FleetVan B E S T P R A C T I C E F O R B R I TA I N ’ S L I G H T VA N O P E R AT O R S
June 2013 fleetnews.co.uk/fleetvan ÂŁ5 where sold
PROTECTED? How to ensure your van fleet, vehicle cargo and drivers are safe and sound Case study: Rhodar
Raising standards by employing a professional
Insight: Van conversions
A comprehensive guide to achieving the perfect body
Driven: Mercedes Sprinter
New hi-tech model could soon be the safest choice
Presentations, Q&A’s, case studies, best practice guidelines and networking ...all under one roof at one of the biggest events in the LCV calendar
10 SEPTEMBER 2013 – PETERBOROUGH ARENA, CAMBRIDGESHIRE
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Contact us Fleet News, Media House, Lynch Wood, Peterborough PE2 6EA. Email fleetnews@bauermedia.co.uk If you or someone you know is aged between 16 and 24 and is interested in work experience opportunities at Bauer Media go to www.gothinkbig.com Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Deputy editor Simon Harris 01733 468308 simon.harris@bauermedia.co.uk Associate editor Trevor Gehlcken Contributors Mark Cartwright, John Charles, Ben Rooth, Chris Lowndes (photographs) Production Head of publishing Luke Neal Production editors Andrew Ryan Alan Salt Designer Charlotte Boon Advertising Commercial director Sarah Crown 01733 468320 B2B commercial manager Sheryl Graham 01733 468256 Account managers Wendy Cowell 01733 468046 Lucy Herbert 01733 468800 Lisa Turner 01733 468345 Stuart Wakeling 01733 468342 Marcus Woods 01733 468269 Head of project management Leanne Patterson 01733 468332 Project managers Angela Price 01733 468338 Kerry Unwin 01733 468327 Telesales/recruitment b2brecruitment@bauermedia.co.uk 01733 468275/01733 468328 Events Event director Chris Lester Event manager Sandra Evitt 01733 468123 Event organiser Kate Howard 01733 468146 Events administrator Nicola Baxter 01733 468289 Publishing Managing director Tim Lucas 01733 468340 General manager Ian Richardson 01733 468555 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Printing: Headley Brothers Ltd, Kent © 2013 Bauer Consumer Media Ltd ISSN 0953-8526. No part of this magazine may be reproduced in any form without the written permission of the publisher. You can purchase words or pictures for your own publications. Phone 01733 465982 or email syndication@bauermedia.co.uk. Fleet News will not accept responsibility for unsolicited material. Editor cannot accept responsibility for statements by advertisers and contributors whose views do not represent those of the publisher. Member of the Audit Bureau of Circulation Copyright: Bauer Consumer Media Ltd
CONTENTS 4 I Best practice: tyres
The huge safety and cost implications of tyres.
6 I News digest
Stories you can’t afford to miss from the last month.
10 I Model update
What’s new, and which vans are getting upgrades?
12 I Fleet operations: body conversions
With so many options available, how can fleet operators get the one that’s exactly right for them?
14 I Risk management: road safety
Five years on, the Corporate Manslaughter Act still influences safety policies.
19 I Remarketing
Values may have peaked as ‘common sense pricing prevails’.
58 I Case study: Rhodar
Safety placed at the heart of award-winning fleet’s culture.
60 I Cover feature Fleet management: security
Setting up a security strategy for your van fleet starts with the vehicle purchase.
66 I FTA conference
Beware the threat of legislation.
68 I Driven
Renault Kangoo, Mercedes-Benz Sprinter, Fiat Doblo Cargo XL, Volkswagen Transporter.
NEXT ISSUE – July 2013 Environment insight
Scheduling and routing to cut CO2 and costs
Operations insight
Livery – options and impact on re-sale values
Case study
Wakefield & District Housing fleet profiled
fleetnews.co.uk/fleetvan June 2013 3
B e n c h m a r k i n g b y t h e F TA Ty r e s
Give your van tyres the attention they deserve It’s easy to take tyres for granted but they have huge safety and cost implications By Mark Cartwright, of respondents to a recent survey of FTA van head of LCVs, Freight Transport Association operators insisted upon their drivers checking ne common denominator across their tyres (as part of a more general pre-use 120 who every van fleet is a huge dependency check) every day, along with many operators on four hand-sized areas of rubber also use external audits and random manageconnecting each vehicle to the road’s ment checks. surface. This doesn’t, however, explain the fact that many 100 Of course, we are talking about tyres and, operators, maybe the SME/one-man band busidespite the crucial role they play in a vehicle’s nesses, aren’t stepping up to the plate. VOSA safety, they are often overlooked in reports that many of the 50% first80 expericomparison with other aspects of time MOT van failures fleet maintenance. enced are down to something as It’s easy to take tyres for granted simple and straightforward to Perecentage of van – they just get on and do their job remedy as tyres. Once operators who insist on 60 again, day in, day out. evidence that operators who are pre-use driver checks But of all the components on a taking their responsibilities serimodern van, they arguably ously are outperforming the rest! 40 most contribute the most to road safety Interestingly, although as well as having a major influence respondents required a driver on both fuel economy in particular check, only around three-quarters more fuel used when tyres of them required their drivers to and operating costs in general. 20 are 20% under-inflated There is also the legal requirespecifically check and record tyre ment to ensure tyres have an pressure and tread depth. adequate tread – a minimum of 1.6mm over the This is certainly an area that could be improved centre three-quarters of the tyre and around the as it clearly provides a valuable 0 stream entire circumference for vans not over 3.5t GVW of management information and facilitates a – with drivers facing three points on their licence greater degree of confidence for operators in the and a potential fine of £2,500 per tyre. driver check process over and above a simple It was reassuring to learn that the great majority visual check.
O
94%
What checks do your drivers make? 13%
21%
13% 31%
44%
7% 29%
43%
3%
Compliance procedures 100 94% 80
60
40
44%
44% 31%
20 13% 0 Pre-use driver checks
Regulare ‘Duty of Care’ inspections
Random management inspections
4 June 2013 fleetnews.co.uk/fleetvan
External audits
Gate checks
Tyre Depth
Tyre Pressure
n None n Occasionally n At regular intervals but not every check n At every pre-use check Cost benefits “Our drivers carry out a visual check every day as part of their routine with a weekly in-depth check where we record tread depths,” says David Monks, deputy logistics manager at Nottingham University Hospital. It’s not just the confidence in your legal compliance that benefits from regular tyre checks. Under-inflated tyres increase cost. They wear out more quickly and damage fuel economy – a van with tyres under-inflated by 20% will burn around 3% more fuel. For an average van running, say, 20,000 miles per year that’s £350 per year wasted! Another topic that crops up whenever tyre management is discussed is the tread depth at which tyres should be changed (legally 1.6mm). Around two-thirds of our respondents reported that they changed at 2mm. Many felt this was striking the balance between maximising tyre life and the safety/compliance requirements. A further 20% waited until the tyres were at their legal minimum before changing, with the remaining operators changing at around 3-4mm as they felt this gave a greater degree of wriggle room in their legal responsibilities and felt the perceived greater performance in marginal weather conditions was worth the cost.
At what depth do you change tyres? 7%
What is your tyre purchasing policy?
20%
7%
EDITOR’S COLUMN
25%
13%
63%
66%
n We have a national agreement with a major provider n We purchase locally n It is part of our finance arrangement with our vehicle provider
n 3mm n 4mm n 1.6mm n 2mm
Do you use specialist tyres? 80 70 60
75%
50 40 30 20
25%
25%
10 0
Low rolling resistance tyres
Winter tyres
Off-road tyres
“Something we weren’t really expecting from our survey was the number of operators who used specialist tyres in their operation – especially low rolling resistance tyres” Something we weren’t really expecting from our survey was the number of operators who used specialist tyres in their operation – especially low rolling resistance tyres, with 75% of operators specifying these. The other continuing trend is around the use of winter tyres. Clearly, both trends are a reflection of the times, with the continued search for cost improvements and the heavy recent winters. How are operators purchasing their tyres? The majority, almost two-thirds, buy through a national agreement with one of the ‘major
providers’, with just 13% sourcing locally. So what can we conclude? As we’ve seen before with other compliance related issues, those operators who take their obligations seriously run, by and large, a tight ship. Most respondents had the right kind of protocols in place to ensure safety and their duty of care. Tyres are easily forgotten and they take enormous abuse day after day. They are the only part of the vehicle in contact with the road and have a significant impact on fuel economy. It pays to take care of them.
Stephen Briers, editor-in-chief, Fleet Van an sales are up so far this year by 13% with fleet sales driving the growth after a 19% rise in volume compared to the corresponding period in 2012. Although numbers are still well down on a few years ago, this represents welcome signs of a recovery – not just for vans but for the economy as a whole. Smaller fleets are driving the growth if the research we have recently undertaken for the Fleet200 listing of the UK’s 200 biggest fleets is anything to go by.
V
“Van operators are switching from outright purchase to contract hire” Here, vans have risen by just 0.48% – equivalent to 1,175 units – compared to last year. That’s just 9% of the actual registrations increase of 12,637. Leasing companies are helping to fuel the rise as more of them turn their attention to the van sector. It’s timely: van operators are starting to switch from outright purchase to contract hire – another clear trend seen among the largest fleets. Outright purchase works if you can source money at a cheaper rate than the leasing company, you have surplus cash in the bank, you are happy to take on the residuals risk and you have the expertise to manage the fleet. In all other cases, contract hire is the best option for cost efficiency and liquidity.
fleetnews.co.uk/fleetvan June 2013 5
The month in news w w w.fleetnews.co.uk /vans/
News digest F TA VA N E XC E L L E N C E M E M B E R S G E T P R E F E R E N T I A L R AT E S W I T H H E R T Z
Hertz UK has launched a new service offering for accredited members of the Van Excellence scheme backed by the Freight Transport Association (FTA). As a Van Excellence industry partner, Hertz will provide preferential rates for van and car hire, vehicle telematics and Hertz On Demand vehicle pooling technology. Additional exclusive benefits from Hertz will include access to contingency vehicles, priority service response, dedicated fleet management and the Hertz/FTA online motoring shop. Van Excellence accredited members will also gain free membership to Hertz Gold Plus Rewards, Nectar loyalty points with every rental, and discounted Hertz leisure rates worldwide for employees. Michel Taride, group RAC president at Hertz International, said: “The launch of our exclusive offering for accredited Van Excellence members recognises and rewards those fleet operators who share our goal of raising these standards across the van sector.”
F R A I K I N B O O S T S R E N TA L F L E E T Fraikin is replenishing its existing 1,000-strong rental fleet with an order for more than 200 new vehicles in response to a rise in demand and replacement of older fleet. The new order comprises a range of vehicles suited to particular markets. This includes 159 vehicles, a mix of 7.5t, 18t and 26t rigid box vans and curtainsiders and a number of tractor units, which have been supplied by MAN and bodies manufactured by Cartwright. Furthermore, in order to provide additional flexibility for customers, Fraikin has also taken delivery of 30 Volkswagen Crafters with extra-long wheelbases together with 30 Ford Transit Luton vans with tail-lifts – a first for the company. Mark Newnes, operations director of Fraikin, said: “Companies are increasingly seeking to source vehicles on a rental basis so we are updating our rental fleet in response to continued customer demand. “We have also noticed a growing trend of companies looking to rent vehicles to give them maximum flexibility in managing their fleets.” Fraikin operates a fleet of nearly 20,000 vehicles and a network of workshops nationwide.
DEMAND FOR LCVS TO INCREASE
BRITISH GAS CHOOSES FORD TR ANSIT British Gas has ordered 520 Ford Transit vans for its central heating installation engineers. The company says it chose the Transit primarily for its class-leading economy and low emissions, provided by its Dagenham-built 125PS 2.2-litre TDCi diesel engine. Colin Marriott, fleet general manager, British Gas, said: “It was a no-brainer really, the vans used by our central heating installation engineers are a vital resource for them and they love the Transit. “On top of that, by sticking with the same body shape, we have been able to take advantage of being able to recycle all the racking systems, saving tons of steel, energy and a lot of money.” The vans also meet the company’s sophisticated vehicle wholelife cost model, which also determines the replacement timing for its vehicles. All the Transit vans being supplied are 330 medium wheelbase, medium roof models, equipped with air-conditioning, speed limiter and winter tyres, enabling the engineers to carry out their work in the toughest of environments. Thirty-two of the vans will be four-wheel drive versions, which will be located strategically around the country by British Gas, for use in the most severe weather conditions.
6 June 2013 fleetnews.co.uk/fleetvan
Demand for light commercial vehicles (LCVs) is set to increase in the freight, logistics, post and railway transportation sectors by 8% within the next three years, research suggests. Northgate Vehicle Hire says the rise in demand for LCVs was attributed to a predicted rise in the forecast of output (GVA) annual growth rate, which is expected to lead to more than 140,000 vehicles in use by businesses operating within the freight, logistics, post and railway transportation sectors by 2016. The research also revealed a rising demand for fuel efficiency among fleets. Jonathan Pearce, head of marketing at Northgate Vehicle Hire, said: “We have already experienced a rise in demand for flexible vehicle hire and complete fleet solutions within the industry and feel assured that this will continue as the sector continues to grow over the next three to five years.”
ONE IN 10 C OMPA N Y DR I V ER S IN T HE UK ARE HIGH RISK One in 10 company drivers has such poor hazard perception, attitude, knowledge and observational skills that they pose a serious danger to themselves and other road users, according to E-Training World. Analysis from the past 10 years found a steady trend revealing that on average 9% of company car, van and HGV drivers are high risk, 68% are medium risk with the remaining 23% low risk. The data comes from E-Training World’s assessment and training programme which has been used by major fleet operators in the UK, as well as many smaller companies with at-work drivers.
BUILDING FIRM UPGRADES FLEET WITH LEX AUTOLEASE
N O R T H G AT E A N N O U N C E S NEW RECRUITS Northgate has appointed Mike Strong, Steve Fay, Michelle Hughes and Neil Skellam as national new business development managers as part of its 2013 business growth strategy. The four new recruits join Northgate as the vehicle hire provider undertakes a major repositioning of its offering. They will be tasked with communicating Northgate’s complete fleet management solution offering to customers, both old and new, across the UK.
Building firm DR Jones Yeovil is set to reduce its carbon footprint and cut fuel costs after commencing a £1 million investment with Lex Autolease to upgrade its fleet of vehicles. The company, which is a division of the Jones Group, a regional building contractor with branches across the south west, has ordered 100 new vans and 10 cars from Lex Autolease to replace the ageing and costly vehicles in its fleet. Mark Porter, operations director for the Jones Group, said: “We choose Lex Autolease because it provides us with an end-to-end solution which covers all our needs.” The first batch of 10 Citroën vans and two cars has been delivered to the Yeovil-headquartered company and once the full complement of 110 vehicles are operational Lex Autolease conducted a detailed review of the company’s working practices, which included assessing the different types of equipment staff are required to carry and the distance they travel between jobs. Based on these findings, it provided the company with four different types of van which have been customised to meet the needs of a specific role. After a period of evaluation, the Jones Group selected vehicles manufactured by Citroën and include Nemo, Berlingo, Dispatch and Relay vans.
ICEL AND ENHANCES HOME DELIVERY SERVICE WITH ROUTE MONKEY Food retailer Iceland is speeding up its home delivery service by rolling out Route Monkey’s scheduling software to its 800 stores and 1,300 vehicles. Along with scheduling software, Route Monkey is also supplying all of Iceland’s drivers with accurate digital signature capture technology, via PDA devices with GPS tracking. John Mackie, of Iceland, said: “It enables us to optimise the use of our fleet and driver resources, while also reducing our fleet mileage and emissions.” Iceland carried out a trial in 12 stores before moving to a larger pilot project. Route Monkey demonstrated savings and efficiency benefits at each stage. “We conducted extensive trials and were extremely pleased with the return on investment,” said Mackie. “Fundamentally, this technology allows us to do more deliveries in fewer cumulative miles.” The retailer aims to have the scheduling and PDA technology installed in 300 stores by the end of the summer, with a planned roll-out for its remaining stores in early 2014.
S A L E S B O O S T F O R C O R S AVA N In the first five months of 2013, Vauxhall has seen sales of its Corsavan increase by nearly a quarter compared to the same period in 2012. Corsavan sales to small businesses have seen a particularly big increase, with sales up by more than 70% year-on-year. Richard Collier, national commercial vehicle sales manager for Vauxhall, said: “We’re delighted with the significant sales growth that Corsavan has experienced so far in 2013.”
fleetnews.co.uk/fleetvan June 2013 7
89g/km Corsavan
126g/km Combo
174g/km Vivaro
199g/km Movano
COMMERCIAL VEHICLES The Wheels of Business
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To find out more, please visit your local Vauxhall Commercial Vehicle Retailer, call Vauxhall Fleet on 0870 010 0651^ or visit www.vauxhall.co.uk/fleet
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Model update
What’s new on the road A look at what’s being launched and which models are getting an upgrade
Stop & Start boost for Relay
Volkswagen Crafter – added standard spec
Crafter gets additional standard spec Volkswagen has upped the ante in the large panel van sector by adding £700-worth of standard specification to the Crafter. In the cab, the added spec includes Bluetooth, multi-function steering wheel (also adjustable for reach and rake), driver armrests, electrically-operated and heated door mirrors and cruise control. The load area now has a wooden floor as standard, plus an entry
More pulling power for pick-up Isuzu has increased the pulling power of the D-Max 4x4 by 500kg to at least 3.5 tonnes. The range includes single, extended and double-cab body configurations. Double-cab models are available in four specifications – base, Eiger, Yukon and Utah. William Brown, general manager at Isuzu UK, said: “The D-Max already boasts class-leading fuel efficiency, residual values and a five-year/125,000-mile warranty. However, the addition of segment-best 3.5-tonne braked towing capacity demonstrates that the D-Max is the pick-up of choice for business and recreational users.” Isuzu D-Max – top puller
10 June 2013 fleetnews.co.uk/fleetvan
handle and 270 degree-opening rear doors. Prices for the Crafter range start at £21,050 ex-VAT, but VW’s current offer includes contract hire and finance lease rates from £299 a month (plus VAT and initial rental), including a £1,000 initial rental contribution and four free services. Alternatively, if financed with lease purchase or hire purchase, a £2,000 deposit contribution is available.
The new Citroën Relay 30 L1H1 e-HDi 130 and Relay 35 L3H2 e-HDi 130 Stop & Start six-speed manual vans are on sale after their CV Show launch in April. Prices are £19,660 and £24,660 ex-VAT respectively. At 32.5mpg on the urban cycle, fuel economy of the Relay 30 Stop & Start is 9.2% (Relay 35 27.7mpg) more economical than its equivalent and its CO2 emissions 10g/km lower, at 189g/km. It also boasts the range’s best combined cycle fuel economy of 39.2mpg (7.2l/100km).
