Fleet Van June 2014 by Fleet News

FleetVan Fleetnews.co.uk/fleetvan

Business support... Running costs, fuel prices, CO2 emissions tools

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

News: Parking ďŹ nes

Leasing companies urged to notify van operators sooner New Ducato and Boxer

Behind the wheel of the latest Fiat and Peugeot vans

Insight: Van safety

How technology is making vans as safe as cars

Spotlight: Mercedes-Benz

SETTING THE STANDARD FOR VANS Van boss Steve Bridge outlines his plans for an industry-leading dealer network

Missed an issue? Access our full Fleet Van archive online

June 2014 ÂŁ5 where sold

Contact us Fleet News, Media House, Lynch Wood, Peterborough PE2 6EA. Email – fleetnews@bauermedia.co.uk Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Deputy editor Simon Harris 01733 468308 simon.harris@bauermedia.co.uk Acting deputy editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk Associate editor Trevor Gehlcken Contributors Mark Cartwright, John Charles, James Taylor, Chris Lowndes (photographs)

CONTENTS

4 I Parking fines

6 I News digest We highlight the important news from the past month in the van sector.

Production Head of publishing Luke Neal Associate editor (production) Andrew Ryan Production editor Finbarr O’Reilly Advertising Commercial director Sarah Crown (maternity leave) B2B commercial manager Sheryl Graham 01733 366467 Account managers Wendy Cowell 01733 366472 Laura Holloway 01733 366469 Lucy Herbert (maternity leave) Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Marcus Woods 01733 366468 Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468338 Angela Price Kerry Unwin 01733 468327 Telesales/recruitment b2brecruitment@bauermedia.co.uk 01733 468275/01733 468328

9 I Coming soon New and revised models offer increased efficiency.

Fleet Van is published 10 times a year by Bauer Consumer Media Ltd, registered address 1 Lincoln Court, Lincoln Road, Peterborough, PE1 2RF. Registered number 01176085. No part of the magazine may be reproduced in any form in whole or in part, without prior permission of the publisher. All material published remains the copyright of Bauer Consumer Media Ltd. We reserve the right to edit letters, copy or images without further consent. The submission of material to Bauer Media whether unsolicited or requested, is taken as permission to publish in the magazine. Any fees paid in the UK include remuneration for any use in any other licensed editions. Whilst every reasonable care is taken to ensure accuracy, the publisher is not responsible for any errors or omissions nor do we accept any liability for any loss or damage, howsoever caused, resulting from the use of the magazine.

10 I FTA Benchmarking: fuel saving Simple measures can cut fuel bills by up to 15%.

14 I Scottish Ambulance Service Balancing utilisation, availability and safety.

18 I Spotlight – Mercedes-Benz ‘It’s about winning hearts and minds,’ says MD.

20 I Insight: Utilities fleets Spotlight on a challenging sector.

24 I Insight: Safety technology Van safety technology is taking a big step forward.

Events Event director Chris Lester Event manager Sandra Evitt 01733 468123 Event organiser Kate Howard 01733 468146 Events co-ordinator Nicola Baxter 01733 468289 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan

Leasing companies could use text and email to make parking fines process ‘fairer’.

72 I Remarketing Values predicted to stay strong for remainder of year.

74 I Peugeot Boxer/Fiat Ducato 76 I O & H Wellbus

77 I Vauxhall Combo high roof 78 I Ford Transit long-termer 79 I Running costs: LWB high roof medium vans Spotlight on all the important data you need .

ISSN 0953-8526. Printing: Headley Brothers Ltd, Kent

NEXT ISSUE – JULY/AUGUST

Insight: Downsizing How to make smaller, more efficient vehicles work on your fleet.

New launches We try the Ford Transit Courier and Nissan e-NV200.

“ Before trying out new ideas on my eet, I want a partner that’s already tried it on theirs.” Our award winning SMR and ®eet solutions are trialled on our own ®eet before benetting yours.

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fleetnews.co.uk/fleetvan June 2014 3

pa rk ing f ine s

Technology can make fine process ‘fairer’

once a parking fine has been paid, it cannot be appealed

Leasing companies could use text and email to immediately inform fleets of parking offences Need To kNow n Leasing companies urged not to automatically pay parking fines n Number of fines expected to rise By Simon Harris leet operators are urging leasing companies not to automatically pay parking fines incurred by van drivers to prevent inflated administration fees and allow appeals. Members of aCfO, the fleet decision-makers’ organisation, say that availability of technology – text and email – should enable contract hire and leasing companies to immediately notify customers when a penalty Charge notice or parking Charge notice (in respect of vehicles

parked on private land) has been imposed. a survey by aCfO ahead of its another fine Mess seminar in June discovered 48% of leasing companies automatically paid the fine and then recharged the cost to fleet customers, with 86% adding an administration fee. However, once a penalty Charge notice or parking Charge notice has been paid it cannot be appealed. The British Vehicle rental and Leasing association (BVrLa) has estimated that its largest member companies handle around 13,000 fines a month. amanda Brandon, the BVrLa’s legal and policy executive, said the administration process for the majority of leasing companies was “completely manual”, with all correspondence by post meaning the clock was ticking in terms of the 28 days for drivers to pay or challenge the fine. However, aCfO chairman John pryor asked

“Leasing companies should improve their fine administration process” John Pryor, ACFO chairman

why leasing companies, who receive the fine as the registered keeper of a vehicle, could not use technology to notify clients that a charge had been incurred. He said: “Leasing companies should improve their fine administration process. We know from our survey that some leasing companies give clients the option to pay or appeal, but it is clear that many don’t. “a straightforward text or email should be sent to the fleet manager informing them that a parking fine has been incurred, where and when. “That would enable the fleet manager to identify

Top Tips for fleeT managers when handling parking fines ACFo and seminar sponsors SAFo europe have issued their top tips for fleet managers on the handling of parking fines. SAFo, a fines management company, says fines are a hugely emotive issue with “pain points” for fleet managers. The two organisations’ recommendations include: keep track retain a record of all incoming and outgoing correspondence in case the authority or private operator claims they have not received a response. Act quickly always act immediately, especially within 14 days in order to reduce the parking penalty, if the fine is accepted. Recorded delivery send all correspondence via

4 June 2014 fleetnews.co.uk/fleetvan

recorded delivery to cover the company. If that is not possible, send all private operator correspondence via recorded delivery as, unlike local authorities, they do not allow a statutory declaration to be made which enables the registered keeper to declare that the correspondence was sent. Prioritise treat fines requiring a response within seven days from posting with absolute urgency. Be wise remember CCTV is increasingly used in the industry for both moving traffic and car parks. do not assume that drivers will get away with a contravention just because a warden or police officer is not around. Pay or appeal do not assume that the driver is at fault. Immediately speak to the driver and

find out the circumstances, then make a decision to appeal or pay the charge. karen Stringer, sales and marketing manager, SAFo europe, identified key “pain points” for fleet managers as: resource management to handle fines, data updates in relation to drivers and vehicles, keeping up to date with legislation changes, managing costs associated with fines, the storage of documentation relation to fines and associated paperwork and customer service issues. She added: “Fines can be incredibly emotive. without good data the whole process will not be right and it can be chaotic. “There is no doubt that fines can be a problematic issue for fleets.”

ediTor’s column Simon Harris, deputy editor, Fleet Van

There are an increasing number of signs that show the economy is improving. Unemployment now seems to be falling consistently, inflation remains steady, and property prices are increasing. The new van market is also gaining strength, partly helped by new products arriving during the past 12 months at a time when increasing consumer confidence has slowly added momentum.

the driver and respond within 24 or 48 hours as to whether the fine will be paid or appealed. “it would be a more efficient process and a fairer service.” Brandon told the seminar that the BVrLa was working with its members on the best way to make sure that charge notices were communicated to fleets as quickly as possible. she said that future best practice could see the recommendation of email notification requiring a response from fleet managers within 48 hours or fleets being notified of a fine by post and asked to respond within 14 days. it also emerged in the aCfO survey that 86% of fleet manager respondents said their vehicle leasing supplier issued a fine administration fee, but 14% of fleet operators said their supplier levied no handling charge. among leasing companies charging an administration fee, 50% charge between £20 and £30 per fine, according to respondents, although 11% said their supplier charged less than £10. The remainder said it was £10 to £20. asked if it was possible for the BVrLa to encourage leasing companies to adopt a ‘standard charge’, Brandon said that under competition law that would be unlawful. The number of fines relating to traffic offences incurred by company car and van drivers could escalate in the near future, the seminar heard. The Highways agency’s decision to replace payment at the Dartford Crossing with a remote charging system from October 2014 is expected to result in a spate of penalty charge notices, Brandon added. Drivers will be able to pay in advance or before

13,000 86% fines handled a month by BVRLA’s largest member companies

of respondents’ leasing suppliers issue a fine admin fee

midnight the day after using the crossing. payment methods will include pre-pay accounts which qualify for discounted travel, online, by text, at retail outlets, over the phone or by post. There is also expected to be a special fleet scheme, but details of how it will work have yet to be announced. Brandon also warned fleet managers that the number of penalty Charge notices being issued could rise for a number of other reasons including: n More bus lanes being introduced, particularly in towns and cities outside of London. n The planned June 16 increase in the London Congestion Charge from £10 to £11.50 with a £1 reduction for fleet scheme members. n The planned 2020 introduction by Transport for London of the London Ultra emission Zone, which will almost certainly be based on the existing congestion charging zone. The key entry requirement is expected to be linked to euro6 vehicle compliance standards for nOx. Brandon said: “all could be reasons for future increases in the number of penalty Charge notices incurred by fleet drivers.”

For advice on appealing parking fines, see fleetnews.co.uk/parkingfines

“Suppliers would do well to follow the example of O&H to reduce their exposure to the public sector” But we still have signals that the recovery is not universal and there are still further deep cuts planned for government departments over the coming years, which will have an impact on those employed in the public sector, and those supplying it. in the reviews section of this issue we’ve tested a converted van – a welfare bus from O&H Conversions. The company has been an ambulance conversion specialist, but is now broadening its horizons to help reduce its reliance on the public sector. Other suppliers in the LCV industry would do well to follow the example of O&H, if they haven’t already, to reduce their exposure to a sector where investment is likely to become ever more scarce.

fleetnews.co.uk/fleetvan June 2014 5

NE W S DIGE S T

W W W.F L EE T NE W S.C O.UK / VA N S

Garage labour reaches record high of £215 an hour

New tracking option added to Lightfoot

The maximum cost of an hour of a garage mechanic’s time has reached a new high of £215, according to Warranty Direct’s annual labour rates study. Overall, the UK’s average labour rate, for main dealer and non-franchised workshops combined, stands at £74.33. Data from more than 10,000 cases was analysed. Of the 67 areas included in the study, London is the most expensive place to fix a car, at an average

Ashwoods Lightfoot has launched a new option to in-cab driver efficiency product Lightfoot. Following feedback from customers, Ashwoods is now offering its product with the option of a new tracking facility. The additional option means that fleet managers will be able to conduct real-time tracking on their vehicles.

£91.99 an hour (franchised and non-franchised garages combined). The highest individual hourly garage labour rate can also be found in the capital. One franchised workshop in West London was found to be charging £215 an hour, the highest rate ever recorded by Warranty Direct in the 11 years of the study. Two other garages were billing at more than £200 an hour.

Volkswagen Commercial Vehicles appoints new head of fleet Volkswagen Commercial Vehicles has appointed Chris Black to the newly-created role of head of fleet. He joins the brand from Lombard Corporate Asset Finance where he held the role of UK head of corporate coverage. He brings with him more than 20 years of experience in the automotive and financial sectors. Previously, he was with Lombard Vehicle Management for 17 years, rising to the board-level position of head of customer services. In his new role, he will report directly to Andrew Waite, head of sales operations for Volkswagen Commercial Vehicles and will be responsible for spearheading the brand’s fleet sales operation. Waite said: “We are really excited that Chris is joining the team. “His appointment comes as we look to strengthen our fleet team.”

Teletrac reaches Citroën van milestone A Berlingo van has just become the 100,000th Citroën LCV to be fitted with the Teletrac telematics package. Specially developed by Teletrac (part of Trafficmaster) for Citroën’s LCV range, the telematics platform is fitted as standard to all Berlingo, Dispatch and new Relay panel vans.

Experts in fleet conversions and modiƒcations www.cmspecialistvehicles.co.uk

6 June 2014 fleetnews.co.uk/fleetvan

01942 815600

Zenith employees achieve Van Excellence qualification Zenith employees have achieved the Freight Transport Association (FTA) certificate of excellence, following completion of a course on best practice for the operation of vans and LCVs. The qualification is provided in conjunction with FTA’s Van Excellence Code. It covers guidance relating to the safe, legal and efficient running of vans and LCVs including vehicle maintenance systems, administration, speed limits, licences and towing equipment. Twelve Zenith employees from its LCV and maintenance teams successfully completed the course. Zenith partnered with the FTA in 2012 to help promote its standards of excellence among its van and LCV customers.

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Ne w l auNche s

increased efficiency from revised and new models Ford transit courier

Ford’s replacement of its entire van range concludes this month with the arrival of the Transit courier. The courier name disappeared in 2004 and its re-emergence heralds the end of a small but significant gap in the manufacturer’s range between Transit connect and Fiesta Van. Built in Turkey, the Transit courier comes in a single wheelbase and roof height, either in panel van or five-seat kombi guise. It has a payload of 660kg and a loadspace of 2.3-2.6 cubic metres with the optional folding passenger seat and swivelling bulkhead. engines are a 1.5-litre turbodiesel with 75hp, a 1.6-litre with 95bhp and a three-cylinder 1.0-litre petrol engine with 100hp. Fuel economy ranges from 54.3mpg to 76.3mpg and prices go from £11,821 to £15,726. ■ Full road test in next month’s issue

nissan e-nv200

i v eco da ily

The third generation of the Iveco Daily arrives next month, offering a ladder frame chassis plus more space and increased manoeuvrability. The company’s efforts concentrate on both chassis cabs and vans. On the van in particular, performance from just about every aspect in terms of handling and carrying capacity has been improved, thanks to optimised load volumes and ease of use with a more accessible cargo bed. The van’s capacity has been improved through the reassessment of the relationship between wheelbase, overall length and the length of the cargo bed. This makes the new 18 cubic metre and 20cu m models best in class for volume and the 11cu m model best in class for cargo efficiency – an index that measures the relationship between the length of the loading compartment with the total length of the vehicle. This new model also promises around 5% better fuel economy than its predecessor. ■ Full road test in next month’s issue

Nissan has announced full uK pricing and specifications for the electric e-NV200. available from next month in panel van and five-seat combi form, customers can either choose to buy the e-NV200 outright or opt for ‘Flex’ – a battery leasing option that reduces the initial purchase price. all models qualify for a Government grant – up to £8,000 for the panel van under the Plug-in Van Grant scheme and up to £5,000 for the five-seater combi under the Plug-in car Grant initiative. Including the incentive, the van in entrylevel acenta trim can be purchased outright for £16,562 while the similarly-specced combi is £22,859. The Flex option for the same trim level and including the Government grant, with battery rental starting from £61 per month, costs £13,393 and £17,855 for the van and combi versions respectively.

volkswagen tr ansporter

Volkswagen has introduced an updated eco version of the Transporter. The Bluemotion has a combined fuel economy of 48.7mpg and cO2 emissions of 153g/km. One tank of fuel can deliver a theoretical range of more than 850 miles, the equivalent of driving from Portsmouth to Prague. These figures represent a 3.9mpg improvement in combined fuel economy and a 13g/km reduction in cO2 emissions compared to the previous Bluemotion model. The efficiency of the Bluemotion, which is available only as a panel van, is achieved by modifying the engine management system and transmission as well as using low rolling resistance tyres, start-stop technology, battery regeneration systems and cruise control. at the heart of the Transporter Bluemotion is a 114bhp 2.0-litre TDI engine with common rail direct injection, which delivers a maximum of 184lb-ft of torque. Prices start at £19,245 (ex-VaT).

fleetnews.co.uk/fleetvan June 2014 9

benCHm A rK inG bY T He F TA – F Uel S Av inG S

Simple measures can cut fuel bills by up to 15% While there is no ‘silver bullet’ to achieve significant savings, small gains add up By Mark Cartwright, head of LCVs, Freight Transport Association iesel prices have stabilised and even fallen slightly over the past year. Good news, of course, but fuel still remains a very significant cost for any van operator and still, by our reckoning, represents more than 70% of the running costs for the average van on UK roads. A typical van will use more than £7,000 of fuel each year. Yet despite this massive burden, many operators fail to take on board straightforward measures to reduce this cost. A recent survey of FTA’s van operating members revealed that almost half didn’t measure fuel consumption across their van fleet, only one-quarter planned their routes and one-third didn’t train their drivers in fuel-efficient driving. So what can operators do to improve their performance? The overwhelming response from those surveyed was around the application of a number of common sense measures. The starting point must be to establish the current fuel consumption of vehicles within the fleet, and with most respondents using fuel card and bunkering systems to buy their fuel this should be a relatively uncomplicated task. Simply comparing the figures across similar vehicles and drivers can quickly highlight areas for attention. Driver training is seen as having a positive effect on fuel spend, although a degree of variability is noted with some drivers seeming to respond better – possibly because they were starting from a lower standard – and there often being a tail-off in improvement over the following few months. How can that tail-off be controlled? The consensus is that continued measurement of driver performance is vital. Clearly telematics has a role to play, as have simple fuel

Garage account 3%

Cash and reclaim 3%

Credit/debit card 5%

General fuel card 46%

How do you purchase fuel?* *Totals greater than 100% due to multiple options

Brand speciﬁc fuel card 31%

70%

of a van’s running costs is represented by fuel

25%

more fuel can be used by driving at 80mph than at 70mph

“The starting point must be to establish the current fuel consumption of vehicles within the fleet”

economy calculations, but the key is to ensure drivers are aware of the impact their driving habits. A straightforward league table of driver performance is cited by many operators as being very successful in ensuring drivers continue to use the skills gained during efficiency training, with peer pressure providing a strong incentive to maintain their improvement. Technology also has a strong role to play in controlling fuel spend. A major fleet operator has realised more than 10% savings simply by investing in off-the-shelf sat-navs and instructing its drivers to plan their routes and to use the built-in fuel price function to identify the cheapest fuel within three miles when they need to fill up. The use of speed limiters was also seen as vital. Aside from the legal issues, a van travelling at 80mph can use 25% more fuel than at 70mph. Almost two-thirds of respondents regularly use speed limiters on their vans and recognise their use as being one of the most effective fuel-saving measures. There also seems to be a developing trend toward the adoption of rev limiters (or rev control by eCU remapping) with several operators reporting successful trials. This option appears to be gaining a particular foothold with operators in the utilities and civil engineering sectors where a good proportion of their work is in an urban environment. The best practice message from respondents was that there isn’t a silver bullet to reduce fuel spend. it was the combination of a range of measures which produced real results. The ability to measure and compare data is a must. Telematics, fleet management systems, fuel card data and spreadsheet calculations all have their role to play.

Partially 32%

No 16%

Does your organisation currently measure fuel consumption/economy across your van ﬂeet?

Mark Cartwright, head of LCVs, Freight Transport Association Bunkering 43%

10 June 2014 fleetnews.co.uk/fleetvan

Yes 52%

Do you train your drivers in fuel-efﬁcient driving?

47% Yes

30% No

23% Sometimes

55% No

16% Sometimes

Do you monitor idling time?

