the more pertinent to fleet operations when you consider that employee deaths resulting from using the roads on employers’ business are believed to be the biggest cause of at-work fatalities. The consequences of not implementing a road risk reduction programme can be severe. Courts can impose unlimited fines for Corporate Manslaughter convictions and the damage to a businesses’ reputation could have even graver implications. DoC considerations were brought to the fore following the Selby rail disaster back in February 2001. A driver fell asleep at the wheel and drove onto the railway track, causing the derailing of an oncoming train. The investigation revealed the driver was exhausted due to

excessive working and commuting times which could have been avoided. This incident was the start of tighter regulations on DoC to prevent such incidences happening again. While most companies are used to applying health and safety practice in the workplace, all too often the same rigour is not applied to employees driving on company business. Fleet operators can overlook working time limits, by not including the hours employees spend driving to and from jobs. Also, service intervals might not be rigorously managed or alerts set to ensure best practice is adhered to. Detailed logs and records need to be kept, proving a company has and maintains a policy to minimise employee risk. In the past, fleet managers had very little technology to help them and this was an arduous job for traffic managers and drivers alike. However, the advent of telematics means all the necessary data can be sent back and logged in a system and reports automatically generated. Detailed logs show who was driving, how long for, how fast and whether they were braking or steering harshly. Fleet management systems enable companies to demonstrate they have taken due care in minimising the risk of injury and therefore reduced the risk of liability. By monitoring driver performance, telematics systems can also improve employee safety by helping to promote safer driving techniques. The £1m Department for Transport-funded Safe and Fuel Efficient Driving (SAFED) demonstration programme claims that drivers typically improve their fuel consumption by up to 10 per cent after completing a driver training programme. However, it is less clear how quickly these gains diminish if green, efficient driving habits aren’t reinforced and monitored as part of a long term sustainable plan. Measuring driver performance following training sessions becomes an important issue to protect a business’s investment in this area. Historically, monitoring has been a cumbersome and admin heavy function to monitor detailed improvements but with the latest fleet management solutions, vehicle engine data and harsh steering and braking can all be recorded and assessed to complement an ongoing driver training programme. This becomes all the more effective with systems that feed this information back to the driver so they can change their behaviour accordingly in real time.

Fleet management technology is increasingly becoming a musthave tool whether you run a fleet of five or 500 vehicles

risk driving styles before they become a liability. These operations have a clearer risk profile with potential for reduced claims costs, enabling more exact rating and underwriting by insurers, and hence more competitive premiums. Do you think that one day all van fleets will be telematicsequipped? Fleet management technology is increasingly becoming a musthave tool, whether you run a fleet of five or 5,000 vehicles. As more and more businesses adopt solutions, those that fail to invest are being left at a competitive disadvantage. One of the main reasons for businesses not using telematics is resistance by drivers. Employees can feel threatened by change, particularly by new technology – and all the more so when their activities behind the wheel are being monitored. Just as when tachographs were first introduced across larger commercial vehicles in the Seventies, suspicions are still prevalent in some quarters that telematics is a ‘spy in the cab’. As such, employees object on grounds that they feel they are being unnecessarily scrutinised and that the company doesn’t trust them. This is particularly acute among commercial vehicle drivers who feel they are professional employees who can be trusted to carry out their day-to-day tasks. The key to successful adoption is to clearly communicate with drivers and make them understand the business case for the introduction of telematics and how they can benefit.

“The consequences of not implementing a road risk reduction programme can be severe. Courts can impose unlimited fines for Corporate Manslaughter convictions and the damage to a business’s reputation could have even graver implications”

Can telematics help a company reduce its fleet insurance premiums? Rising crash repair costs and other inflationary pressures have contributed to soaring fleet insurance prices in recent years. Motor insurance companies, however, are increasingly recognising the impact of telematics on road risk management, both for fleet businesses and consumers. Dramatic premium reductions can be realised and in some cases, customers of ours have enjoyed tens of thousands of pounds worth of fleet insurance savings following installation. Zenith Hygiene, for example, benefited from a 24 per cent premium cost saving following installation of a TomTom solution. We can expect to see this trend continue with increasing partnering between the two industries. Businesses with fleet management systems in situ can more easily identify drivers that might pose a higher risk and address higher

You mentioned tax. What role can telematics systems play in effecting liabilities? Fleet management systems can provide proof that company vehicles are used for business, and not personal use, so that benefit-inkind tax can be avoided. For a light commercial vehicle less than four years old, this tax liability stands at £3,000. HMRC’s rules on benefit-in-kind taxation also demand that fleetnews.co.uk/fleetvan XXI

B E S T PR AC T I C E: T E L E M AT I C S

Follow these guidelines to allay driver concerns: n Explain how vehicle tracking will benefit the workforce. Driver benefits are many, including lower tax liabilities, sat nav aids with live traffic information, less admin, safer working conditions and a more equitable distribution of work. n Be transparent by making drivers aware of the reasons for introducing vehicle tracking from the outset, not after installation. Explain that the technology is tracking the vehicle and not the employee and how improving business operations can help to safeguard their job and salary prospects. n Formalise the process of informing staff by putting it in writing so there is no misunderstanding. Offer employees the opportunity to ask questions and provide them with a clear channel of communication with management for doing so. n Ensure drivers know you have an obligation to manage your assets efficiently and that improved efficiency could result in rewards and incentives. n Devise an incentive programme for employees to encourage engagement and positive use of the system. The driver with the best annual mpg, for example, might get a

accurate records are kept to prove whether a fleet is made available to drivers for personal use – fines can be imposed on both businesses and their employees if they fall foul of the law. Businesses could face a fine of £3,000 each time they fail to properly declare the private mileage for a vehicle in their fleet. This process however can be extremely straightforward. Combined tracking and navigation systems allow businesses to keep tabs on every journey their vehicles make, helping to produce more accurate mileage claims and to reduce liabilities. Using appropriate navigation devices, drivers can select whether their journey is business or private mileage before every journey. Accurate mileage claims can then be automatically generated in the fleet management software system, while comprehensive reports will also allow companies to prove exactly what their vehicles are being used for. In addition, HMRC is also cracking down on companies, large and small, in an effort to claw back unpaid taxes due on fraudulent mileage claims. It has pointed out that appropriate systems should be in place to verify that any business mileage claims made by their employees can be paid free of tax. Should such claims turn out to be false, both the employer and employee may be liable to action taken by HMRC. For businesses who want to mitigate their risk, telematics can provide foolproof evidence of exactly how many miles were travelled, by whom and when to validate mileage claims. Detailed mileage expense reports can be generated at the touch of a button and exported directly into company accounts, minimising timeconsuming admin. Moreover, employees benefit by reducing their administrative

cash prize or all employees could enjoy a percentage of fuel cost savings as part of their remuneration. n Make sure you know the system inside-out before you talk to employees about it. If you don’t know what you’re talking about, your drivers won’t have confidence in the game plan. n Involve employee representatives in the technology’s selection process, where possible. This can help staff to feel valued. n Offer extra support and training to anyone who struggles to adapt to a new system. Many employees are still intimidated by technology, even when it is user-friendly and intuitive. n Set rules for infractions from the start and stick by them. Fleet management technology poses no threat to employees that are doing nothing wrong and for these workers, the systems brings transparency. n Adopt systems and processes that enable staff privacy to be respected. Any system that is introduced should allow for tracking to be switched off by drivers when they’re not on company time.

burden. They no longer have to complete mileage expense reports and also benefit from tools to improve their working day and to make for safer working conditions. How quickly can returns on investment in telematics be achieved? Cost is often viewed as a barrier for businesses looking to take advantage of all the benefits discussed but, in reality, an initial investment can reap rewards within a relatively short period of time. Typically, companies are able to realise ROI within eight to 12 months of installation – if not sooner. As referenced earlier, Zenith Hygiene and City Technical Services achieved this within four months. Achieving swift return from your fleet management system depends on careful planning and selection. Many buyers work under the misconception that all solutions offer similar benefits, which means the market becomes increasingly price sensitive as a result. By making cost their sole concern, poorly-advised businesses often find themselves paying for technology which is under-utilised or inappropriate for their particular needs. The core functionality that has driven the adoption of technology from the outset remains, but the ever-growing wealth of information has enabled solutions to become increasingly bespoke. These can underpin long-term programmes for delivering operational efficiency improvements and substantial ROI. Companies with relatively modest mobile workforces have demonstrated annual savings of tens of thousands of pounds through improved efficiencies and reduced costs. Importantly, these benefits are lasting and carefully selected, future-proof solutions will ensure businesses remain wellplaced to tackle the ever-changing economic landscape.