Citroen Relay – now greener and leaner
Ducato matches rivals with safety extras Fiat has added Electronic Stability Control (ESC) as standard on all Ducato models. The life-saving device, which helps stop sideway skids, is already standard on rivals Ford Transit, Iveco Daily, Mercedes-Benz Sprinter and Volkswagen Crafter. ESC also incorporates a host of other technologies. Load Adaptive Control (LAC) identifies the size of load and the vehicle’s centre of gravity to enable the systems to work at peak effectiveness. Hill Holder makes starts on slopes easier by momentarily holding the brake after the drivFiat Ducato – ESC added as standard
er’s foot has released the pedal. Hydraulic Brake Assist (HBA) increases braking pressure under emergency conditions. Anti-Slip Regulation (ASR) acts on individual brakes and/or temporarily reduces power to the engine to counteract the effects of wheel skids while Motor Schleppmoment Regelung (MSR) keeps torque at the wheels following a sudden downshift on an incline. At the time of going to press, ESC was still a paid-for option on the Citroen Relay and Peugeot Boxer, which are rebadged versions of the Ducato.
Pick up 3.5 tonnes* of pulling power with the all new Isuzu D-Max. With maximum power and class-leading towing, this pick-up has all the drive you need. Built, sold and used by professionals it’s tough, hardworking and dependable and you don’t have to break a sweat to get hold of it.
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Fleet operations Body conversions
TOP TIPS TO ACHIEVE THE PERFECT BODY With so many options for body conversions available, how can fleet operators ensure they get the one that’s exactly right for them?
W By Ben Rooth
ith ever-increasing pressures on profit margins, and the forthcoming changes to type approval (see panel opposite), there’s never been a more important time to get the right body conversions in place. At their simplest, these conversions ensure that light commercial vehicles (LCVs) are best suited to an organisation’s working needs to maximise productivity. But there are other direct cost benefits. Conversion specialists are now geared up to install lightweight products that can help cut running costs and carbon emissions. Kevin Woodward, managing director of the vehicle enhancement division of racking specialist
12 June 2013 fleetnews.co.uk/fleetvan
Bott, explained: “With petrol and diesel prices at an ultimate high, fleet managers are facing increasing pressures. They need to ensure their vehicles aren’t being overloaded as part of the way they manage these rises in fuel costs.” Bott has addressed the issue by developing its own lightweight range of racking weighing 30% less than what was previously available without compromising on crash-test standards. Many body conversions – such as internal racking or glass-carrying racks – also demonstrate duty-of-care compliance by ensuring that equipment can be properly secured when a vehicle is in motion. In short, the right body conversion can bring myriad efficiency benefits for vans, drivers and employers. Both LCV manufacturers and the companies
that convert them clearly have a fundamental part to play in this process. Further to recent legislative changes, many of these upgrades need to be carried out to requisite standards by accredited professionals. To correctly brief both manufacturers and thirdpart suppliers, fleet managers must consider exactly what is required from their conversions. Customised racking For example, if an engineer is undertaking emergency repairs in isolated areas they’re going to need racking that contains all necessary tools, spare parts and equipment. Bott has recently launched a CGI tool that helps its customers explore the possibilities of what can be achieved with professional vehicle conversion.
Implications of the ECWVTA
Supertrucks specialises in the installation of external glass-carrying racks It uses computer-generated imagery to simulate the interior of a van configured with its range of van racking. Woodward added: “Sometimes it is hard for companies to visualise exactly how they can use products to tailor their storage and workspace systems according to their needs. “With this new interactive tool they can see the van racking working and how it can benefit them in a way that increases productivity and improves efficiency.” But the onus remains on fleet managers to shop around to find both the product and the deal that’s right for their needs. The process of turning a plain white van into a vehicle that’s tailored to meet operators’ requirements commences with fleet managers specifying the factory-fitted options they need. These might include: additional side load doors; uprated suspension; single or double passenger seats; half or full bulkheads and much more. Then, when the vehicle is delivered, it is possible for dealers to quite legally fit many smaller conversions such as roof racks, tow bars or ply or polypropylene linings. But there’s now a legal requirement for more specialist conversions to be undertaken by specialist companies. ‘Ready to Run’ partners Citroën witnessed sales of its LCV range increase on a like-for-like basis by 31.74% to 3,856 in the first three months of 2013. It attributes this increase to purchases by large national fleets as well as small and medium-sized enterprise (SME) fleets. The specialist conversions are carried out by one of the manufacturer’s Ready to Run partners. They are listed in the Citroën price list as specialist vehicles and sold as completed vehicles with a full Citroën warranty. For example, tipping body manufacturer Tipmaster supplies Citroën’s Relay range of trucks with tippers, modifications specialist Ingimex installs drop-sides while bodywork
Conversion specialists are geared up to install lightweight products that cut running costs and carbon emissions expert Buckstone Motor Bodies ensures that the vans also meet customers’ precise body work requirements. In April, the Environment Agency (EA) bought 31 Citroën Berlingo HDi 90 manual L1 850 Enterprise vans as part of its commitment to reduce the carbon footprint of its LCV fleet. The EA worked with Citroën’s ‘Ready to Run’ racking specialist Bri-Stor to develop a number of internal racking layouts and equipment specifications according to the needs of staff involved in flood defence and maintenance work or others who carry out environmental management monitoring. Bri-Stor equipped the Berlingos with its hightensile steel racking – which is 45% lighter than the system previously supplied to the EA – as well as white polycarbonate load area linings and roof light bars. Residual value implications Fleet managers also need to be mindful of ensuring that a body conversion doesn’t detract from the vehicle’s residual value when the hire period concludes. Some suppliers – such as Supertrucks, which specialises in the installation of external glass-
New laws governing body conversions on vans are being phased in over the next four months. The European Community Whole Vehicle Type Approval (ECWVTA) that came into force in April requires approval for many modifications made to any LCV up to 3.5 tonnes. The Vehicle Certification Agency is the body charged with granting this approval. Following months of industry lobbying, it was agreed that the vast majority of simple modifications – such as ply-lining, racking and load restraints – will remain outside the scope of the ECWVTA. But more complex modifications – such as audio units, glazing and security locks or any changes that restrict the driver’s vision – will be covered by the VCA Enhancement Scheme. While there is no legal requirement for individual vehicle inspections – as was originally proposed – the converter modifying the van will need to have their processes approved by the VCA. From fleet managers’ perspectives, it’s important that the legislation is adhered to and the right documents proving due diligence can be provided by the third-party supplier. For more information click on www. fleetnews.co.uk/van-type-approval
carrying racks – have developed a range of products that don’t require the sides of vans to be drilled. This means that at the end of their first life the contract hire company can remove the racks and sell the vehicles without the need for remedial work. The St Helens-based company has just supplied and fitted six VW Crafter vans with full interior and exterior glass racking, complete with its standard three-year or 100,000-mile warranty. The Crafter long-wheelbase, high-roof vans have been fitted with Supertrucks’ lightweight, all-alloy racking which has been designed to allow the safe carriage of double-glazed window units, doors and door frames as well as sheet glass. The vans will be operated by a firm of glaziers named 7 Day Windows on contract hire from the Burnt Tree Group. Supertrucks chairman Peter Wright said: “This fleet order demonstrates our ability to meet both customer requirements and those of contract hire and leasing companies. “Most of our external racks are installed without the need to drill a van’s side panels – a feature that has significant value to customers wishing to maximise residual values at the end of a three or four-year operational life.”
fleetnews.co.uk/fleetvan June 2013 13
Risk management Road safet y
MANSLAUGHTER LAW STILL A FLEET FEAR Five years on, the Corporate Manslaughter Act still influences safety policies
M
By Trevor Gehlcken ost people will remember 2008 as the year in which the financial world almost collapsed around our ears in a crash from which we are still recovering. But it was also the year in which the Corporate Manslaughter Act came into force – and van fleet operators would do well to bear the contents of this piece of legislation in mind when running their vehicles. At the time, many experts in the legal world predicted a flood of prosecutions against managers of both car and van fleets as draconian new health and safety rules were applied. This hasn’t happened – in fact, to date not one single fleet has been prosecuted. But the danger is that if the focus of fleet operators was suddenly concentrated more on safety at the time when the law came into being, that focus may eventually dim as time goes by. Anyone who operates a fleet of vans should have a constant eye on safety, as failure to do so can result in fines, private litigation and a whole host of financial losses for the company concerned. Failure to operate in a safe and legal manner may result in a variety of consequences. Drivers could be banned (thereby leaving you short-staffed), they could be injured (in
14 June 2013 fleetnews.co.uk/fleetvan
£13.4m
Fine imposed on CocaCola after driver caused accident while on phone
836
people killed or injured each year on hardshoulder or layby
which case they might try to sue your company for injuries caused), other people involved in any crash will certainly sue for damages and of course in the event of a death crash, officers from the Vehicle and Operator Services Agency (VOSA) may well come knocking on your door asking awkward questions. Elsewhere in this issue (see FTA conference report, page 66) VOSA officers have already warned van fleet operators that they will be targeted more this year after a catalogue of bad practices was uncovered. At the time when the Act was first introduced, van fleets were left in no doubt as to what was likely to happen after a death crash. The former Metropolitan police chief inspector Ian Brooks warned: “The police powers have been enhanced to include determining why a collision occurred, who was responsible and to hold individuals and organisations to account. The requirement to investigate all road deaths as unlawful killings has clear implications for the management of work-related road risks.” That was five years ago, and it would be easy to see how fleet operators have been lulled into a false sense of security. But several facts have emerged recently that show clearly that the risks are still as great as they ever were. A study by E-Training World, for example, revealed that one in 10 van drivers had such poor hazard perception, attitude, knowledge and observational skills that they posed a serious danger to both themselves and other road users. The data comes from E-Training World’s assessment and training programme, which has been used by some of the highest-profile
fleet operators in the UK, as well as many smaller companies with at-work drivers. Graham Hurdle, managing director of E-Training World, said: “The aim of any risk assessment is to evaluate the strengths and weaknesses of a driver and establish what risk they pose when behind the wheel. Our system achieves that by taking the long-established methods of evaluating a driver’s attitude, knowledge, concentration and observation and hazard perception. “Each section of the assessment carries equal weight and we do not penalise drivers if they are young, drive high mileages or have points on their licence. The risk rating is calculated on their ability and has proven to be extremely accurate. Using the results, companies can not only enjoy the peace of mind that they have adhered to their duty-of-care requirements but can also make intelligent decisions regarding whether a driver needs training and what form that training should take.” Health and Safety at Work Act Another expert who believes that fleet managers are not taking risk seriously enough is Philip Somarakis, head of the motoring offences team at solicitor Davenport Lyons. He said: “Many fleets have introduced and strengthened existing road risk policies but whether they are being enforced is another matter. “Sadly, there is no doubt that many organisations, especially smaller ones, don’t have fleet managers and don’t have any policies in place. They are at the same risk of a workrelated road death as before.” And it is not just the Corporate Manslaughter Act that fleets should fear. In 2009 the Health and Safety (Offences) Act was introduced, which upgraded the powers of the Health and Safety at Work Act 1974, and it does not need someone to die before a prosecution ensues. The Act extended the £20,000 maximum Magistrates’ Court fine to a wider range of health and safety offences for which fleet managers, including directors, could be sentenced – up to two years in a prison, a fine, or both, if convicted in a Crown Court. Health and safety legislation could be used to prosecute an employer whose management failings resulted in a crash that was caused by, for example: n Illegal/unsafe tyres n A poorly maintained vehicle
n An employee being forced to work long hours So what should van fleet operators do to ensure they remain safe from prosecution? As with most fleet management matters, the solutions are fairly straightforward. Firstly, it’s important to check that drivers actually have a licence for the vehicles they use. It’s surprising how many operators fail to do this. Once behind the wheel, technology can play its part in keeping drivers from crashing. Many telematics systems, for example, will feed vast amounts of data back to the manager’s desk via a PC. John Wisdom, managing director at telematics provider Ctrack, told Fleet Van: “Advances in vehicle tracking in recent years mean it is now possible to use the technology to access management information to help better manage risk. “However, not all telematics systems possess the same functionality in terms of reporting and monitoring, so it is important to understand your fleet requirements when selecting a solution. “We know from the work we undertake within the insurance sector that around 60% of a vehicle’s risk profile is attributable to its usage patterns while the remaining 40% relates to driver behaviour. Vehicle tracking can be used to measure and identify trends, patterns and events in both vehicle usage and driver behaviour, so a fleet manager can use this insight to identify risk within the business.” Meanwhile, incident reporting that details events leading up to an accident can provide a better understanding of what has occurred and support a businesses defence with hard facts. Wisdom said: “For example, our tracking hardware incorporates a snapshot buffer which triggers and stores data when harsh events occur. As a result, it gathers 90 seconds of data prior to the event and 30 seconds post- event. In addition,
“One in 10 drivers had such poor hazard perception, attitude, knowledge and observational skills that they posed a serious danger both to themselves and other road users”
fleetnews.co.uk/fleetvan June 2013 15
Risk management Road safet y information such as acceleration is gathered at millisecond frequency to provide granularity.” ARI Fleet UK offers an online at-work driving safety programme – RiskMaster – that lists licence checking, risk assessments and employee ‘permits to drive’ among its arsenal of safe-driving interventions. Carla Kersey, operations manager – accident and risk, ARI Fleet, told Fleet Van: “Road crash investigators will aim to identify an individual in any organisation who is responsible for managing occupational road risk. Where no evidence can be found of an organisation planning, delivering, monitoring and reviewing road risk, charges could be the result. “Directors and management must be able to demonstrate how they manage road risk and that someone is responsible for managing that risk. But directors cannot simply delegate the management of that risk – fleet managers must be given the support, the tools and the authority to be able to manage the risk effectively. Legal responsibilities “Good employers and diligent managers have nothing to fear. A well-managed business manages safety well, but the courts have it within their power to severely punish individuals, as well as organisations, that fail to meet their legal responsibilities. “Critically, under the Health and Safety (Offences) Act, prosecutors only have to prove a breach of health and safety. The punishment and subsequent publicity can be severe so it is imperative that public and private sector fleets have policies and procedures in place.” Another useful device that can help determine blame in the event of an accident is the camera that clips inside the windscreen of a van and constantly takes a moving picture of the road ahead. Fleet Van recently tested a device offered by RoadScan and it proved easy to use and extremely useful when an actual incident was recorded after a near-miss that was not our fault on the M25. The downside of these systems is that they aren’t exactly cheap and if you have a large fleet of vans, you’ll probably spend most of your working life unplugging the cameras, plugging them into your PC and downloading the video clips. Meanwhile, a hi-tech solution has been launched for operators whose drivers use their mobile phones while driving, an illegal action that is reckoned to be more dangerous than drink-driving. In America in May 2012, Coca-Cola was fined more than
CORPORATE MANSLAUGHTER ACT FACT FILE An organisation will be found guilty under the Corporate Manslaughter and Corporate Homicide Act if ‘death is caused by a gross breach of its duty of care that is substantially due to senior management failure’.
1
Convicted businesses and organisations can expect to receive fines running into millions of pounds – up to 10% of annual turnover – publicity orders and a remedial order.
2
Senior individuals can still be prosecuted under older manslaughter laws and the Health and Safety at Work Act if the health and safety failure is caused by the consent, connivance or neglect of a director.
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Less senior members of staff could be prosecuted under the Health and Safety at Work Act if they failed to take reasonable care for the health and safety of themselves or others.
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“Good employers and diligent managers have nothing to fear” Carla Kersey, ARI Fleet
16 June 2013 fleetnews.co.uk/fleetvan
Roadscan offers a windscreen camera, with footage that can be downloaded on to a computer for later analysis $21 million (£13.4m) when one of its employees caused an accident in a company vehicle while on the phone. Romex World, a technology company specialising in workforce management solutions, has developed a new Driver Distraction Prevention (DDP) app, which can be installed on to employees’ telephones and cuts off and blocks voice calls and locks the keypad to prevent texting or emailing. Employees receive an announcement via their phone if there is a missed message, requiring them to stop in a safe place to take the message. A strict driver manual should be read thoroughly, with drivers signing a document confirming they have done so and agreeing to abide by the company policy. A recent study by the Survive Group, a partnership between the Highways Agency, the Association of Chief Police Officers, the breakdown/recovery industry and other service providers, found that more than one in four drivers had endangered their lives by stopping on the hard shoulder of a motorway in a non-emergency. Survive said that since 2000, 836 people on average in the UK have been killed or injured each year in incidents on hard shoulders and lay-bys. In addition, inappropriate use of the hard shoulder is an offence under motorway traffic regulations and incurs up to a £60 fine and three penalty points.
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LCV values stall in May L
ight commercial vehicle values fell back from the record levels reached in April, according to BCA’s latest Pulse report, although May still recorded the second highest average monthly value since Pulse began reporting in 2005. The average May figure of £4,870 for all LCVs represented a fall of £128 (2.5%) compared to April. Average age fell back to just under 58 months, although average mileage increased slightly during May. Both fleet & lease and dealer part-exchange sectors saw values decline from the previous highpoints recorded in April. Year-on-year, May 2013 was ahead by exactly £500 or 11.4%, with both age and mileage rising over the period. BCA’s Duncan Ward commented: “Although values declined by around 2.5% across the board, demand remains strong across the range of used light commercials at BCA. Even so, buyers are sensitive to mileage and condition, and excessive mileage or damage will significantly impact the price performance. The best prices are paid for vans in good colours with a high specification and any rare or unusual vehicles will generate the most attention.” He added: “After many months of strong value growth, where is the market going in quarter three and quarter four of this year? Many have suggested that prices simply cannot continue rising and they may level off. Or will prices remain stable but with a widening of the extremes – will the poorly presented vehicles be overlooked in favour of the more desirable vehicles?”
LCV values fell by 2.5% compared to April, but remain well ahead by 11.4% year on year Ward added: “With the first decline in average values seen this year, now would be a good time for volume sellers to review their selling strategies and make sure they are fully in tune with market sentiment. “Vans should be sensibly valued to sell and corporate sellers should offer LCVs with full documentation and service histories and ensure they are presented in the best possible condition following pre-sale preparation. “Sellers also need to manage the supply of similar makes and models, because it can have a direct impact on price performance – even for attractive retail-quality vans.” Source: BCA
Average used values 2011-2013 £5,000
£4,000
Fleet & lease Values in the fleet & lease LCV sector fell from April’s highpoint to £5,942 in May, a decline of £229 (3.7%) but still the second highest value on record for corporate LCVs. Performance against CAP fell back by nearly two points to 99.1%, while retained value against Manufacturer Recommended Price fell back to 36.05% compared to 37.17% recorded in April. Year-on-year values remain well ahead, up by £829 (16.2%) compared to the same month in 2012 – with average age and mileage down over the year.