29% Yes

Driver training will help establish a level playing field across the business. Ongoing measurement and an open, transparent reporting structure providing direct driver feedback ensures drivers become aware of – and responsible for – their performance. incentives and awards have a role to play too. Operators should establish a purchasing policy rather than just leaving it to the driver to fill up where it suits them. many respondents reported they actively encourage the use of supermarket forecourts by allowing drivers to collect the various incentive points available. This does, of course, need to be balanced against drivers travelling too far in seeking out the cheapest fuel at the expense of added mileage. Consider the use of speed limiters and, perhaps, rev limiters. Significant fuel savings can be achieved with negligible impact on journey times. look at the vehicle itself. is it properly maintained? Are tyre pressures optimal? Does it need that roof rack? There are many simple checks that operators can make on their vehicles which will save fuel. is the vehicle carrying unnecessary weight? many operators using vehicles as mobile workstations reported they regularly identified vehicles carrying tools and equipment

Always 26%

Never 20%

that were rarely used or that had accumulated extra items or supplies over time. extra weight will impact on economy. if you’re towing equipment, could that equipment be delivered to site ahead of your workforce? Are you managing vehicle idling time? Only 29% of respondents regularly monitored idling time. is that journey necessary? This sounds obvious, but one respondent involved in the distribution of retail products realised a reduction of more than 10% in mileage simply by calling ahead to ensure the recipient was available and by consolidating deliveries. The take-home message is that there is no single solution but there are many measures operators should explore. each may only have a small impact on costs but added together many respondents are reporting 10 to 15% (and beyond) savings. With the Tour de France just around the corner, a quote from Dave brailsford, the boss of Team Sky cycling team, caught my eye. He recognises there is no simple answer to achieve success and it’s all about ‘the aggregation of marginal gains’; a percentage here and a percentage there… The same message applies in operators’ quest to reduce and control fuel expenditure.

For van operator guides, visit ﬂeetnews.co.uk/ vanbestpractice

Do you use… Never 81%

100

Frequently 26%

Rev limiters

Never 36% Rarely 4%

Sometimes 17%

Often 9%

Always 34% Rarely 4%

Sometimes 7%

Often 2%

Never 32%

Speed limiters

Telematics

fleetnews.co.uk/fleetvan June 2014 11

Source: FTA

0 Occasionally 27%

Always 5%

Rarely 4%

Sometimes 16%

Do you plan routes?

Often 12%

Always 35%

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IN SIGH T - S C OT T I SH A MBUL A NCE SER V ICE

Balancing safety and cost at awards winner Michael Jackson on the ‘vicious circle’ facing Scottish Ambulance Service’s fleet By John Charles oday’s fleet managers must possess a high degree of business and finance acumen combined with excellent motor vehicle engineering knowledge and be effective communicators at all levels from shop floor to boardroom. That’s the view of Fleet Van’s van fleet manager of the year Michael Jackson, general manager of the 1,450-strong Scottish Ambulance Service fleet. During his 35-year career Jackson has gained experience working in the private sector, central and local government and the NHS. In his current post, which he has held for more than 12 years, Jackson is in charge of the Scottish Ambulance Service fleet, a 90-strong team of staff, 16 workshops and budgetary expenditure in excess of £18 million. For the past two years he has been seconded to the Scottish Government’s National Health Service shared services programme to undertake a review of the NHS Scotland fleet management operations, which includes the Scottish Ambulance Service and a total fleet of around 12,000 vehicles (Fleet News, September 17, 2012). In 2014/15, the recommendations from that review will begin to be implemented with the aim of maximising efficiencies, improving operational effectiveness and ultimately achieving best value with the savings realised being retained by health boards to use for frontline patient care. Scottish Ambulance Service has 1,110 commercial vehicles, including 450 frontline accident and emergency vehicles, a similar number of patient transport vehicles with the remainder being special response vehicles. Additionally, the fleet includes 350 cars.

450

frontline accident and emergency vehicles

29m

miles covered by the fleet each year

BELOW: Ambulances in rural areas can travel up to 250,000 miles in their fleet life

The accident and emergency fleet comprises Ford Transit, Mercedes-Benz Sprinter, Peugeot Boxer and Volkswagen Crafter based vehicles, with Volkswagen Transporter 4x4s utilised on the Scottish islands. Meanwhile, the Patient Transport Service is dominated by Renault Master-based vehicles supplemented by Crafters and Boxers. The service’s fleet covers almost 29 million miles each year with a fuel spend of £7.8m. In a bid to more evenly distribute mileage between the vehicles, they are occasionally relocated, which means that urban vehicles typically clock up around 125,000 miles over their lifetime with rural vehicles travelling as many as 250,000. Vehicle replaced from five- to 15-year cycles Operational vehicles are all outright purchased and maintained in-house with accident and emergency vehicles run over seven years. Patient transport vehicles are replaced every decade; there is a desire to reduce that to seven years but the affordability/depreciation balance makes that unachievable at present. Other vehicles are replaced at five- to 15-year intervals depending on their role. The exclusively diesel-based fleet is supplemented by a four-tonne Peugeot Boxer electric patient transport ambulance that was introduced in Edinburgh last year. Operational use of this electric vehicle is limited by a number of factors, mainly range, speed and cost. The electric patient transport vehicle also cost more than twice that of a standard equivalent. Jackson says: “Electric vehicles would be more viable if we were operating in a compact area. But being a national service our vehicles must have huge flexibility and scope to operate in urban and rural environments and travel anywhere in the country.” He adds: “We are watching the development of fuel cell and electric hybrid vehicles with interest and they may deliver the flexibility we require in the future.” The fleet has considered utilising higher proportions of biodiesel, but this was ruled out following vehicle manufacturer concerns. The service produces 15,200 tonnes of CO2 each year, and reducing this is a key issue. However, this must be balanced by vehicle operational requirements. Across the fleet, average fuel economy of vehicles can vary from 14mpg to 63mpg. While the patient transport operation can use speed-limited, fuel-efficient vehicles, different considerations apply for bluelight vehicles. Changing demands on ambulances “Accident and emergency vehicles have changed considerably over the past 15 years,” says Jackson. “Significant improvements have been made to reduce health and safety risk for staff and patients, but this has had a major effect on the size and weight of the vehicles.

14 June 2014 fleetnews.co.uk/fleetvan

Michael Jackson (right), general manager fleet, Scottish Ambulance Service, accepts the van fleet manager of the year award from Mike MacDougall, head of sales, Hitachi Capital, at the 2013 Fleet Van awards

“Major changes have also had to be made to the type of equipment that the vehicles carry, which is resulting from the requirement to treat more patients at home, instead of admitting them to hospital. “Engines are a lot more fuel efficient now than they were 15 years ago, which has helped the majority of fleets fund the additional operational costs that are required to operate more sophisticated modern vehicles. “However, due to our vehicles growing in size over the years, and the additional performance that we now require from them, they are far more expensive to operate than they used to be, which is one of the biggest challenges we face.” Looking back, Jackson says: “The most cost-effective fleet that we have operated would have been in about 2000, when Transit and Sprinter-based diesels were operated on the accident and emergency fleet. “These were a lot more reliable than the thirsty V6 and V8 petrols that the service previously used, were a lot lighter than the vehicles we currently operate, and they performed very well.” Vehicle utilisation is a further challenge for a service covering the whole of Scotland. City stations can have up to 70 vehicles operating round the clock and good utilisation can be achieved, while a rural location may have only a single vehicle used twice a week, but it must be available to provide a public service around the clock. “Operations wants vehicles to cover every eventuality, while finance wants less vehicles with higher utilisation. It’s a vicious circle,” says Jackson. “But the number one priority for the fleet department is keeping the fleet in a safe operational condition and on the road.” For the past decade, the Scottish Ambulance Service fleet has been working more closely with the country’s other emergency services, and a review in 2004 considered collaboration between the-then eight Scottish police force fleets, the eight Scottish fire brigade fleets and the Scottish

“Operations want vehicles to cover every eventuality, while finance want less vehicles” Michael Jackson, Scottish Ambulance Service

For van case studies, visit: ﬂeetnews.co.uk/ vans/case-studies/

Ambulance Service fleet. Outcomes included the closure of 10 vehicle maintenance workshops and partnership working in eight workshop locations Now, following completion of the review, 2014/15 is likely to see some changes across not just the Scottish Ambulance Service fleet, but the NHS Scotland fleet. Work is taking place to standardise vehicle specifications and procurement across the NHS Scotland fleet and its 22 NHS boards, which are responsible for the delivery of frontline healthcare services and currently provide the full range of transport and fleet services. The ‘shared service’ approach across the entire NHS Scotland fleet operation, which has net revenue expenditure of £52.5m per annum and a capital replacement value of £226m, will, it is anticipated, deliver benefits in terms of efficiencies, effectiveness and economies of scale. One of the main enablers to help operate the fleet more effectively and efficiently will be a national telematics system, which it is hoped will be introduced consistently across all health boards. In the not too distant future, Jackson sees fleet managers having the ability to manage the efficiency and performance of vehicles from a remote location through telemetry. He says: “Engineers can change the performance profile of Formula One racing cars from the pits and that sort of ability will come to fleet operations. “Fleet managers will be able to more closely manage vehicle performance and align it immediately to actual operational requirements.”

fleetnews.co.uk/fleetvan June 2014 15

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SP OT l IGH T – Mer CeDe S -Benz Va n S

‘It’s about winning hearts and minds of ﬂeet buyers’ MD Steve Bridges on the importance of the ProCenter initiative By Trevor Gehlcken ost of the major manufacturers have already set up a network of van fleet centres among their dealer networks, offering specialist knowledge about which vans to choose, enhanced levels of aftersales service and extended opening hours. Mercedes-Benz may be a little late to the party, but there was already a higher level of professionalism throughout its commercial vehicle network. Set up to deal with the needs of truck operators as well as van operators, Mercedes-Benz now wants to ensure there are dedicated van specialists available at its centres at all times to enable them to qualify for elevated ProCenter status. Steve Bridge, managing director of Mercedes-Benz Vans, has promised fleet customers the highest level of service in the UK. The launch of the ProCenter project comes at an important time for the German manufacturer, which sees the van and truck divisions split into two. Bridge previously reported to his truck superior, but he now reports to the MercedesBenz’s HQ in Germany. The benefit of this move for fleet buyers is that the company now has a greater focus on van sales and aftercare and that any decisions that need to be made can be done so more quickly and efficiently. So far two dealers have been given ProCenter accreditation and it is hoped that eventually all 80 commercial vehicle dealerships in the UK will eventually sign up. The possibility of car dealers in the Mercedes-Benz network signing up in the future also hasn’t been ruled out.

Dealers must demonstrate excellence To become an accredited Van ProCenter, Mercedes-Benz Van dealers must achieve more than 50 standards ranging across all business areas. In addition, there are obligations around the availability of a selection of demonstration and display vehicles. Van ProCenter dealers are additionally required to have best-in-class brand and product presentation at their premises, where they should also retail a broad range of topquality used vans. From an aftersales perspective, Van ProCenter dealers must have specialist van service advisors and technicians, and ensure customer mobility by providing replacement vehicles and collection and delivery services. Once accredited, the dealers receive additional investment, support and training from Mercedes-Benz UK. To ensure these levels of service are maintained, every Van ProCenter will be subject to an annual audit to retain their accreditation. Bridge says: “We looked at the fleet centres run by the rival

18 June 2014 fleetnews.co.uk/fleetvan

manufacturers and analysed what the best bits were. We then fashioned our programme round those best bits and we are confident that our ProCenters will offer the very best in all areas.” One of the problems that dealers face is that customers often think they know which models they need for their businesses, having carried out research on the internet, but in fact they are making the wrong choices. Bridge says: “When a fleet operator comes into our dealership and asks to buy, say, a fleet of Vitos we sit him or her down and look closely at what the vans will be used for. “Quite often we find that the smaller Citan will do the job, thus saving the customer a lot of money over the fleet lifecycle. “Conversely we have had buyers who think they need small vans, but in fact they would be quite unsuitable for the job owing to payload restrictions. This is all part of the sales process at one of our dealerships.” One of the unique selling points for Mercedes-Benz is that the manunufacturer is the only one to offer both a full range of vans and trucks right up to 44-tonnes gross vehicle weight. as all Mercedes-Benz vans are sold through the commercial vehicle dealership network, this means that even buyers of the smallest Citan van benefit from truck levels of aftercare, such as 24/7 servicing. The three-pointed star offers another service too – in the event of a breakdown, a specialist turns up from the local

Mercedes-Benz hopes all 80 of its dealers will gain ProCenter accreditation

Steve Bridge is confident MercedesBenz will be the second best-selling van manufacturer in the UK by 2016

“Citan has given us access to many more solus fleet deals and now the ProCenters will be the icing on the cake” Steve Bridge, Mercedes-Benz

Mercedes-Benz dealership in a van loaded with spares and in 90% of cases, the stranded vehicle is back on the road within a couple of hours. Most of the other van manufacturers use services such as the aa and raC who will often have the vehicle towed to the nearest garage for repair. Mercedes-Benz has always prided itself on its high levels of aftercare so did the launch of the ProCenters mean that the manufacturer felt there was something lacking? “not at all, although we have identified areas and segments where we wish to grow,” answers Bridge. “We have undertaken a six-month study with some business experts and have concluded that while our service to bigger fleets is second to none, we could do more in the SMe sector. We will also be targeting utility, construction and facilities management fleets with a view to clinching more deals.” Bridge says Mercedes-Benz will launch a range of tippers, dropsides, boxes, lutons and tail-lifts later this year.

For the latest van reviews, visit: ﬂeetnews.co.uk/vans/ reviews/

Van and truck overlap will ‘improve’ service a concern among fleets may be that as Mercedes-Benz has separated the van and truck divisions, companies that want to buy both types of vehicle would have to set up two different fleet agreements, but Bridge says: “There will still be an overlap and the service to fleet buyers will actually improve rather than diminish. “We will be offering a tailor-made sales package to these fleets so that buyers can deal with one salesman or two different ones, whichever they prefer.” Dealers who become ProCenters face a tough road ahead before they gain accreditations. Bridge says: “Becoming a ProCenter is not just a box-ticking exercise as with some of our rivals. “Main dealers must show us how they believe they are best in class in various areas and our consultatnts will make suggestions for any improvements they think are necessary. “This is all about winning the hearts and minds of fleet buyers – we don’t just throw a load of money at the dealers and let them get on with it. “The biggest problem with our ProCenters will be getting the bigger dealer networks to be able to offer the same service right across all their sites. It is all about getting the right people in the right places, but when that happens, success will follow.” at the launch of the Citan, Mercedes-Benz’s first small van, last year, Bridge said he expected his company to be sitting at the no2 position in the sales chart by 2016. Does he still hold this view? “Very much so,” he told us. “The Citan has given us access to many more solus fleet deals and now the ProCenters will be the icing on the cake. “We’ll be right up there at number two, never fear!”

fleetnews.co.uk/fleetvan June 2014 19

IN SIgh T – u T Il I T IE S F l EE T S

Tough demands drive pioneering ﬂeet policies uptake of electric vans and a commitment to safety typify utilities fleets

By John Maslen he utilities sector is one of the biggest industry segments in the van fleet market, accounting for nearly one-fifth of all light commercial vehicles operated by Britain’s biggest fleets. In addition to being a large sector, most fleets have substantial responsibilities as they sit at the sharp end of service delivery in a market with a very demanding customer base. Customer call-outs for utility fleets are rarely anything but urgent, which creates two key challenges for companies. Responsibility for ensuring reliability of supply and also making sure that problems are fixed quickly requires an efficient fleet to deliver people and equipment to fix the problem. As a result, utility fleets need to focus their attention on acquiring vehicles that minimise downtime, with the right level of support to ensure vehicles are back on the road without delay, but all within normal budget restrictions that any business has to consider. Secondly, they need to make sure drivers arrive safely and ready to do their job so that normal service can be resumed, through initiatives ranging from driver inductions and licence checks through to on-road driver training, speed limiters and high-tech telematics systems.

20 June 2014 fleetnews.co.uk/fleetvan

60,000

vehicles operated by the largest 20 companies in the utilities sector

200

people work directly in fleet management in the largest 20 companies in the utilities sector

It is a war of attrition, as utility fleets have high utilisation, often in very demanding operating conditions, while drivers are employed for their technical skills, not for being perfect drivers. Therefore, fleet managers in the utilities sector need to show strong management skills to engage with employees and ensure they adhere to the rules and restrictions the fleet has in place. The volume of vehicles involved makes the management challenge even greater, with the largest 20 companies in the sector operating more than 60,000 vehicles, two-thirds of them vans up to and including 3.5-tonnes. Total annual spend among these fleets alone is around £500 million. Some of the largest fleets include Centrica, owner of British gas, National grid, E.On, EDF Energy, Thames Water and Yorkshire Water. Within these companies, a relatively small band of just over 200 people work directly in fleet management and their response to this tough operational environment has been to become benchmarks for best practice and pioneering fleet strategies. A recent example of utilities companies leading the way came from British gas, which has placed an order for 50 all-electric Nissan e-NV200 vans, with a further 50 to be delivered by the end of the calendar year, following trials.

British Gas placed an order for 50 electric e-NV200 vans after a successful trial

UTILITIES SECTOR FACTS AND FIGURES Outright purchase 50%

Van funding methods

Other 35%

Contract hire 15% Cars 32%

Proportion of cars and vans

INVESTMENT IN TECHNOLOGY IS SET TO GROW According to research among the biggest utilities fleets, 54% are planning to increase their level of investment in telematics technology, compared to a market average of 48%. This is in addition to nearly one-third (31%) of fleets who intend to maintain their level of investment, while just 15% currently do not invest in telematics and have no plans to do so. This is part of a broad industry focus of great investment in key areas, with 38% planning greater spending on risk management. The driving force behind this investment is expected to be a decline in the overall fleet cost base, with 77% expecting to spend less or the same on accident management this year, while 46% expect to see a decline in replacement vehicle costs through lower daily rental spend.