“The key to successful adoption is to clearly communicate with drivers and make them understand the business case for the introduction of telematics and how they can benefit”

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There is an easier way to save fuel! • Reduce total mileage • Improve your fuel efficiency • Stay out of the jams

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B E S T PR AC T I C E: R E N TA L S

Keeping the world of van rental moving It’s THE cost-effective and greener alternative to outright purchase

an rental offers an unbeatable alternative to investing in vehicle ownership. It reduces the financial commitment you have to put into everything from breakdown cover and insurance to getting a fleet of vehicles taxed and ready for the road. All things that can be seriously costly and time-consuming. And that, at worst, can seriously affect productivity. Van rental cuts such issues out of the equation and makes worries about depreciation a thing of the past. Which is why choosing the right rental company is vital. Choose correctly and you’ve got the added peace of mind you need to respond effectively to your business’ changing vehicle demands. The good news is that, as well as being the world’s leading car rental company, Hertz is also a serious player in the world of van rental. The firm has been helping businesses sidestep the problems of van ownership for years. Hertz has over 90 years of rental expertise, including vans. The advantage for fleet managers is that this combines the same great Hertz services that businesses around the world know and trust, with the purchasing power of a global brand. When you’re looking for an alternative to ownership or leasing, this makes for a truly attractive fleet option. Supporting every fleet need, Hertz has over 5,000 commercial vehicles on fleet, with a range that includes everything from small vans to Luton box vehicles and even a specialised fleet that includes tippers, crew-cabs and vehicles customised to your own exact specifications. And with nationwide mobile service, 24-hour locations, virtual ‘fleet pooling’ technology and a team of dedicated experts, Hertz really does have everything covered. Hertz is fast becoming the go-to expert for cost-effective, truly flexible van rental solutions – whether you’re looking to rent for six months or six years.

So what’s the answer? The shockwaves of global economic turbulence have made flexibility the watchword for UK fleet managers. It means we’re all working in a fast-changing environment where, more than anything, you need to be able to take on new fleet management challenges as soon as they crop up. That doesn’t mean tearing up those long-term strategy plans and simply ‘going with the flow’. Far from it. What it does mean is finding a solution with flexibility at its heart. But a solution that’s also cost-effective, efficient and kinder to the environment. You can probably guess what the suggestion is going to be: rental. But honestly, there are rental solutions and there are rental solutions. If you’re stuck in a long-term leasing contract with a massive pool fleet on standby, you’re almost certainly losing out. The reality is you don’t have to be. Innovations in fleet rental management bring the power to streamline vehicle usage, cut down pool fleet numbers, and effectively reduce your admin costs. Let’s take a look at the ‘how and why’ in a bit more detail:

“If you’re stuck in a long-term leasing contract with a massive pool fleet on standby, you’re almost certainly losing out”

Isn’t it time you demanded more from your fleet? Are you managing your fleet as effectively as you could be? The latest innovations in van rental mean fleet managers can finally combine flexibility and cost-effectiveness. Times are tough, with businesses feeling the squeeze more than ever. No wonder it’s a question many fleet managers are asking themselves on a daily basis. Yes, cost-effectiveness is key. But business comes first. Cost savings can’t be at the expense of running a safe, efficient and environmentally-friendly fleet that keeps your business moving. XXIV fleetnews.co.uk/fleetvan

Issue: I need to keep my van fleet costs down Understandable. Every business is different, but the growing pressure to make fleet savings is almost universal. When it comes to driving those costs down, there are probably some areas unique to any business. But there are headline areas where every van fleet manager should be looking to make things more efficient. The key areas with savings potential are: n Purchase, depreciation and replacement: the initial cost of buying vans and how much they’ve dropped in value by the time they have to be replaced (usually every 3-5 years) n Efficiency: this isn’t just about mileage and fuel consumption. It’s about making sure you only have the number of vans you really need on hand when you need them. This means having the technology in place to make vehicle usage more transparent. It’s all about streamlining n General maintenance: all those hidden costs – from servicing to repairs – involved in keeping your vehicles running n Fuel: how much you spend on getting employees from A to B n Investment potential: fleet purchase ties up cash that could be otherwise (perhaps more profitably) invested n Admin: a fleet doesn’t run itself. You need to put systems in place

so you have up-to-date records and cost info. These systems will have upfront implementation costs (e.g. new computer systems). But you also need to factor in the cost of running them n Vehicle Excise Duty: the chunk of cash the Government takes each year for allowing any vehicle on the road. Cheaper rates are available depending on when a van was registered and whether it meets Euro 4 or Euro 5 emissions standards. Across an entire fleet, the total spent can be quite substantial n Insurance: the cost of keeping your fleet on the road each year. It’s only by factoring in all these hidden costs that fleet managers can start to get an idea of the wholelife cost of a fleet. What’s meant by ‘wholelife cost’? Basically, it’s the total of all these costs put together for the time vehicles are in your fleet, whether purchased or on a lease contract. True, there may be other costs specific to your business that need to be factored in. And the level of detail included will vary from fleet manager to fleet manager. But most are agreed that a whole life costs calculation is vital for making direct comparisons and working out the most cost-effective solution for you. Wholelife costs are usually calculated on a pence per mile (PPM) basis, allowing standardised comparison across different types of vehicle. It doesn’t have to be difficult. In fact, there are plenty of resources out there to help calculate wholelife costs – including the Whole Life Costs section of the Fleet News website (www.fleetnews.co.uk/costs/ wholelife-costs).

range of vehicles is available, so you can choose the make, model and specification that fits your exact needs. After selecting a bespoke operational package, you have the option to include everything from maintenance and servicing to regular safety checks and insurance – even cleaning! With costs built into the package, there’s greater transparency – making it easier to budget and make accurate comparisons from the outset. Innovative in-vehicle technology makes it easier to share vehicles and streamline usage across any business. End-to-end telematics Solution: How Hertz can help #1 mean that drivers can make a booking via a 24/7 Member Care When you boil it right down, there are only actually three steps Centre. Hooked up to a tailored Fleet Dashboard, that covers involved in more cost-effective fleet everything from real-time usage to management. Without beating around reporting, businesses are given the the bush, they are: straightforward day-to-day operational Step 1: Remove the need for vehicle control that means they can reduce ownership. By doing so, you not only their fleet size by up to 25%. avoid tying up much-needed capital in And with this technology comes the cost of vehicles – you also avoid reduced admin, and a freeing up of losing out on all those hidden extras. resource. Less paperwork, less fuss – From regular servicing and vehicles are self-service, bookings are maintenance to the cost of insurance managed online in seconds and full and Vehicle Excise Duty, savings can technical support is on hand from the be massive. This step also reduces Hertz team around the clock. money lost through depreciation when What’s more, all that complicated vehicles come to the end of their usage data comes readily analysed Max Vialou-Clark, Retail replacement cycle (every 3-5 years). and packaged in a neat and simple Services Director, BAA Step 2: Streamline vehicle usage. monthly report (or you can access it at Having the technology in place to any time via your desktop). monitor fleet usage, and respond to So. In summary, there are three steps changing needs, significantly reduces the number of fleet vehicles to reducing your van fleet costs. Fortunately, the solution is available you need on hand at any one time. The effect can be cuts to your in a single tailored package. pool fleet of up to a quarter – with the cost savings to match. Step 3: Improve management and administration. With more Issue 2: do I need a greener fleet? efficient systems in place to monitor and control your pool fleet, fewer Good question. As the drive to promote more environmental fleet man hours will have to be dedicated to fleet management. Fewer solutions gathers pace, you might find yourself wondering how it sits overheads, less resource required. with the cold hard financial realities governing sound fleet This is where Hertz comes in, with services that have been management. The fact is a greener fleet management strategy developed specifically with these three steps to a more a cost- makes sound business sense. Doing your bit to save the environment effective fleet in mind. is an added bonus. How? Firstly, as a rental service, Hertz turns the fixed cost of buying Just to clarify: a ‘green fleet’ is a more environmentally-friendly one vehicles for your fleet into a variable cost. It gives businesses the – basically any fleet where good, clear, practical steps have been flexibility to respond to changes in need, as and when circumstances taken to reduce C02 emissions and fuel consumption. change. Here are just some of the reasons to ‘go green’ (there are lots more This doesn’t mean compromising on quality. A comprehensive though):