Part-exchange Part-exchange van values also fell in May, by £192 (5.6%) to £3,171. CAP comparisons at 102.5% continue to outperform the fleet & lease sector, while year-on-year values remain ahead by £247 or 8.4%, with average age and mileage up slightly compared to a year ago.
Nearly-new £3,000
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£2,000
Nearly-new LCV values improved in May by £1,555 (13.7%) to £11,286 with CAP performance improving marginally to 98.52%. 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
Remarketing Residual values
Values may have peaked as ‘common sense prevails’ Prices remain close to record levels as duplicate product becomes major issue
H
By John Charles ammer prices being achieved at auction for light commercial vehicles may have peaked with high-quality stock becoming harder to locate and duplicate product a major issue, according to remarketing experts. Nevertheless, average auction prices continue to be close to record levels reached earlier this year – and well above values achieved 12 months ago – prompting a suggestion from George Alexander, chief editor, commercial vehicles, Glass’s, that: “It is probable that 2013 will deliver the best returns for used vans seen in many a year.” Ironically, with small businesses, the traditional buyers of ex-company vans, continuing to find finance hard to come by, market strength is possibly being aided by demand for older, higher-mileage models. Alex Wright, Shoreham Vehicle Auctions managing director and chairman of National Association of Motor Auctions (NAMA) commercial vehicles committee, said: “There is a shortage of decent quality auction stock.” Highlighting that “the common sense price threshold is prevailing”, he said: “It means vehicle prices have reached their peak so while stock may be difficult to come by, I
The average age of ex-fleet and lease vans sold at BCA was 42.88 months
with prices they had ‘booked’ at the by the firm this year, it was a good time of acquisition. time for volume sellers to review “All factors – less time their selling strategies to achieve a sale, higher and make sure they prices, less volume, high were fully in tune with conversion rates – are all market sentiment. indications of a strong Average price of fleet He said: “Vans should market and a lack of and lease sector van be sensibly valued to at BCA in March good quality stock which sell and corporate is particularly illustrated sellers should offer in the four- to six-yearLCVs with full docuold sector,” he said. mentation and service Although experts histories and ensure agree the market they are presented in Average age remains ‘strong’, Duncan the best possible condi(months) of vans Ward, BCA’s general tion following pre-sale at Manheim manager – commercial preparation. vehicles, said following the first Sellers also need to manage the decline in average values reported supply of similar makes and models, George Alexander, chief editor, commercial vehicles, Glass’s because it can have a direct impact on price performance – even for attractive retail-quality vans.” Data from auction giants BCA and AVERAGE VAN PRICES, MILEAGE AND AGE MAY 2013 V MAY 2012 Manheim reveal a reduction in LCV sector Average price Average mileage Average age average values in the last month. (2012) (2012) in months (2012) BCA reported that values in the Car-derived vans £3,149 (£2,781) 73,760 (70,239) 59 (58) fleet and lease sector fell from Small panel vans £3,980 (£4,441) 90,337 (81,428) 68 (59) April’s highpoint to £5,942 in May, a Large panel vans sub 3-tonnes £4,475 (£4,026) 75,818 (78,398) 59 (57) decline of £229 (3.7%) but still the Large panel vans over 3-tonnes £4,537 (£4,356) 99,537 (101,546) 60 (59) second highest value on record. Source: Manheim Year-on-year values remain well don’t think we will see prices continuing to rise.” Stressing that while average prices paid by traders for ex-company vans at auction may not rise, Wright says values will remain strong, thus continuing to give fleet operators and contract hire and leasing companies a residual value windfall compared
“It is probable that 2013 will deliver the best returns for used vans seen in many a year”
£5,942 62
fleetnews.co.uk/fleetvan June 2013 19
Remarketing Residual values ahead, up by £829 (16.2%) compared to the same month in 2012 – with average age (42.88 months) and mileage (67,278 miles) down over the year. At Manheim, which does not separate fleet and lease values from other sectors, average van values dropped £78 last month (May) to £4,338 compared to April (£4,416), but prices were more than £200 a vehicle ahead of 12 months ago (£4,123) despite higher average mileage at 82,637 (May 2012: 80,515) and average age at 62 months (May 2012: 59 months). But James Davis, director of commercial vehicles at Manheim Remarketing, warned: “We need to treat this apparent fall in used van values carefully, as the poor weather and the usual seasonal lull has no doubt held back retail sales. The statistics show that the most significant fall in values was among tippers and car vans. However, both segments have seen an influx of older vehicles come on to the market since last month.” Ward added: “Buyers are sensitive to mileage and condition, and excessive mileage or damage will significantly impact the price performance. The best prices are paid for vans in good colours with a high specification and any rare or
unusual vehicles will generate the most attention.” Davis agrees that values may have hit their peak. A month ago he forecasted that prices may have hit their glass ceiling and following the latest data he concluded: “It would certainly appear that this theory continues to ring true.” Ken Brown, editor of CAP Red Book LCVs & Motorhomes, said his research supported the view that there has been a “significant downward shift in market prices” notwithstanding the fact that the long-time shortage of stock continued. Limited model mix and duplication bordering on over-supply of certain models were major issues, according to Brown, who added: “Generally the vehicles being entered for sale are older, with higher recorded mileages and many are exhibiting extensive body panel damage.” He said that although retail demand for de-fleeted LCVs was generally depressed, some dealers had reported a slight improvement in sales in recent weeks, most likely due to the natural underlying demand from operators replacing their existing vehicles. But, he believes, most were buying for stock. Brown also reports that some
dealers had highlighted the continuing unwillingness of banks to provide finance to would-be buyers. “Therefore, it can be argued that the older, less expensive vehicles we are currently seeing in the marketplace offer a more affordable solution, which could go some way to explaining the high levels of interest,” he said. NAMA also highlighted that the gap between average prices achieved for first entry vehicles compared to second and subsequent entries continued to reduce with a difference now of £120, which reflected the shortage of stock and the continuing high demand. Brown added: “As there is a limit to the amount of stock traders can hold, the time it takes dealers to sell their existing stock will continue to affect the wholesale market dynamic. “Unlike franchised dealer groups, independent dealers do not have the
luxury of being able to move ageing stock to other sites for a fresh start, so we can also expect more vehicles re-entering the wholesale arena as unsold stock is traded out again.” In the coming weeks Brown expects the market to be little changed with the level of wholesale demand fluctuating according to the balance between retail demand and the supply of desirable stock and the resultant yo-yo pricing effect. Alexander pointed out that with sales of new LCVs up 13% in the first five months of this year businesses were increasingly prepared to replace their ageing fleets. “This should translate into further reductions in both the mileage and age of the average LCV going under the hammer,” he said. “It is likely that few will be able to remember a time when the market for LCVs was so vibrant with demand being so well matched to supply,” added Alexander.
“The older, less expensive vehicles we are seeing offer a more affordable solution” Ken Brown, editor of CAP Red Book LCVs and Motorhomes
MANHEIM STEPS UP ONLINE ACTIVITY WITH EVS ONLINE AUCTIONS ACQUISITION Manheim has stepped up its online activity with the acquisition of an electronic truck and trailer remarketing business. EVS Online Auctions has been acquired from its parent company European Vehicle Sales for an undisclosed sum. Manheim will now provide domestic and international truck and trailer buyers with a 24/7 electronic auction platform. EVS Online Auctions lists trucks, trailers and plant equipment from major outright purchase, contract hire, finance and leasing, manufacturer and franchised dealer sources. The electronic auctions operate
on a timed basis. Manheim has also engaged European Vehicle Sales as a strategic partner to support the delivery of a number of unique products and services for the truck and trailer sector. John Bailey, Manheim’s UK chief executive and president of international operations, said: “Manheim is the world’s leading automotive services business and this acquisition further enhances our number one position. “We’re simplifying the trusted exchange of used vehicles and the industry is in an exciting phase of development with the digital environment playing an increasingly significant role.”
“Modern technology provides so many opportunities for our business and customers alike” Richard Mills, managing director, European Vehicle Sales
20 June 2013 fleetnews.co.uk/fleetvan
Manheim will now provide a 24/7 electronic auction platform to truck and trailer buyers
The EVS Online Auctions team report into James Davis, Manheim’s director of commercial vehicles. EVS’s business development director, Mark Spavins, will work in a business development capacity headed by Manheim. Along with Davis, Spavins will be fully engaged in driving Manheim’s truck and trailer growth strategy. Richard Mills, managing
director and owner of European Vehicle Sales, said: “Modern technology provides so many opportunities for our business and our customers alike. “With EVS Online Auctions we developed a fantastic proposition by harnessing technology and developing a super-efficient online sales channel. Manheim has the presence and resources to take this to the next level.”
Managing an effective van fleet A B E S T PR AC T I C E G U I D E
Second edition
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B E S T P R A C T I C E : S E R V I C E , M A I N T E N A N C E A N D R E PA I R
Stay ahead with bespoke schedules How core operations can respond to new market challenges By Joe Fielder Sales and marketing director, BT Fleet
S
o much effort goes into keeping your vehicles out of the garage that for many fleets it is all too easy to overlook how technology and innovation are driving changes inside the garage. Service, maintenance and repair operations (SMR) are central to fleet performance, driver satisfaction and operating cost efficiency; so in this best practice report we take a look at how leading organisations are using their SMR operation to enhance their competitiveness and respond to market challenges. Vehicle optimisation First and foremost effective SMR operations are about ensuring vehicle availability. Commercial vehicles work harder than cars, are shared by multiple drivers and are subject to more stringent legislation. It’s not enough just to stick to the manufacturer’s schedule and hope for the best – optimal vehicle performance requires planning, control and reporting.
Perhaps the most important first step for the complex fleet is a bespoke service schedule. This ensures that even fleets with extraordinary usage patterns can stay ahead of the game. Using predictive analytics, modern fleets can identify the optimal vehicle service programme that takes into account manufacturer recommendations, in-field performance of their specific vehicle type, daily operating parameters and even peak operating windows. For example, when scheduling maintenance of parcel delivery vehicles used by the major internet retailers, it’s important to avoid having vehicles off the road at Christmas and other seasonal peaks. When operating a home grocery delivery service, it’s vital that SMR operations are completed outside the normal working day, typically between 10pm and 5am. The overlay of these factors with the fleet specific vehicle profile, age, maintenance outlook, geography of operation and driver quality affords a real opportunity to develop an intelligent and adaptive SMR regime that flexes to the needs of the business. Early indicators that the SMR schedule is not appropriate to the needs of the business include: n Higher than benchmark maintenance spend
Optimal vehicle performance requires planning, control and reporting
Fleet vehicles need their own bespoke service schedule
22 fleetnews.co.uk/fleetvan
Joe Fielder, sales and marketing director, BT Fleet
n Increasing number of garage visits n Vehicle shortages leaving staff idle during unscheduled SMR events n Common faults occurring too frequently n Major component failures While proactive scheduling and predictive maintenance will go a long way to reducing downtime as technology improves, so the broader potential for vehicle optimisation increases. Modern telematics and robust driver training are essential to modern fleet operations, but many have yet to connect the data they gather and feed back from drivers into their SMR process. What does the data tell us about vehicle performance and how do we connect driver comments about their vehicles into the maintenance process? Something as simple as a driver comment card on handover can have an immediate impact on vehicle performance and reliability, while preventing minor issues developing into unscheduled SMR events further down the line. This approach can be enhanced by integrating telematics data into the fleet maintenance planning process. In a further technological innovation, ECU remapping has been proven to enhance fleet vehicle performance by adjusting the engine control unit to suit the actual operating profile of specific
vehicles. In a project that won this year’s Fleet News Award for Cost Saving Initiative of the year, technicians conducted extensive trials at the Millbrook research centre and across the BT van fleet. Now implemented on more than 24,000 vehicles, ECU remapping delivers typical fuel savings of between 11-16% and cut more than 25,000 tonnes of CO2 from emissions. ECU remapping is done alongside standard SMR operations during scheduled garage visits. It takes less than 30 minutes and requires no other action by the vehicle owner or driver to start delivering immediate results. Unlike standardised manufacturer settings, the remap is tailored to specific operations, giving the best balance of fuel efficiency, CO2 emissions and power output. “ECU mapping looks to be an excellent initiative which could helpfully 2 shift vans to lower emissions operation,” said Dr Douglas Parr, chief scientist and policy director at Greenpeace. One further area where SMR operations are enhancing fleet performance is in vehicle utilisation. Instead of looking at each vehicle in isolation, an integrated view of all SMR activity provides a foundation for the review of capital spend on the fleet. With budgets under pressure, an understanding of which vehicles can be removed from operations and where service life can be extended cost effectively has the potential to deliver substantial savings. Within BT, more
“Now implemented on more than 24,000 vehicles, ECU remapping delivers typical fuel savings of 11–16% and cuts more than 25,000 tonnes of CO from emissions”
fleetnews.co.uk/fleetvan 23
B E S T P R A C T I C E : S E R V I C E , M A I N T E N A N C E A N D R E PA I R
The AA fleet has eightweekly servicing
than 2,000 vehicles have been removed from service in this way delivering £8-10 million reduction in vehicle rental costs and savings of more than £20m in capital expenditure on new vehicles. SMR efficiency in practice The AA’s fleet of 2,800 vans and 280 recovery trucks is relied on by millions of people and their cumulative 3.5m breakdowns each year. Vehicle utilisation was implemented with minimal disruption to business operation as part of a preventative maintenance schedule and planned vehicle maintenance scheduling. The approach focused on regular technical review meetings with vehicle and equipment manufacturers to address quality issues. In addition, the fleet moved to eightweekly servicing, concentrating on some of the core vehicle problems such as brake pad wear and tear. A planned maintenance programme delivers efficiencies by facilitating advanced bookings for servicing and MoT preparation, including the creation of a flexible booking system to accommodate work volumes and driver availability. “Our vehicle availability has never been so good and the service delivery to ensure vehicles are available around bank holiday peak periods has been exceptional,” said Steve Sharpe, head of recovery and fleet operations, AA. n Reduced downtime by 75%
n Reduced fleet management costs by £294,000 per annum n Service times cut from eight hours to two hours Garage optimisation While focus is often given to the vehicles themselves, there are also considerable efficiencies and innovations in the garage operation. Whether outsourced or managed in-house, the relentless increase in compliance creates an increasing cost base within the garage itself as capital spend increases to add new equipment and meet the ongoing training and development needs. ISO compliant and documented standard processes have long been used to deliver efficient operations but, as pressure mounts on budgets, leading garages are increasingly using technology to reduce turnaround times. By establishing new and more efficient ways to complete core tasks and standardising the procedure across their entire team, the garage is able to consistently outperform manufacturer and third-party benchmarks. If the individual tasks can be completed more quickly and the garage process delivers a seamless handover and sign off, then the vehicle will be back on the road sooner. Like a patient in hospital, the vehicle can only be discharged when all the information about it has been captured, documented and reported. Learning from innovations in hospital bed management and
“Robust systems and processes are also helping reduce the lag-time on warranty work”
24 fleetnews.co.uk/fleetvan
exploiting increasingly sophisticated technology, the best garages can ensure that each bay is operating at its optimal capacity and that every vehicle is cleared to leave as soon as possible after the work is completed. Robust systems and processes are also helping reduce the lagtime on warranty work. Where manufacturer liaison is required to implement a service bulletin or complete work under warranty, proactive case management and consistent follow through can take days off each instance while ensuring that the appropriate costs are recovered in a timely fashion. Where possible this work is automated through manufacturer approved processes, but again having dedicated staff to pursue and close the issue is an important investment to prevent the technician themselves losing time in chasing the paperwork. In a similar vein, the growing use of collection and delivery of vehicles for service by garages is an important step forward in freeing the vehicle driver to use another vehicle to complete the day’s task. However, it doesn’t make sense to use a technician for this operation. Leading garages are today achieving a 10-15% lower cost of collection and delivery with the use of dedicated drivers. Although collection and delivery introduces an additional cost to the garage – and despite what some may say it is never free but often recovered on the hours or parts markup – these costs are less than the waste of higher value resources. Such investment in infrastructure and resources require a consistent loading on the garage, which is why we see increasing
collaboration between in-house service providers and consolidation across public services in particular. But as austerity bites deeper, the business case for outsourcing starts to look even more attractive, particularly where there is a clear overlap in garage provision and significant gains can be made by rationalising the portfolio, reallocating staff to busier facilities and the release of land and property to other applications or for sale. Garage operations may not be as immediately visible as vehicle optimisation but the gains can be significant. Driver optimisation SMR is not often associated with driver behaviour, with most of the focus being on safer driving and fuel efficiency through the reduction of idle times and a heavy right foot. However, SMR provides the fleet manager with a further touch point and an opportunity to assess driver performance through the condition of the vehicle. SMR reporting can and should capture unreported accident damage and over time data analysis can expose those drivers with above average bumps as well as connecting recorded driver behaviour to tyre wear and other areas of vehicle performance. SMR unbundling The strategic value of SMR services is often overlooked because for simplicity the maintenance is included as part of the lease. In this situation, it is the lease provider not the fleet manager that is in control of the garage process and determines the frequency, quality and nature of the SMR process. Given that the majority of finance
SMR allows fleet managers to capture unreported accident damage
fleetnews.co.uk/fleetvan 25
BEST PRACTICE: SERVICE, MAINTENANCE AND REPAIR
BT Fleet works with a number of blue chip companies
providers have only a limited understanding of SMR and with few exceptions focus primarily on cars, it’s no wonder that SMR costs within a lease charge are typically higher than can be achieved when SMR is unbundled and managed separately. However, for many organisations it is unclear whether that SMR gain will offset the additional overhead in managing and creating a professional SMR schedule. This is where the SMR service providers really come into their own, offering the midsize van fleet all the resources and skills of a major fleet but without the need to carry the cost overhead internally. Instead, the garage service provider can create an optimised maintenance schedule, provide clear insight on fleet performance in the field and ensure best-in-class garage services. All for less than the typical standard maintenance charge associated with the lease provider. Conclusions Service maintenance and repair may not be top of the agenda for organisations looking to enhance their customer experience as the majority of commercial vehicles are an enabler of service delivery and are viewed by those outside the fleet team as an overhead. But there is a tremendous potential for fleet managers to partner with their business stakeholders to show how small changes, innovative technology and fresh thinking can yield results. In recent years, we have seen fleet managers engage with the wider business to deliver cost efficiencies but also transform the organisation’s understanding of what is possible. Innovation in SMR and broader fleet management should not just be about cost efficiency. It is at its best when considering how to meet the cost challenge and effectively enhance service delivery. Fewer vehicles on the road, less accidents, less downtime and greater efficiency actually results in better service to customers and more opportunity to grow even in this challenging economy.