54%

plan to spend more on telematics

38%

plan to spend more on risk management

Vans 68% Utilities replacement cycles Cars 99,000 miles 5.2 years

Their unique demands mean utility companies favour internal expertise to manage the specific challenges they often face, especially when it comes to specifying and operating their commercial vehicle fleets. Market-leading initiatives to ensure their fleets are both efficient and safe reflect the broader safety-first focus of an industry that also has a commitment to using resources efficiently and reducing waste. United Utilities is just one of several companies to be recognised for its work to reduce accidents, having been named a business champion by the Government-funded Driving for Better Business campaign after its incident frequency was cut from 55% to 34%, slashing repair costs per incident from £1,136 in 2008 to £780 in 2009. At E.On, different specifications for the van fleets were slashed from 100 to just 24, driven by the knowledge and expertise of the internal team. Outright purchase is favoured funding method for vans According to analysis of the largest fleets in the sector by Sewells Research & Insight, around 40% of utilities companies use contract hire as the main form of funding for their cars, with outright purchase accounting for just 20%. By contrast, just 15% of van fleets in the sector use contract

88,000 miles 3.8 years

Vans

Van brands on top 20 ﬂeets in utilities sector Brand No of ﬂeets Ford 16 Vauxhall 12 Fiat 6 Land Rover 6 Volkswagen 6 Citroën 5 Toyota 5 Mitsubishi 4 Mercedes–Benz 4 Peugeot 4 Renault 4 Iveco 3 Nissan 2 Hyundai 1 Isuzu 1 Mazda 1

British Gas leads the way in electric van adoption: ﬂeetnews.co.uk/ british-gas-ev

hire as their main form of funding, with 50% still using outright purchase. This is a significant shift from 2010, when 62% of fleets in the sector were outright purchased. Companies typically refer to their operational profiles and specialist equipment requirements as the key reason for owning vans outright. Commercial vehicles are constantly in use, have demanding roles and vehicle care may not be the first priority among drivers. As a result, damage levels can be high and fleet managers identify this as another factor in their funding decision. If they used contract hire, their fleet would be exposed to substantial damage recharges. Companies also tend to feel that extensive bespoke work is best carried out in-house, so that specialist racking and other equipment installations meets their exact needs without having to negotiate the management processes of a third-party provider such as a leasing company. Many also tend to like the benefits of deciding exactly when and where to replace vehicles to meet the exact needs of the business so they can quickly respond to changing economic circumstances or customer demands by ordering and defleeting vehicles as and when required without being exposed to early-termination penalties charged by leasing companies. However, external suppliers can play a critical role in helping utility companies to remain mobile if they can prove they are knowledgeable and can meet the specialist operational demands that fleets face. Centrica has shown that working in partnership with a leasing supplier can be an effective way of running a commercial vehicle fleet. The company used the expertise of Hitachi Capital Vehicle Solutions to develop an asset optimisation model that helped drive down fleet operating costs by millions of pounds. The leasing company helped to identify the best vehicle and the optimum leasing period and this was then combined with expert advice and support on effective, proactive vehicle maintenance to ensure vehicles remained in good condition during their working life. This is backed up by a continual review of Hitachi’s performance against agreed targets.

fleetnews.co.uk/fleetvan June 2014 21

IN SIgh T – u T Il I T IE S F l EE T S

case study: severn trent water Chris Wand, fleet manager

Minor incidents are a major focus for Severn Trent Water as these can be the cause of the most disruption to service delivery. The company has around 1,500 vans, along with 500 cars, and has recently invested in reversing sensors and, on bigger vans, reversing cameras with night-vision capability to minimise the bill for rear-end damage. Chris Wand says: “A lot of vans have the rear doors blanked. As a result, a lot of our incidents have been related to reversing. “A camera can pay for itself by avoiding damage and reducing the time vehicles spend off-road being repaired.”

case study: northern powergrid Chris Charlton, road risk manager

A proactive maintenance programme at Northern Powergrid is designed to minimise downtime and maximise the time vehicles spend serving the business. The company, which has more than 2,000 vehicles, including more than 1,100 vans, has introduced on-site inspections and repairs on the road which support the fleet. There is also an extensive workshop-based maintenance programme. The maintenance crews are supported by an army of drivers, who have been briefed about the importance of looking after vehicles and avoiding unnecessary off-road time. Chris Charlton says: “We are very much focused on preventative maintenance and we always

22 June 2014 fleetnews.co.uk/fleetvan

Typically, the bent metal cost from reversing may be £200 to £300, but the hidden cost from missed appointments, management time and replacement vehicle costs needs to be considered. Damage costs can also soar when equipment is fitted to the back of a vehicle, such as steps, which may cost £400 to replace. Severn Trent Water has been accredited by the Freight Transport Association’s Van Excellence programme, which reflects its wide range of best practice schemes. They include vehicle specification changes that avoid potential injuries to drivers. Wand says: “On a small van, we avoid the driver having to climb into the back to reach equipment, as they could bang their head. Instead, the racking is fitted around the side-loading doors, so drivers can reach items without having to climb into the load bay. “For larger vans, we have non-slip surfaces with hand rails and grips to allow three points of contact. It is easy to fall and get an injury.”

This attention to detail has meant that incidents on the fleet where an injury requires any time off work have halved in the past five years. Vehicle safety is supported by extensive driver support programmes, including licence checking and assessment of drivers before they gain access to a vehicle. In addition, drivers are taught hazard perception, while managers are trained to investigate incidents thoroughly and mitigate issues through driver training. The fleet uses tracking to monitor driver behaviour, while 70mph speed limiters are also fitted. Wand adds: “The biggest risk is the driver, not the vehicle. We encourage performance improvements by listing the best drivers in our top 10 tables every month, which gets the drivers involved.” The result is better bottom-line performance for the fleet, with reduced off-road time, lower maintenance costs and improved residual values for the outright purchase fleet.

“A camera can pay for itself by avoiding damage and reducing the time vehicles spend being repaired” Chris Wand, Severn Trent Water

prompt drivers to make sure vehicles are serviced according to their service intervals. “In addition, there is a regular vehicle inspection regime, where drivers walk around the vehicle to look for problems and ensure it is in good condition.” The regular checks include essential safety items such as lights or tyre treads and pressure, along with oil and water levels. Currently the programme is informal, but it is likely to become a formal requirement, backed up by a printed sheet to ensure there is a clear audit trail of checks. Ideally, assessments would be recorded on electronic devices, although this isn’t something planned in the near future. Charlton adds: “Drivers know they have a responsibility, both legal and moral, to ensure their vehicles are safe and roadworthy and the majority recognise that. “If there are some who are not quite as happy doing the checks, then they will be supported with further training.”

When vehicles are in use, problems can be categorised as either driver related or vehicle related. , Vehicle-related problems may be linked to the use of non-standard equipment on their vans, such as converters for managing power supply or towers and rigging. For some of the fleet, there is also extensive off-road work to be carried out, which increases the likelihood of problems occurring. Charlton says: “We monitor our performance on a year-on-year basis and the trend is still very positive and our costs are reducing, with the cost per incident coming down. “We have been running our risk management programme for six years and it is still delivering savings, but each year it does get harder. The further we go, the harder we have to look for the next step. “That is why we are looking at systems such as telematics for the future benefits it might bring, because the technology provides a clear view of how drivers are behaving on the road.”

“Drivers know they have a responsibility, both legal and moral, to ensure their vehicles are roadworthy” Chris Charlton, Northern Powergrid

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Van safety breaks new boundaries For many years, van safety technology trailed that found in cars. However, that is now changing

By Simon Harris ight commercial vehicles have often been left playing catch-up with cars when it comes to safety features. Apart from a few manufacturers, only recently have we seen widespread adoption of electronic stability control (ESC) on vans, and later this year it will become mandatory. Driver’s airbags were an uncommon standard feature a decade ago, while anti-lock braking systems also took a while to penetrate the LCV market. Safety technology always has a cost to the manufacturer providing it in a vehicle and the van market, dominated by outright purchase deals, has been price sensitive as long as vehicles were fit for purpose. But companies running fleets are paying more attention

24 June 2014 fleetnews.co.uk/fleetvan

speed (mph) which FTA is challenging fleets to limit vans to

than ever to duty of care for employees, with driver safety and comfort becoming a higher priority for those spending many hours a day behind the wheel. Driver airbags and ABS are standard on the vast majority of commercial vehicles (no airbags are available on a Land Rover Defender), and so-called passive safety systems – those that help protect occupants in a crash – are now commonplace. the speed of change may now accelerate since international vehicle safety organisation Euro nCAP began testing commercial vehicles. the first LCV Euro nCAP test was for pick-up trucks, and the organisation has since tested passenger and people carrier versions of vans. In most cases the results haven’t been as strong as for cars, but there are signs that

Volkswagen’s Transporter achieved a four-star Euro NCAP safety rating

manufacturers are increasingly engineering vans to reduce the risk of serious injury to occupants in a crash. For example, the Volkswagen transporter t5 achieved a four-star rating in 2013, while the Ford transit Custom scored five stars in 2012, although other vehicles in the class have been given lower scores. Michiel van Ratingen, secretary general of Euro nCAP, said after the first round of van tests: “Being derived from commercial van platforms, these people carriers are updated less regularly and are generally less equipped for safety than normal passenger cars.” Although the vehicles tested were passenger vehicles, the basic structure was the same as for vans and the safety systems were carried over. the tests prompted some of the lower scoring manufacturers to take action, with Fiat adding passenger airbags and speed limiters as standard in more European markets. PSA followed suit for its shared-platform vehicles. But passive safety systems are only part of the story. there is an increasing appetite among manufacturers to offer a greater range of active safety systems (those than can help prevent accidents) than ever before. As take-up of these features in the car market has made them more common, it means they are more affordable and some could be tempting for van buyers. A standard feature on the Mercedes-Benz Sprinter introduced in 2013 is crosswind assist, which can detect when the van is in danger of being blown out of the lane and intervene accordingly. ESC technology becomes more sophisticated the van is also available with a blindspot monitoring system and collision prevention technology as options, features that have become increasingly available as options on cars but never before on vans. ESC technology on vans is also becoming more sophisticated, with sensors detecting the payload of the vehicle and where in the van the mass is situated, adjusting the behaviour of the system when it is activated. Little has been said so far about the next-generation Mercedes-Benz Vito, but its passenger car counterpart, the V-Class, has already been unveiled and is loaded with new safety technology (some already on the Sprinter), some of which we can expect to migrate to the panel van. the new Ford transit, which has just gone on sale, also features safety technology unavailable on its predecessor. this includes adaptive cruise control with forward alert, lane-keeping alert and driver monitoring and a rear-view camera with a trailer hitch assist system. Some fleets even see the safety benefits of automatic

Ford’s Transit Custom was awarded a five-star safety rating by Euro NCAP

“Operators should not use safety technology as an excuse to relax their commitment to workplace safety” Mark Cartwright, Freight Transport Association

For more on van safety, visit: ﬂeetnews.co.uk/ van-safety

transmissions and they are becoming increasingly offered on vans. For drivers spending their time in urban areas, perhaps on short multi-drop routes, automatic transmissions can help reduce fatigue. Benefits of semi-automatic transmissions Some van manufacturers offer semi-automatic transmissions, effectively manual transmissions with electronicallycontrolled automatic shifting capability. the cost of specifying the feature is usually less than for a typical automatic transmission, but is viewed with the same level of desirability on the used van market. they don’t carry the same fuel consumption penalty as some of the automatic transmissions in the past and, as fuel consumption is already higher in urban environments, there is often little to choose between the two. Eric Bristow, business analyst at Hobart UK, says: “We’re looking at fuel consumption on automatic vans. If the cost difference is marginal then we can justify it in the interests of comfort and safety, as the driver spends a lot of time in the vehicle. We can view choosing automatic as a benefit. “We currently have a Citroën Berlingo L2 stop-start automatic working in central London. “the initial reception from the driver was muted. However, six months later he is adamant that he would not change back to a manual. “Because of this, I have offered the same solution to the rest of the team that work in this area and I am now looking to possibly expand this to other ‘high urban’ areas.” the improved range of safety systems available on LCVs is welcomed by organisations representing van operators. Mark Cartwright, head of vans at the Freight transport Association, says: “Anything that increases safety in a hazardous role should be applauded. “operators should not, however, take these options as an excuse to relax their commitment to workplace safety. While many manufacturers will tout their vans as providing a carlike driving experience, they are still potentially the largest and heaviest vehicle which can be driven on a car licence and they can get very un-car like very quickly in an emergency situation. “We’d also take this opportunity to remind manufacturers of our Van Excellence challenge to be the first to restrict top speed to 70mph as standard – a requirement for operators seeking Van Excellence accreditation.” It is unlikely that future van technology will ever be a step ahead of what’s available in cars, but the gap between the two is closing, and vans of the future will be available with many of the same safety systems available on cars if customers are prepared to pay.

fleetnews.co.uk/fleetvan June 2014 25

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Managing an effective van ďŹ&#x201A;eet A B E S T PR AC T I C E G U I D E

T hird edition

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F O L L O W T H E L E A D E R : R I S k M A N AG E M E N T

The business case for incident reduction Cutting the number of incidents fulfils a fleet’s duty of care and can also save fuel, reduce emissions, and create time efficiencies By John Catling, CEO of FMG

he fleet industry has seen rapid change over the past 10 years. While change is positive, it can also be confusing, expensive, uncertain and, by definition, untested. Service providers such as FMG have a duty to lead and communicate change, whether that be in technology, legislation or simply attitude. In that way, businesses can benefit from the many positives on offer from incident reduction. Not only does reducing the number of incidents you have fulfil a duty of care to your employees, but the tactical means to this end can also save fuel, reduce emissions, create time efficiencies, improve staff morale and take a totally unnecessary – and still too often ignored – cost, out of your business. With reasons like this, even the staunchest traditionalist would be hard pressed to hold back from exploring their options. What many don’t realise is that incident reduction is about doing several things better. Some of them may not seem to be much in isolation, but as a part of a bespoke incident reduction programme, a complete solution outweighs the individual sum of its parts. To borrow a much-vaunted management phrase, it can be a culmination of marginal gains that yields impressive results. Added to several ‘big wins’, businesses can develop actions that have a tangible effect on their bottom line. Over the past two decades, we’ve seen many of the changes that van fleets have faced and, undoubtedly, business fleets are in a much better shape now than they have been at any other

time in that period. Of course, there are challenges – and there always will be new ones that crop up – but we’re currently in a good place to deal with these challenges when they do occur or preferably even head them off at the pass, before they become a problem. Working with an experienced provider is key to achieving effective incident reduction. A comprehensive risk solution can bring many benefits, and the best service providers work to embed this within a business. A bespoke suite of services can be utilised to improve performance and deliver cost savings. Vans are unique The first rule of effective incident reduction for a van fleet is to remember the unique challenges that they face. It sounds so simple, but it’s surprising how many businesses are still treating vans with the same rules, procedures and policies as their cars and other vehicles. Vans, as we all know, face their own specific issues, and this needs to be front-of-mind when designing an incident reduction programme. That’s not to say that some of the tactical solutions or experience can’t be shared with a car fleet, but efficiency is driven by tailoring solutions to the nuances of an individual fleet. The first barrier to overcome is recognising different vehicle types. Van usage can range from light urban driving to intensive activity on tough terrain and, therefore, more so than any other vehicle type, no two fleets can be treated the same. This is where FMG’s approach of treating individual challenges with bespoke solutions comes into its own. The one-size-fits-all approach doesn’t work for any vehicle class, let alone one with the complexity and diversity of van fleets. Even between different van fleets, the range of challenges encountered means that experiences and solutions can vary. The reputation of ‘white van man’ that many companies have had problems dispelling, the relative frequency of bodywork damage in this vehicle type, and the dependent nature of commercial vehicles to a company’s operation are all challenges that need to be addressed. Often, a van can be critical to a business, making it even more necessary that the right tactics are taken to avoid incidents and prevent, or at least reduce, downtime. Even for businesses that are less dependent on their vehicles, there is still a compelling case to reduce incidents. Vans are under intense scrutiny and, by not acknowledging risks, companies could be paying a high price. Embed a change in culture Cultural change is perhaps the biggest challenge that business

28 June 2014 fleetnews.co.uk/fleetvan

F O L L O W T H E L E A D E R : R I S k M A N AG E M E N T The technology revolution It can seem that vans are more like computers than mechanical objects now. The first action many garages take is to plug the vehicle into a laptop to run diagnostic checks. It is a fact of business that we are being given more data than ever before and it’s vital that businesses can find a way to effectively and securely manage this data, while sifting through the relevant parameters and actioning any insights they offer. Whether this be telemetry technology, claims capture or preventative analysis of a fleet, technology is helping us to better understand and manage our vehicle use, and therefore reduce incidents. Telemetry is becoming more trusted amongst fleet drivers. But the act of having a ‘black box’ in your vehicles isn’t enough. Devices vary widely in the information they’re able to capture, but data is nothing without the ability to analyse it effectively. Some have voiced concern over the extra workload involved in sifting through reams of data. Others are worried about holding on to data, which may belong to the driver, the business or a third party. These concerns can be overcome through a mix of insight and technology. The best examples will actually reduce workload through reporting only on the data sets that matter to that fleet. Data shouldn’t be regarded as a dirty word. Help is at hand, whether that be through fleet service providers or bespoke software and algorithms – data should be embraced by business, as it is a route to better driving. Many programmes can be tailored to identify the outputs you require, by sifting through the vital information needed, in order to take action. By working to truly understand a business and its drivers, the focus should be on finding a bespoke solution to improve performance. The nuts and bolts of incident reduction Incident reduction is a handy catch-all term which sums up what every fleet should be aspiring to. By using technology, we are becoming better capable of reducing the impact that incidents have on the bottom line of a business.

30 June 2014 fleetnews.co.uk/fleetvan

RoSPA statistics have shown that installing telemetry devices can reduce collisions by 20%, while some examples can boast much higher incident reduction rates of 25-80% in some instances. In addition, the Energy Saving Trust estimates that by using smarter driving techniques, such as those that can be encouraged by telemetry, fleets can reduce company fuel usage by 15%. Through our experience, the improved driving brought about through use of telemetry systems can promote fuel savings of around a fifth. Meanwhile, overall incident rates can be sliced in half. But it is only by aligning telemetry to a well-defined vehicle policy that the most impressive results can be achieved. But there are also several tactics that are not so heavily reliant on technology, which can have a positive impact in reducing incidents. Simple things like checking driver insurance details, their licenses and that drivers are taking the necessary journey breaks, will all make a difference in overall fleet performance. In truth, it’s about getting the right mix of solutions, but in some senses, getting the small things right, together, will help to deliver big results. Of course, there may be challenges on the way towards a safer, more efficient and cost-effective fleet. By working collaboratively across HR, the board, financial directors and employee representatives, you can overcome the barriers.

When incidents do happen, the role of the incident management provider should be to offer the expertise to efficiently manage a claim to a swift resolution, from first notification of loss, through to return or replacement of the vehicle. How we see it The business case for de-risking a fleet is obvious. However, where the challenge truly lies is to communicate this to your drivers and to bring them with us on a journey to a safer, more efficient fleet. There needs to be checks in place for dangerous, or in some cases illegal, driving in order for a business to fulfil its duty of care. The majority of drivers will benefit from, and be open to adopting, the safer practices encouraged by reducing risk. Business driving is changing and drivers are facing more demands on their time, patience and skill than ever before. The increasing professionalisation of drivers has to be a good thing. It is becoming a benchmark for good businesses to support their drivers in adopting a smarter approach.

It’s all very well a company saying that they want to change driver behaviour for altruistic reasons. However, you need to delve deeper into the intricacies of a fleet in order to realise the main reason you should be concerned about reducing incidents. The truth is it affects your business on multiple levels, including image, financial and human costs. The message is – incidents cost business and, in most cases, they are costs they simply can’t afford. Reducing incident rates is in everyone’s interest, and can result in more effective vehicle use, reduced downtime, favourable insurance premiums, higher staff morale and an improved image. While achieving ‘zero incidents’ in any fleet is still a tall order, there is an increasing focus from companies to make this an aspiration. There is a massive human cost to road incidents, but businesses are increasingly looking at the commercial impact as well, and shouldn’t be ashamed of this. After all, through achieving a reduction in incidents, a business can feel many positive effects.