“We’re very pleased with the efficiency that the Hertz solution provides for our pool cars, making it far easier to manage our liveried vehicles whilst reducing costs.”

fleetnews.co.uk/fleetvan XXV

B E S T PR AC T I C E: R E N TA L S n Save money – a greener fleet is a more efficient fleet n Take a corporate responsibility stance – implement and comply with environmental policies and standards n Reduce VED associated with high CO2 emissions n Avoid LEZ charges (more details on charge areas can be found on www.tfl.gov.uk) n As part of a wider drive to control fuel consumption and budget n As part of a general drive to improve the efficiency of a fleet. You will have lots to think about when you first consider ‘going green’. Questions like: why is a greener fleet management strategy important for us? What are our priorities? How do we weigh up our environmental ambitions with our bottom-line operational requirements? Questions right through to the practical stuff like: diesel or petrol (or even electric)? And: will this actually save us money in the long run? It’s easy to get bogged down with difficult decisions. But really there’s no need. Innovative rental technologies available from Hertz are making it easier than ever to combine environmental savings and cost savings. Solution: How Hertz can help #2 Put simply, there are three main steps involved in developing a greener (yet cost-effective) fleet. They are: Step 1: Vehicle type. The first step is to choose vehicles that, as well as meeting your needs, are the most fuel-efficient in their category. For ease of comparison, check out the official van CO2 database on the BusinessLink website (www.vanfueldata.dft.gov.uk). Step 2: Business mileage. Some journeys are absolutely necessary. But that doesn’t mean the most fuel-economic route is always taken. Sensible routing can make a serious dent in your overall annual mileage. Step 3: Driver habits. The way a van is driven and looked after can seriously affect fuel consumption.

As more and more work goes into bringing electric vehicle technology to the van market at cost-effective prices, Hertz is investing heavily in making electric vans an everyday reality. But the service still remains ahead of the pack when it comes to helping businesses ‘go green’. Providing a comprehensive range of vehicles makes it easier to identify vans that fit both bills: practical and environmentally friendly. The majority of vans offered are less than 12 months old with Euro V engine technology to achieve optimum CO2 emissions. Having an expert maintenance team on hand at all times helps – and makes peak performance and efficiency much easier to achieve. The icing on the cake? In-vehicle GPS tracking and usage monitoring systems. Basically, the technology available with Hertz on Demand hits steps two and three with one stone. First, state-of-the-art GPS tracks the real-time vehicle route and helps drivers to avoid all those traffic issues, accidents and blackspots – all of which prolong journey times and increase unnecessary fuel consumption. Second, RFID technology allows you to track driver behaviour. Spotting non-efficient driving patterns can make a big difference when it comes to cutting back on fuel consumption. With the right training and guidance, employees may be able to make significant savings simply through the way they drive.

Issue 3: how do I improve my fleet management? The biggest challenges keeping modern fleet managers awake are those notoriously difficult to address issues: productivity and efficient fleet management. Effectively improving your fleet in these areas is tricky. Take fleet management. To effectively improve fleet management you need comprehensive real-time data at your fingertips, covering everything from current vehicle location to fuel consumption. Of course, too much data can be a problem in its own right. Without

Accelerating towards excellence with the FTA Fleet managers will be pleased to hear that the Freight Transport Association (FTA), one of the world’s largest trade associations, has launched a Van Excellence Programme. Van Excellence aims to raise standards and improve the public’s perceptions of vans and light commercial vehicles. As a member of the FTA, Hertz has joined the likes of Sainsburys, DHL, City Link and Carillion, to become the first vehicle rental company to endorse the FTA Van Excellence Code. The Code establishes a comprehensive but realistic code of conduct for van operators and sets standards in the key areas of vehicle maintenance, driver competence and behaviour and environmental impact. Hertz President, Michel Taride, said that the partnership is a sign of the company’s commitment to supporting development throughout the transport industry: “Vans are one of the fastest growing sectors in the UK…it’s crucial to possess a code such as the Van Excellence Code to maintain sustainability…we’re proud to support the FTA.” What it means for fleet managers The great news is that renting from a Van Excellence partner guarantees a quality rental and a seamless handover process

XXVI fleetnews.co.uk/fleetvan

– overseen by an experienced operations team you can trust. Comprehensive pre-rental checks already put in place by Hertz mean you can rest assured your rental meets the most stringent criteria of standards. What’s more, the handover process has been seriously enhanced. It now includes important Van Excellence information on vehicle maintenance, daily checks, payload and loading, speed limits and legal requirements. The new handover process means drivers will come away ready to operate vehicles safely and within legal boundaries, effectively enhancing any customer initiatives already in place without affecting the onus of Duty of Care companies must have towards their drivers. For companies who have achieved Van Excellence accreditation for their own fleet, rental through a Van Excellence partner is a natural extension, providing a consistent approach to quality and safety and reinforcing the company’s attitude to safety and efficiency. With a vast experience of commercial vehicles, Hertz’s Van Rental Sales team are successfully helping businesses choose the right vehicles to meet their needs. And by helping them meet safety and efficiency needs, and comply with legal requirements, they’re steering the industry towards excellence.

Supersizing the Supersite Network In 2012, the Hertz Van Supersite network will go supersized, supporting ever-wider UK coverage and rapid fleet growth as investments are made in the network’s Leeds and Basingstoke sites. Van Supersites support both bespoke and standard rental requirements. Perhaps most significantly, they provide access to commercial vehicle expertise, service and maintenance support, and efficient repairs of both warranty and non-warranty vehicles. With 130 UK locations, including 20 Van Supersites strategically dotted around the country, the Hertz UK network provides truly comprehensive UK coverage.

Hertz Van Fleet at a glance n Small vans including Fiat Fiorino, Ford Connect, VW Caddy and Vauxhall Combo n Medium vans including Ford Transit 280 and VW Transporter n Large vans including Ford Transit LWB, ELWB and Mercedes Sprinters n Box vans including Ford Transit Luton and Curtain Siders n Single and Crew Cab Tippers and Drop Sides n Minibus (9 and 17 seater) n Double/Single Cab 4x4

Benefits for fleet managers The Supersites have been specifically built to meet the demands of fleet managers like you who operate large commercial fleets. Located to enable quick and easy access to motorways, the network enables a rapid response to the needs of fleet managers across a large operating area.

Hertz Supersite Network Oldbury Nottingham Milton Keynes Shipton Bellinger Bath Exeter Chelmsford Feltham Old Kent Road

Dartford Basingstoke Livingston Aberdeen Airport Newcastle City Carlisle Risley Leeds

proper systems in place to process all the incoming information, you’re in danger of information overload. And that means you’re in no better position to tackle productivity and efficiency than when you started. Fortunately, developments in in-vehicle telematics and the systems that support them are making such issues a thing of the past. And, when it comes to technology, Hertz are at the forefront of the van rental revolution.

And with on-site maintenance facilities, and a dedicated team with years of experience in the operation of commercial vehicles, the needs of fleet customers are well and truly catered for.