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About BT Fleet BT Fleet believes that proactive fleet management and SMR are essential for organisations that rely on complex vehicles to meet their customers’ needs. As a result, we help many of the UK’s largest organisations maximise their fleet efficiency. By providing industry-leading expertise and practical support, we help them deliver better fleet operations through greater productivity and lower costs. Having started life as a fleet owner, we understand the pressures on the modern fleet and through our national garage network we care for more than 75,000 vehicles and many more drivers. BT Fleet provides a truly-integrated service to deliver reliable and cost-effective vehicle availability. With a long established reputation for fleet management, maintenance and accident management, the company is also leading innovation within the sector. In 2013 BT Fleet was awarded Cost Saving Initiative of the Year by Fleet News for pioneering work on ECU Remapping to reduce fleet costs and improve driver satisfaction. It is also working with a number of large fleets across the country to prove the cost benefits of unbundling finance and SMR operations. BT Fleet has a long history of working with companies like EDF, EON, The AA, National Grid and G4S and has recently been chosen by Network Rail. With a national coverage and its own network of garages, BT Fleet can offer customers a consistent, reliable and unique level of support. To find out more visit www.btfleet.com or call 0800 032 0012
Guarantee yourself a smooth shift So you’ve discovered a great new fleet management package, one that takes you up a gear. But what about the changeover process? Will they or won’t they… get it right? You won’t have to worry with BT Fleet. We operate one system, one process and one standard across our garage network. This applies to our dedicated contract migration team too, making sure that we deliver soundly on our commitments to you from day one. Switching to BT Fleet - it’s easier than you think To find out more call us on:
0800 032 0012
Contact our team to find out more about our award winning service: Tel: 0800 032 0012 Email: sales@btfleet.com
Website: www.btfleet.com
B E S T PR AC T I C E: T E L E M AT I C S
Telematics is key to efficient fleet operation Improve service, cut costs and meet your duty-of-care obligations By Giles Margerison, director UK & Ireland, TomTom Business Solutions
A
host of factors have conspired to make 2013 a tough year for van fleet operators. Although the fuel duty freeze offered welcome respite, prices at the pump remain sky-high and a sluggish economy has ensured costs are yet to significantly ease. The overarching challenge is the same for any business operating a fleet of vans – to optimise operational efficiency, keeping a lid on costs while making sure productivity doesn’t take a hit. Clearly, this is no mean feat but an increasing number of fleet managers are turning to telematics to help provide the answers to a string of difficult questions. Technology services specialist Telent, for example, expects to realise savings of £450,000 by 2014 through a wide-ranging scheme designed to improve driver behaviour and slash fuel bills, simultaneously reducing risk and insurance premiums. Exceed customer expectations The prevailing difficulties faced by van fleet operators are perhaps most acute in the service sector, where fragile consumer confidence and increasing service-level demands are added to the mix. Research conducted by TomTom revealed 50% of UK consumers believe late arrival or unspecified ETAs are the biggest failings of service companies making home visits. Furthermore, 60% of consumers believe two-hour time slots are the maximum acceptable standard for home deliveries or visits, yet claimed only 25% of firms met these expectations. Telent expects to save £450,000 by 2014 by improving driver behaviour and slashing fuel bills
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Possibly most worrying was that 92% of consumers had experienced companies arriving late for appointments – a statistic which will do little to strengthen trust in the service sector or enhance profitability. Good service delivery relies upon effective planning. To calculate how many jobs mobile workers are able to attend in a day, managers 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. Instead of making an educated guess, businesses can use the tools provided by modern telematics systems to remove error from the process. The routing capabilities available in advanced fleet management technology will draw on historic road use data and live traffic data to generate accurate timings for every journey, taking into account the best available route, time of day and congestion levels. As a result, work schedules can be developed to minimise time spent on the road or sat in traffic, maximising productivity as a result. Rather than being given vague appointment times, customers can also be provided with accurate, up-to-the-minute ETAs and informed immediately if there are any delays, ensuring expectations are properly managed. In the immediate wake of introducing fleet management technology, printing equipment supplier Danwood saw better route planning increase the average number of customer visits per day by 7% from 4.5 to 4.8. Proper use of telematics technology can also ensure the most appropriate employee is selected for each job, based on who will arrive first rather than simply who is closest to the customer – with jobs or orders dispatched directly to the drivers’ navigation units. Telent has successfully utilised this functionality to bring an 80% improvement in response times, on top of the cost savings, cutting the time taken to allocate jobs from 75 minutes to 15 minutes. An easier life for drivers Drivers too can benefit, utilising live traffic information through their in-cab satellite navigation devices to select the quickest, most fuelefficient route for every journey and avoid potential hold-ups. This ensures staff make the best use of their time and reduce the stress caused by sitting in traffic jams. Research has shown 51% of UK business van drivers cite congestion as a major cause of stress, as well as a barrier to efficient completion of their duties. On top of this, up to 10% can be slashed from fuel bills simply by empowering drivers to choose better routes and cut idling time, one of the biggest factors affecting mpg. Drivers can also benefit from reduced paperwork through automated reports for working time, job completion and vehicle usage,
including claims forms detailing business and private mileage. It is crucial to clearly communicate such benefits in order to allay any misgivings staff may have about the introduction of telematics. Initial scepticism is not unusual but staff can soften when it is explained the technology includes driving aids, lower tax liabilities, reduced admin, safer working conditions and a more equitable distribution of work. The best approach is to communicate face-to-face using a ‘top down approach’ from management. Housing and care provider Sanctuary Group successfully adopted this strategy for the drivers of its 500-strong fleet by setting up a UK-wide roadshow to explain the rationale behind the introduction of TomTom fleet management technology. It is then recommended to formalise the process by putting any proposals to staff in writing so there is no misunderstanding or ambiguity. This clarifies the impact it will have on their job day-today and allows them to ask questions or make suggestions about how best to ensure a smooth implementation process. If all these
steps are taken, there should be little reason for drivers to harbour serious objections. Be transparent and make drivers aware of the reasons for introducing telematics from the outset, not after it’s been installed. Drivers must be given a clear understanding of the potential impact telematics can have on a company’s bottom line. They will be more inclined to acknowledge the need for telematics if the savings achieved help to safeguard their job or salary prospects. From a tracking perspective, explain to your employees that the technology is tracking the vehicle – the company asset – and not the individual. The move should not be seen as a lack of trust in the workforce, a point which can be reinforced by appropriate privacy settings built into the telematics system.
“Up to 10% can be slashed from fuel bills simply by empowering drivers to choose better routes and cut idling times”
Ensure benefit-in-kind isn’t taxing Fleet management systems often provide the functionality for drivers to indicate whether a journey is for private or business purposes via
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their in-car navigation unit, or other device. As a result, employees can ensure their privacy is respected outside working hours by making the trip invisible to their employers, while mileage is still logged for administrative purposes and tax compliance. The issue of mileage remains a particularly sensitive one, especially in light of HMRC’s recent crackdown on the records of 60,000 SMEs. Both companies and their employees face severe penalties for keeping inaccurate mileage records or failing to submit accurate returns for benefit-in-kind tax purposes. TomTom research has found 31% of LCV drivers in the UK admit to submitting inaccurate mileage claims, with 32% of those doing it on a regular basis. Without proper regulation, businesses could be left exposed to significant risk. For businesses who want to mitigate their risk, telematics can provide foolproof evidence of exactly how many miles were travelled, by whom and when to validate mileage claims. Drivers can be given access to their individual journey logs in order to add any further relevant details, either using a computer or mobile device, ensuring records are fully comprehensive. It is then possible to generate detailed mileage expense reports at the touch of a button and export them directly into company accounts, minimising time-consuming admin.
crucial, while fitting the right tyres, inflated to the correct pressure, can increase mpg by up to 15%. Possibly the largest contributing factor is driving style – a variable which, traditionally, has been difficult to control. But modern fleet management 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 in order to slash fuel costs. Zenith Hygiene Group reduced its fuel bills by £222,660 through an incentivised driver improvement scheme, which uses telematics in order to measure key factors affecting fuel consumption. Fleet technology can be used to tap into a vehicle’s diagnostics and provide in-depth analysis into each employee’s driving style based on key elements of safe and efficient driving, such as speeding, idling, fuel consumption and even harsh steering or braking. Management reporting functions enable this data to be measured against pre-defined business targets. Not only does this directly impact the bottom line, it can help managers establish safer, greener driving policies. Over time, profiles are generated for each individual driver across a fleet, allowing the identification of trends or problem areas which may need particular attention. As such, efficient driving can be rewarded by giving drivers awards or bonuses or simply compiling a league table which shows performance against targets, while training time and budget can be allocated more precisely. Drivers can even learn on the move with real-time feedback via their in-car navigation devices, receiving audible alerts whenever they perform a driving event such as harsh braking and steering, idling or speeding, enabling behaviour to be corrected at source.
“Fleet management technology now offers a previously unimaginable level of insight into habits and behaviour behind the wheel”
Don’t pay penalties at the pump Arguably, the single largest cost for any fleet operator is fuel. However, as it is not a fixed business overhead, fluctuating depending upon vehicle type, mileage and driving style, companies can take a number of steps to reduce fuel consumption. Ensuring vehicles are properly and regularly maintained can be
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The implications for efficiency, cost reduction and safety – particularly fulfilment of duty-of-care obligations – are clear. Take control of risk factors Any cost-saving related to fuel represents pure bottom-line profit but companies who successfully improve driving style will inevitably enjoy knock-on effects elsewhere in the business. Insurance is one such area. While rising crash repair costs have contributed to soaring fleet insurance prices in recent years, motor insurance companies are increasingly recognising the impact of telematics on road risk management, both for fleet businesses and consumers. Consequently, forward-thinking companies are applying fleet management technology in order to fulfil duty-of-care obligations and reduce risk by encouraging a safer driving style among employees. Zenith Hygiene, for example, reduced insurance premiums by £78,000 over two years through its pioneering driver performance scheme. Simply by knowing which driver is driving which vehicle at which times – utilising the traditional tracking functionality of telematics – companies are able to demonstrate a commitment to duty of care, particularly by keeping tight control on working hours and ensuring employees don’t work too long without a break. But advanced applications of the technology allow managers to profile drivers and easily identify those who might pose a higher risk. As a result, 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. These operations have a clearer risk profile with potential for reduced claims costs, enabling more exact rating and underwriting by insurers, and hence more competitive premiums. Such a proactive approach also demonstrates a clear commitment to the reduction of road risk, meaning businesses will not fall foul of legislation such as the Corporate Manslaughter and Corporate Homicide Act. The penalties for failure to implement a duty-of-care policy can be severe, with courts given the power to impose unlimited fines for Corporate Manslaughter convictions.
Future proof your fleet Ultimately, telematics is most powerful when used to affect a greater cultural change within an organisation. The available technology provides an unprecedented level of insight into every aspect of mobile operations but its potential becomes even more impressive when it is accompanied by a shift in company policy. Rather than focusing on isolated aspects of performance, the emphasis should be on bringing about a shift in behaviour from the ground up, helping the entire organisation to work towards a greater degree of efficiency, safety and legislative compliance. Driver incentive schemes, risk reduction programmes and service targets are examples of such schemes, easily enforced by telematics and designed to alter the approach of employees and management alike. Bearing this in mind, it is essential fleet management technology integrates neatly with other business systems, such as back-office software for scheduling or payroll and mobile hardware devices, providing a tight end-to-end solution. Integration with back office systems means the valuable data generated from telematics can be used for the automatic generation of accurate payslips or to ensure work schedules are optimised, taking into account traffic and expected journey times. The increasing connectivity of technology in and around the vehicle means data from telematics can be enriched by information from signature-capture and barcode-scanning devices, mobile printers or tyre-pressure monitors. This data can then be accessed in one, unified system, helping to improve efficiency in the office as well as out on the road. Already, companies are typically able to realise ROI on fleet management technology within eight to 12 months but greater harmony between disparate business systems could ensure this comes even sooner – and that the benefits are longer lasting. Telematics is now being seen less as a ‘nice to have’ and more as an essential business tool in the drive for ever more efficient operational standards.
Daily summary trip report
Management insight: data is displayed clearly, so problems are easily identified
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About TomTom As a market-leading provider of fleet management technology, TomTom helps 20,000 customers worldwide save more than £2 million daily. More than 250,000 vehicles are managed using TomTom’s online fleet management software WEBFLEET, helping businesses to optimise their mobile operations. TomTom’s products allow fleet operators to cut fuel costs through smarter navigation and driver performance tools. By addressing and improving driver behaviour, companies can also improve road safety and reduce their risk profile, benefitting from lower insurance premiums. Efficiency and productivity can be boosted through tools to improve routing and scheduling, while working-time and mileage reporting ensures legislative compliance. The company’s commitment to innovation sets it apart from the competition, ensuring its fleet management solutions enable customers to continue saving money and improving their operational processes. Recent innovations include a new reporting suite in WEBFLEET, the WEBFLEET Logbook app for accurate mileage claims administration and benefit-in-kind reporting, and strategic moves to enable third-party integration with the TomTom system. The WEBFLEET reporting suite allows businesses to gain superior insights into fleet operations through a new set of 40 comprehensive reports. This out-of-the-box functionality directly meets businesses’ typical fleet management requirements, designed to help them reduce costs and ensure legal compliance, while boosting efficiency, productivity and customer service. This is complemented by in-depth customisation options, which give customers the power to create increasingly targeted reports, tailored to their exact business needs. The new reporting suite enhances the power of core products such as ecoPLUS, a fuel monitoring device which draws real-
Fleet managers stay in control with WEBFLEET at the heart of the business
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Managing vehicles is made easy with WEBFLEET, TomTom’s web based fleet management solution 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 allow 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. The WEBFLEET Logbook app aims to streamline the process of recording and submitting business mileage, allowing drivers to view, edit and verify information recorded by the in-vehicle LINK tracking device. It means driver admin is minimised but accuracy of data is maximised, ensuring businesses meet benefit-in-kind tax obligations and avoid false mileage claims. In terms of reliability, TomTom is the first fleet management technology provider to be awarded ISO 27001 certification – the most stringent certification for information security controls – guaranteeing user data will benefit from the highest standards of security. This stability has paved the way for significant growth in the number of business systems that integrate with TomTom’s software and hardware. The company recently granted third-party developers access to the LINK.connect open API on its in-vehicle LINK tracking device, meaning data from mobile hardware, such as signature capture and barcode-scanning devices or tyrepressure monitors, can be integrated with the TomTom system. The open software API, WEBFLEET.connect, also allows a range of software programs, including payroll and scheduling, to be integrated with WEBFLEET, boosting efficiency by improving connectivity between back-office systems.
How do you keep your drivers safe? It’s easy with TomTom! • Safely behind the wheel • Promote a safe & efğcient driving style • Help drivers relax and focused on the road
Safer, greener and more efğcient driving is easy with TomTom Business Solutions. Our Active Driver Feedback prompts your drivers to stay safe and fuel efğcient behind the wheel. And with WEBFLEET® OptiDrive back in the ofğce, you’ll have an easy to use tool to establish a safe driving policy. Improve your safety levels now by calling: 020 7255 9774 | uk.business@tomtom.com
Let’s drive business™ www.tomtom.com/business
B E S T P R AC T I C E : I N C I D E N T R E D U C T I O N
Counting the costs True cost of road accidents is much higher than employers realise By John Catling CEO
W
hile it’s unlikely we’ll ever get to a situation where there are zero road incidents, there is an increasing focus from companies to make this an aspiration. Have you noticed the signs on motorway road works, boasting of ‘XX days since the last incident’? There is a massive human cost, but businesses are increasingly looking at the commercial impact as well. According to the Department for Transport, work-related road incidents are much more expensive than many employers realise, even up to 36 times more than the amount paid on an insurance claim. It’s not difficult to see why, when you take into account things like excess, increased insurance premiums and alternative transport costs. Less tangible costs such as reputational loss, uninsured legal claims and even administrative time in dealing with an incident also have to be taken into account. The panel that cost £400 to repair at the local garage? Take into account these ‘unknown’ factors; then think again. Data shows that almost two-thirds of fleet incidents can be
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classed as ‘preventable’. If an incident reduction programme can help reduce these incidents, it’s not difficult to imagine the cost savings a business can make. Vans and commercial vehicles have their own unique challenges. 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. The message is: incidents cost business and, in most cases, they are costs that they can ill 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 the business case is clear, how a company goes about achieving this can be anything but. Company bosses and fleet managers have 101 considerations and decisions to take on a daily basis. By working with an experienced specialist to optimise fleet performance, you can ease time pressures. Taking a holistic view, and combining a range of risk solutions, can reduce company incidents.
Compliance and the legal case It is the responsibility of businesses to be accountable to their people, their shareholders, their wider stakeholders and the law of the land. Undoubtedly, recent changes to legislation have been designed to ensure companies carry out due diligence and create a safer environment in which they operate. Increased focus has been placed on incident prevention, and the emphasis is now on protecting people, a by-product of which can be reducing costs. There is an increasing focus on driver training and the need for businesses to adequately equip and educate their drivers to reduce incidents and therefore reduce the risk to their company. The days where a business can bury its head in the sand and plead ignorance, are long gone, and at one extreme, the corporate manslaughter act has placed new pressures on business. Additionally, large private and public sector businesses are now thinking differently about their responsibilities when it comes to their vehicle usage. Small and medium sized businesses aren’t oblivious to the importance of fleet either. Research from Barclays identified vehicles as their second most important investment priority.
planning at present, fleet issues are also becoming an important consideration, often discussed at board level, with a fifth of FTSE 100 companies referring specifically to fleet in their annual report. As you can imagine, this is more relevant to some fleets than others, for example, utilities companies with a large van fleet tend to have an increasing focus on these considerations. In a tightening marketplace and increasingly active world of social media, company reputation has come under scrutiny like never before. Fleet activity often represents the public face of the business and can have a major impact on how that company is perceived. The developing importance of a strong CSR policy takes this concept beyond a public perception issue, by highlighting a duty of care to employees and the environment. The smart businesses have recognised that CSR is a necessary mix of image improvement and sound business sense. Whereas some areas of CSR involve largely intangible assets, fleet is one area where you can count the benefit to your bottom-line. Every company has a responsibility to maintain and grow profits as this allows it to expand and develop. A sustainable business model often ticks many of the same boxes as a CSR policy, with people at its focus. The way your people drive matters in much the same way as the way they answer the phone. By demonstrating you are taking deliberate measures to reduce incidents, a company can demonstrate that it is taking its responsibilities seriously.