ÒReducing incidents is in everyoneÕs interest, and can result in more effective vehicle use, reduced downtime, higher morale and an improved imageÓ

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F O L L O W T H E L E A D E R : R I S k M A N AG E M E N T

A N E V O LV I N G I N D U S T R Y D E M A N D S I N N O VA T I O N The fleet industry has evolved over recent years and we’ve built FMG on the premise of optimising fleet performance by taking a proactive approach to prevent incidents. Prevention rather than cure makes business sense, so that we can head off issues before they impact a company and its people. As many businesses have experienced, incidents can incur much higher costs than the insured amount. And that’s why we start every customer engagement with a question: how can we prevent your incidents? Van fleets are also in a period of change, as Uk businesses change. Evolving business priorities have helped to increase the professionalisation of van fleet drivers. The FTA is currently looking into options for a ‘driver passport’ whereby drivers would earn formal and transferable qualifications. The proposal is that this would include an agreed level of driver training; an element we know can help reduce incidents. Our own experience shows stark figures whereby the youngest drivers are much more likely to have ‘at-fault’ incidents than their older colleagues. In fleets where training is taking place, the idea would be to redress this imbalance by improving driver competence across the board. Vans, of course, have their own unique challenges, many of which are specific to a particular industry. We’ve worked with van fleets ranging from construction companies to couriers and from service providers to the emergency services. We count some of the Uk’s biggest and most intensively driven van fleets as customers, including home delivery vehicles for one of Britain’s big four supermarkets. We know the challenges facing

different fleet types and we know that sometimes, the contents and fittings of the vehicle can outstrip the cost of the vehicle itself. We recognise that your business has a commitment to your customers and that a missed delivery slot, a damaged or unbranded vehicle, or an incident involving your vehicle, will change the way that your customers see you. It may even cost you their trust. Our aim is to help you fulfil your customer commitments. Technology is one crucial element of the FMG offering, but it’s vital that the right strategy, systems and processes are in place in order to realise true benefit. FMG achieves this through the experience of our people, working to approved business accreditations and using data collected about millions of incidents over the years. Data can be used to learn lessons from the past, help companies identify challenges and build towards a more efficient business. Thinking ahead, and staying ahead of the game, is vital to FMG’s commitment to our customers and partners. Through our extensive range of risk reduction services, our customers have seen significant improvements in performance and cost. One van fleet we work with managed to reduce incidents by 75% during the first year of our partnership. Another, a construction company working in difficult environments, saw incident rates cut in half, with more than one-third of employees now recording driver scores of 99%. These kind of results have lead to us being recognised by the industry and partners alike, for our service, innovation and ingenuity. This shows why businesses simply can’t afford to ignore the benefits on offer through a range of incident reduction services.

“Prevention rather than cure makes business sense, so that we can head off issues before they impact a company”

To ﬁnd out more, visit www.fmg.co.uk, email info@fmg.co.uk or telephone 0844 243 8888 32 June 2014 fleetnews.co.uk/fleetvan

Fleet incidents. Would you rather deal with them or prevent them? Thought so.

Our focus is to reduce incidents rather than simply manage them when they occur. As leaders in incident management and prevention, we’re experts at driving ﬂeet efficiencies to increase your commercial advantage and employee safety. We tailor solutions to meet individual ﬂeet needs, no matter what vehicle type or size.

OUR SERVICES: • Incident Management • Risk Management • Roadside Repair & Recovery

• Telemetry • Claims Management & Legal Service • Rental

fmg.co.uk | Tel: 0844 243 8888

F O L L OW T H E L E A D E R : R E M A R k E T I n G

End-of-contract: make sure you’re properly prepared Five best practice tips to ensure you don’t face costly end-of-contract charges when it’s time to hand back your light commercial vehicles By Gary Banister, Senior Manager – Commercial Vehicles, Lex Autolease

hether you are a ﬂeet manager who would like to understand more about how to manage your vans towards their end of life, or a driver who would like to prepare for the return of their van, this article will provide you with some best practice advice which should hopefully go some way to help mitigate any end-of-contract charges. Leasing companies do not expect a vehicle to be returned in the same condition that it was delivered in at the beginning of its contract – fair wear and tear occurs no matter how carefully a vehicle is looked after, and happens when normal usage causes deterioration to a vehicle. When the van is returned to your leasing company, its condition will be assessed, taking into account fair wear and tear using industry standards for guidance. n The British Vehicle Rental and Leasing Association (BVRLA) Fair

Wear and Tear Guide for light commercial vehicles outlines these industry-wide accepted standards, which are defined using both images and text for every aspect of the vehicle’s condition in the following areas: n General appearance, documentation, keys n Paintwork, vehicle body, bumpers and trim n Windows and glass n Tyres and wheels n Mechanical condition n Vehicle exterior n Equipment and controls Although the fleet van end-of-contract process may be perceived as complex, our best practice guide helps you avoid any pitfalls. Follow our five top tips for a smooth, seamless process that will leave you smiling. 1. Create a clear and robust driver guide A good ‘wear and tear’ guide should do more than just lay out the standard list of what is acceptable and what’s not for drivers. It should also outline advice and recommendations to help the driver maintain good habits and ensure their vehicle stays in good condition throughout its life. Driver health checks and a strict code of conduct are central to this. As best practice, it would also be worth linking company policy for vehicle usage to match any end-of-contract arrangements. For example, all drivers should be fully aware of any agreed contract mileages. They can then initiate the end-of-contract procedure themselves when their vehicle starts getting near the agreed mileage limit, and ensure that any issues are dealt with prior to return. To make doubly sure this happens, you could implement a mileage policy throughout the vehicle’s entire life. That way drivers will always have to stay within a certain limit and therefore will be much more likely to ‘hit target’ at the end of their contract. As we all know, people’s working lives are busy. So, it’s important to keep reminding drivers of their obligations on a regular basis, as well as keeping them updated on any news or new knowledge. In addition to company policies, make sure that a copy of the BVRLA guide is placed in every van from new. 2. Encourage timely reporting of all incidents Transparency is key to a trouble-free end-of-contract process. Having visible reporting and open dialogue promotes trust between

34 June 2014 fleetnews.co.uk/fleetvan

drivers and managers, and enables any incidents to be logged and resolved promptly and successfully. By getting buy-in from all your drivers early on and reassuring them that the policies are there to protect them, there’s a far greater chance of things running smoothly.

essential here. Consider agreeing some form of independent inspection on both sides prior to the end date, which will maintain professional integrity for all concerned and help promote transparency across your organisation. 4. Inspect vehicles prior to collection The use of technology in fleet management continues to accelerate. So it makes sense to embrace any technology that helps reduce end-ofcontract charges or encourages a process – not just at final inspection, but throughout vehicle life. Telematics, cameras, videos and driver intervention technology can all help to reduce risk of damage and promote transparency between drivers and managers. We recommend that you carry out an appraisal of the van before it is due to be returned. This will identify any damage that does not constitute fair wear and tear, and requires repair. Familiarise yourself with the vehicle return standards that your leasing company is expecting as soon as you begin the contract. Then, make sure damage is repaired throughout its life as it happens – don’t delay it or wait until the end of the contract to get it all fixed.

“It’s worth remembering that driver incentive schemes can have both positive and negative effects depending on their content ”

3. Carry out regular training and vehicle inspections Continuous driver education and training is vital throughout any vehicle lease. A central element of this is about ensuring they understand what constitutes acceptable damage conditions, and ﬁrmly reinforcing this knowledge throughout the contract. In this way, if a driver sustains any damage to their vehicle then it can be resolved when it happens, which avoids any unexpected surprises later on. It’s worth remembering that driver incentive schemes can have both positive and negative effects depending on their content. So it’s important to put yours together carefully. Focus drivers on the standards they need to achieve to minimise any charges, liabilities and hassle. Working with all stakeholders and getting driver buy-in is

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F O L L OW T H E L E A D E R : R E M A R k E T I n G

Carry out any repairs with trusted and reliable suppliers, and check that all work has been completed to an acceptable standard. Replace any worn-out car mats to prevent damage to carpets. Return spare keys when vehicles are collected. Conduct servicing within manufacturer guidelines and stamp relevant service books. Any vehicle modiﬁcations must be authorised by your leasing company, and if one of your vehicles looks like it’s going over it’s mileage then you’ll need to renegotiate your leasing contract before you reach end of life to avoid potential extra costs. Finally, on the date when your vehicle is collected, make sure the driver is available to sign the vehicle collection report.

The key is most likely sitting in a drawer at the driver’s home and they have forgotten about it. It’s easily done, but can be prevented with better communication and early education.

5. Remove all personal items Following collection, your vehicle will be inspected by BCA to assess damage and missing items. It may seem obvious to say ‘don’t leave anything in the car’ or ‘return everything that isn’t yours’ but it’s amazing how many times this is neglected. In the panel on the opposite page is a list of the top 10 items found to be lost or damaged following inspection by the BCA in 2013. Top of the list is spare keys. Fleet companies charge you if they are not safely returned, but the chances are they’re probably not even lost.

Conclusion Implementing the changes outlined above will ensure that drivers are constantly being supported in reporting any issues. Communication and driver education are key to any successful cost reduction scheme, and remain the best strategies to mitigate end-of-contract charges. By maintaining regular dialogues with your leasing company and your drivers, damage and potential excess mileage can be ﬂagged and provide the opportunity to make repairs or amend contracts.

36 June 2014 fleetnews.co.uk/fleetvan

C A S E S T u D y: InnSERVE Innserve’s vans are all leased, making this the company’s biggest single expense after labour. Innserve needs to know that its vehicle fleet is being looked after by its drivers, because if a van has not been kept in good order, it will be charged for damage or faults upon its return. To ensure any potential costs are kept to a minimum, Innserve has put specific measures in place to manage this process. All its vehicles are inspected to set criteria every six months by the driver’s line manager. A comprehensive checklist is completed and the current mileage is recorded along with the date and mileage of the last service. This ensures that there are no surprises at the end of the contract. Drivers must show their spare key, handbook and service book, and their vehicles are checked thoroughly – including tyres, oil and water levels, windscreen and wing mirrors. Any damage is recorded on a vehicle diagram, and livery is also checked to ensure that it remains clean and well-maintained. Innserve puts together this checklist, which is updated in line with new legislation. For example, since the smoking ban, every vehicle’s cigarette lighter and ashtray is checked to make sure that the driver hasn’t been smoking in the van. Any accidents are reported immediately so that damage can be noted and repairs carried out promptly. This helps keep the vehicle in good condition throughout its lease, right up to the point where it’s handed back. Innserve’s policy and procedure document is given to all drivers, and published on its intranet. If a driver does not adhere to it, they may be subject to a disciplinary hearing – and even dismissal. Regular communication with drivers is key to this. Innserve regularly updates all parties on the latest fleet information and trends. It also carries out regular driver assessments and on-road training with highrisk drivers. Through these policies and procedures, Innserve has created a culture of care, attention and pride with regard to fleet vehicle management.

MISSING/DAMAGED ITEMS Component

Condition

KEYS SERVICE BOOK SIDE PANEL REAR N/S SIDE PANEL REAR O/S SIDE DOOR/SLIDING N/S DOOR FRONT O/S SERVICE BOOK BACK DOOR OS BACK DOOR NS DOOR FRONT N/S

SINGLE KEY MISSING DENTED DENTED DENTED DENTED NOT STAMPED DENTED DENTED DENTED

39% 24% 20% 20% 17% 16% 15% 15% 14% 14%

fleetnews.co.uk/fleetvan June 2014 37

F O L L OW T H E L E A D E R : R E m A R k E T i n g

C O m pA n Y p R O F i L E Lex Autolease is the Uk’s leading vehicle management and funding specialist, supplying businesses with fleets of vehicles ranging from just a few to a few thousand. Companies all over the Uk trust us to take care of their commercial vehicles. We have in excess of 70,000 LCVs under management, making us the Uk’s largest LCV fleet company. But in a competitive market, saying we’re biggest isn’t enough. it’s through delivering world-class customer service that gives us our competitive edge. We’ve won more than 20 independent awards in the past 10 years, with the latest being for fantastic customer service; namely the Fn50 individual Customer Service Award 2013 and Fn50 Rising Star of the Year 2013. We are extremely proud of the recognition that we receive for our contribution in this industry, and we work hard to deliver over and above expectations to ensure that we continually improve in all areas of our business. At Lex Autolease, our approach is to develop a true partnership with businesses and public sector organisations, working side by side with customers to help them face the challenges of running a fleet. The most important consideration in providing fleet services is to ensure they are appropriate for the customers’ needs, both today and in the future. We want to ensure that we are a ‘trusted advisor’ for our customers, and they are given the right advice on choosing the right mix of products that are tax and regulatory compliant. We have a team of dedicated engineers and commercial

vehicle experts to advise and support you. Our consultative approach will make sure that you don’t just get a vehicle that is fit for purpose, but one that is optimised for your business needs, and our team of experienced fleet engineers is located throughout the Uk to offer technical support as and when required. We have a scale of fleet service packages ranging from fully outsourced services down to SmE fleets who may only take one or two services: n Fleet management offers maintenance, management and more, including roadside assistance, replacement tyre services, replacement glass services, vehicle purchase and disposal. n Accident Services – our specialist team manage all claims on a customer’s behalf, controlling customer costs, reducing the time customer vehicles are off the road and providing you with essential data to help you reduce accidents. n Car and Van Daily Rental – in partnership with our suppliers from over 1000 locations in the Uk including terminal desks at all Uk airports. We can also offer overseas rentals from over 4,000 locations worldwide. Typically, standard vehicles can be delivered to any Uk business or home address within 2 working hours. n Strategic Fleet Consultancy (SFC) – through our Strategic Fleet Consultancy, we look to create partnerships by understanding the Commercial Vehicle needs of our customers so that we can grow improvements together through focusing on reducing costs, streamlining processes, driving efficiencies, achieving sustainable results and building a strategic partnership.

“Our approach is to develop a true partnership with businesses and public sector organisations”

For further information please contact Gary Banister on 07833 496561 or email gary.banister@lexautolease.co.uk 38 June 2014 fleetnews.co.uk/fleetvan

STRENGTH IN NUMBERS 70,000 reasons why you should trust your LCV ﬂeet to us

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F O L L O W T H E L E A D E R : F L E E T m A n Ag E m E n T

Strike the right balance for your fleet Optimisting your commercial vehicle fleet is all about finding the correct balance between cost, risk and efficiency

42 June 2014 fleetnews.co.uk/fleetvan

By Mark Lovett Head of Commercial Vehicles, LeasePlan UK anaging any size of commercial vehicle fleet brings with it a unique set of challenges. And, while every situation is unique, from talking to our customers we know that there are some critical questions that come up time and again: n Is my commercial vehicle fleet costing more than it really should? n Are my vehicles still suited to the business I run today? n Am I doing everything I can to increase efficiency? n Have I minimised the risks inherent in running my fleet? The trouble is, while the questions may be common to most businesses, the answers can frequently be quite different. As a result, there’s no simple panacea which can be applied in every case. It takes time, expertise and ongoing measurement to put a solution in place which is fully aligned with your company’s objectives. First, it needs to be recognised that commercial vehicles represent a significant investment for any business and so understanding the true wholelife cost is absolutely critical. To start with, there are obvious headline costs such as the capital outlay or monthly rental for the vehicle itself. For many companies, it will make sense to finance this through a contract hire arrangement but, for this to work effectively, it’s essential to get the right residual value to base it on. You also need to consider any end of contract or early termination charges which may be incurred. Then there’s the cost of fuel and insurance to consider, which again requires you to think carefully about what the future might bring. For some years the government has targeted CO2 emission levels for both cars and commercial vehicles. So, will the vehicle you’re about to take on for the next four to seven years (on average) fall foul of one of these thresholds further down the line?

“Commercial vehicles represent a signiﬁcant investment, so understanding the true wholelife cost is critical”

Even once you have dealt with issues such as corporation tax or disallowable VAT, there could be an even bigger cost to think about. That’s because wherever commercial vehicles are operated, they tend to be critical to the operation of the business. As a result, any downtime experienced can have a significant impact. So how do you go about calculating these costs and what sort of things should be included? If your regular vehicle is off the road for any length of time, there are going to be some unavoidable headline costs, such as £50-£100 in rental fees for each day that a replacement is needed, as well as additional insurance and re-fuelling. Then there’s employee downtime to consider, which on average works out at £200 per person per day. It doesn’t stop there. There’s lost income and performance penalties, extra administration and the wasted time transferring tools and equipment between vehicles, to name just some of the less visible expenses which all go into the overall cost of running your fleet. When you look at it this way, saving £5 per month on rental pales into insignificance if the vehicle spends hours on the ramp waiting for a part to be delivered. Based on our research, a single day’s downtime costs, on average, £700. So, as you can imagine, these costs can very quickly escalate and we can end up talking about some pretty big numbers. Only once you have put all this together, is it possible to calculate the true cost of running your fleet. Unfortunately, while this feels like a major achievement, just calculating the cost is only part of the story.

The figures need to be put into context by working out what the optimum level for your business really is. Having worked this out, you can start thinking about which factors are having the biggest impact on your current expenditure and create a plan to align your target and actual cost profiles. This is the point where you’re likely to need some external help. By looking outside your own fleet and understanding what best practice looks like, you’ll be in a better position to see where measurable savings can be made. This brings us to the second of our four questions, the suitability of current vehicles for the way your business operates today. Commercial vehicles tend to be financed and operated over a fairly long period, and as time moves on it becomes more and more likely that what was once the perfect vehicle for the job is now out of step with current requirements. Changes in business can happen gradually and with quick fixes and adjustments you might not even notice there’s anything wrong. It could be that the percentage of a certain type of work may have increased to the point where a “work-round”, which was perfectly acceptable at one stage, is now having a real impact on efficiency, profitability and safety. Or it could be that the current business has remained reasonably static but the types of tenders you are responding to have begun to change. Addressing the issue is perhaps simpler than you might think. First, just imagine for the moment that you had no commercial vehicles at all but still had the same business to run. Would you just blindly order a set of vehicles you had used in the past or would

fleetnews.co.uk/fleetvan June 2014 43

F O L L O W T H E L E A D E R : F L E E T m A n Ag E m E n T you carefully analyse the tasks each vehicle is needed for and create a specification based upon these requirements? One would hope the latter, but it’s also a good idea to ask for a demonstrator vehicle or perhaps hire one for a week and see whether what’s on paper actually works for you in practice. And don’t forget to check the warranty options carefully. Assumptions, such as expecting a like-for-like replacement to come as standard, could leave you high and dry at the worst possible moment. Finally, take a step back and think about not just what this vehicle is doing but how this fits in with your overall requirements. It could be that due to changes in the business, a reallocation of workload among existing vehicles could alter future requirements and result in an entirely different specification altogether. The whole process can take a fair amount of time and requires a certain degree of lateral thinking, so it’s not practical to start from scratch every time. However, reviewing your current requirements and the overall profile of your fleet on a regular basis can result in a leaner, safer and more efficient fleet. Before leaving this subject, it’s worth taking some expert advice on how legislation may have changed since you last ordered.