Why size matters As any fleet manager will tell you, what you need from a vehicle can be unpredictable at the best of times. Whether it’s winter weather placing seasonal demands on your fleet, or day-to-day hiccups that threaten to take vehicles off the road, the potential for disruption is a headache for any manager trying to keep drivers safely on the road. That’s why, when it comes to choosing your rental provider, size matters. Not only in terms of the current van fleet available – although this is clearly important for reassuring you that they’re capable of providing vehicles you’re looking for. But also in terms of expansion and buying leverage. The global fleet buying leverage of a trusted international rental provider lets you know that they will keep growing and responding to your ever-changing needs. Hertz Van Rental is a great example of the ‘benefits of big’. The firm purchases more than 500,000 vehicles per year, providing customers with a massive choice of market leading vehicles from the likes of Ford, Volkswagen, Vauxhall, and Mercedes. But here’s where it gets interesting for fleet managers: Hertz operates a 5,000-strong van fleet (of vehicles up to 3.5 tonnes). Hertz will work closely with you to meet the exact specifications you’re after and guarantee that you will always have access to available vans across the entire fleet. Significantly for managers used to unpredictability, Hertz has relationships in place with all major UK, pan-European and Global manufacturers – so you know they’ll be able to supply large volumes of vehicles at short notice. A fit-for-purpose fleet requires rental flexibility – another area where Hertz is way out in front. Whether it’s body conversions, welfare vehicles or specialist vehicle wrapping you’re after, Hertz is renowned for the great lengths to which it will go to provide specialist and bespoke solutions. Its retrospective fit services are ideal for tailoring your fleet to your business’ needs. Hertz provides a comprehensive list of services that covers everything from exterior wrap/livery, interior racking and shelving and tow bars, to beacons, cages, speed limiters, flood lights, hand wash units (hot and cold) and reversing cameras/sensors. And they’ll even help with getting your vehicles Chapter 8 compliant.

Solution: How Hertz can help #3 When it comes to the challenge of improving fleet management, there are three key steps: Step 1: Telematics. Make sure you have adequate systems in place to gather and monitor fleet usage information. You also need to avoid information overload. User-friendliness is key. You also need to be able to access fleet information quickly. Step 2: Support: It’s vital you have the support on hand to fix fleetnews.co.uk/fleetvan XXVII

B E S T PR AC T I C E: R E N TA L S

Putting the speed in Speedy Services Keeping your fleet on the road is a far-off dream for many fleet managers. Thankfully, a new partnership between Hertz and Lex Autolease is turning the dream into a reality… What do fleet managers want more than anything? It seems that for many, the dream is as seemingly straightforward as keeping their fleet on the road come rain or shine. Sounds simple? One complication: it means having the exact fleet you need, ready and on standby at all times, just in case anything goes wrong. And that’s a big challenge – particularly where the fleet in question is highly tailored to a business’ particular needs. But for Hertz customers the dream is becoming a reality. In partnership with Lex Autolease, they’ve developed a solution to make sure businesses have a fast and effective fleet contingency plan in place when they need it most. The contingency vehicles programme works by drawing on the vast Hertz Van Supersite network to locate, tailor and deliver the vehicles that meet a company’s needs. Speedy Services, the UK’s leading provider of equipment rental and support services, has already benefited from the

problems – big or small – immediately. Step 3: Scalability. It’s no use bringing in systems that help with your fleet management now but can’t be adapted to handle rapid growth. Having state-of-the-art in-vehicle telematics in place is one thing. Making sure the technology is user-friendly and easily integrated into existing systems is another. As we’ve already seen, Hertz brings the technology to effectively monitor everything from fleet usage to driver behaviour – helping you reduce the size of your pool fleet in the process. But it does so in a way that can be tailored to your business’ needs. You manage your fleet from a Fleet Dashboard that’s fully customisable. From here you have quick and easy access to a rich suite of data, with a range of simple tools on hand to help you analyse and understand what it means. It also means you can control your fleet in real-time. No need to get bogged down in the numbers – the system will help you filter the information that’s most important to you. The user-interface is fully customisable too, with a reservations website that can be designed (and fully branded) to suit your company. Help is on hand to make sure glitches are picked up immediately. This is ideal for larger organisations where small problems can sometimes go unnoticed – with potentially serious long-term consequences.

service. Through the partnership that Hertz has with Lex Autolease, a bespoke solution was developed, providing exclusive access to a fleet of 18 Hertz LWB dropside vans. The vans have been customised to replicate Speedy Services’ core fleet and to meet their duty of care requirements. “This unique substitute vehicle arrangement means that we have ready-made, identical replacement vehicles, designed to our specifications. This guarantees that our fleet is constantly on the road, keeping business ticking over, and making sure that the wellbeing of our drivers is taken care of cost-effectively,” says Speedy’s fleet director, Ian Leonard. “This is a great example of how we have collaborated with Lex Autolease to define and develop a flexible and innovative solution to keep the Speedy Hire fleet moving at all times”, says Laura Moran, head of commercial vehicles at Hertz. When not in use, the fleet is securely stored, maintained and regularly checked by Hertz – making sure vehicles are ready to report for duty whenever the time comes. It looks like this will be no fleeting fleet service, but one that’s keeping the dreams of fleet managers alive and well for some time to come!

As well as 24/7 Member Care available in-vehicle for drivers, Hertz provides a dedicated account manager along with ongoing technical development and support. This technical support can help keep your fleet management systems on track. As business grows, the Hertz technical team ensure a seamless development of systems to fit your changing needs.

For more information on Hertz Van Rental please call 0843 309 3111 or email hertzvans@hertz.com XXVIII fleetnews.co.uk/fleetvan

Did you know that the global leader and the finest name in car rental also rent vans? Above all, Hertz are committed to raising the standards in commercial vehicle rental within the UK. Forming a solid bond of value, service excellence and long term flexibility means that Hertz can address the challenges of the future. Everything you ever wanted from a van rental company, and more. For more information about our flexible van rental, call 0843 309 3111, visit our website www.hertz.co.uk/vans or contact hertzvans@hertz.com

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Fleet Van Summit preview Sponsored by

ALL SET FOR THE FLEET VAN SUMMIT Some of the industry’s top speakers will be giving their expert advice at the most eagerly-awaited event of the van fleet year

ince its inception five years ago, the Fleet Van Summit has become one of the industry’s leading events, at which Britain’s van fleet operators can hone their skills and learn to run their operations more safely and more cost-effectively. This year, we have lined up a list of some of the top speakers in the industry, who will be outlining best practice skills in the varying sectors of van fleet management. There will also be a number of real-life case studies from some of the major fleet operators in the UK, giving delegates the chance to learn from their experience. As usual, a number of fleet service companies will also be having displays at the event so that delegates can talk face-to-face about their needs and requirements. There will also be plenty of time for networking between delegates and speakers over the lunchtime period. This year’s event is being sponsored by Hertz, Alphabet GB, TomTom Business Solutions and Nationwide Accident Repair and those exhibiting also include Venson Automotive, GreenRoad and the Freight Transport Association. Fleet Van editor Stephen Briers said: “Over the years the Fleet Van Summit has become one of the major events in the LCV calendar and we are delighted to have such high profile speakers at this year’s event. We have experts from just about every sector of van fleet management at the event and I’m sure that delegates will take home with them a multitude of ideas for running their fleets more effectively.”