“Fleet activity often represents the public face of the business and can have a major impact on the way a company is perceived”
Responsible performance improvement CSR is becoming increasingly important as businesses recognise a duty of care towards their people and the environment. More than 75% of FTSE 350 companies now refer to CSR in their annual report and accounts. While CSR is an important part of most companies’
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B E S T P R AC T I C E : I N C I D E N T R E D U C T I O N Van on brand In many instances, a company van is a two-tonne rolling advertisement for your business. How they look and, crucially, how they are driven, reflect on your values and image as a company. Consumers and the public at large will make their decisions about a brand in seconds, and share their opinions on social media – amplifying the reputational damage. Therefore, if one of your drivers cuts up somebody, swears at another road user or scratches the paintwork on a parked car, your business – by association – is the guilty party. If you see a heavily branded van at the end of your street with a large scratch down the nearside – what is your initial reaction? It is human nature to make judgements based on little evidence, and this will leave a long lasting negative image. Vans, more so than any other vehicle, are under intense scrutiny, and by not taking that risk seriously, companies are paying the consequences. Technology and data revolution By using technology, we are becoming better capable of reducing the impact that incidents have on the bottom-line of a business. RoSPA has stated that installing telemetry devices can reduce collisions by 20% – while some providers can give examples of much higher incident reduction rates of 25-80%. In addition, the Energy Saving Trust estimates that by using smarter driving techniques, such as those encouraged by telemetry, fleets can reduce company fuel usage by 15%. The way companies use vehicles is changing, and telemetry is now penetrating the business insurance market. Technology has a role to play in incident reduction, and manufacturers are starting to fit devices as standard. However good a black box is though, it’s how you use it that matters, and data analysis is key to a proactive approach. By ensuring company-wide adoption of best practice, achieved by embedding a system throughout a business, companies can be better informed and better prepared. By simply installing a device into vehicles, there is a view from some quarters that a company is fulfilling its duty of care. This is not the case. Businesses need to have good driving at the heart of the company ethos, achieved through a range of tactics. In this way, they can communicate the positive elements of changing driver behaviour. The bottom-line is that telemetry systems can reduce the frequency and impact of incidents and deliver real cost savings to a business. However, by using them in isolation a company cannot realise their full potential. Thankfully, solutions are increasingly affordable, and in the best examples, more than paying for themselves. There is a real business case for smarter ways of working. The companies who haven’t realised this yet are falling by the wayside.
reducing incidents. The truth is, it affects your business on multiple levels, of which image is just one. There are still too many drivers on the roads, aware that they’re being monitored for such parameters as fuel use, speeding and aggressive behaviour, but choosing to ignore it. These actions lead to inefficiency, wear and tear on the vehicle and, ultimately, can manifest themselves in high incident rates. To some extent, an attitudinal change is required. There is a communications message to be had when improving driver behaviour, and business needs to address this on multiple levels. By working with the appropriate bodies, from the board to workforce representatives, individual drivers and even in some cases outside bodies, like the unions, we can address the issue to the benefit of all by reducing incidents. By remaining positive and focusing on fixing problems before they lead to an issue, drivers can be encouraged to see the tangible benefits of preventative measures. Of course, under certain circumstances it may be necessary to take disciplinary action, but risk mitigation tactics shouldn’t simply be a stick to beat people with – it’s about collaboration. Improving a company’s driving can be a daunting task, especially across a large and diverse fleet of vehicles, which may have long entrenched policies and procedures. However, this should be no barrier to change. Often, it’s not a case of making wholesale changes in one ‘big hit’ but rather introducing new procedures to enhance a culture of safety. Through measures such as driver license checking, online training modules and the introduction of data analysis, the right changes can be made in the right ways.
“However good a black box is, it’s how you use it that matters, and data analysis is key to a proactive approach”
Driving for better business It’s all very well a company saying that they want to change driver behaviour for altruistic reasons. It’s also correct to say that for many businesses, their fleet represents a major public facing asset. However, you need to delve deeper into the facts and figures in order to realise the main reason you should be concerned about
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Ultimately, the best approach is to work with drivers rather than trying to catch them out. A combination of incentives and encouragement will help to promote a level of trust and understanding. In some cases, it’s not even necessary to use traditional ‘incentives’ such as money or vouchers. Driver league rankings have worked for many businesses in the past, and the competitive nature of humans means that there is a marked improvement in driving, so that individuals can ensure a positive ranking. A van is not a car Of course, van fleets have a very specific set of challenges, and companies need to be mindful of falling into the trap of dealing with all vehicles with the same rules and policies. This is especially challenging for companies with a diverse fleet, perhaps encompassing cars (including the traditional ‘problem area’ of grey fleet), vans and heavier goods vehicles. It really is a case that one size does not fit all. By working with an experienced and reputable fleet optimisation organisation, a company can take advantage of the best industry expertise. Businesses shouldn’t be afraid of taking a bespoke approach to suit their individual vehicle categories. Often, a van can be critical to a business, making it even more necessary that the right tactics are taken to avoid incidents. Even for businesses that are less dependent on their vehicles, there is still a compelling case to reduce incidents.
Vans, and van drivers in particular, have been singled out in the past, unfairly in many cases, for their driving style. We’ve all heard the stories about ‘white van man’. But attitudes are changing and driving styles are improving because of a range of tactics employed. Tailored fit for your business It is impossible to offer an off-the-shelf solution that will achieve all business objectives. The nearest thing to a ‘silver arrow’ approach brings together various elements to embed change into a business and reduce incident rates. In addition, the holistic approach can get drivers to actually think about why changes encouraged will be of benefit to all. Working with an experienced provider is key to achieving effective incident reduction. A comprehensive risk solution can bring many benefits, and the best providers work to embed this within a business. A bespoke suite of services can be utilised to improve performance and deliver cost savings. Of course, there may be challenges on the journey 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. The aspiration should be for zero incidents and any range of solutions that helps to achieve this has to be considered good business sense.
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Evidence based change for better business If there are two words that sum up what FMG has been striving towards, they are incident reduction. This may seem at odds with an industry that has traditionally been seen to make its money from cleaning up after incidents, but that’s our point of difference. We’ve built our business on the premise of optimising fleet performance and taking a proactive approach to prevent incidents before they impact a company and its people. We start every customer engagement with a question: how can we prevent your incidents? We’re committed to ensuring the best, bespoke range of services, tailored to individual needs. In many of our client experiences we have seen a cultural change in attitudes to driver behaviour, embedding good practice and making real reputational and financial savings. By following simple measures you can help ensure employees feel like the business is supporting, rather than spying on them. This can be especially challenging in van fleet, but it’s a business decision worth prioritising. Through our extensive range of risk reduction products, our customers have seen significant changes in performance and cost. Some are seeing a 25-80% reduction in claims, and a 20% drop in fuel costs, through the introduction of our services. Following a trial period where incident rates were cut by 75%, FMG’s telemetry system was rolled out across Safestyle’s fleet of 500 vehicles. Steve Lambert, of Safestyle says: “We’ve seen an immediate positive impact on fleet incidents. Through working with FMG, we are expecting to see a significant reduction in our motor insurance premium at renewal.”
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By working to truly understand businesses, we can offer the insight and understanding needed to communicate the right message in the right ways, to achieve buy-in from across the company. Our results speak for themselves. We were recently honoured to win the award for Safety Initiative of the Year at the Fleet Van Awards, which recognised a project for a client in the utility sector. They experienced an immediate positive impact, which resulted in a 50% drop in incidents. Nearly all drivers are now achieving their ‘benchmark’ standard, which is monitored on an ongoing basis, while more than a third of employees now record scores of 99%. The process has evidenced a progressive improvement in driver behaviour and they have seen incidents reduced, costs saved and real benefits to their bottom-line. Through our Optimise™ consultancy process, we analyse a fleet’s performance, business objectives and pressures in order to protect drivers, whilst unlocking bottom-line savings. Data is one of the pillars of FMG’s business. By utilising a bespoke dashboard, we can input data from a wide range of sources, and produce actionable reports designed to take the burden off fleet managers. By prioritising the most relevant and impactful elements, we can present this insight in a way that leads the decision-making process. FMG sees incidents as the end of the cycle, not the beginning. By taking a proactive approach to fleet management, our aim is to reduce the impact and frequency of incidents in order to deliver business performance improvements.
FMG is the UK’s only incident management and roadside services company committed to reducing the frequency and impact of incidents. We’ve been leading the fleet sector for over 25 years having built a reputation for expertise, insight and integrity. But there were some common practices which we were never entirely comfortable with, which led us to develop a fresh perspective on how best we could support the industry. Our experience, business intelligence and bespoke ingenium™ technology helps us identify and correct the causes of incidents and fleet inefficiencies, which means: – reduced risk and costs – less incidents and injuries – lower insurance premiums – greater fuel efficiency. And although we’ll never eliminate accidents altogether, when they do occur we provide a sector-leading service that deals with over 250,000 incidents each year. We’re leading our industry to show that a solution focused on incident prevention and driver safety makes sound business sense. For a smarter business future call us on 0844 243 8888 or visit www.fmg.co.uk
BEST PRACTICE: VEHICLE UTILISATION/DOWNTIME REDUCTION
Lifting the lid on the real cost of vehicle downtime When it comes to commercial vehicles, keeping the wheels rolling is everything – time spent off the road (whether scheduled or not) immediately impacts your brand and bottom line By Mark Lovett, Head of commercial vehicles, LeasePlan UK
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ight now, there isn’t a finance director in the country who hasn’t asked to see cost savings and improved efficiency. For fleet managers operating critical commercials cost is equally important, but keeping the fleet running smoothly will always top the priority list. The sweet spot for every boardroom and fleet manager alike is achieving the right balance between investment and efficiency. The difficulty is, in order to reduce cost, you need to access all the data and understand the right levers to push and pull. But all too often getting hold of accurate fleet costs and producing that holistic view of total fleet costs can be challenging. Whether you run a fleet of car-derived vans or specialist tippers, any time the vehicle is not working is costing you money. When a
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car is off the road, it’s an inconvenience but it’s unlikely to have the same financial impact for your brand and bottom line. This means a key area of focus for commercial vehicle operators has to be vehicle off road (VOR) management. Pandora’s box Everyone understands the costs linked to running a vehicle day-today like fuel, insurance and maintenance, but as soon as that vehicle is off-the-road the actual cost is frequently underestimated. Some would say that £50 per day to hire a replacement vehicle should cover it, but is this the whole picture? VOR costs may seem small or innocuous, but if you stare closer into the box you may notice that there are more severe and farreaching consequences. So what are the additional, hidden and often expensive costs associated with vehicle downtime?
Hidden costs n Fitness for purpose – can it carry everything you need? n Time – what’s lost working around the van provided? n Refuelling – additional costs if returned without topping up? n Lost opportunity – what’s the cost of not using a branded vehicle? n Communication – the missed call from a customer because the Bluetooth/hands-free phone kit is missing? n Tools – downtime while tools, equipment and materials are transferred from one vehicle to another – and then back again n Insurance – the company is now covering two vehicles n Administration – time to arrange the replacement and to process the additional vehicle n Charges – additional charges for congestion charge zone registration and similar n Appointments – the cost and inconvenience of rearranging missed appointments
n Penalties – the cost of not meeting agreed SLAs with clients n Safety – your own vehicle may have additional safety and security items ie ESP, passenger airbags and parking sensors – are your drivers more vulnerable without these?
TIP:
Calculate and establish a way to record the VOR cost for your fleet – it can have a huge financial impact on the efficiency of your business. The average industry accepted downtime cost of a van is between £700 to £1,000 per day, with civil engineering companies estimating as much as £4000 per day depending on the projects they’re working on. Source: Freight Transport Association
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BEST PRACTICE: VEHICLE UTILISATION/DOWNTIME REDUCTION The right tool for the job You don’t need to be told how to run your business. You’re the expert and by now you probably know your requirements inside out. But the range of van models and variants is continuously expanding and being updated; this means it’s getting harder and harder to keep on top of the latest thing. It’s not surprising then that some take the easy way out and order the same again – but is this the right thing to do? Well it’s worth remembering that a vehicle that may have been ideal three or four years ago might not be the best fit for your business today. Likewise, new models, engines and options not available before may now suit your operational requirements even better. One classic example is a builder operating a large, Transit-sized drop-side to accommodate a multitude of tools, sand, bricks, slabs and a cement mixer. But today, most builders’ merchants deliver materials direct and companies drop off hired plant to site. So the builder’s needs could be satisfied today by a smaller van capable of carrying his tools – with the option to hire a larger vehicle on a daily basis only when required. The result? Big savings in terms of capital cost, fuel, insurance, maintenance and improved vehicle utilisation (and it helps the environment too). It’s all about having the right tool for the job.
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Fuel is the main saver in downsizing. Estimates show that a switch from Transit size to Connect size saves around £2,300 over 60,000 miles. Source: Energy Saving Trust
Who’s behind the wheel? With each commercial vehicle driven by any number of drivers (none of whom are likely to have an emotional attachment to it), influencing driver behaviour is likely to be more complicated than managing a fleet of cars. Multiple drivers make it harder for fleet managers to keep track of a vehicle’s condition, monitor fines, manage fuel consumption and improve driver safety. Fortunately help is at hand, from driver training, that encourages efficient driving techniques, to implementing telematics for proactive vehicle management and tracking. Add to the mix fuel cards backed-up with a risk management programme and you’ve probably covered all the bases. The result? A commercial vehicle fleet that’s regularly checked and inspected and safer drivers.
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Involve drivers in the buying process to establish needs. Driver feedback is essential as a driver who doesn’t like a vehicle is less likely to take care of it.
Ignorance of the law excuses no one It takes time and money to ensure that all your vehicles are serviced, taxed, MOT’d, and that every driver has a valid licence with the correct vehicle category. But when you compare it with the potential human and financial cost of ignoring the law, there’s no comparison.
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A van without a current MOT is uninsured. A driver with the wrong category on his licence will create interest from the authorities which will be time-consuming to deal with. With changes in legislation happening all the time, how up to date is your fleet? n The changes in the towing weight restrictions that came into force in January may have gone unnoticed by you – at least until one of your drivers is stopped n Whole Vehicle Type Approval has been in place for little over a month, in terms of vehicle bodywork and ancillary items. Despite more than six years of planning, very few fleets are aware of the legislation’s implications. In short, all ancillary items, excluding simple racking, lining and livery, will require approval by the Vehicle Certification Agency to ensure that it has been carried out safely and to a set standard. While this is essential to keep safe vehicles on the road, there is a time delay and cost. While few fleets will ever budget for non-compliance, putting money aside to ensure that you are operating 100% within the law has to be considered.
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There are plenty of sources of information – Government websites, the Road Haulage Association, the Freight Transport Association as well as helpful leasing companies. Booking half an hour in your diary to catch up on such matters could prove to be your most cost-effective half-hour.
Technology From a fleet manager’s perspective, keeping tabs on an entire fleet’s mileage, repair and maintenance records can be a potential headache. So if some of these issues are automatically being watched as part of a contract, life gets easier. Contract hire and telematics appear to be a match made in heaven. The profit element of contract hire relies on residual value which in turn is heavily influenced by the way a vehicle is maintained. So its win/win for everyone involved. The cost of your contract is intrinsically linked to the predicted annual mileage and while you and the contract hire company will try to estimate annual mileage as closely as possible, even the bestlaid plans can change. If mileage starts to accumulate faster than originally anticipated, it’s always best to flag this up with your leasing provider as soon as possible. A good contract hire company will want to help you manage the contract and minimise excess mileage charges and other potential end of contract penalties. In tough economic times the most efficient businesses are the ones that will survive and thrive and using the right technology has an important part to play in boosting your bottom line.
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Government figures show a 25-30% increase in road use by 2013. Intelligent solutions are available now to track the whereabouts of vans, monitor working hours and time spent at locations, maximise fuel efficiency, plan the most efficient routes and avoid excessive idling.
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BEST PRACTICE: VEHICLE UTILISATION/ DOWNTIME REDUCTION
“In tough economic times the most efficient businesses are the ones that will survive and thrive and using the right technology has an important part to play in boosting your bottom line”
LeasePlan – whatever business you’re in, it’s our business to understand your business First we listen. Then we’ll look at your business challenges with the clever thinking and practical know-how we’ve accumulated over 50 years in the industry. But most importantly we’ll use that expert knowledge to ensure you get what you want, and exactly what you need for your business. Our promise ‘it’s easier to LeasePlan’ may sound simple but it inspires changes that make a real difference to our customers. Strategy An efficient fleet starts with a great strategy. Our team of dedicated commercial vehicle experts will help you develop the right strategy to get the competitive advantage you need. Technology We deploy cutting-edge technology to help you bring about efficiencies you need in your commercial vehicle fleet.
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We understand you need your vehicles (and drivers) to perform specific tasks. With UPtime our unique proactive VOR management product, you can track vehicles and check they’re meeting your business objectives. Using this data (and our insight) you can optimise your fleet and get it performing exactly the way you need it to. Our commitment Whether you’re public or private sector, big or small, you can be confident that fleet isn’t just a part of what we do – it’s everything we do. No distractions, just great products and 100% commitment to service. Fleet News Customer Service Award Winner 2013 n If you’d like to know more go to www.leaseplan.co.uk or speak to our dedicated commercial vehicle team on 0844 493 5810. We’re always happy to help
THE ONLY HIGH TECH TOOL WE NEED TO BETTER UNDERSTAND YOUR FLEET. First we listen. Then we’ll look at your organisational challenges with the clever thinking and practical know-how we’ve accumulated over 50 years in the industry. But most importantly we use all that expert knowledge to ensure you get what you want, and exactly what you need for your business. An efficient fleet starts with a great strategy. Our team of dedicated commercial vehicle experts will help you develop the right strategy so you get the competitive advantage you need. So whether you’re public or private sector, big or small, you can be confident that fleet isn’t just a part of what we do – it’s everything we do. No distractions, just great products and 100% commitment to service. Now that’s something we all want to hear. To find out more, call 0844 493 5810, email us at hello@leaseplan.co.uk or visit www.leaseplan.co.uk
B E S T PR AC T I C E: R E N TA L
10 daily checks to make your van fleet safer Checklist will help improve cost efficiency and driver safety By Laura Moran Commercial Vehicle Director, Hertz
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re you running an excellent van fleet operation? Speaking at the recent Van Excellence Conference held by the FTA, the Vehicle and Operator Services Agency (VOSA) warned fleet operators that it intends to significantly increase its enforcements, including the number of roadside inspections of vans. The VOSA initiative is supported by concerns over recent MOT test results that revealed that some 50% of vans fail first time round. This raises the question: what action should fleet managers take to ensure they are operating a safe and efficient van fleet? Hertz Van Rental is the FTA Van Excellence industry partner and is leading the way in the rental industry, raising standards of operation and providing support to our fleet customers in the running of a safe and cost efficient van fleet.
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While Hertz is widely known for car rental, our UK van fleet boasts more than 5,000 vehicles and is growing rapidly. As a result, we operate a dedicated business division for our van fleet as we recognise that they cannot be operated or driven in the same way as a car fleet. So what practical steps can fleet managers take to avoid their vehicles being stopped at the roadside for inspection? While all Hertz vehicles undergo a comprehensive mechanical check prior to delivery to our customers, vans are often rented on a long-term basis. In these cases, it is important that the driver is aware of the regular checks they should make on a daily basis to ensure the vehicle is roadworthy; this is a part of their legal responsibility as the driver. The checks are not meant to replace a detailed inspection, however the driver is likely to be the first person to be aware of any fault with the vehicle.