Towing limits, licence requirements, tachographs and emissions are just some of things which could affect your ability to both satisfy customer requirements and maintain operational efficiency. Our third question is quite a tough one. Am I doing everything I can to increase efficiency? Understandably, there are always some tweaks that could be made to create a more efficient fleet, but perhaps a better question is: Am I doing everything I should to improve efficiency? This is a subtle but very important distinction. While there may be a natural desire to increase efficiency and as a result reduce costs, how can you do this and still keep risks at a level you’re comfortable with? After all, every step you take in one area is likely to have an impact somewhere else. So let’s look at some key areas where efficiencies can be made without making compromises elsewhere. The most obvious one relates to one of the biggest areas of cost: fuel. no one needs reminding of the high cost of fuel, as it is probably one of the largest areas of fleet-related expenditure. And, while determining the actual expense can only really be calculated retrospectively, with the right systems in place you can at least ensure that jobs are scheduled and journeys planned in order to minimise the total miles driven. This is an important step which, along with choosing fuel efficient vehicles, will certainly help to keep costs under control. But fuel consumption depends on more than just miles on the clock. The driver, and more accurately their driving style, has a substantial influence on the overall mPg achieved. The difficulty here is getting accurate data and a sensible baseline to work from. While the manufacturer will undoubtedly quote optimum consumption levels in their standard vehicle documentation, actual performance is heavily influenced by road conditions, vehicle maintenance and payload. So to understand what is really

“Reviewing your current requirements on a regular basis can result in a leaner, safer and more efﬁcient ﬂeet”

ÒPoor risk management affects your relationship with your customers, your employees and your wider public perceptionÓ

going on, you need access to reliable data which shows you where, when and how your vehicles are being driven. Only then can you make decisions on where further training and, where necessary, intervention is required in order to optimise fuel consumption. Achieving this is no real secret, you just need to make sure that you have the right telematics box in each vehicle and, most importantly, the time, resource and expertise to analyse the data and take the appropriate action. Of course, the right telematics solution can deliver benefits that go far beyond fuel consumption. Used correctly, customer service levels can be improved, insurance premiums lowered, timesheets verified and duty of care compliance can all result from having the right little box and a bit of expert analysis and interpretation. The last question for consideration is whether or not you have minimised the risks which are inherent in running any size of commercial vehicle fleet. As with the other questions we have considered, there is no single answer for every circumstance and whether or not risks have been minimised is perhaps a rather subjective argument. To start with, it’s important to be clear about what we mean by risk. Although the answer might seem obvious, many people confuse ‘hazard’ and ‘risk’. Put simply, a hazard is something which could go wrong, the risk is the likelihood of it actually happening. Just because something could theoretically happen doesn’t mean that it is ever likely to. Or to put it another way, there is the possibility that every one of your vehicles breaks down on the same day, but in reality this is so unlikely that you really don’t need to put a contingency plan in place to cover it. To properly manage risk you first need a clear understanding of

current legislation and what is expected of you as far as duty of care is concerned. Ignorance of the law is no excuse and while you can outsource most areas of fleet management, you can’t outsource responsibility. Part of this responsibility is to ensure that your drivers are fully aware of all relevant laws and guidelines. If they don’t know the law, they won’t know when they are breaking it, so it’s down to you to keep them up to date with everything they need to know. The telematics boxes we discussed earlier can play an important role here because they can provide the information you need to show whether the policies and procedures you lay down are actually being applied in practice. However, risk management doesn’t just mean knowing what is and isn’t legal. It’s about understanding cause and effect, i.e. what could reasonably be considered as a possible event (the cause) and what this would mean for your business (the effect). Poor risk management doesn’t just result in punitive fines or financial penalties for missing SLAs. It affects your relationship with your customers, your employees and your wider public reputation. We started out by posing four of the most common questions asked by commercial vehicle operators. Hopefully the answers have given you food for thought but, remember, optimising your commercial vehicle fleet is all about finding the right balance between cost, risk and efficiency. In practice, this means understanding in advance what the impact of key decisions will be and measuring this against what you are trying to achieve. Then, and only then, can you calibrate your fleet with your company’s goals.

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C O m PA n Y P R O F I L E As anyone who operates commercial vehicles knows, simply adjusting products and services originally designed for the company car market just doesn’t work. That’s why LeasePlan has invested time, resource and more than 50 years of experience in building up a team of specialists who really understand the challenges you face each and every day. Being part of the largest fleet management group in the world helps a lot, because it provides a wealth of real-world examples and a better understanding of what best practice really looks like. It means we have been able to analyse and interpret data from across 37,000 commercial vehicles and look at what works, what doesn’t and what just needs a little bit of calibration. In real terms, this means listening. Listening to the problems you face, the goals you’d like to reach and how you’d like to get there. Only then can our team of experts analyse every aspect of your fleet operations and create a plan based on your unique set of circumstances. We then work with you to put everything in place, using some very clever systems to measure the impact of any changes made. And, because we’re perfectionists, we are always on the lookout for new opportunities to increase profitability and efficiency whilst carefully managing the risks inherent in running a fleet of commercial vehicles. Of course, expertise and plans are one thing, and we can all talk about working together to make things better, but what really gets us noticed are the results we’ve achieved for our customers.

Businesses just like you, who run everything from builder’s trucks to municipal vehicles, tractors, gritters, cherry pickers and lots more besides. For example, a customer running a fleet of 300 vehicles asked us to look at what they could do better. So, we looked at each vehicle individually, we analysed how it was being used and we reviewed the negotiated manufacturer terms. In the final analysis, we were able to deliver savings of over £250,000. In fairness, 300 vehicles is a fairly large fleet. So let’s look at the other end of the scale and the results achieved by one of our most innovative offerings, UPtime. As the name suggest, UPtime is all about keeping your business moving by combining the knowledge derived from advanced telematics with proactive fleet management. The results can be significant, with one customer, who runs just 25 vehicles, saving over £82,000 in just 24 months. Figures like this may get your attention, but we also recognise that no two businesses are the same. You might be more interested in the fact that our open calculation process means we can return a share of the profits when costs come in below the agreed budgets. You might want to know more about our cap on end-ofcontract charges or our ability to offer formal contract extensions of up to 12 months. Whatever challenges you face, our expert team can help you find the right balance between cost, risk and operational efficiency.

“Expertise and plans are one thing, but what really gets us noticed are the results we’ve achieved for our customers”

To ﬁnd out more, just get in touch on 0844 371 8032 or download our commercial vehicle ebook at www.easiertoleaseplan.co.uk/ebooks/cv 46 June 2014 fleetnews.co.uk/fleetvan

What does it take to build a world-class commercial vehicle fleet? We all know that running a fleet of commercial vehicles brings with it a unique set of challenges. And, just like the vehicles themselves, everything is just that little bit....bigger. Bigger costs, bigger risks, bigger problems. That’s why we put together a handy little guide to some of the biggest issues being faced, and of course, how to solve them. To download our ebook on how to build a leaner, more efficient commercial vehicle fleet, visit: www.easiertoleaseplan.co.uk/ebooks/cv

F O L L OW T H E L E A D E R : R E N TA L

Make the right choice to increase efﬁciency Selecting the right rental provider can unlock signiﬁcant savings, as well as help to meet duty-of-care responsibilities By Stuart Russell, Specialist Vehicle Director, Europcar

anaging a fleet of vans is a complex business, with numerous variables to be considered. The changing economic landscape of the past few years has made it much harder to predict and manage needs and costs accordingly. As a result, many businesses have been forced to look for more flexible solutions, such as downsizing their fixed fleets and integrating van rental into their mobility strategy. To make this approach work, it’s vital that fleet managers choose a rental provider that can meet all their business needs – from a strong network that provides good national coverage to a comprehensive fleet of young vehicles that offers good choice for differing requirements. And it shouldn’t just be about the fleet and network – the rental provider that can deliver real insight into fleet usage will be the one that will truly help a business manage its mobility as costeffectively as possible.

usage will also empower a fleet manager to make decisions. Looking at how rental is used allows issues to be identified and addressed. There are costs that all fleet managers know can spiral out of control if not closely monitored. These are the classics; fuel, incorrect vehicles being used for a job, short-term rentals being used for long periods, damage costs and more vehicles being used than necessary. A good rental provider will be proactive and identify where there is overspend in these areas for their clients. And with an account manager who is seen by the customer as an extension of their team and an integral part of their business they should be able to come to the table with solutions to reduce spending. If they don’t, then they are just acting as a supplier and a fleet manager needs to challenge this approach because probably it doesn’t add any value to their business. Looking at management information and analysing rental usage together, you should be able to target the costs that are avoidable. This can positively change fleet behaviour to reduce cost, while at the same time improve efficiency and satisfaction. Having an extensive and bespoke account management system in place, combined with high-quality information, will allow a business to make significant savings within a short amount of time.

“Having an extensive Fleet Management system in place will allow a business to make signiﬁcant savings within a short amount of time”

Costly matters Since the bubble burst in 2008, cost has been the main area of discussion. But that’s for good reason. As we saw with so many companies, the bottom line became key to survival, so even though the UK economy appears to have turned a corner, keeping the purse strings relatively tight is a good thing for business in general. Daily rental is one of the most efficient and customer-focused services in the UK business marketplace, with all the major providers employing operations and processes to deliver excellent customer services. And, the sector is evolving in response to changes in business needs. By working in much more collaborative partnerships with customers, rental companies can continue to ensure high levels of service are maintained cost-effectively. There is always a pressure on fleets to reduce expenditure so clearly it makes good business sense to review operational costs on an ongoing basis. But how does a supplier go far enough in reviewing trends and patterns in rental usage for areas in which savings can be made? And do they act on these findings? Fleet management Good account management is the secret to keeping rental costs down. A rental provider with a comprehensive way of reviewing

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The network Size and scale are all important when considering a rental provider. A large network is able to fulfil ‘spot hire’ or unforeseen ‘distress bookings’ – which smaller networks can struggle to do – while still being able to service bulk orders through running a controllable level of fleet utilisation. This can mean the difference between sinking or swimming in a crunch situation, where a fleet manager gets an unexpected need for vehicles at short notice. Unfortunately, many realise too late that their supplier is unable to fulfil their needs, which means they can’t service their customers. It’s vital, therefore, that network coverage is examined closely as part of the selection process for a van rental provider. As any fleet manager knows, there are certain areas of the country that are busier than others, and key business hubs should be covered. A business might assume that this would be standard but it is not, so ask the simple question – where are you?

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F O L L OW T H E L E A D E R : R E N TA L Size isn’t everything Size is one thing, but if a provider has a lot of vehicles with an inefficient system to manage them, it is worthless. Fleet managers should ensure they research the capabilities of a provider, and ask questions – what tools are being used to ensure your fleet of rental vehicles is being used optimally and are they where they should be? Is there a delivery and collection service on offer? What about your key locations. Are they able to ensure they service these to a higher level? Anticipation Rental reports that contain meaningful information is what all van hire companies should be providing. If the rental company has the right information, it can look at a fleet and forecast where the vehicles need to be before a fleet manager even requests them. And what more can you ask for than your rental company to know what you are thinking? Legislation It’s one of the inevitable facts of business that legislation is going to change. Keeping up with this, however, can prove difficult. With the amount of information fleet managers need to sift through on a daily basis, it’s difficult to know what to pay attention to and what, for the time being, is just academic. Just take the noise that was around Vehicle Type Approval when it was being introduced; yet this hasn’t really affected many fleets due to a slow implementation process. But there are other issues such as the lowering of thresholds for tax exemptions on low emission vehicles – which are moving every year – which can seem distant until they suddenly hit and make fleet operational costs rise massively. Then there are, of course, the areas which are evolving so quickly that legislation cannot keep up. This is particularly the case in the way rental is used. A perfect example of this is the move by logistics companies to self-employed ‘owner-drivers’, rather than their own fleet of vehicles. This has proved successful for the logistics companies in terms of keeping their costs down. However, the approach does not come without its pitfalls, particularly where duty of care and reputational risk are concerned. Owner-driver vans can’t ever

present a consistent image for a brand, and there are inherent risks in terms of control over maintenance and vehicle safety that could have serious repercussions for businesses that can’t demonstrate they have addressed duty of care legislation. While the owner-driver model can work well for logistics companies, it is important that they ensure basic requirements are met when allowing owner-drivers to undertake their deliveries. The only way to deal with this challenge is through a flexible rental programme. This can provide new or nearly-new vehicles that are monitored in terms of mileage, thereby protecting both the employer in terms of duty of care and the driver’s safety. This should also be backed-up with a signed, regulated agreement between the driver and employer so that each understands their responsibility. Legislation breeds innovation so can only be a good thing – fleet managers just need to make sure their rental provider keeps up! Fleeting thoughts The most crucial area for any van rental provider is fleet. It’s fundamental to offer the most up-to-date, state-ofthe-art van fleet possible. So why does this all matter to a fleet operator? Well, simply put, age. Most van rental fleets are on average around 33 months old, so vehicles will not incorporate any of the exciting innovations already mentioned. If a business wants to take advantage of these new benefits, it needs to look for a provider whose acquisition policy and fleet rotation always ensures that the latest innovations are made available.

“If the rental company has the right information, it can look at a ﬂeet and forecast where the vehicle needs to be before a ﬂeet even requests them”

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The mobile office Recent years have seen vans becoming much more aligned to car technology in terms of their functionality. Most fleet operators want their vans to be ‘mobile offices’, from which their drivers can do business, and the manufacturers have responded. Nearly all have cabs that include all the mod cons you would find in a modern family saloon, which would have been unheard of a few years ago – air conditioning, cruise-control, fully-adjustable seating, USB connectivity, seats that can be turned into desks and, most

importantly for the fleet managers, Bluetooth connectivity. All of which makes drivers an asset that can be used in more than one way; while they are on the road, they have all the capabilities they would in an office. Security has also become a bigger concern for operators as the value of goods in vans increases. We’ve already looked at logistics companies using rental, and many of these have insisted on both factory and retrofitting of slam locks and central locking before they will even consider a rental provider, simply because they are carrying thousands of pounds worth of goods with them at all times. The same is true for the cost of tools carried around by some specialist drivers. Security is more important than it has ever been. And, of course manufacturers have made great leaps in practicality. Carrying capacity is constantly being increased through innovation, and driving safety is also being improved. For example, the Mercedes-Benz Sprinter’s Crosswind Assist actually compensates for the high roof in high winds to make the vehicle more stable. Telematics This is an area that has been talked about for a long time, but it now should be much more of a ‘must-have’ question for fleet managers. In the not too distant future, it’s likely we’ll see manufacturers installing telematics systems into vans as standard. This will not only help fleet managers in numerous practical ways in terms of delivery times and driver monitoring, but will also help rental providers in their analysis of usage and how to keep costs down. Moreover, telematics will help in overall business mobility. For

example, in a breakdown situation information can be communicated to the breakdown company before an engineer leaves the centre so that they arrive with the correct parts and complete more quickly. And finally, on the subject of the fleet, as well as the practical benefits to be considered, what about presentation and appearances, which we all know are so important? A company is represented on the road by its fleet of vehicles – wouldn’t the best impression be made by the latest model rather than a clapped out van that has been on the road for nearly three years?

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W H y C H O O S E E U R O P CA R ? Network A van rental provider must meet all the requirements of its customers including mobility and accessibility and this is where Europcar really stands out. Many rental companies have reduced their networks to lower costs. At Europcar we believe this goes directly against the essential requirements of the market. Accessibility and mobility are what businesses want and Europcar has worked hard to deliver these benefits to its customers. We have significantly grown and enhanced our network of vans, making it the largest van network in the UK, with 172 locations nationwide, open at weekends and into evenings to deliver the ultimate business flexibility to our customers. We have also introduced: n Super-sites – Regional ‘super-sites’ have been created in five major UK cities – London, Bristol, Birmingham, Leeds and Newcastle. These are designed to both support the smaller stations and provide tailor-made services for larger customers. n Pop-up stations – Pop-up stations enable us to cater for business in busy areas on an ad hoc basis directly in response to demand. n Strategic targeting – We can identify the key areas vans are searched for online, we have been able to identify where customers need vans the most, and expand accordingly. n Addressing Chapter 8 needs – We also offer a fast, effective solution for businesses operating in the Chapter 8 sector carrying out road repairs, by providing vehicles that meet Department for Transport specifications. n Working with partners – By working with strategic partners, we now have a truly comprehensive offering that extends accessibility of vehicles. For example, vans can be collected through partners such as Safestore. Fleet management We undertook a significant initiative two years ago that was designed to deal with the two biggest areas of concern for fleets – cost and efficiency. We took this groundbreaking action to help us better understand how our customers used their fleets and how we could improve our service to them. This has led to a market-leading array of services including: n Overnight rental – Businesses today operate outside traditional timeframes; vans are, therefore, needed around the clock. To fulfil this demand, Europcar offers overnight rental which allows customers to rent vans outside of normal operating hours at a 25% discount. n One-way rentals – Not every van is required for a return journey, making half of its usage unnecessary. For that reason we developed a one-way rental product, at a competitive rate.

n Flexi-Lease – Contract hire can leave customers feeling trapped in a lengthy contract which does not suit their needs. Flexi-lease offers a competitive rate for all the latest makes and models of vehicle, with none of the early-termination or mileage penalties associated with contract hire. n Light Damage Option (LDO) – Designed to remove high volumes of low value invoices from our customers’ businesses, LDO delivers significant advantages by removing administration and resource needed to manage and settle low value claims, including minor damage, tyres and windscreens. Customer care Europcar continually focuses on the number one area of importance for our customers – satisfaction. In the past year, we have invested in market-leading account management to ensure we can deliver value to our customers in the five areas we have identified as key for their businesses: cost-savings, emissions, risk reduction, driver satisfaction and efficiency.

“Our carbon footprint is unbeatable in the rental market”

Fleet We have the youngest van fleet on the market, at an average of 15 months old. We now have a fleet of more than 6,000 vans from 10 different manufacturers, offering: n Flexibility – We can modify vans required for flexi-lease. n Choice – We have introduced several, award-winning models, in recent years including the Mercedes-Benz Sprinter, Vauxhall Combo or much sought-after Volkswagen Caddy. n Fuel economy – We can provide unparalleled fuel economy. n Technology – Our van renewal programme means we have the ability to keep pace with the latest technological advances. n Environment – The youthful composition of our fleet, in addition to the unrivalled UK network, mean that the company’s carbon footprint is unbeatable in the rental market.

Contact Europcar and leave feedback by calling 0871 384 0201 or visit http://blog.europcar.co.uk/ 52 June 2014 fleetnews.co.uk/fleetvan

Flexible van hire solutions for your business. Meeting all your van hire needs. Contact Europcar on 0871 384 0201.*

*Calls to 0871 numbers will cost 8p per minute from a BT landline, other networks and mobiles may vary. Calls may be recorded for training and monitoring purposes. Visit europcar.co.uk for full terms and conditions.