Who’ll be speaking at the Fleet Van Summit Speakers currently confirmed: James Backhouse, director and Andrew Woolfall, director, Backhouse Jones Solicitors Dr Lisa Dorn, reader in driver behaviour and director of the driving research group, Cranfield University Andrew Wetters, workplace transport team, HSE

XXX fleetnews.co.uk/fleetvan

Doug Jenkins, senior client risk manager – motor, QBE European Operations James Hookham, managing director – policy & communications, FTA Case studies from the following companies: Stewart Lightbody, general manager – fleet management, Kier Group Robert Lindsay, driver risk manager, Balfour Beatty Geoff Wright, head of corporate services, AAH Pharmaceuticals

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For more details contact Kate Howard, Event Organiser, on 01733 468146 or email kate.howard@bauermedia.co.uk fleetnews.co.uk/fleetvan June 2012 65

Brought to you by FleetVan www.fleetnews.co.uk/fleetvan

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SMR EXPANSION SECURES DOUBLE AWARD SUCCESS

TS Euromaster has scooped a second major industry award for expanding its service, maintenance and repair (SMR) offering for van fleets. The company won the prestigious Innovation Award at the Van Fleet World Honours 2012; just six months after being named Van Equipment & Service Supplier of the Year 2011 by Fleet Van. Both awards follow a two-year period which has seen ATS Euromaster invest more than £10 million in transforming its nationwide centre network, with new technology and training being supported by the roll-out of a comprehensive centre refurbishment programme. In addition to routine tyre and fast-fit service work, ATS Euromaster now offers airconditioning servicing, fault diagnostics, error code reading, electronic brake servicing, computerised wheel alignment and nitrogen tyre inflation. Plus, it has introduced vehicle maintenance servicing to more than 150 centres, and can perform Class IV MOTs at 122 sites and Class VII MOTs at 27 locations. Peter Fairlie, group sales director, says: “As

the demands of the market have changed, so has our service offering. It’s important for any successful business to keep innovating, particularly in a tough economic environment. “We are already driving a 20% growth in key van fleet accounts taking advantage of our nontyre capabilities, with additional sites offering scheduled maintenance servicing and MOTs planned this year.” ATS Euromaster’s rapid success in developing its SMR offering has been aided by a national network which can accommodate high-roof, long-wheelbase van and minibus models in 95% of its 370 centres. “The profile of our network is a major selling point with van fleets,” adds Fairlie. “Unlike many fast-fit chains, where centres have often been built predominantly with the car market in mind, nearly all of our centres are geared to supporting light commercial vehicle fleets.” Van users also enjoy the reassurance of being able to access the same roadside rapid response fleet which keeps many of the nation’s highest profile hauliers rolling 24/7. ATS Euromaster operates nearly 1,000 mobile tyre fitting vans; the largest fleet of its kind in the country.

To find out more visit www.atseuromaster.co.uk

A breath of fresh air Studies show that the air inside vehicles is often of poorer quality than in the home or workplace. This issue is compounded by airconditioning servicing and recharging not always being included in a vehicle’s annual service, resulting in a key vehicle system – with the ability to directly affect the health of the occupants – being left unchecked. Martyn Pointer, sales director – regional sales at ATS Euromaster, says: “Allergens live and thrive inside a vehicle’s ventilation system and spread quickly when the fan is switched on. These allergens, moulds and bacteria can be the cause of respiratory problems. “We recommend that fleets recharge their air-conditioning system every two years to keep it running efficiently. A drop in gas pressure will result in a loss of cooling efficiency as well as making the engine work harder – which, in turn, burns more fuel. “This is a particularly key issue for van drivers, many of whom spend multiple hours in their vehicles each day.” ATS Euromaster offers air-conditioning servicing at 190 centres. It takes about 35 minutes per car or van.

Vicki Vallance has enjoyed a â&#x20AC;&#x2DC;baptism of fireâ&#x20AC;&#x2122; after joining Breezemount UK as commercial fleet manager in December

54 June 2012 fleetnews.co.uk/fleetvan

Industry spotlight Breezemount UK

SOFTWARE KEY TO DELIVERY FIRM’S SUCCESS Major system changes had to be implemented to give Ikea the service it needed

ome delivery company Breezemount UK is on the crest of a wave after securing a major contract with international home products company Ikea. The contract went live on December 1 last year and the win led to the appointment of Vicki Vallance as commercial fleet manager, an overnight 140% increase in the company’s delivery fleet and the decision to introduce Jaama’s multi-award-winning online Key2 Vehicle Management system. “It has been a baptism of fire,” admits Vallance, who had been with the company just two weeks when she met Jaama to discuss how Key2 would replace Breezemount’s manual fleet administration system. A system of spreadsheets and wall charts has been replaced by Key2, with employees at the company’s Daventry headquarters and 19 operational delivery locations having instant access to every facet of vehicle, driver and journey data. Fleet industry professional Vallance had experience of Key2 from previous jobs at Newtown Vehicle Rentals, where she was a member of the IT project team, and at Solihull Council, where she was involved in its implementation. She says: “I even used the Jaama system in my presentation at my interview. I have used other fleet IT systems but nothing else compares. “At Breezemount we looked at other systems but we opted for Key2 because of our multi-user/multi-site requirement and the need to access live data and not yesterday’s information. “Breezemount realised that without technology and changes to its processes, it would have been totally impossible to manage the fleet effectively and efficiently, particularly with regard to legislative compliance without technology.” Breezemount UK started life in the mid-1990s with a fleet of just four vehicles. It has expanded to become the UK and Ireland’s leading express two-man home delivery provider. Overnight, Breezemount UK saw its then fleet of 70 vehicles, ranging from company cars to 7.5-tonne commercial vehicles with a core fleet of 3.5-tonne panel and Luton vans, expand to 165 vehicles on securing the Ikea business, delivering goods bought by consumers both in stores and online. Today, the fleet encompasses 77 light commercial vehicles, 78 7.5 and 12-tonne trucks and 10 company cars. Since December, Breezemount has made 50,000-60,000 home deliveries a month compared with an average of around 10,000 a month in 2010. Rapid expansion of the fleet to meet contract demands has seen it rely on spot rental, with some commercial vehicles joining the fleet for just a day or two, while other units have been operational for months and sometimes a year or two.

The forthcoming London Olympics will impact on Breezemount’s delivery scheduling due to road restrictions in the capital and the fact that Ikea’s Wembley store is its busiest. That will necessitate changes in vehicle routing and depot location of vehicles, which will in part be managed by Key2. The rapid turnaround of so many vehicles would make it impossible to manage the fleet efficiently and meet contract requirements without specialist software, says Vallance. Underlining the point, she says: “Key2 is updated as soon as vehicles are delivered or returned. If Key2 is not showing compliance they don’t go out on the road. “In the past, it was extremely difficult to maintain a wall planner with vehicle availability and ensuring compliance, but we now have live compliance reporting. “Breezemount has up-to-the-minute information on which vehicles are on/ off hire. Delays in establishing end-of-contract charges has meant the company experienced an incident when it was charged several thousand pounds by a rental operator for vehicles that had already been returned. It was due to inadequate information from a rental supplier, but internal data had not been updated. “Key2 delivers an instant audit of the status of the fleet, thus ensuring that we have our own accurate data and are not reliant on the accuracy of suppliers.” However, with the Ikea contract in place – as well as other home delivery work in the UK and Ireland – Breezemount has just placed an order for 95 7.5- and 12-tonne DAF trucks and will soon look to add 50 LCVs to its fleet all on contract hire. UK-based vehicles will be operated on three-year replacement cycles, with mileage pooled at 40,000 miles per annum. That ensures that not only does Breezemount comply with Ikea’s requirement for the company to meet vehicle environmental and age requirements, but also its own ‘green’ strategy and image demands. All newly ordered vehicles will meet Euro5 emission regulations and with a three-year life they will be among the most fuel-efficient and low-emission models on the road. The rapid transformation of the fleet, coupled with the opening of multiple locations across the country and the ability to meet operating criteria laid down by Ikea, necessitated an increase in the number of Operator Licences so, says Vallance, compliance with Vehicle and Operator Services Agency across the board was even more critical than previously. “Each site was previously responsible for its own compliance. But now the system that we have in place and the way we operate means that a complete audit trail of vehicles is accessible to employees and VOSA inspectors if required,” she explains. Vehicle managers, wherever they are located, have their