Van Rental
The Hertz Van Rental vehicle handover with customers promotes the FTA Van Excellence daily checks that should be completed prior to use. Here are examples of just some of the daily checks that will help you run a safer and more cost-efficient van fleet: Brakes These can be checked to see if there is excessive side play or missing or loose anti-slip provisions. This is a critical daily check that should be completed, not just for the driver’s safety, but when brake pads become excessively worn they could lead to full disc replacement, incurring additional and avoidable costs. Check that the service brake is operational and that the brake lights work and come on when the service brake is applied.
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Tyres The legal tread depth is 1.6mm measured across threequarters of the tread around the complete circumference of the tyre. With advancements in tyre technology and the various grades of tyres available, the mileage any tyre can drive will vary widely. This, combined with the load and how the vehicle is driven, means that tyres can incur excessive wear very quickly so a daily check is a must.
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Tyre pressures The vehicle’s tyres should be inflated to the correct pressure to reflect the load being carried. Under-inflated tyres will result in uneven wear on the tyre and not only increase replacement tyre costs, but will also result in increased fuel consumption. Conversely, tyres that are over-inflated will wear prematurely.
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Oil/fuel Ensure that the fuel filler cap is secure and checks should be made underneath the vehicle for evidence of any fuel/
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Windscreen Check that the windscreen wipers work, that they are pointed at the windscreen, and that washer fluid levels are adequate.
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Steering and wheel alignment Check steering for excessive play, and when checking underneath the vehicle for oil leaks, a visual check of the major steering components should be completed to ensure they are secure and undamaged. Incorrect wheel alignment will lead to shortened tyre life and increased costs for replacing tyres.
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“The VOSA initiative is supported by concerns over recent MOT test results that revealed that some 50% of vans submitted fail first time round”
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Lights/indicators Check that they work and that all lenses are present and clean.
the driver of their vehicle’s speed limit and axle payload so they can safely load their vehicle and evenly distribute the weight across the cargo area.
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Mirrors Check that mirrors are aligned correctly and that side windows are clean and do not distort the driver’s view.
So what are the benefits of drivers completing daily van checks? Operating an excellent van fleet is something that Hertz is extremely passionate about and brings many benefits to both our customers and ourselves:
Reflective livery Where vans are fitted with reflective livery as part of their operational conditions, then this must be kept clean and free from defects.
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Dashboard warning lights The driver should act immediately on any dashboard warning lights that are displayed. Maintaining a vehicle in accordance with manufacturer guidelines will ensure that the warranty remains valid, but more importantly helps to ensure the safety of the driver. With extended servicing intervals from the majority of manufacturers, it is essential for van drivers to take more responsibility for the daily pre-use checks of their vehicle. Fleet operators need to ensure that time is allocated within their driver’s working schedule as this can form part of the employer’s duty of care. In addition to the daily checks that we promote, we also remind
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Driver safety The majority of our van fleet is rented on a long-term flexible rental where, apart from regular service and maintenance intervals, we may not see our vehicle during its lifetime on fleet. While the driver’s and vehicle’s safety is paramount, the consequences of our vehicles undergoing these daily checks, being operated safely and adhering to manufacturer’s maintenance schedules, means that at end-of-life we receive a van back that is likely to be in a much better condition than one that has not been subject to such checks during its life.
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Residual values The return of vans in a good condition, after being serviced and maintained correctly, will inevitably have an impact on the residual value of the vehicle. When there is a surplus of used commercial vehicles in the marketplace, it will be those in the best
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condition, with full service and maintenance history that will steal the show when it comes to the beauty parade at auction!
wear, but will certainly increase fuel costs as the vehicle is not being operated in the most efficient way.
Business continuity Where these daily checks are conducted, we know that our customers achieve a much better performance in VOR times as a more proactive approach is taken to the vehicle’s maintenance by identifying issues before they arise and interrupt continuity.
Speed While the daily checks will not necessarily reduce or control speeding, we do believe that van drivers who take more care of their vehicle will have a better understanding of fuel efficiency and maintenance costs, as well as how driving at the correct speed can help reduce these costs. In the UK we have many professional van drivers on our roads, however we also have a minority who drive a van in the same way as a car, including the speed. Unfortunately, in the UK we only signpost the speed limits for cars, so we are reliant on van drivers being aware and remembering the Highway Code, including the different speed limits that may apply to goods vehicles under 7.5 tonnes or if they are towing on their vehicle. Increasingly, we are asked for our vans to be fitted with speed limiters in line with heavier goods vehicles, as this technology can bring positive benefits to the environment, increase driver safety and guarantee fuel savings.
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Maintenance costs Where our vehicles are undergoing these daily checks and we are receiving mileage readings, we can provide a much more accurate maintenance plan meaning maintenance costs incurred during its life will be in line with expectations.
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“Van drivers who take more care of their vehicles will have a better understanding of fuel efficiency and maintenance costs�
Fuel savings How the vehicle is driven aside, it is the simple checks that can improve the fuel economy. Tyre pressures need to be checked regularly and varied as necessary according to the load being carried. Under and over-inflated tyres will not only increase
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Van Rental
Hertz and Van Excellence – helping you make the right fleet decisions At Hertz we recognise that selecting the right vehicle for your business can be a complex decision. That’s why our team of van experts are on hand to conduct a comprehensive consultation with our fleet customers. All of the team have completed the FTA Guide to Van Excellence training, in addition to various manufacturer training, and have a wealth of knowledge. The consultation takes the following into consideration: Driving use: It is important to understand the daily application of your van fleet to ensure the correct choice of vehicle is made. If you operate a van fleet in central London for instance, you need consider how advances in technology with DPF filters may affect your choice of vehicle for short, stop and start journeys in traffic-congested areas. Many van manufacturers recommend that a DPF is recalibrated with a short sharp blast on a motorway, which is simply not feasible when operating in major cities that are traffic congested. There are advancements in technology with some of the more recent models on the market offering an auto-clear function and can regenerate themselves and therefore lend themselves to traffic congested operation. Payload: Ensuring that you have calculated the correct payload for how you intend to use the vehicle is absolutely critical and can be incredibly complex. Starting with the manufacturer’s gross payload, you need to factor in fuel, crew, additional specification items and the weight of all necessary tools that may be carried. Load securing systems should also be considered if the vehicle will be heavily laden with loose or dangerous items. Mileage: This needs to be considered as part of the decision
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about which vehicle is best suited to your business needs. This will impact everything from fuel running costs, maintenance schedules and warranty parameters, so should be accurately calculated at the point of vehicle decision. Towing requirements: If you need a tow bar fitted, then you will need to consider a vehicle with the correct axle gearing ratio and whether you are required to fit a tachograph to the vans or operate the towing vehicle under an ‘O’ licence. Aftermarket modifications: With the recent N1 enhancements scheme coming into effect in April this year, it is worth considering what modifications are required and ensuring they are completed prior to vehicle registration. This will ensure that these are completed by convertors who hold the VCA Conformity of Production and are using type approved parts where applicable. Number of vehicles: While we offer a flexible rental programme where you can vary your fleet number up or down according to your business needs, it is always worth examining current fleet utilisation levels to assess if you have the right number and mix of vans on your rental fleet. The data produced from telematics provides a powerful starting point on how well your fleet is being utilised and can be analysed to help reach your optimum fleet number. Business continuity: In the event of a breakdown, Hertz will provide replacement vehicles across the UK, usually within a few hours. However, if your fleet has equipment that is essential for your business to continue operating, then it may be worth considering a plan of contingency vehicles located across our network that will ensure your service interruption is kept to an absolute minimum.
If it’s Van Excellence you’re after... · Preferential Rates & Priority Service for Van Excellence Operators · Flexible Fleet Packages · Nationwide Van Centre Network · Full Service & Maintenance Support For more information call 0843 309 3103, visit hertz.co.uk/vans or email hertzvans@hertz.com
Van Rental
B E S T P R AC T I C E : W H O L E L I F E C O S T
Whole life cost is key to running an efficient fleet A guide to best practice in running a vital commercial asset By Gary Banister Senior manager, Commercial Vehicles, Lex Autolease
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our commercial fleet represents a high level of asset investment. Therefore, it is important that the fleet is utilised in a way that whole life costs can be reduced as much as possible. This guide will look at the important themes and the best practice activities that can be integrated into your business as usual operations. Key considerations Throughout the lifecycle there should be a focus around: n Purchase costs – outright purchase, contract purchase, contract hire or finance lease. n Disposal strategy. n Fuel costs. n Operating costs – including maintenance costs, administration costs and any outsource fleet management cost. Key decision makers Who is responsible for ensuring the fleet is operated in a way that the whole life cost is reduced as much as possible? It is safe to say that in general, three roles would take some responsibility: Strategic manager/director: Setting the roadmap vision, developing the budget along with expenditure and service delivery are all important in setting the tone of where the fleet sits in the culture of any organisation. It is good practice to keep the fleet visible in relation to stakeholder management. Fleet manager: Making the day-to-day in-life decisions regarding fleet structure, vehicle operations and working alongside procurement to ensure all guidelines are monitored.
Operations manager: Managing day-to-day in-life operations. To ensure low cost of ownership, compliance and control of the fleet is essential. A clear management plan for all three roles would be good practice in developing the fleet approach. Whole life cost – best practice Lex Autolease suggests in relation to the product lifecycle of the fleet vehicle, the cost of ownership includes the cost of owning a vehicle from purchase, the cost through its maintenance and finally its disposal. Best practice operations can help drive down those whole life costs:
“Just like any other assets, measuring the performance of a commercial fleet asset is crucial to understanding the opportunity that exists to minimise the whole life cost, therefore measuring performance can be a key to its success”
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Purchase & disposal costs Decisions will be affected by a number of variables: n The price of the fleet asset from a retail point of view needs to be considered. At a base cost level this can then be affected by a manufacturer discount. Applying the discount or having the ability to benefit from this makes a difference in the decision making process n The purchase element of the whole life cost decision is whether to purchase the vehicle outright or lease the vehicle. A number of things can effect what happens here, the financial model of the business or how assets are applied to balance sheets is a consideration n Serious consideration should be given to how you fit out the vehicle. There are plenty of vehicle convertors that will want your business but it is really important that you choose a convertor that has sufficient capability and uses good quality products n The cost of funds and access to internal capital funds are key considerations n Your disposal costs can be affected by the purchase arrangements but also in-life asset management will play a key role in ensuring a well-maintained, clean vehicle is presented for disposal. This will increase your sale value and minimise any end of contract charges. Running the operation How can you maximise the best cost position of the above areas? Some questions to consider would be: n Who monitors fuel usage?
n Who has overall responsibility for the day-to-day compliance/ operation of the fleet? n Who manages operational compliance? n How should we monitor driver performance? n How should we manage record keeping? Good fleet management can be split into three key areas as a result of looking at the whole life cost policy in relation to a wide range of commercial fleet vehicles: n Improving the operation n Maximising vehicle use n Running the fleet Improving the operation Just like any other assets, measuring the performance of a commercial fleet asset is crucial to understanding the opportunity that exists to minimise the whole life cost; therefore measuring performance of the operation can be a key to success. It is therefore important to have some key best practice policies to ensure this takes place. These steps could include: n Performance league tables; driver performance, fuel performance, depot performance n Driver training plan – Safe and Fuel Efficient Driver (SAFED) Training programme n Good staff induction programme n Speed limiters n Onboard computer data capture technology n Good culture development n Vehicle check sheets and maintenance plans
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Once in place, it is important that the outputs are clearly visible. Two key strategies for ensuring this happens would be: Monitoring and review It is important that in this area you measure performance internally. Understanding the operation allows for a baseline to be set. This should be done before looking at external best-in-class case studies. Keeping it simple, a number of KPIs should be considered: n Customer satisfaction levels n Fleet availability n Number of vehicle hire days n Direct maintenance costs n Pence per mile fuel costs n Vehicle downtime Setting targets/benchmarking Having developed the KPI sets and identified a way of measuring it is important to have a roadmap to follow. Setting target objectives is essential. These targets should not be absolute but provide a basic philosophy of how to improve performance. Some suggested targets may be: n Improve fuel usage by 3% n Reduce fleet size by 2% n Optimise vehicle availability by 10% n Reduce maintenance spend by 3% All this needs to be aligned to the KPI set designed.
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Benchmarking now becomes an important strategy. However, this is not an exact science; trying to achieve a perfect outcome will not be possible. Maximising vehicle use Collecting information on fleet usage is vital in ensuring that we understand the fleet usage position. Maximising the use of that vehicle gives a better ROI and thus contributes to the whole life cost opportunity. It could allow for a vehicle size reduction and/or downsizing of the total vehicle fleet. This leads to the opportunity of using technology as a best practice approach in this area:
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Keeping in touch Keeping in touch with operational crews by some form of technology can lead to better utilisation of all fleet resources and improve the efficiency of the operation. Sending messages to operators, providing updates, gaining information are all good approaches for the use of onboard communications technology. Also, some simple activities like driver de-briefs, fleet update sessions and education events all aid whole life cost improvements through more efficient driver behaviour. Telematics Telematics is now becoming an important area for the use of vehicles and fleets. Telematics makes use of both computer software and hardware technology to provide a range of services to fleet
operations. A best practice approach in ensuring an investment in the area provides a satisfactory ROI would be: n Understand what the operational teams need to measure/ improve n Roadmap and develop a solution through the understanding gained n Have a robust data management strategy n Develop a robust improvement plan as a result of the data management strategy Therefore it is important to get this right; if you do, the potential outputs allow for a wide-ranging decision making approach to the whole life cost fleet model. Route optimisation Ensuring that you route vehicles in the most efficient way can add value to those whole life costs: less fuel, improved maintenance and less miles on the road. Using technology to ensure this takes place is the answer to best practice. Two opportunities exist; journey planning and scheduling systems. Both systems should reduce mileage and fuel use, help with fleet downsizing and the use of smaller vehicles. There are a number of ‘off-the-shelf’ solutions available; however, system integration is an important consideration.
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Running the fleet Some key strategies are important in running the vehicle fleet:
Improving fuel consumption Fuel needs to be managed. Although fuel usage varies across different fleets, the cost of fuel is a significant part of whole life cost fleet management: n Establishing a fuel management programme is an effective way of reducing operational costs. A fuel campaign can have a real impact if logical, simple and one that has ownership. Some considerations: n Appoint a fuel champion n Good fuel technology selection n Type of fuel used n Good management information approaches n Good driver training
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B E S T P R AC T I C E : W H O L E L I F E C O S T Fleet maintenance It is important to remember that vehicle performance is affected by the maintenance of the vehicle fleet. Good maintenance arrangements will ensure that the vehicle makes a positive contribution to that all important disposal strategy. The arrangements should include: n Drivers should be able to report promptly any defects or symptoms of defects n Compliant record keeping arrangements should be in place n Fleet operators must ensure that regular checks are carried out on items that may affect roadworthiness n Daily walkaround check n First-use inspections n Safety inspections regime n A good audit programme n Good processes to ensure unroadworthy vehicles are removed from service n All responsible personnel should know their role in the process n Maintenance budget management Summary In summary a best practice approach should consist of: Review: Plan or review procedures Educate: Drivers and managers on their responsibilities Check: Monitor driver checks and the maintenance regime Support: Drivers and managers learning going forward through the provision of: n Operate a visual workplace – poster campaigns n Individual driver cards n Standard defect and inspection documents n DVDs to provide ongoing training Conclusion Making the acquisition decisions around your commercial vehicle fleet can be a complex process. In practice, the decisions taken will affect both performance and profitability throughout the asset life cycle. Taking into account both in-life costs and disposal costs are perhaps the most important to address. The commercial fleet vehicle spends 98% of its life in service following purchase. It is here where the costs are variable and should therefore get the most attention, as in general there is good governance around capital spending or leasing arrangements. With some fleet operators not taking a whole life cost approach to fleet management, it is safe to say that the opportunity exists for an improved cost base among the UK fleet industry. As a result, Lex Autolease now has a commercial vehicle fleet proposition that can help fleet managers to improve those all important whole life costs: n Lex Autolease has the expertise, breadth of specialist vehicle choice and intelligent service solutions to take your business further. Our team of experts provide a comprehensive service to support businesses operating commercial vehicles, providing cost-effective and efficient solutions. n Our team can help investigate the most effective funding solution for your fleet, working with you to provide specialist advice and support in vehicle specification to match your business needs. n Lex Autolease provides specialist commercial vehicles with bespoke solutions, looking at all aspects of your requirements from design through to ordering, maximising efficiencies to end of contract defleeting.
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Our services include n Specification – helping you to decide what your business need is for the vehicle. n Environmental advice – for the best ways to meet your environmental responsibilities through your commercial vehicle fleet. n Implementation – once a vehicle specification has been decided, we manage the whole delivery process on your behalf. n Operation – the commercial vehicle technical services team will help to make sure that your fleet is fully maintained and vehicle downtime is kept to a minimum. n Replacement and renewal – managing the end of the contract so that downtime is kept to an absolute minimum for commercial vehicles. The benefits n 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. n Lex Autolease is proud to be recognised as an approved Van Excellence partner – raising standards and recognising industry excellence. n Our team of consultants will ensure that your fleet is compliant, from EU legislation, Whole Type Approval, taxation and ‘O’ licence requirements. n Our team of experienced fleet engineers is located throughout the UK to offer technical support as and when required. To review your wholelife cost policy or to discuss your commercial vehicle fleet requirements, contact Gary Banister at Lex Autolease: Gary.banister@lexautolease.co.uk www.lexautolease.co.uk/commercial-vehicles
Driving your business further.
We deliver. Lex Autolease is the UK’s leading provider of specialist Commercial Vehicles. By investing more in industry expertise, innovative service and a comprehensive range of vehicles we can add real value to your business in 2013. We will consider all of your requirements from design and speciƆcation, compliance, funding and maintenance to create a bespoke Commercial Vehicle solution.
To Ɔnd out how we’re committed to your commercial success, visit
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Fleet case study Rhodar
SAFETY PLACED AT THE HEART OF FLEET CULTURE Initiatives see award-winning fleet reduce accidents by 91%
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By John Charles rofessional fleet managers are a dying breed. But the knowledge and expertise that such a person can bring to a business can deliver multiple benefits, to the extent that their employment pays for itself several times over. Rhodar opted to place fleet responsibility with its purchasing department following the retirement of its transport chief. But three years later, in 2010, the company performed a U-turn and recruited Steve Haigh as group transport manager. The professional transport manager with more than 30 years’ experience has transformed the fleet into a multi-award-winning operation. “Rhodar wanted professional expertise,” he says. “Running a transport operation is not just about acquiring and disposing of vehicles and buying on price. “It is the day-to-day management of those vehicles and putting systems in place to deliver benefits.” Haigh, with the support of the Rhodar board and, critically, constant communication with drivers, instigated root-andbranch changes across the 300-strong fleet, split almost equally between cars and vans at 14 locations across Britain, supplemented by 50 to 60 vans on short-term hire to meet seasonal spikes in business. The professionalism the appointment brought to the fleet saw Rhodar, one of the UK’s largest asbestos management and asbestos abatement companies, claim a double triumph at December’s Fleet Van Awards. Success in the Small Private Sector Fleet category, and the Driver Management Initiative sector for its Beyond Zero health and safety scheme, was backed up when Rhodar was named Fleet of the Year (251-500 vehicles) in this year’s Fleet News Awards.