F O L L OW T H E L E A D E R : T E c H n O L O Gy

Fleet management technology: achieving more together Technology is no longer simply about delivering fleet efficiency – it can sit at the heart of end-to-end workflow management systems Giles Margerison, Director UK & Ireland, TomTom Telematics

importantly actionable insights that can help the more forwardthinking to cut costs and increase customer service, while freeing up resources for a more competitive future.

he total cost of fleet ownership is under increasing scrutiny. Improving operational efficiency and safety has always been high on the agenda for fleet businesses, but the clock is now ticking for those who haven’t grasped the bull by the horns. The economy is picking up and the business landscape is becoming increasingly competitive, and those who have embraced technology will have the inside track. Although this presents challenges for van operators, the drive to cut costs and introduce best practice processes also presents enormous opportunities to become more flexible, dynamic and responsive. Fleet management technology has continued to evolve rapidly and can now offer a platform to give companies actionable insights and empower them to make smarter decisions across a wide range of business operations. The technology is no longer simply about delivering fleet efficiency – it can sit at the heart of end-to-end workforce and workflow management systems. The role of fleet manager has never been an easy one, but the introduction of such systems provides data and more

Stem the fuel cost tide Fuel is generally held to be the single largest cost for any fleet operator, accounting for 19% of the lease price of a van. As a variable overhead, however, it is possible to minimise the fuel cost burden by taking steps to reduce consumption. A reduction in fuel bills represents direct bottom-line savings – and sizeable savings at that, which may otherwise have to be recovered through an increase in revenue or through budget cuts elsewhere. Ensuring vehicles are properly and regularly maintained can be crucial, while fitting the right tyres, inflated to the correct pressure, can cut fuel economy by up to 15%. Fleet management technology, however, can play the most impactful role. Better navigation alone can lead to a 10% reduction in fuel consumption, but greater financial rewards can be enjoyed by companies that improve the performance of their drivers – a variable which, traditionally, has been difficult to control. The technology now offers a previously unimaginable level of insight into habits and behaviour behind the wheel, empowering management to take the necessary steps to boost performance and efficiency to slash fuel costs. This becomes all the more compelling when you consider that spending on fuel and maintenance constitutes around 30% of the total cost of ownership of a motor vehicle. Zenith Hygiene Group, for example, saved £222,660 on fuel over the course of a year by implementing an incentivised scheme for the improvement of driver behaviour across its 119-strong fleet. Average vehicle economy during this time soared from 26mpg to 43mpg. Fleet management technology can provide in-depth analysis into each employee’s driving style, based on key elements of safe and efficient driving, such as speeding and harsh steering or braking. Vehicle diagnostics can also feed back information on idling and the driver’s fuel consumption. Management reporting functions enables this data to be measured against pre-defined business targets, established by the company to achieve financial savings and safety

“Fleet management technology can now offer a platform to empower companies to make smarter decisions”

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improvements. So not only can this directly impact the bottom line, it can help managers establish safer, greener driving policies. What’s more, with actionable insights, staff can be rewarded for good performance with training targeted at those who require it most. Employees can even be given the information needed to correct poor driving style on the move, through real-time feedback on driving style via their in-vehicle navigation devices. Utilities giant Scotia Gas networks (SGn), for example, reduced incidences of negative driver behaviour (speeding, harsh steering, braking or acceleration) from 1,600 a day to fewer than 400 after implementing such technology. The move resulted in an increase in average driver efﬁciency of 2.1mpg, a 15 % reduction in tyre replacements and greater durability of brakes, clutches and gearboxes. Sanctuary Maintenance meanwhile, part of housing and care homes company Sanctuary Group, successfully reduced fuel bills by 25% by improving driving style. Look after your vans, protect your bottom line Beyond information on driving style, advanced ﬂeet management

solutions also provide insight into how the vehicle is performing by reporting trouble codes directly from the engine. If a vehicle is low on oil or has an engine fault, management can be immediately notified to ensure problems are quickly fixed. In addition regular maintenance checks and service intervals can be automatically scheduled using real measured mileage from a van fleet, reducing admin and the risk of human error. Keeping vans well maintained will have a positive effect on fuel consumption and, of course ensure minor vehicle issues are not left to develop into more costly mechanical problems – minimising vehicle downtime and the associated business costs. Reaching the gold standard in customer service Van fleet operators in the service sector need little reminder of the importance of meeting customer expectations and service-level demands. consumer confidence can all too easily be dented – and once lost, a company’s reputation can be difficult to salvage. Good service delivery relies upon effective planning. To calculate how many jobs mobile workers are able to attend in a day, managers

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need to know how long jobs are likely to take and how much time they are likely to spend on the road, journeying between customer sites. While companies can estimate job times based on past experiences, journey times for a majority of firms are less easy to determine. The result? The biggest failings of service companies making home visits are late arrival or unspecified ETAs according to 50% of UK consumers. In fact, 60% of consumers believe two-hour timeslots are the maximum acceptable standard for home deliveries or visits yet claimed, in research conducted by TomTom Telematics, that only 25% of firms meet these expectations. Advance fleet management technology, however, is able to calculate accurate journey times for every journey, based on live traffic information and historic road use data for different times of the day and different days of the week. It can also improve vehicle routing, helping drivers to avoid congestion with live traffic information relayed automatically to their navigation devices en-route. coupled with smart routing, factoring in not only traffic flows, but also traffic lights, roundabouts and other obstacles, this can mean journey time savings of up to 15%. Managers are also able to allocate jobs to the most appropriate workers – based upon quickest arrival times – not simply to those who are closest to customers. Having this capability, with jobs or orders dispatched directly to drivers’ in-cab terminals, means businesses are able to respond more rapidly to customers as job requests are made. For printing equipment supplier Danwood, for example, better route planning increased the average number of customer visits per day by 7% from 4.5 to 4.8. Scotia Gas networks (SGn), has to adhere with strict service level agreements and has ensured engineers respond to call-outs within just one hour, in line with industry safety standards. Technology services company Telent has enjoyed similar success

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achieving an 80% improvement in response times, on top of the previously mentioned cost savings, cutting the time taken to allocate jobs from 75 to 15 minutes. customers are demanding more from business than ever before, but the pace of technological change is seeing new opportunities opening up all the time to help meet expectations. The effective application of connected vehicle technology, in particular, could be crucial in helping van operators act quickly and introduce new services and innovations to further improve the customer experience. Connectivity: bringing van drivers and managers closer together The data generated by a van fleet can prove invaluable to numerous areas of a company, from customer relations to HR, sales and accounts – and it is now becoming easier than ever to connect business hardware and software with fleet management technology. Out of the box system integrations mean back office systems are seamlessly connecting with vehicles and mobile workers without the need for expensive IT consultancy. In the office, software integrations are possible with a range of applications from those designed to reduce the risk profile of a fleet for insurance purposes, as is the case with Zurich Fleet Intelligence to cRM, ERP and routing and scheduling systems, such as PTV Smartour and Paragon. When an order is received by a company, for example, the details can automatically be passed from an e-commerce platform or cRM to a fleet management dashboard. This allows mobile operations managers to view outstanding orders and dispatch the most appropriate van drivers to jobs based on how long it will take them to arrive. Directions will be immediately sent to the drivers’ navigation devices and when jobs are complete, data can be sent from the vehicle back to the office, allowing the final details to be added to the cRM or invoicing software.

In the field, mobile printers – paired by Bluetooth to the telematics box in the vehicle – can be used to print receipts, invoices, barcodes and RFID labels enriched with data such as GPS location and job information, generated by fleet management software. Similarly, signature capture devices can make use of the same data for proof a delivery was made to an exact location at a specific time by a particular driver. All data collected in the field can then be transmitted back to the office via the in-vehicle telematics device. Accessed via fleet management software, this data can be shared with back office software, including routing and scheduling and workflow management systems. Managers are able to ensure jobs or deliveries are completed punctually and customers notified in advance of precise arrival times, with work schedules planned in the most efficient manner, taking into account factors such as traffic or proximity. Already, companies are typically able to realise ROI on fleet management technology within eight to 12 months but greater harmony between business systems could ensure this comes even sooner – and that the benefits are longer lasting.

– utilising the traditional tracking functionality of telematics – companies are able to demonstrate a commitment to duty of care (Doc), particularly by keeping tight control on working hours and ensuring employees don’t work too long without a break. But the more advanced functionality, allowing managers to profile drivers and identify those who might pose a higher danger to themselves and other road users, takes risk management to a new level. Higher risk driving styles can be addressed before they become a liability, using driver style monitoring to set performance benchmarks and monitor adherence to them. Such a proactive approach also demonstrates a clear commitment to the reduction of road risk, meaning businesses are less likely to fall foul of legislation such as the corporate Manslaughter and corporate Homicide Act. The penalties for failing to implement a Doc policy can be severe, with courts given the power to impose unlimited fines for corporate manslaughter convictions. What’s more, a clearer risk profile with potential for reduced claims costs can help insurance companies underwrite motor policies more precisely, and consequently offer more competitive premiums. A company with 119 vehicles, for example, benefited from fleet insurance savings of £78,000 in just two years. It achieved this by simply demonstrating an improved risk profile to its insurer, having slashed it claims costs to the tune of £136,000. With such a wealth of possibilities for achieving business goals and delivering sizeable returns on investment, fleet management technology has become the essential tool for van operators in their drive to attain fleet excellence.

“Fleet management technology has become the essential tool for van operators in their drive to attain ﬂeet excellence”

Take control of van risk A company’s van ﬂeet is one area where the need to minimise risk is vital and failure to do so can have extremely serious consequences. It is estimated that six out of 10 work-related accidents resulting in death across Europe are road crashes, so there is a clear onus on van operators to manage the risk factors associated with company vehicles. Simply by knowing what driver is driving what vehicle at what time

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F O L L OW T H E L E A D E R : T E c H n O L O Gy

c O M PA n y P R O F I L E As a market-leading provider of fleet management technology, TomTom Telematics helps 28,000 customers worldwide save more than £2 million daily. More than 350,000 vehicles are managed using WEBFLEET, TomTom Telematics’ Software as a Service (SaaS) fleet management platform, helping businesses to optimise their mobile workforce. Quick to implement and easy to use, WEBFLEET can be incorporated with a range of software and hardware, enabling companies to make smarter decisions and help them achieve their business goals. The platform allows fleet operators to cut fuel costs through driver performance tools and smarter navigation, helping drivers avoid congestion with live traffic information. By addressing and improving driver behaviour, companies can also improve road safety to address duty of care obligations, support drivers and reduce their risk profile to benefit from lower insurance premiums. Efficiency and productivity can be boosted through tools to improve routing and scheduling, customer service standards raised through accurate ETAs, while working-time and mileage reporting ensures legislative compliance. The company’s commitment to innovation and development of strategic partnerships sets it apart from the competition, ensuring its fleet management solutions enable customers to continue saving money and improving their operational processes. TomTom Telematics is an official industry partner of the FTA’s Van Excellence programme to establish quality standards and best practice for van fleets. Recent innovations include a new ruggedised seven-inch driver terminal that can host bespoke applications to help drivers capture more information in the field, such as digital signature capture for proof of delivery, vehicle checks

and barcode scanning – all on one device. This latest development extends the WEBFLEET platform, which now has three APIs – in the office, in the field on the vehicle, and on the driver terminal. This further enhances the integration capabilities of WEBFLEET (known as .connect), allowing businesses to streamline their end-to-end processes, where field staff and vehicles become a more integrated part of overall operations. core products of the platform include ecoPLUS, a fuel monitoring device which draws real-time data directly from a vehicle’s engine to better manage fuel consumption, and driver performance tools OptiDrive and Active Driver Feedback. The OptiDrive indicator allows managers to build accurate profiles of their drivers based on key elements of safe and efficient driving, such as speeding, driving events, idling, and fuel consumption. Each driver is given a score based on their performance in each area and regular reports can then be generated to form the bedrock of incentivised schemes for the improvement of driver performance. Meanwhile, Active Driver Feedback allows drivers to gain a real-time insight into how they are driving through their in-cab navigation devices. The unit will offer audible alerts if it detects harsh or unsafe driving practice, allowing behaviour to be addressed at source. TomTom Telematics is the first fleet management technology provider to be awarded ISO 27001 certification – the most stringent information security controls certification. Unique in the industry, this accreditation ensures TomTom Telematics’ customers benefit from the highest levels of security, quality and availability. This stability has paved the way for significant growth in the number of business systems that integrate with TomTom Telematics’ software and hardware.

For more information, contact Giles Margerison on 020 7255 9774, uk.business@tomtom.com, www.tomtom.com/telematics 58 June 2014 fleetnews.co.uk/fleetvan

ACHIEVE MORE TOGETHER. Fleet management for better team and business performance WEBFLEET® is the easiest way to be informed about your vehicles. With WEBFLEET your drivers and ofﬁce staff work closer together and everyone makes smarter decisions. That’s the key to happy customers, great governance and the ability to keep moving towards your business goals. Call 020 7255 9774 or E-mail business.uk@tomtom.com to request a free demonstration from Europe’s leading ﬂeet management and vehicle tracking provider.

www.tomtom.com/telematics

F O L L OW T H E L E A D E R : F U E L E F F i c i E n c y

A fuel efﬁcient road fo Volatile fuel prices may be out of a ﬂeet manager’s control, but there is still plenty they can do to minimise their costs Rory Maher, Sales Director, EMEA, Trimble Field Service Management

ith crude oil prices across the globe fluctuating year-on-year, the price of fuel for consumers continues to be unpredictable and for fleet management companies in particular a major concern in meeting business priorities. The Government forecasts van traffic to rise by 88% between 2010 and 2035. Assuming an average cost of 50 pence per mile, then the UK’s vans cost around £20 billion a year, a significant sum. For fleet management companies operating large mobile workforces and vehicle fleets, they therefore incur substantial operating costs from fuel use alone, alongside a sizeable carbon footprint. These companies can’t stop using their vehicles, so taking steps to improve the efficiency of their fleets by reducing operating costs tied to fuel use is essential to remain competitive. The first step to mitigating fuel use must be to understand the challenges tied to excessive fuel consumption. These include: n Vehicles travelling outside of planned routes n Unauthorised side trips or after-hours vehicle use n Speeding or excessive engine idling time n Lack of proper vehicle maintenance Manage driver routes One of the foremost challenges is managing drivers’ routes. While some detours cannot be avoided due to road construction or accidents, drivers who repeatedly diverge from pre-planned routes typically drive longer distances and therefore use excessive fuel. Examples of diverting from pre-planned routes include technicians who make excessive returns to their work centre or those who get lost when trying to locate difficult customer addresses. These situations cause unnecessary mileage that can be easily reduced using fleet management technology. Such technology allows dispatchers to monitor the exact location of their vehicles,

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or ﬂeet management “The ﬁrst step to mitigating fuel use must be to understand the challenges tied to excessive fuel consumption”

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F O L L OW T H E L E A D E R : F U E L E F F i c i E n c y

helping them to optimise scheduling by planning the most efficient routes for workers. if an urgent customer request comes in, the technology can detect the most suitable vehicle which is closest to a callout to mitigate fuel use. indeed, leading animal welfare charity, the Royal Society for the Prevention of cruelty to Animals (RSPcA) calculated that it could save 80,000 litres in fuel annually for its vehicles now that it has fleet management technology in place to detect which of its inspectors is nearest to a call-out emergency. Pre-planned routes can also be reviewed in real-time, permitting dispatchers to quickly identify vehicles that waste fuel by deviating from the most direct path between scheduled stops. According to Aberdeen Group, fleets that are equipped with GPS monitoring average a 13% reduction in fuel costs. Fleet management technology can also pick up on any unauthorised stops and after-hours vehicle use by determining how close a vehicle stays to a designated parking location or by identifying significant stops that are not associated with customer locations or other company-set landmarks. Leading demolition company D. H. Griffin experienced a reduction in unauthorised vehicle use following the deployment of fleet management since the technology sends alerts about vehicle activity during off-schedule hours. “We rarely work on Sundays so if that’s on the log, we look at the GPS reports to find out why,” said Rick Swartz, D.H. Griffin’s corporate fleet manager. Control engine idling While some idling time is normal, excessive engine idling has a negative impact on a vehicle’s fuel economy, as it gets zero miles to the gallon. According to the Energy Saving Trust, idling wastes up to 5% of the fuel pumped into vehicles and estimates that if the UK’s drivers switched off their engines for one minute rather than idling on every journey they make, this would save more than £500 million in fuel costs annually. Excessive idling can also damage engine components, adding to maintenance costs. Fuel is only partially combusted when a vehicle idles because the engine is not operating at its optimal temperature. This leads to a build-up of fuel residue that can damage engine components and increase fuel consumption. Fleet management technology can help to lower vehicle idling times. Once deployed, the technology generates real-time data of each vehicle to help fleet managers accurately ascertain where fuel is being wasted and reports on faults and performance behind the wheel. Saving fuel: an international perspective A leading cable and broadband provider in the US deployed fleet

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management technology across its 5,000 vehicles to reduce vehicle idle time from more than 90 minutes to less than 15 minutes per technician, per day. Overall miles per gallon increased 5% while repair costs declined 5%. With its entire fleet equipped with fleet management technology, the business expects to save more than 1 million gallons of fuel and approximately $2 million each year, while reducing its carbon footprint by more than 25 million pounds of cO2. initiating programmes to raise awareness of excessive idling will also help remedy idling problems. Tom Gorman, President of opXL, LLc and a field service expert, commented: “At our company, one of our goals was cutting fuel costs and we coached supervisors on how to reduce idling. Typically when a technician finished a job, they got in their vehicle and turned on the engine for 15 minutes while filling out reports. At lunch, they might eat in the vehicle while the motor is running. These were habits that needed to change. it was just a matter of raising awareness and once technicians became aware of the costs of idling, the idling went from two hours to 30 minutes a day. That was $1 million saved across the fleet of 1,100 vehicles.” Keep on top of vehicle management and utilisation Fuel utilisation can vary significantly between drivers due to the health of a vehicle and lack of proper maintenance will adversely affect its overall fuel economy. improvements can be made in a number of areas to boost fuel efficiency, some of which include: n Keep a vehicle’s engine suitably tuned n check and replace air filters regularly n Keep tyres sufficiently inflated n Use the recommended grade of fuel The emergence of vehicle diagnostics takes routine maintenance checks a step further by providing real-time data so information can be drawn directly from the vehicle, helping improve vehicle maintenance, service scheduling and uptime by getting fault codes and alerts about engine difficulties before they become a major problem. information can also identify how a vehicle is being driven and provide real-time data on fuel consumption, so exact fuel use can be monitored helping identify where fuel is being wasted on poorlyperforming vehicles. Taking steps to proactively service underperforming vehicles minimises vehicle breakdowns or unscheduled downtime which could considerably mitigate fleet costs. Managing vehicle utilisation is understandably important for

businesses with fleet operations. Efficient management of individual fleet vehicles to determine how often and how much each is used is therefore key to mitigating excessive fuel use. Aberdeen Group reports improvements of 32% on vehicle utilisation through the use of fleet management technology, for example. Vehicle utilisation was an area Shred-it, the world’s largest mobile secure document and paper shredding company, focused on following the deployment of fleet management technology. The technology allows them to pick up on any vehicles across the fleet that are being under-utilised and what vehicles aren’t being used at all. This has helped them to increase efficiencies, leading to an 8% growth in the business, achieved without introducing any additional vehicles to the fleet.

their driving style. This will help reduce accidents and vehicle downtime and will ultimately help reduce the fleet’s fuel consumption. For John Gavin, project and standards lead for operations support at Shred-it, the capabilities of driver safety technology benefited his business significantly. “We were particularly impressed by the driver safety in-vehicle hardware that alerts drivers to behaviours outside set guidelines. They are provided with real-time feedback about their driving behaviour so they can make immediate changes to their driving style. This has proven beneficial to accurately measure and mitigate fleet safety risks and we have seen a difference. Our drivers have slowed down and we have seen an increase in driver score.” One of the largest cable and broadband providers in the US experienced a major improvement in their mpg following the deployment of driver safety technology across its fleet of vehicles. “We saw an uptick of 20% in miles per gallon in some regions and that was directly related to speeding,” says one VP. “Once we had the data available, we saw speeding incidents drop by 60% in some areas.”

“Aberdeen Group reports improvements of 32% on vehicle utilisation through the use of ﬂeet management technology”

Take control of driver behaviour Aggressive driving style is a major factor in excessive fuel use. Department for Transport figures state that travelling at 80mph can use up to 25% more fuel than at 70mph. it also found that by adopting a non-aggressive driving style a driver could improve their fuel efficiency by up to 30%. Driver safety technology helps to improve driver behaviour. Such technology monitors and reviews individual driving behaviour and picks up on any aggressive manoeuvres, such as hard acceleration, braking, turns and speed. Real-time feedback is offered to the driver as well as a complete analysis for the back office. With this data at hand, trends in driver behaviour can be highlighted and analysed allowing organisations to understand areas for improvement. Training can then be provided to individuals to improve

In conclusion Ultimately, the volatile price of fuel will continue, but it needn’t be a major concern for fleet management organisations in meeting business priorities. Smarter scheduling, smarter driving and smarter vehicle maintenance are all key in helping to mitigate fuel use and its associated costs across a fleet. For those businesses which recognise these solutions, they stand to outpace the competition in operating fuel efficient fleets whilst maintaining a healthy bottom line.