“Without changes, it would have been impossible to manage the fleet effectively and efficiently”

fleetnews.co.uk/fleetvan June 2012 55

Industry spotlight Breezemount UK

Ikea awarded Breezemount UK a contract to deliver goods bought by consumers both in stores and online

default computer screen set at Key2, with a daily graphic clearly highlighting the on/off hire status of vehicles, maintenance schedules, whether VED is due, and tachograph and vehicle inspection information. Additionally, across the fleet Breezemount uses Jaama’s Key2 Defect Manager module to ensure its entire fleet is compliant with its ‘nil defect’ operating policy. It is natural for businesses to look for a return on investment following expenditure. However, acquisition of a sophisticated fleet management system was not about cost, says Vallance: “It was all about compliance. With such rapid growth we needed to ensure that we were 100% compliant and if VOSA inspectors came calling we were able to give them access to a complete audit trail.” Not only is it vital for fleets that their entire vehicle operation is compliant, but it is also a legislative requirement that it has an audit trail of drivers in terms of their validity to drive. As a result, Breezemount has replaced a manual driver licence check with Jaama’s electronic driver entitlement checking service (EDECS), which is a risk management tool and a driver information portal within Key2. The system has already shown its worth, with pilot checks against the Driver and Vehicle Licensing Agency database resulting in two employees’ licences being ‘locked’. Those issues have been overcome and the employees continue to drive for the company. Now Breezemount is rolling out licence checking across the business. Vallance says: “We need to ensure all of our drivers have valid licences and mitigate our risks. Even though we undertook manual checks, the fact that two licences were ‘locked’ by the DVLA was unnerving. The reports we are now receiving are very detailed and reassuring.” A further development has seen the introduction of Shell’s euroShell fuel card with drivers instructed to fill up with the oil giant’s FuelSave Diesel, which Breezemount believes to be the most efficient available. To further improve Breezemount’s ‘green’ focus, the company fits 3D aero deflectors to vehicles to improve fuel efficiency and is currently investigating making its new LCVs as aerodynamic as possible within weight and chassis requirements to maximise fuel efficiency. “With a non-fixed fleet, it has been difficult to obtain accurate running costs. However, our move to an all-leased fleet, our fuel card data and tachograph information will all feed into Key2 so we will be able to analyse vehicles and driver efficiency on an individual basis,” said Vallance. “That would have been impossible previously as we would have been totally

56 June 2012 fleetnews.co.uk/fleetvan

reliant on employees at our sites accurately manually recording information. Now we can log into Key2 at any location and see exactly how efficient our vehicles and drivers are with live information.” Next on Vallance’s agenda will be to integrate accident management data into Key2 and use that information to reduce vehicle downtime and costs and further improve delivery times and thus customer service. She concludes: “The introduction of Key2 is delivering administration efficiencies, financial savings and operating benefits. However, above all we can show absolute compliance. Historically, the company was reliant on manual records, now we have an audit that proves we are compliant.” Vicki Vallance: ‘With such rapid growth we needed to ensure we were 100% compliant’

I n d u s t r y s p o t l i g h t To mTo m B u s i n e s s S o l u t i o n s

‘BOARDS WANT TO SEE A CALCULATED BUSINESS CASE’ TomTom’s Giles Margerison on how to gain buy-in for a telematics system Fleet Van: How long have you been in your present job? Giles Margerison: I joined TomTom Business Solutions as sales director in October 2010. FV: What does your job involve? GM: In essence my job is to manage TomTom Business Solutions operations in the UK and Ireland from a strategic and sales perspective. I am responsible for six regional managers and, in turn, the UK and Ireland network of sales partners and distributors, two corporate sales managers and the UK and Ireland-based support team. I am also responsible for developing the sales strategy and ensuring that results for my region are delivered to TomTom. FV: How do van operators sell the benefits of telematics to their senior boards? GM: We know of several companies that have trialled systems but been unable to persuade the business to invest. I feel it’s true to say any board of directors doing their job properly will want to see a bespoke and properlycalculated business case before agreeing to the implementation of any new business technology. We often meet fleet management professionals who are not necessarily required to put such business cases together as part of their normal duties. As a result, we are then reliant upon case studies, referrals and testimonials to position the benefits, which will not always be bespoke enough for a board decision. Therefore, a burden falls on the technology supplier to offer an appropriate level of guidance and consultancy that will assist any fleet professional in their presentations to the senior board. At TomTom we are engaging with our channel to help them produce these business cases in conjunction with the customer, facilitating the production of a professional proposal that will justify the investment.

FV: What is the typical return on investment period a van fleet operator could expect to achieve? GM: We see a wide range of answers to this but the typical answer is 10 to 12 months for a lifetime return. However, we do have case studies where customers state three months or less. For example, an independent study commissioned by Vodafone showed Zenith Hygiene Systems could expect to save £268,070 over the course of a year after implementing tracking, navigation and driver behaviour monitoring across its mixed fleet of trucks, cars and vans. Carried out over a five-month period, the survey exhibited an average monthly fuel saving of £18,555 and a projected yearly saving of £50,000 in maintenance costs. It meant they were able to realise ROI within three months of installation.

“Let the manufacturers produce amazing vehicles and we can deliver the telematics technology fleets want”

FV: Telematics systems can do many things – manage driver performance, help with routing and utilisation, etc – what are the main reasons why van fleets are investing? GM: The main reason for investment is for businesses to gain control of fuel spend by evaluating driver behaviour, operational efficiency and private vehicle usage. In addition, businesses want to manage how effectively time is spent remotely from the office to demonstrate compliance of SLAs and KPIs to customers. This helps them to protect existing contracts and win new ones, while maximising utilisation. In short, for companies with a mobile workforce the two biggest expenses are fuel and wages. These are the things we can help them control.

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FV: How might telematics systems further integrate and ‘speak’ to the car in the future? GM: We are already extracting data from the OBD (on-board diagnostics) port of a vehicle, giving us a view on fuel consumption, engine idle, engine revs and gear selection. There is still much more to be had in relation to the operation of a vehicle and I expect to see this technology evolve over time. With larger vehicles this may be delivered via FMS.

FV: Do you have any evidence that shows the benefits of using sat-nav when planning your journeys? GM: Two separate studies commissioned by TomTom have found the use of satellite navigation systems not only has a positive effect on journey times but also road safety and driver stress. Research carried out by Dutch research institute TNO, in co-operation with key figures from the insurance and vehicle leasing industries, discovered drivers who used a TomTom navigation system travelled 16% fewer kilometres than those who did not. This allowed them to reduce journey times by an average of 18%. The navigation system was also found to reduce workload on the driver, increasing alertness and reducing stress behind the wheel. Furthermore, it was revealed drivers who do not use a navigation device make 12% more claims for damage and claim 5% more in damage costs. These results were supported by further research carried out by TUV/DLR in Germany and Virginia Tech Transportation Institute in the USA and conducted in the UK, Germany, France, Spain, Italy and the USA. This study found the use of satellite navigation devices heightened awareness and reduced stress levels, while reducing the driver’s workload. Results from the UK revealed 74% of drivers felt more in control when using a navigation device and 59% found it easier to keep their attention on the road. Again, distance travelled, journey time and fuel expenditure were all

I n d u s t r y s p o t l i g h t To mTo m B u s i n e s s S o l u t i o n s

Giles Margerison: ‘A one-size-fits-all’ approach is rarely appropriate’

Factfile

Name: Giles Margerison Job title: Sales director UK and Ireland Brief career history: Began fleet career in the mid-1990s working for Dawson Rentals and Ryder Trucks as a depot manager, both in Heathrow. Entered the telematics arena as a sales manager in 2003 and, prior to joining TomTom, the majority of this time had been spent at Cybit. Favourite book: Boys At War. This is because my grandad wrote it and he would not be amused if I said anything else! Favourite holiday destination: Mauritius. What three records would you take to a desert island? To satisfy the secret rocker in me – ‘Young Lust’ by Aerosmith, for the amazing voice – ‘The Essential Alison Krauss’ and, because I listen to it loads, ‘Up To Now’ by Snow Patrol.

Telematics systems can provide service and maintenance reminders to fleets reduced through use of a satellite navigation device compared to traditional navigation methods. FV: Some critics suggest that telematics will be superseded by eCall, which uses similar technology and could be adapted to do similar things. What’s TomTom’s take on this? GM: eCall is a facility that, at present, can notify emergency services after the event of a collision and I welcome any advance that promotes driver safety and could save lives. This is entirely different from the services we can provide, so we are always happy to work with OEMs to provide services to fleets. eCall functionality can indeed develop over time but there is no consistency of platform across the sector that can give customers what they need from a fleet management perspective. You only have to look at OEM factory-fitted sat nav devices to conclude that we may be better served focusing on what we are good at. Let the manufacturers produce amazing vehicles and we can deliver the telematics technology that fleets want to use. FV: What should you look out for when first choosing a telematics/fleet management system and what are the possible downfalls in choosing the wrong system? GM: As with all types of business, trusted brands that are tried and tested with a record for stability are the safest place for your financial investment. Before investing in a fleet management system, find out how long a supplier has been in the market and do some research into their reputation for customer service. In the past, the industry has been blighted by fly-by-night suppliers, who end up leaving customers high and dry without the ongoing support needed to successfully realise the full benefits available through telematics. As such, strong customer support is essential and it is important to choose a supplier who will be on hand to deal with problems and offer consultancy skills if and when the need arises.