Steve Haigh: ‘Rhodar has an enlightened board’
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The awards have pride of place in the company’s Leeds HQ reception and Haigh says: “On a personal level, winning the awards was brilliant and to have a letter of thanks from CEO Jason Davy and support from the drivers has been superb. For the company, the awards prove that Rhodar is a successful business. The board has been very supportive of what I have tried to do. “The health and safety and green agendas are cornerstones of the business and the awards rubber-stamp what we have done.” Haigh adds: “When the transport element of a business is not the core function, boards of directors see the fleet as a cost rather than a contributory factor to the success of the company. But Rhodar has an enlightened board that saw the need for an efficient transport operation because the business could not function without it. I have been given the tools and the backing and we have significantly cut costs.” The experience of Rhodar will be music to the ears of Geoffrey Bray, the recently-retired chairman of ARI Fleet UK and a Fleet News Hall of Fame member. He believes the professional fleet manager is poised to make a comeback (Fleet News, May 2, 2013) and this is a view that is echoed by Haigh. But, he warns: “There are not the young people coming through into the role and there will be a real skills gap and that concerns me.” However, Haigh is doing his bit to help the cause, having recruited 22-year-old Natalie Shaw as transport administrator a little over 12 months ago from ING Car Lease. He says: “She wants to make it her career and I would love to see her as a fleet manager in her own right in the future.” Having accepted the group transport manager job at Rhodar, Haigh admits to ‘sitting with my head in my hands
Mercedes-Benz Sprinters make up 75% of Rhodar’s van fleet
Rhodar’s MercedesBenz Sprinter vans are fitted with Eco-Start stop-start technology
“I have been given the tools and the backing and I have significantly cut costs” Steve Haigh, Rhodar
for the first week wondering what I had taken on’. However, he drew up a list of priority measures and quick fixes before moving on to the longer-term challenges. One issue that he immediately identified as critical to transforming the fleet was driver buy-in. “No-one likes change but explain the reasons and the benefits and you can change cultures,” says Haigh. Given that asbestos is the UK’s biggest occupational killer – 4,500 people die each year from related diseases – it is little wonder that a company specialising in its management has health and safety as part of its DNA. Consequently, Rhodar has experienced a 91% fall in accidents, fuel bill savings despite an increasing fleet size and emission reductions. Initiatives taken by Haigh have resulted in the 150-strong van fleet being dominated by Mercedes-Benz Sprinter longwheelbase 313 CDIs featuring Eco-Start stop-start technology, which is designed to reduce fuel consumption and cut emissions. Additionally, 12 Iveco Daily vans were added to the fleet late last year. Sprinter models make up around 75% of the total van fleet and that is expected to increase as a major replacement programme takes place over the next 12 months. Operated on a four-year replacement cycle, with each van clocking up around 30,000 miles a year, Haigh inherited a fleet that saw some vehicles owned and others leased. The decision was taken to lease all vans using manufacturers’ – Mercedes-Benz and Iveco – own finance divisions. “The manufacturers back their own residual values a bit better than non-manufacturer-owned leasing companies, which is then reflected in the monthly rental,” he says. Meanwhile, a decision to opt for non-maintenance contract hire is a reflection of the reliability of today’s vans and an improvement in build quality and warranty cover. “Overall we are saving money, although we hold a contingency fund just in case,” says Haigh. Rhodar’s focus on health and safety feeds naturally into its transport operation. Monthly depot-based health and safety
£50,000 fuel saving by switching from Arval to Shell
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number of own-fault accidents last year
forums along with annual week-long employee refresher training encompass a major focus on transport and driving. Additionally, daily vehicle checks make drivers more accountable along with driver licence checks. Such measures have helped raise standards along with the introduction of Safeguard, the company’s Beyond Zero safety scheme that includes a major occupational road risk management focus with classroom and on-road training. All vans are equipped with Masternaut’s driver behaviour telemetry system that measures behind-the-wheel performance with the aim of eliminating unsafe manoeuvres such as speeding and harsh acceleration and braking, while also improving fuel usage and cutting emissions. In another move, designed to cut the number of own-fault accidents, a three-tier penalty system has been introduced, culminating in a driving ban until an employee’s driving is deemed improved through further assessment and training. Rhodar carries a £1,000 insurance excess and allied to the three-tier penalty system is a financial element that sees the driver charged up to £250 or 25% of the cost of the vehicle repair for a first own-fault incident; a second own-fault incident in a rolling 12 months triggers a penalty of up to £500; and a third incident in the period incurs a £1,000 charge. “Collectively it is focusing the minds of employees on the need to drive safely,” said Haigh, who has seen total van accidents reduce from 88 in 2011 to just eight last year and own-fault accidents plunge from 39 to three, with a near£100-per-vehicle insurance premium reduction. Additionally, the telemetry system has been developed to integrate with management reports from fuel card provider Shell so fuel usage data corresponds with tracking data. Rhodar spends around £1.7 million a year on fuel and switching to Shell from Arval has generated a 4.8p per litre fuel saving over the past 12 months, generating a near £50,000 cash benefit to the business. This year the focus is on reducing vehicle idling time. Haigh also wants to see Rhodar achieve accreditation to the Freight Transport Association’s Van Excellence scheme.
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Fleet management Security
HOW TO KEEP VAN THIEVES AT BAY Setting up a security strategy for your vans starts with their purchase
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By Trevor Gehlcken ach year around 47,000 commercial vehicles are stolen in the UK at a total asset cost of £152 million. Indeed, the Ford Transit is the UK’s most stolen vehicle, beating highly desirable cars. Consequently, ensuring you take every possible step to secure your vans is essential. Not only will it reduce the likelihood of you suffering from van theft but it will also reduce the chances of your drivers being put at risk. The security of your commercial vehcle operation splits neatly into three areas: the vehicles, the loads they carry and the people who drive them. Shortcomings in any of these areas could leave your company exposed to high risk. Setting up a security strategy starts when you buy your vans. Many still don’t come with alarms as standard so it’s well worth paying extra to have them fitted, as most thieves are opportunists and will most likely have seen the flashing LED in the cab that shows an alarm is armed. Some modern sat-nav units act as stolen vehicle trackers too. Most Citroën vans, for example, come with a Trafficmaster Smartnav system as standard. Smartnav is a workaday route finder but it is connected to Traffic-master’s centre in Oxfordshire. At the signal that a van has been stolen, a Trafficmaster operative can track the vehicle on a screen and alert the police to its position. Last year, out of 29 vans stolen, 27 were recovered. Pat Gallagher, Trafficmaster director, in-vehicle products, said: “We can locate any Trafficmaster-enabled Citroën LCV within moments of it being reported missing. Once we have confirmed it as being stolen, the police are informed of the vehicle’s whereabouts. As a result, many arrests have been
Increase in attacks on drivers When setting up a security strategy, it’s important not to forget the drivers themselves, who may be vulnerable to attack while transporting valuable cargoes. They are also liable to be hit by vandals throwing objects into roads, a phenomenon which seems to be increasing recently. There were 1,021 reported incidents of motorists being attacked by thrown objects in 2012, which equates to a staggering average of almost three a day. The county with the highest number of incidents last year was Nottinghamshire, with 279 attacks, while Avon and Somerset was the safest with only six reported incidents. The research, undertaken by Autoglass, shows an increase from 2011, where a similar number of police forces reported only 395 incidents. Matthew Mycock, managing director of Autoglass, commented: “It is alarming to discover that the number of motorists attacked with bridge and
1,021
Number of incidents of motorists attacked by thrown objects in 2012
£1.5bn
Amount of criminal profit from van theft in 2012
LEFT: Stolen vehicles can be followed in real-time at the Trafficmaster HQ in Oxfordshire so that the police can be alerted to their whereabouts
“Stealing van keys, often through burglary, is now the most popular way for thieves to take vehicles” Andrew Smith, Cobra Alarms
roadside missiles is on the increase. “As many motorists don’t report incidents, the true extent of the problem is yet to be revealed.” The data, which was revealed after a Freedom of Information Act request, does however show that an encouraging 75% of incidents reported resulted in arrests. In April, AOL Cars reported that one driver was blinded by shattered glass after a bottle, allegedly thrown by the driver of another car, went through his windscreen. The driver was hospitalised for six days, with doctors saying he would never regain 100% sight in his afflicted eye. “What may seem a prank to some yobs is likely to result in tragedy and must be stopped,” said Mycock. “We are calling for all motorists affected by this crime to report it to the police to enable them to take steps to prevent a more serious incident happening next time.”
made as Trafficmaster’s staff can relay the position of the stolen Citroën – even while it is moving – to the police. “This allows them to apprehend the criminals before they can make off with the load. The system operates globally and has even located one missing Citroën in Poland. Even if a van is hidden underground or in a container, as soon as it is started up and moved we can track it.” The bad news is that if thieves are really determined to steal your vans’ contents, there is very little that can be done. After all, vans are basically large metal cans which can be opened up with some stout welding gear. The good news is that most thieves will go for the easiest option. One of the industry’s major security players is Cobra Alarms. Managing director Andrew Smith told Fleet Van: “Stealing van keys, often through burglary, is now the most popular way for thieves to take vehicles, with 75% of all thefts done this way, which means that sophisticated vehicle locating and recovery systems are now more important than ever before. “If vans are taken home, never leave keys in a porch or near the front door at any time – professional thieves frequently obtain van keys by simply hooking them up through letterboxes. Storing keys away should be prioritised when getting home. “Simple tips around keeping your office secure can also help prevent van theft, which generated £1.5bn in criminal profit in 2012. When you go out at night or leave the office at the end of the day, draw the blinds and leave a light on. Install a burglar alarm, check that all the doors and windows are secured and make sure your doors and downstairs windows are locked if you are in another part of the building.” In 2012, vehicles worth nearly £4.5m fitted with Cobra stolen vehicle tracking systems were stolen and recovered, with three-quarters taken after thieves had stolen keys from an owner’s house or office or from personal items such as handbags or coats. Smith said: “It is always better if you can carry your keys on your person rather than in a handbag or wallet when out and about.
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Fleet management Security “Also avoid leaving van keys in jacket pockets when hanging up in restaurants or bar cloakrooms. And never leave vans with the keys in, even on your own driveway or office forecourt. Many vans are targeted during winter months when drivers warm up their vans before getting in.” As well as avoiding having vans stolen, there are insurance benefits too. Smith said: “Being security conscious about your vans will help reduce your insurance premiums. “Keeping them in a locked garage overnight and fitting a stolen tracking device will not only reduce motoring costs but ensure you keep your vans. The average recovery time in 2012 for vehicles fitted with Cobra tracking technology was a mere 57 minutes – in 2013 Cobra has cut the average recovery time to just 22 minutes.” Another deterrent is to add a massive high-visibility lock on the outside of your vehicles. The problem, according to ExpressLock managing director Tony Withey, is that many fleets only come to his company for help after they’ve been hit rather than before. And it is not just the thieves who pose a threat. He said: “Most thieves are opportunists, but believe it or not the driver is the next worst enemy, especially those engaged in multi-drop businesses. It is all too easy to leave
“It is all too easy to leave a door open when delivering a parcel and that is when an opportunist strikes” Tony Withey, Expresslock a door open when delivering a parcel and that is when an opportunist will strike.” The slamlocks manufactured by ExpressLock lock automatically when doors are closed, without requiring any operation by the driver. They are primarily designed for applications such as multidrop delivery, high-value loads and applications where the owner/operator requires control over the security of their goods. It is the function that appeals as much as the security. Another major advantage with mechanical slamlocks is total control. Electronic systems often have either global (all doors) or area (load or cab) unlocking – this leaves the unrequired doors vulnerable until the auto-relock action operates. Slamlocks do not have this vulnerability. Withey added: “We are living in a bad world at the moment and we have to do everything we can to keep ourselves safe. A strong, visible supplementary lock sends a message out loud and clear to the thief that there are easier targets elsewhere.” Locks 4 Vans, meanwhile, manufactures a large range of devices that will help keep vehicles safe, including deadlocks and slamlocks. Its slamlocks integrate with the vehicle manufacturers’ locking systems. This provides maximum security along with straightforward installation. They combine a genuine security slam operation with a high-visual deterrent. Deadlocks are under the control of the driver. They are mechanical devices fitted to a vehicle door. The lock operates by throwing a bolt into a receiver fitted to the opposing body section when operated by an external key. They are mainly aimed at owner-drivers or applications where the driver can be relied upon to operate the lock.
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Avoiding ‘crash-for-cash’ scams An alarming trend that has emerged in the past few years is for van drivers to be involved in ‘crash-for-cash’ scams in which another vehicle causes an accident and the occupants then claim thousands of pounds from the fleet’s insurance company for fake injuries, even for people who were not on board the car at the time. Vans are particularly vulnerable as the scammers know that they are company vehicles and insurance claims are likely to be settled with fewer questions asked. The danger of slam-ons has been highlighted by experts at experts at Virtual Risk Manager. A spokesman said: “We would strongly recommend you spend some time focusing on this issue in collaboration with your insurer and broker. “Induced collision fraud represents a serious threat to public safety, estimated to cost hundreds of millions of pounds per year by UK insurers. “Gang members either purchase and insure low-value vehicles or use hired vehicles, and then force innocent members of the public and fleet vehicles to crash into them. “By ‘inducing’ an innocent driver to collide with them, the fraudsters can rely on a highly positive chance of the acceptance of insurance liability. “Multiple claims are subsequently submitted for the driver and (often fictitious) passengers. According to insurers, who continue to work to mitigate this risk, the average insurance bill per induced collision is £25,000-30,000.” Scams include: Roundabouting: A fraudster disconnects their brake lights and drives around busy roundabouts/slip roads looking for victims. Once a victim is selected, the fraudster drives two-three metres in front of the target and brakes sharply (sometimes an accomplice in another vehicle will distract the victim, with their horn or flashing headlamps, to help facilitate the crash).
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Roundabout shunt: Fraudster stops at a busy roundabout and waits for a potential victim to pull in behind them. The fraudster then pulls quickly onto roundabout, but stops two-three metres onto the roundabout. The potential victim’s attention will be focused on checking for traffic emerging from the roundabout to their right, as they themselves pull onto the roundabout. They are unlikely to be aware of the stationary vehicle directly in front of them, until after a collision has become inevitable.
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The Russian method: As a slight variation, the vehicle in front of you may slam on its brakes when a third vehicle overtakes them at speed and then cuts them up for no obvious reason. The overtaking vehicle may be part of an organised tag team who are colluding in order to provide a cover story as to why the vehicle ahead braked quickly.
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To avoid being ‘slammed’: n Proceed with caution at all times, particularly when approaching roundabouts and do not look for a gap in the traffic on the roundabout until you are at the give-way line. Ensure your path immediately in front is clear before pulling onto the roundabout. n Watch your speed when approaching roundabouts, junctions and slip roads. Sticking to the speed limit and maintaining a realistic safety gap from the vehicle in front will help reduce your risk. n Be vigilant when driving and maintain awareness of your surroundings at all times. Do not assume that other drivers will always act rationally. n Your best approach is driving defensively – always at a speed at which you can pull up safely within the distance you can see to be clear. If you have been ‘slammed’: n Never admit liability at the scene. n Do not confront the other party or take any action that you feel might place you at risk. n Call the police from the scene and report the collision. n Count the number of occupants in the other vehicle. n Ask for the names and addresses of all people present. n Note any distinguishing features of the driver/passengers. This is useful evidentially in disproving subsequent insurance frauds.
Vans and commercials most likely to be stolen Ford Transit Land Rover Mercedes-Benz Sprinter Volkswagen Transporter Fiat Ducato Ford Ranger Nissan D22 Nissan Navara Peugeot Expert Renault Trafic Vauxhall Vivaro
17.6% 17.6% 11.8% 11.8% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% Source: HPI
Ford Transit is the top pick for commercial vehicle thieves
The modern thief’s armoury... Lock picks Go and type ‘tibbie lock pick’ into Google video search. The videos you’ll find will show you how to break into a Ford Transit van in minutes, using a specialised lock pick available online for just over £50. These tools allow any amateur to gain access to any unmodified van. You could order one today and start a van theft spree tomorrow. It’s not just Ford Transits that are vulnerable. Lock picks are available for all kinds of vehicles – ranging from specialist picks to versatile tools that can be used on a range of different vans. However, increasing numbers of criminals don’t even bother to pick your locks. They’ve got even simpler technology that prevents you from locking your van in the first place
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Lock jammers Modern vans are locked remotely using an electronic signal transmitted by your keyfob. It’s an elegant way of locking a vehicle, and it quickly becomes second nature. Hop out of the van, press the button on your key fob and head off — without so much as looking back at your vehicle. Thieves know this, and that’s why they’re increasingly using lock jammers to prevent you from securing your van. They target your vehicle, wait for you to get out of it and then activate their special lock jammer device. This sends out a strong electronic signal that blocks the signal transmitted by your key fob. So you leave the vehicle thinking you’ve secured it, but the thieves have actually tricked you into leaving it unlocked.
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...and the solutions There are a number of measures that can be taken to slow down or stop thieves, according to Burnt Tree Vehicle Rental. Change the locks If your vehicles have vulnerable locks, replace them with anti-pick replacement cylinders. Choose models that have been endorsed by the Thatcham Motor Insurance Repair Research Centre or by Sold Secure. These products have been subjected to high-intensity security testing, guaranteeing the highest levels of deterrence. You can also install additional locks to protect tools and prevent access via all doors. Look for accredited Slamlocks, Slamplates and deadlocks.
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OBD re-programmers Once they’re in the van, criminals can plug a laptop or code reader device into your vehicle’s on-board diagnostics (OBD) port and clone your wireless key fob. It takes a minute or two at most — meaning your van can be stolen in the time it takes you to pop out for a cup of coffee.
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Catalytic converter / spare wheel theft These are not hi-tech crimes, but they’re increasingly common ones – especially in the current economic climate. Catalytic converters on many vans are held in place by four nuts, meaning they can be stolen in minutes. Spare wheels are usually equally insecure, and are also being stolen in increasing numbers.