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F O L L OW T H E L E A D E R : F U E L E F F i c i E n c y

c O M PA n y P R O F i L E Trimble’s Field Service Management Division provides visibility into field and fleet operations so businesses can streamline efficiency and increase productivity. The Field Service Management suite is a cloud-based portfolio comprising of solutions to help businesses manage their work and workers on one fully-integrated platform. The suite, which includes fleet management, work management and scheduling, worker safety and mobility solutions, can be tailored to individual customers to offer industry-specific, enterprise-level solutions for exceptional performance and ease of use. Manage your fleet Trimble Fleet Management enables managers and supervisors to make intelligent decisions using the real-time location and status of their vehicles to get the most out of their fleet. Using Fleet Management, businesses can improve their overall fleet productivity by identifying where improvements can be made to reduce fuel costs and travel time. Fleet Management offers a range of on-demand information and activity reports on key data such as vehicle condition, out-ofhours use and mileage. in addition, Fleet Management includes exception alerts which highlight issues such as when a vehicle hasn’t moved or leaves its designated work area. With this visibility in to fleet operations, businesses can manage fleet performance and costs, running the most efficient fleet possible. Key benefits n Receive complete visibility of your entire fleet, 24 hours a day, seven days a week. n increase your fleet productivity using real-time location intelligence. n Decrease fuel costs by reducing unauthorised vehicle use, curbing excessive speeding and lowering idling. n Manage maintenance schedules which reduce vehicle wear and tear, lowering the risk of mechanical failure. n Reduce mileage with optimised routing and finding the closest vehicle to a location. Manage your work Trimble Work Management transforms the productivity of a mobile workforce through intelligent scheduling tools and state-ofthe-art performance analytics. combining the real-time location data from Fleet Management and its own real-time job data, Work Management offers easily digestible consoles and reports containing performance metrics that show where organisations can improve field service operations. it also offers scheduling tools that optimise in-day and planned work to provide the agility you need to respond to everchanging field service demands. Work Management ensures that promised field service excellence is delivered and not de-railed by unpredictable events.

Key benefits n create daily schedules for all your jobs in less than a minute. n Maximise your mobile workers’ time to complete more jobs per day. n Receive real-time data from the field in easy-to-understand reports and analytics. n identify problem and best practice areas with job performance metrics. n Meet time commitments and customer-agreed appointment schedules. n increase your customer service satisfaction with better real-time information for faster service and response. Manage your workers Trimble Driver Safety enables fleet managers to complete back office analysis of aggressive manoeuvres such as hard acceleration, braking, turns and speed so that they may identify and train drivers who are putting themselves and the company at risk. in addition, the Driver Safety in-vehicle hardware uses alerts to provide the driver with instant feedback about their driving behaviour so they can make immediate changes to their driving style. Over time this helps them learn better driving techniques to keep them safer on the road, minimising accidents and protecting the company’s reputation. Key Benefits n Reduce accidents and claims while improving employee safety out on the road. n improve your public image by promoting better, safer driving. n increase your fuel savings through improved driver behaviour. n improve fleet productivity through better vehicle uptime. n Reduce operational costs by lowering fuel use and repair bills. n improve driver compliance using driver-style feedback.

For more information, visit www.trimble.com/fsm, call us on +44 (0)1473 696300 or email us on fsm_enquiries@trimble.com 64 June 2014 fleetnews.co.uk/fleetvan

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F O L L OW T H E L E A D E R : F L E E T O p T I m I s AT I O N

Building an efficient fleet The road to fleet optimisation is one not to be travelled alone. Finding the perfect fleet partner could be key to your strategy By Joe Fielder, Sales & Marketing Director, BT Fleet t is of the utmost importance to maintain a healthy fleet if you are going to get the best out of it. If your vehicles aren’t serviced and maintained on a regular basis they might become more susceptible to breakdowns. But how do you whip your fleet into shape without a proper view of the strategy? The cornerstone of an efficient fleet is understanding your wider business goals, allowing you to implement the most effective training regime to ensure your fleet is fit for purpose.

A simple update to a product can create the need for an entirely new fleet profile. What if an update to a manufacturer’s product makes its goods larger and it will no longer fit through the rear door of the van? What if a drop-off in business leaves you with vans sitting dormant in the yard? What if your operations increase outside of the 9am-5pm window, bringing increased wear and tear on vans and maintenance spend? The smallest of changes in any of the above can lead to the need for new vehicles or changes to the operational structure. Only once you have a firm understanding of these factors should you start to think about defining your fleet management strategy.

Understand your business strategy Without an understanding of your wider business strategy, there is little hope of setting up an effective ﬂeet management strategy. There is a tendency to stick with the status quo, but just think of the implications of any the following: ■ New products and markets ■ Change to operational structure (hours and skills) ■ Change in geography ■ New cost efﬁciencies ■ Legislative changes ■ Changes to funding or risk position ■ Growing or shrinking of the business

Sourcing strategy There are three key elements to sourcing: vehicles, funding and services. The main question is whether to source these from a single supplier, or whether to unbundle them and deal with several different suppliers. There is no definitive answer to this question; a sourcing strategy depends on the particular needs of your fleet. Getting it right is also critical to your business profitability. The decision may be based on the volume of vehicles required; in this case, a bulk buy from one supplier could be an attractive option because of cost benefits. In this scenario though, make sure that you are not sacrificing best fit for the sake of price. The

“Without an understanding of your wider business strategy, there is little hope of setting up an effective ﬂeet management strategy”

Where might your fleet be falling short? There are numerous factors that can have a knock-on effect for both cost and customer service. These include the fleet being too big for the business, excessive downtime and unnecessary emissions. Driver risk must also be taken into account, as well as lack of compliance to industry regulations. perhaps the core problem, that has a knock-on effect for all of these factors, is an inappropriate service, maintenance and repair (smR) regime. smR is fast becoming the backbone of an effective fleet management strategy, and is best achieved by a dedicated service partner who can optimise a bespoke schedule based on your needs. This will ensure that the core of your business is based on a robust strategy of measurement, reporting and optimisation.

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fleetnews.co.uk/fleetvan June 2014 67

F O L L OW T H E L E A D E R : F L E E T O p T I m I s AT I O N number one thing to ensure is that your fleet runs efficiently with minimal operational issues. A truly efficient fleet An optimised fleet consists of the following: ■ The right vehicles ■ The right volume and mix of vehicles ■ The right fleet management services ■ The right funding method ■ The right service partners ■ Right for both now and future business By ‘right’, we mean right for your individual fleet needs. There is no one-size-fits-all solution in effective fleet management, which is why measurement against your business goals is essential. The

“There is no one-size-ﬁts all solution, which is why measurement against your business goals is essential”

type of vehicle is the most straightforward decision, although when it comes to the ﬁt-out things may become more complicated. This is particularly the case for specialist vehicles such as refrigerated units, recovery trucks and power take-offs. Once you have the right vehicle, servicing is the next most critical feature. Getting the right smR partner will ensure that downtime is minimised. Know your customer It is tempting to focus only on the end customer. There are, in fact, many groups who you should consider your customers: ■ Drivers ■ Transport managers ■ Operational teams ■ Finance ■ procurement ■ HR As a minimum, these are the audience groups to bear in mind. You may have others particular to your organisation that you wish to include. These are all users who should have their needs taken into account before revisiting your ﬂeet management strategy. By consulting with these groups you will ensure that your

Finding the perfect ﬂeet management partner

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strategy is well informed and addresses key issues. Especially in the case of drivers, their operational knowledge and experience will ensure you are focusing on the right areas. If you don’t consult these audience groups, you run the risk of not meeting their needs and encountering opposition within the organisation. Drivers may not feel that newly-procured vehicles are appropriate in terms of type and training requirements, for example. Also consider who is going to authorise the procurement. Involve these decision makers early, setting down a procurement plan that agrees on key success criteria. Establish a methodology, deciding on the adjudication process and how often you will check in with

them. This kind of up-front planning will make sure that the signoff and procurement cycle go much more smoothly. A perfect partner What to look for in a fleet partner? Well firstly, it is not just about the strict letter of the contract; it is important to pick a company that matches your business values. The stronger the match, the more likely you are to get what is promised, and the more likely you are to get added value in the future. Choosing a company that does not match your values could very well cost you far more than what you stand to save in the short term. Other qualities to look for: ■ Value for money ■ Reliability ■ Fleets aligned with your core business ■ Resilience and depth ■ Future vision and capacity for innovation If you want to be a leader in your market, you ultimately need a supplier who is a leader as well. Leading suppliers embody your brand in everything they do and can provide a fleet strategy that is the perfect fit. Buying the right solution is not easy, and you have to place a lot of trust in van fleet managers to find the perfect solution. By following our guidelines we hope that you will be better equipped to make the right decision and optimise your fleet’s efficiency through a perfect partnership.

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F O L L OW T H E L E A D E R : F L E E T O p T I m I s AT I O N

L E A s E V E H I C L E s YO u CA N WO R k F R O m , N O T A R O u N D BT Fleet’s mini-Lease service provides medium-term rental vehicles that fulfil your needs in the most cost-effective way. vehicles that are built to your specification, so that you We also offer rates on a number of mileage allowances, can continue to serve your customers in vehicles that suit meaning you won’t pay for miles you don’t cover. your needs. Our mini-Lease base vehicles attract a lower subject to volume and level of conversion daily rate than our already competitive long-term required, we can deliver vehicles within one to hire rates. When you return your vehicle, we will four weeks and our strong focus on cost control only charge for what we repair, typically saving ■ Vehicles built to ensures you get value for money. £700 per vehicle compared to other providers. your specification ■ A flexible, costVehicles that suit your needs There when you need it effective solution Your vehicles will be built to your specification to Our mini-Lease lead times are typically four ■ No long-term provide the level of conversion you need, which times faster than vehicle build, and small volumes commitment may include; racking, roof fixtures, chapter 8 of basic vehicles can be delivered with only a ■ short lead times markings and livery. To ensure your fleet requireweeks’ notice. We manage the conversion and ments are met, you can also change, add or delivery schedule from start to finish, leaving you remove vehicles during the term of the lease. to look after your customers. The mini-Lease service is available for periods of 28 days Providing value for money to three years – providing you with the fleet to meet your We will discuss your requirements with you and provide requirements.

Service at a glance

If you’d like to know more about how BT Fleet can help your business, please contact our team on: Telephone: 0800 032 0012 Email: sales@btﬂeet.com Website: www.btﬂeet.com 70 June 2014 fleetnews.co.uk/fleetvan

Unbundled SMR from BT Fleet With a UK-wide network of 65 owned garages and over 500 contractor garages, BT Fleet focuses on helping you optimise vehicle availability and cost efﬁciency through dedicated, award-winning SMR. Our services and innovations give you the advantage of the industry’s leading range of cost saving initiatives. Take advantage of transparent, unbundled SMR and rack up the beneﬁts.

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rem a rk e t ing

Strong demand continues to drive residual values experts predict used van values will remain stable for the remainder of the year By Andrew Ryan he used van market shows little sign of weakening in the second half of the year after reaching record levels during the first six months of 2014, say experts. this year, average values for ex-fleet and lease vans hit record levels for four consecutive months at BCa, with values rising from £6,669 in December to £7,049 in march, before dipping to £6,735 in april. this is an increase of around £1,600 over the past 24 months, equivalent to more than a 30% increase in value. the general upwards trend is reflected through CaP’s figures as well. these show that in December 2013, the average used guide price of a large panel van was £7,688. in may, this had risen to £8,990. these increases are reflected throughout different van sectors (see table, below). However, while prices are not expected to continue to rise, there are no signs that they will fall either. this tallies with the general consensus of opinion at the start of the year when remarketing industry experts predicted that a limited supply of used vans would cause prices to rise before plateauing in the middle of the year. However, the strong values are not just about stock shortages, says ken Brown, editor – red book LCVs and motorhomes, CaP. “as we all know, the market prices for many models in the used LCV market have reached record levels,” he says. “there has been a lot of talk in the media about stock shortages and the effect this has had on market prices. Far less has been said about the strength of demand. “We have consistently said to our subscribers that, with the Uk economy improving at a rate that appears to be confounding everyone, we don’t see anything on the horizon to suggest that another crisis might be on the way. “From the evidence we gather, it seems more likely that we have been witnessing the release of some pent-up demand over the past few months which has resulted in used wholesale prices for many models reaching record levels.” Brown says this rise will be unsustainable in the long term as used retail prices are getting too close to manufacturers’ list prices. “With many manufacturer-approved dealers offering

“The viability of buying a used LCV could easily have become a victim of its own success” Ken Brown, editor – red book LCVs and motorhomes, CAP

£6,735 average value of ex-fleet and lease vans at BCA in April

£1,600

increase in value of fleetsourced LCVs at BCA over past 24 months

discounts on new and pre-registered models, for many owner-operators and small businesses, the viability of buying a used LCV could easily have become a victim of its own success,” he says. “as the year progresses, we expect prices to stabilise. However, it’s always difficult to predict what’s likely to happen regarding the supply of vehicles into the wholesale market. “Understandably the vendors and auction houses keep this kind of information very close to their chests so at certain times there may well be shortages of certain models and over-supply of others. “given the relatively high levels of demand we have been witnessing, this would almost certainly impact on average market prices. “the Smmt statistics on new vehicle registrations suggest that supply can only get better as the year progresses.” manheim is also expecting to see an increased number of vehicles enter the used van market soon. “Daily rental companies are predicting an increase in stock levels over the coming months, as lead times on new stock delayed the replacement in quarter two,” says James Davies, head of commercial vehicles at manheim. “this increase in good quality, younger vehicles into the market will have a positive impact on the average selling prices as we enter the summer.” Duncan Ward, general manager – commercial vehicles at BCa, adds: “We are now moving into what has traditionally been a time of slower demand. there are signs that sellers are being more pragmatic about values, as performance against CaP declined noticeably compared to march. “Based on previous years, we should expect the market to pick up noticeably in the early autumn, following the September plate changes with every likelihood that values will remain strong through to the end of the year.”

LCV sector Car-derived van Light van medium van Up to 3.5 tonne Over 3.5 tonnes 4x4 pick-up workhorse 4x4 pick-up lifestyle SUV minibus

December £3,863 £4,004 £5,499 £7,688 £9,898 £10,117 £9,951 £9,162

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January £3,846 £3,932 £5,396 £7,663 £9,705 £10,130 £10,035 £8,885

February £3,901 £3,936 £5,631 £8,383 £10,007 £10,382 £10,583 £9,695

March £3,865 £3,994 £5,660 £8,371 £9,993 £10,206 £10,327 £8,989

April £4,151 £4,187 £5,970 £8,881 £10,634 £10,378 £10,746 £9,460

May £4,109 £4,118 £6,045 £8,990 £10,799 £10,290 £10,440 £9,487

Source: CAP

LCVs by seCtor: AVerAge Used gUide PriCe (three yeArs/60,000 miLes)

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Used values rise to record levels for ﬁfth time in six months

verage values for commercial vehicles reached record levels in May, the fifth time in the last six months a new record has been set, according to BCA’s figures. Demand for LCVs remained strong throughout the month and with the best quality stock in short supply, values continued to rise. Both Fleet & Lease and Dealer P/X van values rose during the month and are well ahead year-on-year. The average van at BCA sold for £5,587 in May, an increase of £192 (3.5%) over April. Year-on-year values remain well ahead, up by £717 (14.7%) over the 12-month period. Compared to a year ago, age is static at 58 months, while mileage has decreased marginally over the same period. Average CAP performance is down slightly compared to May 2013. BCA’s general manager – commercial vehicles, Duncan Ward, commented: “The market returned strongly in May, with conversion rates improving over April and values rising yet again, despite volumes remaining relatively high. “Competition is typically intense for retail quality used stock, with values rising as a result and BCA Live Online buyers continue to play a significant role, accounting for around 30% of volume sold. “While the best quality one-owner vans remain in short supply – with that unlikely to change in the near future – the market is seeing plentiful supplies of older, higher mileage models of variable quality and presentation. These vehicles need to be sensibly valued to tempt the buyers and

Competition is typically intense for desirable used stock such as tippers and dropsides vans with damage, in non-retail or corporate colours or with excessive mileage will need to be realistically valued if they are to sell ﬁrst time. “There can be little doubt that the improving economic background is giving a boost to the used LCV market and small and medium-sized enterprises (SMEs) remain positive about future prospects. “As this group is the biggest buyer of used LCVs, we should expect demand to remain relatively strong in the months ahead.” Fleet & lease Values for ﬂeet and lease LCVs improved

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May

£3,000

by £64 (0.95%) in May to £6,799, with CAP performance declining by two points but retained value against Manufacturer Recommended Price improving. Year-onyear, values were up by £857 (14.4%), although performance against CAP was slightly down on 2013. Part-exchange Values recovered strongly for dealer partexchange vans, rising by £223 (6.3%) to £3,751 – just £1 off the highest value ever recorded in the sector. CAP average comparisons improved by 1.5 points to 103.5% and year-on-year values remain ahead by £580 or 18.2%, with the average van being two months older and 4,000 miles less travelled than in 2013. Nearly-new Nearly-new LCV values declined for the second month running after reaching record levels earlier in the year. Values fell by £113 (0.8%) to £12,920 in May with CAP comparisons down one point to 96.4%. As always, this has to be taken in the context of the very low volumes reaching the market and the model mix factor.

Europe’s No.1 vehicle remarketing company Log on to bca.co.uk or call 0844 875 3480

dri V eN

333 L2 h1 130 PANeL VAN

PeugeOT BOxer Manufacturer hopes revised van will help continue its sales success story Need To kNow

sPec

n Peugeot van sales up 52% so far in 2014 n Revised Boxer features exterior and interior changes n Prices start from £24,196 ex-VAT

Gross vehicle weight (kg): 3,300 Power (bhp/rpm): 130/3,500 Torque (lb-ft/rpm): 236/2,000 Load volume (cu m): 10.0 Payload (kg): 1,400 Comb fuel economy (mpg): 38.2 CO2 emissions (g/km): 195 Basic price (ex-VAT): £22,755

By Trevor Gehlcken ritain’s LCV market is buzzing at the moment as the country continues its economic recovery. But one manufacturer stands head and shoulders above the others when it comes to growth. Peugeot has achieved a 52% rise in its registrations so far in 2014 in a market up 16%, overtaking both its partner Citroën and Vauxhall to take third spot in the chart. This feat is even more extraordinary considering the company did not have any new products to offer at the time. One of the reasons for the rise is a new focus on vans which Peugeot didn’t really have before – traditionally it has been seen as a car brand that also sells vans. Now that has all changed. The manufacturer has a new head of van business sales, Nick Crossley, and it has been quietly rolling out a new network of business centres, offering a bespoke fleet service to existing and potential customers. With a revised Boxer van and an improved dealer network, Peugeot is fully expecting to increase its sales even further as the year progresses. Crossley told Fleet Van: “When the new Boxer goes on sale, we will have the most extensive range of vans on offer in the history of the company and with our new network of business centres, we want to deliver exceptional levels of service to fleet customers – we will be offering a bespoke service to take the hassle out of their daily lives.” Almost 90 dealers have signed up to the business centre programme – about 40% of Peugeot’s network – and they have to comply with 35 standards before gaining accreditation. At present the Boxer accounts for 25% of all Peugeot van sales, while the smaller Partner takes 52%. But the need to keep updating product is paramount, especially as Ford has just launched its sophisticated new Transit into the market, which will go head-to-head with the Boxer.