FV: There is so much information available from these systems that a fleet operator could drown in it. Is there a danger that with so much available a fleet manager just won’t have time to process it all? And if there is, what can be done to avoid this? GM: A carefully-selected fleet management system should ensure fleet managers are not bombarded with a host of information they don’t need or will never use. A one-size-fits-all approach is rarely appropriate, so it is important to select a system which allows you to simply customise the reports you receive and display information in a way that is easy to understand at a glance. The TomTom dashboard can be customised with up to 19 different KPIs so you can be assured it provides an appropriate level of data to fit specific needs and goals. While one business may see their number one concern as duty of care and working hours, another will be concerned with fuel savings and encouraging a more efficient driving style among employees. The best systems will allow users to select reporting requirements during the set-up process and receive only the data appropriate to them at a glance in their fleet management dashboard. FV: We notice that some vans (such as the Renault Master) now come with a TomTom unit built in as part of the standard package. Which manufacturers are you currently working with? Are there plans for working with more manufacturers? GM: We work with Renault, Fiat, Mazda, Alfa Romeo, Toyota, Ford, Iveco, Subaru, BMW, Mini and many others and this is an area of the business that TomTom is looking to develop. FV: If you could look into the future, how do you see telematics/fleet management systems evolving and what new features could we see? GM: I think the telematics-based fleet risk and insurance market is only at an embryonic stage and this will develop in a huge way in the near future. There will also be much more integration to back office to deliver as much automation as possible throughout fleet management systems.

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‘THE BEGINNING OF A NEW ERA’ Why importer Jim Tyrrell believes Chinese vans will make a big impact in the UK

By Trevor Gehlcken nyone who scoffs at the idea that Chinese van manufacturers may soon become major players in the UK would be well advised to look back in history to the early 1970s when the first Japanese cars and vans started to appear on UK shores. I remember those days very well. True, the first models appeared flimsy, but at least they didn’t keep breaking down like Britishbuilt vehicles – and they offered standard fittings that we only dreamed of back then. I well remember a friend of mine buying a Datsun Cherry which had a cassette player as standard. I was green with envy. And so it is that 40 years later, the Chinese are aiming to muscle in on the

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UK LCV scene and at this year’s CV Show two brands – DFSK and Great Wall – had vehicles on display. Interestingly, I noted a lot of visitors to the show were examining these new wares with interest – more interest in fact than they were showing in the mainstream fleet vehicles. We covered the launch of the Great Wall Steed in the last issue of Fleet Van so this month it’s time to turn the spotlight on the diminutive offerings from DFSK. You’ll immediately notice that these vehicles bear a striking similarity to the old Suzuki Carry, which hasn’t been imported here since 2006. While not exactly a huge fleet seller, the Carry nevertheless offered reasonable loadspace and payload at a bargain basement price and its demise was

Interview DSFK

Growing network targets 65 outlets The Loadhopper comes in four guises, including the three-way tipper

sadly lamented in certain quarters. In fact there are still thousands of them on the roads today and examples in good condition command high prices secondhand. The big question is: can these Chinese vehicles from DFSK still cut the mustard in today’s safety-conscious and environmentally-aware world? To answer this question, we travelled to Swindon, headquarters of importer DFSK UK, to both drive the vans and talk to chairman Jim Tyrrell. Tyrrell’s name may be familiar to Fleet Van readers – he was CEO of Mitsubishi UK importer the Colt Car Co until it was sold three years ago, when he “retired”. Proper business plan But the 47-year-old wasn’t out of the limelight long. Eighteen months ago Lee Clarke, now MD of DFSK UK, called Tyrrell to talk about setting up a company to import DFSK vehicles from China. Clarke had already met the Chinese owners of the company, who suggested he came back to them with a proper UK business plan – and 18 months ago Tyrrell and Clark went back to China and came home with an agreement. Tyrrell told Fleet Van: “We made our presentation and they immediately gave us a contract while we were there.” The next job was to appoint a small team to run the UK firm – and Tyrrell soon found nine employees hand-picked from his old colleagues at Mitsubishi. Setting up a completely new importer has its benefits, as Tyrrell points out. He said: “This way we could avoid the mistakes made by other importers in the past. By having so few staff we can make decisions quickly and move fast with the market. Also, if any of our customers have a problem, they can come straight to the right person immediately to get it sorted. Our customers all have our mobile phone numbers.” So far, however, problems have been few. Despite a general suspicion here about the quality of Chinese goods, Tyrrell said only one prospective customer had refused to buy Loadhoppers when he learned of their origin. He said: “People are quite happy to buy Chinese televisions and iPads and iPhones. In my book buying a Chinese van is no different. We were surprised at their high build quality and the prices are the lowest on the market at present.” Little luxuries added So are the vans different from those sold in China, we asked? Slightly. For starters, DFSK UK decided to rechristen the van Loadhopper. The vehicles are also totally undersealed in the UK (they don’t use salt on the roads in China so vehicles there don’t need it). A few little “luxuries” such as a radio and electric windows are added and for a price, buyers can opt for such goodies as alloy wheels, which are sourced in the UK. Tyrrell said: “I would not say we haven’t had teething problems. There have been some misunderstandings in translation. But the Chinese owners are very willing and co-operative and pull out all the stops to accommodate our wishes and needs.” Tyrrell was also adamant that the arrival of DFSK in the UK, along with that of Great Wall, was just the tip of the iceberg. He said: “Make no mistake, the Chinese are looking outwards and are ambitious for a global brand. We’ve seen imports from Japan and Korea in the past and this decade, it’s China’s turn. This just the beginning of a new era.”

DFSK UK is in the middle of an ambitious programme to set up a dealer network that will encompass the whole country. So far there are 40 dealers from Kircaldy in the north to Falmouth in the south. There’s even a dealer on the Isle of Man and one on Jersey and Guernsey. But this figure is expanding rapidly as word gets around about the new kid on the block. The firm aims eventually for a network of 65 outlets. Network development manager Jack Arkley told Fleet Van: “We started off contacting our old colleagues who ran Mitsubishi dealerships and now about a third of our dealers sell Mitsubishis too. But as word got round we started getting enquiries from Suzuki dealers who were still having people asking if they could buy the old Carry which hasn’t been imported here since 2006.” Now another third of the dealers also sell Suzuki while the remainder are independents. Arkley said: “The joy of taking on a DFSK franchise is that it sits alongside other marques well and it doesn’t cost a lot to set up.”

“We give out all our phone numbers to customers so that they can get straight through to us if there’s a problem” DFSK UK’s strategy revolves around practicality and simplicity. Arkley said: “We don’t expect our dealers to spend millions of pounds on smart showrooms with leather settees and expensive coffee machines. The vehicles they sell are basic workhorses at a rock bottom price and they will sell on their own merits.” For under £2,000 Arkley sells a dealer kit which includes signage and all the other paraphernalia necessary to start up in business. He also insists that dealers have at least two demo models available and four vehicles in stock. Word is indeed getting round and now Arkley is getting around three to four calls per week from dealers interested in giving the Chinese a try. Perhaps the most impressive aspect of the new set-up is the dedication of the small team at DFSK UK HQ in Swindon. For example, staff set up their own stand at the recent CV Show and Arkley himself drove a Loadhopper from Swindon to Dumfries in Scotland so that a prospective customer could have a test drive. He said: “You won’t find dedication like that with any other manufacturer. We give out all our phone numbers to customers so that they can get straight through to us if there’s a problem. Even the managing director answers the phone here.” DFSK dealer kits cost less than £2,000