Boxer accounts for25% of all Peugeot van sales

74 June 2014 fleetnews.co.uk/fleetvan

Updates to the interior give it a more upmarket appearance

“Almost 90 dealers have signed up to Peugeot’s business centre programme”

VeRdicT With some impressive new vans arriving on the market, the Boxer has undergone the changes necessary to keep up to date and remain on the shopping lists of fleet operators for a few more years.

Peugeot’s van features a new grille, daytime running lamps as standard with Leds as an option, different bumpers and two circular recesses for the front fog lamps. The front will be noticeably different from those of the Boxer’s twin brothers the Citroën relay and Fiat ducato, helping to distinguish it as a Peugeot product. There’s also a new steering wheel and the dashboard gets a makeover to provide a more upmarket appearance. The old Boxer had cup holders in the pull-down desk that pops out of the back of the middle seat. This design has been modified and there is now a single cup holder mounted in the middle of the dash. ride and handling, as with the old model, are excellent and the new steering wheel feels a little more comfortable than the old one. Professional variants, which are expected to take 40% of all sales, come with a five-inch colour touchscreen, which allows the operation of functions such as audio streaming, reading SMS text messages and an optional integrated satellite navigation system, as well as the display of the image from the reversing camera. under the bonnet is a 2.2-litre turbodiesel engine offering 110hp, 130hp or 150hp, while a 3.0-litre unit produces 180bhp. This is unlikely to be a big fleet seller. Although i normally recommend lower-powered variants for fleet purposes, i just loved the sweet tone and willingness of the 130hp engine. even loaded, there was never any shortage of power, while i feel that heavy loads and hills could prove a problem for the 110hp. On the L1 van, there is no difference in the official fuel consumption figure between the two power outputs, while going up to L2, the 130hp version – with stop-start fitted – is actually better than for the entry level engine at 38.2mpg instead of 37.7mpg. The engines are now fitted with a timing chain that lasts for life and servicing intervals have been extended to 30,000 miles or two years. The new model also gets larger brakes. electronic stability control comes as standard and there are several other safety systems on offer such as anti-slip regulation, a lane departure warning system, tyre pressure monitoring system, hill start assist, hill descent control and curtain airbags. As with the old model there are four load lengths, three roof heights and the usual array of conversions. Prices range from £24,196 to £33,666 ex-VAT. When it comes to body options, Peugeot has obviously heeded the business advice: “if it ain’t broke don’t fix it.”

35 mh2 150 muLTijeT ii

FiAT DuCATO Fiat’s large van gets a new look, improved efficiency and an increase in payload

Fiat says the ducato’s grille is designed to look like a Spartan helmet

Need To kNow

Spec

n New nose and updated equipment n Three new variants available n easier and less costly to work on

Price (ex-VAT): £19,995 (for base level 2.3-litre 110hp short-wheelbase three-tonne van – price for this exact spec TBC) GVW (kg): 3,500 Power (hp/rpm): 150/3,600 Torque (lb ft/rpm): 258/1,500 Fuel (combined mpg): 45.6mpg (with optional start/stop system) CO2 (g/km): 164g/km (as above) Cargo volume (cu m): 11.5 Payload (kg, inc driver): 1,575

By James Taylor s part of the co-developed triplets with the Peugeot Boxer and Citroën Relay, Fiat’s Ducato has been given an overhaul for 2014. Like the French twins, the most obvious difference is a facelifted front end with redesigned headlights and grille (designed to look like a Spartan helmet, according to Fiat’s designers), while under the skin there are improvements in efficiency and safety. Fiat claims 10% lower fuel consumption across the range as a whole thanks in part to reduced weight throughout. With the optional start-stop system, certain 2.3-litre derivatives offer an official combined fuel economy of 45.6mpg. Lighter overall weight also means a slight increase in payload, especially when fitted with the most heavy-duty rear suspension option. That allows up to 2,500kg over the rear axle and a gross vehicle weight of 4,250kg. Since the basic structure of the van is unchanged from its predecessor, cargo volume remains the same – an excellent 11.5 cubic metres for the 3.5m wheelbase panel van. As before, there are hundreds of potential configurations for the Ducato (10,000 in all, Fiat claims), but there are three new variants: a longer 4.3m wheelbase model, a seven-seat crew cab and a tipper version. On the safety front, a new tyre pressure monitor and an updated stability control system are standard. A lane departure warning system, which triggers a loud bleeping noise if the driver strays over a white line without indicating, is optional.

45.6

official combined fuel economy of certain 2.3-litre derivatives

verdicT The two-tonne Ford Transit remains a comfortable class leader, but the Ducato’s excellent cargo capacity may turn some fleet operator’s heads just as much as the new headlight design.

Fiat says the clutch, brakes and front suspension components are capable of covering more ground before needing replacement and the durability of door latches and seals has also been improved. That nose job isn’t just style for style’s sake either – the front bumper is designed to be cheaper to repair than before and it is now easier to access the engine bay, reducing maintenance time. inside, there is new upholstery for the seats, extra cupholders and a new radio system, now with Bluetooth and uSB connectivity and the option of DAB. There is also the option to upgrade to Fiat’s ‘uConnect’ five-inch multimedia touchscreen, with or without TomTom-derived sat-nav. Otherwise, the cabin is broadly unchanged. That’s a shame as it is one of the Ducato’s weaker points. The seats are extremely firm and lack side support, the handbrake is a real stretch to release for taller drivers and overall fit and finish is a long way behind the Ford Transit. The clipboard holder fitted to older Ducatos has been altered to hold digital tablets and smartphones but it is quite a rattly, fragile-feeling item. The main difference between the Ducato and its Peugeot/ Citroën equivalents is under the bonnet. As before, the Ducato gets a choice of two diesel engines to power its front wheels: Fiat’s 2.3-litre multijet ii (available with three power outputs – 110hp, 130hp or 150hp) and the 3.0-litre multijet unit with 180hp. i tried the 150hp multijet ii and found it smooth and reasonably refined (certainly quieter than the Boxer). it pulls impressively too, even on steep inclines. A six-speed automated Comfort-matic transmission is available, and although there’s a delay between gears it is smooth and does make the driver’s life easier. According to Fiat, it also reduces fuel consumption by around 5%. New face aside, the updates might be slight but they are beneficial, particularly in terms of efficiency and durability. They’re enough to offset the modest price increase of around £350 over the existing Ducato.

fleetnews.co.uk/fleetvan June 2014 75

DRI v en

CITROËn ReLay 35 L3H2 HDI 130

0 & H WeLLBus High-quality conversion provides a versatile and well-equipped welfare bus Need to kNow

SpeC

n Conversion can be carried out on customer’s choice of large van n Can carry eight occupants n on-board washing and water-boiling facilities, microwave and toilet

Gross vehicle weight (kg): 3,500 Power (bhp/rpm): 130/3,500 Torque (lb-ft/rpm): 236/2,000 Passengers: 8 Payload (kg): 680 Comb fuel economy (mpg): 32.5 CO2 emissions (g/km): 195 Basic price (ex-VAT): £26,000

By Simon Harris e don’t often get the opportunity to try converted vehicles in Fleet Van, so we were delighted when O & H offered us a week in its latest welfare bus. O & H is better known for its ambulance conversions, but is keen to broaden its range of vehicles so has recently begun selling the Wellbus. The van we tried was based on the Citroën Relay, but O & H southern area sales manager Russ Boulton says the company can carry out the conversion on any van. The Relay used here is the 130hp 2.2 HDi L3 H2 with a 3.5 tonne gross vehicle weight, while the weight of the converted van is around 2.8 tonnes. Perhaps the most striking feature of the conversion on first glance is the high quality. There are five seats (each with their own three-point seat-belt, crash tested and insurance approved) around a table in the rear; the one closest to the door folds away for easier access. The colour scheme of the non-slip floor, seats and tables can be chosen to match a company’s own corporate colours. It contains a microwave, sink and water heater. The water heater can be timed, and there is a diesel-fuelled auxiliary parking heater. The rear compartment has an on-board chemical toilet, running water and an area to store tools. The area

ABove: the rear of the van features a toilet (behind screen) and sink

verdiCt There are other vehicles out there from other converters that do the same job, but this conversion sets the quality benchmark.

wellbus features a microwave, sink and water heater

is ventilated and can be heated, drying wet clothes overnight if necessary. The hard-wearing non-slip surface can also be hosed out for thorough cleaning. There is a rear-view camera with a display screen contained in the rear-view mirror, as well as a reversing alert for people outside the vehicle, and a microphone to help the driver listen for what might be in the van’s rearward path as well as using the camera to see. On the road there is barely a sound from the extra equipment on board, testament to the quality of the conversion and the items used. The 130hp engine has more than enough grunt to keep pace with traffic. The cost of the conversion would depend on the vehicle used and the exact specification. The price of the Relaybased Wellbus we evaluated was about £26,000 (excluding vaT), which is just £1,000 higher than the list price of the base van. Boulton said O & H can use good relationships with dealers to negotiate attractive prices on the base vehicle so the cost of the converted van remains attractive.

o & H can carry out the wellbus conversion of any van, not just the Citroën relay our test model used

76 June 2014 fleetnews.co.uk/fleetvan

drI V en

L2H2

VAuxHALL Combo Long-wheelbase high-roof model provides impressive carrying ability and costs Need To kNow

SpeC

n Fuel economy of 49.5mpg; Co2 of 150g/km n Load volume of 5cu m n Superb build quality and excellent road manners

Gross vehicle weight (kg): 2,460 Power (hp/rpm): 105/4,000 Torque (lb-ft/rpm): 214/1,500 Load volume (cu m): 5.0 Payload (kg): 1,000 Comb fuel economy (mpg): 49.5 CO2 emission (g/km): 150 Basic price (ex-VAT): £17,648

By Trevor Gehlcken he days of the clear-cut small, medium and large van sectors are long gone as manufacturers launch models into new niches to cater for every vehicle requirement. The Vauxhall Combo L2H2, on test here, is a good example of this. It started off as a small van, but with a long wheelbase and a high roof it actually carries the same amount of cargo as the manufacturer’s Vivaro model, which is described as a medium van. It is also cheaper to buy than the Vivaro (£17,648 ex-VAT against £18,945 ex-VAT) and it returns almost 10mpg more. The Combo’s main drawback is that it has only two seats to the bigger van’s three. From a fleet perspective, if you need to seat only one or two people and you don’t intend to subject your vans to any really vigorous work, the Combo in this

VerdiCT

We are going to see more and more of these sector-blurring models in the future. If you don’t need three seats, why pay more for a bigger van that holds exactly the same amount of cargo?

guise will save a company quite a lot of money over its lifecycle compared to opting for the Vivaro. under the skin the Combo is essentially a Fiat doblo Cargo, which was named as Fleet Van’s Van of the Year when it first appeared in 2010. Vauxhall has previously launched a long wheelbase low roof Combo, and now it has cranked this vehicle up to the max. It looks rather like a small van that has been working out at the gym for some time. It provides a load volume of five cubic metres and a payload of a full tonne. The Combo’s doblo Cargo roots mean it has both superb build quality and excellent road manners. It is powered by a 1.6-litre turbodiesel powerplant offering 105hp and a 214lb-ft of torque at a very low 1,500rpm, which equates to quite a turn of speed at low revs. Stop-start technology comes as standard, which is estimated to reduce fuel use by up to 15% in urban areas. despite being a legal requirement for manufacturers to fit electronic stability control as standard on all new vans from october, it is currently a £375 option on this van. Air conditioning costs an additional £590, rear parking sensors are £195 (a must in my book) and metallic paint is available for £380.

Combo L2H2 has the same load volume as a Vivaro

behind the wheel The only problem with vehicles like this is that they look rather curious – a bit like a van with a large coffin welded on the top. Assuming that looks don’t come into your buying equation (as

indeed they probably won’t), then this vehicle is a pretty nifty performer. we’ve already mentioned how much cheaper it is to buy and run than the equivalent Vivaro, but there is much more to it than just costs.

The Combo offers rock solid build quality that puts it right among the premium marques, while the driver’s seat is supremely supportive, with an adjustable lumbar bar. The rear doors unhook and open out to 270° to allow for easier

loading of the cargo area. The Combo also has a wipeclean non-slip load floor and twin side-loading doors. on the road, the 105hp unit is lively despite its diminutive 1.6-litre size and ride and handling are a delight.

fleetnews.co.uk/fleetvan June 2014 77

LONG -T ERM T E S T

LWB HI-ROOF ECONETIC 125

FORD TRANSIT Stunning new model is set to repeat success of manufacturer’s other models NEED TO KNOW ■ New Transit joins long-term fleet for six months ■ Econetic trim level features fuel-saving technology ■ Fuel economy of 39.2mpg; CO2 emissions of 192g/km By Trevor Gehlcken he Ford Transit has been Britain’s best-selling van since its launch in 1965. During the ensuing 48 years the figures have been impressive – seven million sales worldwide and at present more Transits are sold in the UK than Volkswagen Golfs. However, the old Transit began to show its age a few years ago. It’s declining powers can be seen by the fact that the rival Mercedes-Benz Sprinter has been named best heavy panel van at the Fleet Van Awards each year since their inception in 2007. Two years ago Ford launched a strategy to replace its entire van range in the space of 24 months. It has cost hundreds of millions of pounds and the results have been spectacular. Firstly we saw a new Fiesta Van and Ranger (both of which were received with rave reviews) and then the Transit name was split into four ranges – Transit Courier (city van to be launched later this year), Transit Connect (small van), Transit Custom (medium panel van) and the Transit itself. So far the Transit Custom has won the title of International Van of the Year 2013 while the Connect won the 2014 award. After a short time with our new long-termer, this shiny red Transit, I would not be at all surprised if this particular offering makes it a hat-trick for the blue oval in 2015. In short, it’s a stunner. I’ll be running this van for six months, enabling me to give it a thorough going over. At the time of writing, I’ve had the keys for only a week or so but, as you’ve probably already gathered, I am already hugely impressed. This test model is the long wheelbase hi-roof Econetic. It’s a big vehicle for everyday use and parking at the local supermarket can be a bind. But despite its length, this van is very manoeuvrable and has a pretty tight turning circle. The Econetic moniker means it has a stop-start system as standard among other fuel-saving technologies to increase the official combined fuel economy figure from 35.3mpg on the standard model to 39.2mpg, while CO2 emissions are a low 192g/km. At first, I thought the front-end looked rather ugly but I’ve

Transit has impressed since joining the Fleet Van fleet

78 June 2014 fleetnews.co.uk/fleetvan

Transit is going on sale in America for the first time – hence the large grille

SPEC Price (ex-VAT): £26,725 GVW (kg): 3,500kg Power (hp): 125 Torque (lb-ft): 258 Fuel (combined mpg): 39.2 CO2 emissions (g/km): 192 Cargo volume (cu m): 12.4 Payload (kg): 1,462

soon grown to like it. The reason for that huge grille is that it is very much aimed at the American market where the Transit is due to go on sale for the first time. Over there they get a stonking 3.5-litre V6 petrol engine which won’t make an appearance in the UK. It’s a shame Ford couldn’t have offered one or two here as a novelty. Had it done so I would have been first in the queue at Ford HQ in Dunton when they were being handed out!

“At first I thought the front-end looked ugly, but I’ve grown to like it”

running c o s t s

F l EE t nE W s.c o.uk / Va n s

BEst in cl ass – lWB high rooF MEDiuM Vans By Trevor Gehlcken n the past few years, manufacturers have been offering ever more van variants in a bid to fill any gaps in their ranges. the long wheelbase high roof medium panel van is a recent phenomenon and some of these models even offer the same cargo volumes and payloads as their bigger heavy panel van brothers. While it may seem strange to overlap the ranges, it makes sense as fleets which don’t undertake long journeys with heavy loads can now buy these cheaper vehicles and save money on fuel too. But which ones should you choose? the main thing to consider when buying new vans is to look at their wholelife running costs rather than their front-end prices. these figures can be accessed free at www.fleetnews.co.uk/vans. For our comparison (below), we have chosen four years/80,000 miles as the lifecycle and, as usual, only the top six contenders make this feature. the leasing rates have been supplied by www. comparecontracthire.com. the contenders in this month’s comparison are the citroën Dispatch, Fiat scudo, Ford transit custom, Mercedes-Benz Vito, nissan Primastar, Peugeot Expert, renault trafic, toyota Proace, Vauxhall Vivaro and Volkswagen transporter. the models chosen are the lowest powered on offer. those which didn’t make the final cut are the Proace, Vito, transporter and Vivaro.

The Ford Transit Custom is the latest LWB high roof medium van to hit the market

FOrd TraNsiT CusTOm 290

CiTrOËN disPaTCH

PeuGeOT exPerT

L2 2.2TdCi 100 Hr

L2 2.0Hdi 95 Hr

L2 1200 2.0Hdi 130 Hr

Leasing price: £303.54 Purchase price: £20,895 Load volume (cu m): 6.2 Fuel costs (ppm): 18.96 maintenance costs (ppm): 3.76 running costs (ppm): 38.07

Leasing price: £278.00 Purchase price: £19,274 Load volume (cu m): 7.0 Fuel costs (ppm): 19.25 maintenance costs (ppm): 3.51 running costs (ppm): 38.34

Leasing price: £302.94 Purchase price: £20,270 Load volume (cu m): 7.0 Fuel costs (ppm): 20.03 maintenance costs (ppm): 4.37 running costs (ppm): 39.97

Our verdict the newest van in the sector, this is a cracking new vehicle from the Ford stable that fully deserves its place at the head of our running costs chart.

Our verdict citroën’s aggressive marketing stance and free trafficmaster sat-nav and stolen tracking device help make this van the cheapest to lease.

Our verdict the Expert suffers for running costs against its citroën twin because it isn’t offered in the same lower-powered engine format. this is a good result under the circumstances.

NissaN Prima sTar

FiaT sCudO ma xi

reN auLT Tr a FiC 29 LW B

LWB 2.9t 2.0dCi 115 Hr

L2 130 Comfort Hr

2.0dCi 115 Hr

Leasing price: £292.50 Purchase price: £18,880 Load volume (cu m): 8.3 Fuel costs (ppm): 18.79 maintenance costs (ppm): 4.05 running costs (ppm): 40.18 Our verdict Due for replacement later this year, it is still well in the running where costs are concerned, mainly due to its low front-end price. the biggest load volume and lowest fuel costs.

Leasing price: £336.79 Purchase price: £20,440 Load volume (cu m): 7.0 Fuel costs (ppm): 20.77 maintenance costs (ppm): 4.16 running costs (ppm): 40.50 Our verdict as with the Expert, the scudo features a higher-powered engine than its citroen twin so is more expensive to run. But a good performance nevertheless.

Leasing price: £303.24 Purchase price: £20,454 Load volume (cu m): 8.3 Fuel costs (ppm): 20.41 maintenance costs (ppm): 3.73 running costs (ppm): 40.58 Our verdict again on run-out with a replacement on sale later this year, the current trafic never ceases to amaze after 14 years in production. it’s a cracking performer for its age.

fleetnews.co.uk/fleetvan June 2014 79

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