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On test DSFK

What’s on offer Starting price for Loadhopper is £7,999 ex VAT

By Trevor Gehlcken he Loadhopper is at present offered in four guises, van, three-way tipper, singlecab and double-cab. The single-cab and van is £7,999 ex-VAT, while the tipper is £9,999 ex-VAT and the double-cab pick-up is £9,999 inc VAT. You can’t claim back the VAT as its payload is less than a tonne so doesn’t qualify as a commercial vehicle. Put into perspective, the cheapest Citroën Nemo costs £9,265 ex-VAT. All versions are powered by a four cylinder 1.3-litre petrol engine offering 77bhp and 75lb-ft of torque. The van’s payload is 548kg and load area measures 3.2 cubic metres. Fuel consumption on the combined cycle is 36mpg while CO2 emissions are 184g/km. The engines meet Euro V emissions standards. The vehicles sit on a ladder frame chassis and are all rear wheel drive, with a manual fivespeed gearbox. A turning circle of 8.8 metres makes the vehicles

The V series is 30% bigger than Loadhopper ideal for urban use in tight spaces. There’s a three-year/60,000 mile warranty and for £400 extra fleets can buy a care plan which covers servicing and roadside assistance. Later in the year DFSK UK is planning to start importing the V series, which is bigger by up to 30% than the Loadhopper. There are also plans for a diesel and electric Loadhopper and other as yet unspecified vehicles to follow.

Verdict For what this vehicle is intended – and for the price it’s offered at – we’d give it a guarded thumbs-up. Don’t expect too much and you won’t be disappointed.

The Loadhopper comes with a three-year/60,000 mile warranty

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Behind the wheel Before we start talking about the benefits of the DFSK Loadhopper it might be best to put things in perspective and mention what you DON’T get with this vehicle. There’s no electronic stability control and no ABS brakes even on the options list – and similarly there is no driver airbag nor power steering. But, if that sounds grim, it doesn’t really do justice to this perky performer. Continual comparison Every time I found a fault with the Loadhopper – and to be honest there are a few – I kept coming back to that low price. Mention must also be made of the continual comparison with the old Suzuki Carry and Daihatsu Hijet. The Loadhopper may look like them, but it isn’t – it’s noticeably bigger and to prove it, the lads at HQ just happened to have an old Hijet in the workshop at their HQ. Put side by side it’s a tiddler in comparison to the Loadhopper. So what are the benefits of the Loadhopper? For starters, it’s not a bad looker and get a load of that BMW-type grille at the front! It’s no accident, of course, and the DFSK UK bosses use it as a talking point. Twin side loading doors General fit and finish isn’t bad either. The van version has twin side loading doors as standard – unique in the small van sector – and they both snick shut in a satisfactory manner. The doors feel nice and weighty too. In the back, there’s as much room as in standard Fiat Doblo Cargo, which is the next size up, although payload is less. It’s a bit of a squeeze inside the cab and although there was plenty of legroom for a 6ft 3in specimen like me in the van version, I was cramped like a sardine behind the wheel of the single-cab pick-up. There aren’t too many nooks and crannies for bits and pieces as you’d expect in a small vehicle. A radio is standard, but it’s a bit much having to cough up extra for a CD player. Curiously though, electric windows are a standard fitment. The seats are flat and hard, but on my test drive in the van version they proved fairly comfortable and supportive and the little 1.3-litre petrol engine was lively. The Loadhopper handles well on the bends and the gearchanges are slick and smooth. We reached 70mph swiftly and smoothly.

First Drive Isuzu D-Max

D-Max set to be a big-time player Isuzu expects its Rodeo replacement to take top spot in the 4x4 truck sector Flicking a switch takes the D-Max from twoto four-wheel drive

The steering wheel is huge, but the power steering is light

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What’s new? n Larger than the outgoing model with three bodystyles n New 2.5-litre engine offering 163bhp n Extended cab version for the first time

By John Charles he Isuzu Rodeo was always one of the minor players in the UK 4x4 truck sector. But with the launch of its replacement the D-Max – things could be about to change big time. At the launch in Gloucestershire, Paul Tunniclife, managing director of importer IM Group, confidently predicted that the D-Max would one day lead the sector, although he didn’t put a date on it. The D-Max is available in three guises – single-cab, extended-cab and double-cab – and there will be four trim levels – base, Eiger, Yukon and Utah. Unlike most other

Specification Gross vehicle weight (kg): 2,900-3,050 Power (bhp/rpm): 163/3,600 Torque (lb-ft/rpm): 295/1,400-2,000 Load volume (cu m): n/a Payload (kg): 1,058-1,128 Comb fuel economy (mpg): 33.6-38.2 CO2 emissions (g/km): 194 Prices (ex VAT): £14,499-£21,499

contenders in the sector – and probably important for fleet buyers – the “cooking” version will be available in double-cab format. The cabin is 21cm longer than the old Rodeo and there is more legroom under the dash. There is 25mm more legroom for rear seat passengers in the double-cab and the rear seats are reclined at a greater angle for extra comfort. Noise insulation has been improved upon with extra engine bay padding and different body mountings, while the sleeker design improves on aero-dynamics for greater fuel economy. Entry-level models have steel wheels, air-con, electric windows and front, side and curtain airbags while the Eiger adds alloy wheels, body-coloured bumpers, remote central locking, heated folding mirrors and chrome door handles. The Yukon – expected to be the biggest seller – comes with added six-speaker audio package, leather steering wheel, cruise control, chrome grille and rear bumper, side steps and rear load liner while the Utah also has heated front seats, climate control, roof bars

and parking sensors. A new twinturbo 2.5-litre engine powers the D-Max, offering 163bhp and a meaty 295lb-ft of torque from a low 1,400rpm, while returning 38.2mpg on the combined cycle. The D-Max will tow up to 3,000kg braked and can be changed from two to four-wheel drive at speeds up to 60mph. Power is transferred via either a six-speed manual gearbox or fivespeed auto and, as announced at the launch, the D-Max comes with a class-leading five-year 120,000 mile warranty. Prices range from £14,499 to £21,499 ex-VAT.

Verdict In an age when 4x4 trucks are getting ever better looking and more powerful, the D-Max stands out as a stunner. Mind you with the new VW Amarok and Ford Ranger snapping at its heels – and with a much smaller dealer network than those two titans – the Isuzu sales team are going to have their work cut out to make the firm’s sector leading dreams come true

The basic version D-Max is available in double-cab format

Behind the wheel The new D-Max is one of those vehicles that manages to look both stylish and tough at the same time. It’s a big truck and although only doublecab versions were available at the launch, I was glad to see that there were some lower spec versions on offer too. We tested the D-Max both on- and offroad and our first drive, along twisty country lanes and some fast A roads, was in the Eiger, which is one up from the base spec. Even so, the interior didn’t disappoint. The seats are huge and comfortable, there are

three coffee cup holders just in the right places and six grab handles. Mind you, this variant featured one of those fiddly little stereo units full of flashy lights and tiny buttons that you can’t get your fingers into properly. The engine fires up with a meaty thrum and underway, feels lively in the extreme, although curiously the D-Max’s gearlever is about a foot long and led to some rather rubbery changes. The steering wheel is huge but the power steering is nice and light. Some of the roads we travelled on were pretty bumpy, but this didn’t seem to affect comfort as, even empty,

the D-Max wasn’t skittish and seemed to glide over the ripples. Changing from two- to four-wheel drive is a simple matter of rotating a switch in the console. At a specially designed off-road course, the D-Max showed its macho side. I don’t pretend to be a mud-plugging expert, but with a trainer beside me I managed to get through one of the toughest off-road courses I’ve ever experienced. The Isuzu team was keen to show off just what this vehicle will do and it left me hugely impressed, despite the fact that this vehicle doesn’t have hi-tech features like

hill-hold, an extra that some of the opposition offer. We traversed near vertical slopes, deep rivers and scary inclines but not once did the D-Max look like faltering. On the return journey we swapped into a range-topping Utah auto, with leather seats and upgraded stereo system and with the gearlever (a smaller on this time) in drive, we glided off complete with a tonne of sand in the back. While both driver and passenger could feel the extra weight, the D-Max still felt lively on the road and cornering was as neat and accurate as with the empty truck.

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