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Install a CATLOC Catalytic converter theft is rising rapidly as thieves cash in on these 3 easy-to-remove components containing valuable metals such as platinum or gold. Protect your catalytic converter by installing a security device called a CATLOC, sometimes known as a CAT Guard. Any attempt to cut the exhaust pipe or remove the retaining bolts will activate the alarm, preventing theft of your catalytic converter and damage. Use an OBD protection device If you use the Mercedes Sprinter, Ford Connect, Fiesta Van or Transit models in your fleet, be sure to fit an ECU/OBD protection device. These prevent thieves from plugging in a laptop or PDA to override your vehicle’s immobilisation system and driving away within minutes.
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Think ‘thief’ 5 Take simple precautions that make the thieves’ lives more difficult. Make use of tracking (GPS) services 2 If you use GPS services to track your fleet, they provide an extra line Keep an eye out for people working under cars, park in safe and well-lit of defence against theft. While professional thieves will know where to find places and make sure your drivers are trained to lock doors behind them a GPS device and remove it before driving off, many opportunist thieves every time they leave the vehicle. Remember, a van can be stolen in will not. If they steal your vehicle, you can then track its whereabouts and minutes – far less time than it takes a driver to buy a newspaper. alert the police. Source: Burnt Tree Vehicle Rental guide to protecting your van – www.burnt-tree.co.uk for more information
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Advertisement feature
Ticking the boxes will get the best van for your fleet Motility specialist’s checklist takes the uncertainty out of your purchase
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hen it comes to choosing the right van for your business there are so many issues you need to be aware of and think about in order to stop you getting lost at every turn. Dave Freeman, head of LCV at business mobility specialist Alphabet, offers advice designed to guide you through the maze. Buying a van can be a complicated affair and there are so many elements which you need to consider in order to get it right first time. Before you start looking at vans, though, the first thing that you need to do is look at exactly what your van is typically going to be needed for: i.e. where its load has to be delivered and the distances involved. Before you make a final decision on which van to acquire, you should ask yourself a few questions: n What is the size / weight of the typical load? n Do you need to carry the load all of the time? n Are you carrying specialist tools or equipment? n What kind of security is needed? n How will the load be accessed – for example, will you need side doors, or a tail-lift? n Will the van need to carry one or more passengers? These questions will help you to understand your business in more detail and will enable you to make an informed decision on which vehicle you buy, rather than just choosing the biggest van available. Fuel consumption With the latest budget putting a freeze on fuel duty rises, van owners have been given a slight reprieve, but with diesel still sitting at just under £1.50 a litre, ensuring your van is efficient is now more critical
Vans galore: but which is right for your company?
than ever. Different types of fuel have different advantages and disadvantages in terms of their cost and environmental impact. Some may also be better suited than others to the type of work you will be using your van for. When making up your mind on the fuel type you want for your vehicle, look at the manufacturer’s guidelines on fuel consumption. It can be very difficult to achieve the fuel consumption which the manufacturers actually specify, but it works as a good guideline to fuel efficiency and should help you to make an informed buying decision. One of the best ways to see if the fuel efficiency of the vehicle works for you would be to speak to the dealer and get a vehicle on loan for at least a day. You can then put a payload in the back of the vehicle and drive the journey it will most often be used for. This will give you a much more accurate representation of fuel economy.
For more information, visit www.alphabet.co.uk, call 0870 50 50 100 or email alphabet@alphabet.co.uk
Make an informed decision rather than just choosing the biggest van available Added extras Once you have analysed your company, what the vehicle will predominantly be used for and the fuel type you need, there are a final few things you should consider. You should definitely fit the vehicle out correctly to ensure driver safety and the security of what is in the back. For this, you need to consider which bulkhead you go for to ensure the safety of the driver and whether you need reinforced doors or opaque glass at the rear of the vehicle to ensure the security of the contents. Another tip would be to look into getting rubber mats and seat covers to help fully protect your asset.
Fleet management Security
The added threat of sat-nav equipment The proliferation of clip-on sat-nav units is proving a happy hunting ground for thieves. And it is not just the units themselves that get stolen. The thieves are using them to cause even more damage, by leading them to the rightful owner’s home. By logging into searched (or saved) locations, or even following the last route used, the thieves can follow drivers’ tracks and find out where they live. Sat-nav supplier Snooper gives some good advice for preventing sat-nav thefts: Take it with you The easiest way to stop a sat-nav being stolen is to never leave it unattended. For short lengths of time, it’s fine to leave it hidden in the glove compartment, but for long periods it’s necessary to take it with you. Cover your tracks Sat-navs leave tell-tale signs all over the dashboard and windscreen. There’s no point hiding a sat-nav if thieves can still see the stand or suction marks on the glass. Make sure to remove any clips, chargers or stands and clean away any marks from the screen. Thieves won’t bother to question whether you’ve taken the sat-nav with you and will break into your van either way. Hide other valuables Just as important is to hide other valuables which may attract attention. A thief might spot a smartphone charger and at the same time may also find a sat-nav in the glove box. Check your windows Everyone is so used to automatic functions that sometimes drivers forget to close windows. Always check windows are closed. At a petrol station, don’t leave the van unlocked. Know your model Everyone knows their brand of sat-nav, but what about the make, model and serial number? Make a note of all these, or keep the warranty and manual in a safe place at home to rely on in case of theft. This will help police track a sat-nav and give a better chance of it being returned.
Security tips from the Home Office Advice from the Home Office on commercial vehicles gives some basic pointers that could have a big impact on crime affecting your fleet: Labels Try to make sure that your load is not labelled in such a way that it is clear to thieves that the goods are of high value. Use a code on the packaging instead of a descriptive name. Seals Use security seals on goods packaging that will immediately show if anyone has tried to tamper with the goods. Wheels and batteries. Make sure that any externally stored or mounted wheels or batteries are locked on to the vehicle and that they are clearly marked with irremovable paint. Clothing Check that staff return official clothing and company ID documents to you when they leave your employment. These items can be useful to a thief trying to claim authority to collect goods. Consignment notes and other official documentation should be kept secure for the same reason. Parking Where possible, park in a secure, well-lit area, endeavouring to keep the vehicle in sight. Locking When you leave your vehicle, always lock it and set any alarms. Make sure the load area key is on the same ring as the ignition key – this means that someone cannot start the vehicle while you are opening the rear or side doors.
More ways to combat van theft Historically, factory-fitted security devices on LCVs have lagged behind those on cars. Here ALD sets out a list of tips for van fleet operators to keep their vehicles safe:
Fit a vehicle tracking device in the event of a van being stolen. A handful of manufacturers are starting to fit trackers as standard, with others offering the technology as an option.
Aim to operate vehicles that have key fobs with door-locking devices built into them that can be programmed to meet individual needs. This means, for example, that the driver’s door only need be unlocked, with the passenger and rear doors remaining locked. How the key fob is programmed depends on vehicle utilisation and the company’s view of the risk of a theft.
Display stickers on the vans that say: ‘No equipment is stored in this vehicle at night or at weekends’. This is particularly important if vans are taken home by drivers and not parked in secure compounds overnight and at weekends.
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Fleet managers should aim to 2 operate vehicles that have solid rear doors. Increasingly manufacturers are phasing out windows in rear doors so prying eyes cannot see into the storage area. Alternatively, in many cases solid rear doors are available as a no-cost option. When adding vehicles to their fleets, companies should opt for LCVs with a factory-fitted solid bulkhead whenever possible. This is not only a safety feature but is also an important security aid as it stops would-be thieves from breaking their way into the front of the van and gaining access to the rear and vice-versa.
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Sat-navs are a happy hunting ground for thieves
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Operate vans that are fitted with deadlocks.
If vans are taken home overnight and at weekends, drivers should park them either under a streetlight if on the road or reverse close to a wall on private property to make the rear doors inaccessible to thieves.
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If parking vehicles at home, store keys in a secure place, particularly away from the front door. There have been many incidents reported of thieves stealing vans after breaking into homes and stealing the keys.
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If carrying loads in a pick-up, ensure they are fitted with a solid and lockable cover which effectively converts the pick-up into a van.
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F l e e t o p e r a t i o n s F TA c o nf e r e n c e
Spreading the word on benefits of Van Excellence Trevor Gelken joins 150 operators at the FTA’s latest conference The sorry state of the UK’s van industry has been laid bare by Peter Hearn, scheme management and internal relations director at the Vehicle and Operator Services Agency (VOSA), in a hardhitting speech in which he called for major selfregulatory measures before the Government is forced to step in with swingeing new legislation. Among the transgressions found by VOSA, Hearn revealed: n 50% of vans fail their MOT test at the first try n 75% of vans stopped had been served prohibition orders for being overloaded n 60% had been given prohibition notices for roadworthiness n Vans suffered double the accident rate of heavy goods vehicles – 13,000 per year. Hearn told delegates: “The problem is that vans are mostly secondary to the businesses which own them and quite frankly maintenance is often not even part of their thinking. “Look in any high street and you’ll find it is dominated by vans. If half of these vehicles are failing their MOT tests, that means they are driving round in an unroadworthy state. You can see why the Government is worried.” However, Hearn pointed out that ministers were not keen to pass new laws to control the van industry and were instead looking to operators themselves for some kind of self-governance, which is why the Van Excellence programme was started in the first place. He said: “Van Excellence brings many benefits and helps regulate the industry. Self regulation has already worked for the heavy truck sector and we want to create a level playing field between vans and trucks. Given the problems that exist at
present with vans, we have got to do something.” But Hearn warned that along with the carrot of Van Excellence there was also a hefty stick waiting in the background. He said: “Ministers have asked us to increase LCV examinations and we are about to target wellknown areas of non-compliance. But it is not only going to be a big stick we are wielding. We would much rather engage with operators, educate them and in turn get some feedback. “If this doesn’t work, we have powers to impound vehicles, fine drivers and take people to court and we won’t hesitate to do that if we think it necessary.” Hearn said the van fleet industry basically split into three groups – triers, ‘wrong-uns’ and the ignorant. The triers, he said, needed educating, the ‘wrong-uns’ needed sanctions and the ignorant needed a mix of the two. Operators dodge need for O-licence There has been a significant shift towards 3.5tonne GVW vans in the past few years as operators seek to dodge round the need for an O-licence and tachographs and Hearn believes that driving excessive hours is a particular problem that needs tackling. However, in the absence of a tachograph, it is difficult to prove how long someone has been behind the wheel. He said: “We know people are driving vans for too long but it is a challenge to prove it. All we can do is get involved when an accident has happened and investigate by piecing together the evidence.” On the possibility of tachographs being introduced for vans down to 2.8-tonnes GVW, Hearn said: “Several attempts have been made to bring down the weight for tachographs and this has
James Hookham: ‘We’ll be showered with legislation’ already happened in Germany. However, my concern is that if we do this it will just mean that fleets will buy even smaller vehicles and that would mean more vans on the road. In my opinion, self-regulation is the way forward.” James Hookham, managing director – policy and communications at the FTA, said the Van Excellence programme showed that Britain’s fleet operators were willing to recognise the risk and help alleviate them. But he added: “If we don’t do something, the dam will burst and we’ll all be showered with new legislation.”
Make drivers part of the maintenance system Drivers must be made to take their share of responsibility for vehicle maintenance, according to Ian Marsh, MOT technical communications engineer at VOSA. He said the shocking MOT failure rate was avoidable in many cases if drivers did a daily “walk-round” check as they should do. Marsh said: “Drivers should be part of your maintenance system as they are the ones who
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know when something isn’t right. Failure items such as light bulbs, tyres, steering and bodywork are all things that can be easily spotted with a daily check and we need to get drivers used to doing this. “They obviously aren’t at present or we wouldn’t have such a high failure rate. “This is the first year we have been actively targeting LCVs and what we find this year will determine what we will do in the future. My advice is to think what you can do to improve van safety, put systems in place and get your drivers involved. Do this or risk more legislation.”
Top 10 MOT failures 1 Lights/signals 2 Brakes 3 Suspension 4 View of road blocked 5 Tyres 6 Steering 7 Bodywork 8 Exhaust system 9 Seatbelts 10 Registration plate
31% 24% 15% 8.3% 4.9% 4.8% 4.0% 3.2% 2.4% 0.9%
Fuel efficiency not the biggest factor Ex-Ford van fleet chief and Van Excellence stalwart Gary Whittam believes most van fleet operators are making a big error in their efforts to save fuel and cut down on accidents. Most, he said, concentrated on buying the most fuel-efficient vehicles, when in fact despite fuel economy figures improving over the years, journeys were more expensive now because of the higher cost of fuel. A 100-mile journey in an average van in 2002 cost 11.04p but despite fuel economy improving 23% and CO2 going down 26%, fuel costs rose 93% so by 2012 that journey cost 17.4p per mile. The real way to save cash, he said, was to look at maintenance, driver behaviour and aerodynamics. Whittam pointed out that these three areas could affect fuel costs by 12%, 35% and 25% respectively. Looking at driver behaviour, Whittam said many fleet chiefs simply targeted their worst drivers instead of looking at their staff as a whole. He said: “Most fleet train the bottom 10% of drivers but this has limited effectiveness as
they don’t want to learn and soon go back to their old ways. “You have to get to the average drivers because these are not bad people but ones who just haven’t been shown how to drive cost-effectively. They will respond well to help and advice and it’s well worth doing.” On aerodynamics, he warned about loading vans unnecessarily with roof racks and other items, which add to fuel costs. He said: “Manufacturers spend millions of pounds making their vans as aerodynamic as possible and then people go sticking things on the top and sides, many of which aren’t necessary. This can add a quarter to fuel costs.” Whittam’s fuel-saving action plan: n Insist on daily driver checks n Work with the majority to improve fuel efficiency, not the minority n Incentivise staff to save fuel n Only fit roof racks when absolutely necessary n Fit aero-devices to box bodies
Delegates told: Concentrate on your worst drivers Fleets which don’t have a risk assessment policy in place could suffer serious consequences, according to John Davidge, head of fleet technical at Cardinus Risk Management. Davidge quoted Pareto’s Law, which states that 80% of the effects come from 20% of the cause – and in the case of road risk, this means that 20% of van drivers cause 80% of the crashes. He said: “After a death crash involving one of your vans, the police will ask why you have done nothing to raise the standards of that 20% of your drivers. The Corporate Manslaughter Act says all traffic accidents will be treated as homicides unless proved otherwise.” Davidge urged delegates to look at what the 20% were doing differently from the “good guys” – this mainly involved driving too fast, too close, being distracted and using a mobile phone. Davidge said fleets must: n Have a risk assessment policy in place for all drivers, with training for the worst ones n Keep accurate records to prove they have done the right things n Carry out regular maintenance on vehicles The average repair cost for an accident was £3,000, but Davidge said: “Based on 10% profit for the company, that means it will have to do £30,000 of business extra to make up for one accident. “Even if you save one accident by doing all this, then it will be worth it.”
Gary Whittam: five-point fuelsaving action plan
Get ready for the £2 litre, fleets warned Fleet operators should prepare now for the £2 litre of fuel – and that means looking at various options such as hybrids and electric vans, according to Gary Whittam. Whittam told delegates: “Fleets need to embrace a mix of technologies for the best results because there is no one fix and no knight in shining armour waiting over the hill. If you don’t prepare now for the £2 litre of fuel you’ll be on the back foot and your business will suffer.” Looking forward, Whittam believes that in a few years’ time, improved battery technology will mean that vans will be able to travel a full 100 miles fully laden on a single charge and thus a lot of the present objections
to electric vans will be removed. He said: “Half our vans work in an urban environment and I believe that in 10 years time 30% of them will be full electrics. We will see smart charging which means the vehicles won’t actually have to be plugged in. Diesel will still be the main area of development but improved technology will come at a cost and these vans will be more expensive.” Whittam also called on residual value guides to take electric vans more seriously. He said: “It is about time the RV guides got down off the fence and started quoting residual value figures. Until they do, there’s no way that electric vans sales will take off.”
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Number of miles predicted as range for electric vans of the future
93%
Increase in cost of fuel since 2002
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First drive Renault Kangoo phase 2
New Kangoo set to go head-to-head with Citan Dashing good looks and fuel-saving technology give new model fleet appeal Need to know n Eco button saves 10% on fuel n New 110bhp 1.6-litre diesel engine n Fresh front end and centre console
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By Trevor Gehlcken he launch of the Mercedes-Benz Citan this year has presented rival Renault with something of a problem. The Citan is basically a Renault Kangoo which has been “Mercified” with various styling changes and under-bonnet tweaks and comes off the same line as the Kangoo at Renault’s plant at Maubeuge in northern France. And its arrival made the current Kangoo look a little staid and past it. But there is certainly nothing old-fashioned or downmarket in the phase 2 Kangoo that will hit Britain’s shores in July. This van has been treated to a midlife facelift that sees a new front end and lots of hi-tech initiatives that improves ride and handling and fuelefficiency. At the launch of the new Kangoo in France, Renault bosses made scant mention of the Citan rival, but we gained the distinct impression that they are not exactly happy with the claims of better build quality being made by Mercedes-Benz. In fact, we were treated to a factory tour in which Kangoos and Citans were pouring off the same line at a rate of knots (300 a day to be precise), rather putting paid to any claims of differing standards. And as the Kangoo is between £1,000 and £2,000 cheaper than the Citan, it would appear to put the French firm in a strong position in the battle for fleet sales.
Specification Gross vehicle weight (kg): 1,936-2,200 Power (bhp/rpm): 75/4,000 - 110/4,000 Torque (lb-ft/rpm): 132/1,750-177/1,750 Load volume (cu m): 2.8-3.5 Payload (kg): 630-800 Comb fuel economy (mpg): 52.3 - 65.7 CO2 emissions (g/km): 112-190 Prices: (ex-VAT): £12,145-£19,045
65.7mpg
Class leading fuel economy claimed by Renault for the Kangoo
10%
Fuel saving claimed for using the eco button
The Kangoo will also be offered in full electric mode too, unlike the Citan. So what exactly has the new Kangoo got to offer? For starters there’s a smart new front end with swathes of black plastic to fend off all those annoying scrapes and scratches that tend to build up in the busy fleet life of a van. There’s a much bigger Renault logo in the front too – and, in the case of the ZE electric version, that badge hides the charging socket. There are also new black rear light extensions. There are changes to the cab too. A new centre console looks more modern, taken from the Clio and housing the air-conditioning and radio controls. The R-Link system, which will be a paid-for extra at £810, brings together all the van’s multi-media functions such as sat-nav, radio, Bluetooth telephony and audio-streaming and offers a catalogue of apps that can be downloaded directly to the vehicle. All this is controlled by a seven-inch touchscreen. One rather natty function of the unit is that it can read out texts and emails to the driver while he or she is on the road, although what the safety experts would say about this little marvel is debatable. My view is that while people are driving they should be doing just that and nothing else. Of much more use is an eco button, which slightly knocks down the torque of the engine and is reckoned to save around 10% in fuel. There’s an eco mode available on ZE too which is said to extend range by 10%. Other fuel-enhancing devices include stop-start and a gearshift indicator. The Kangoo is powered by Renault’s tried and trusted 1.5dCi common rail diesel unit and power outputs are 75bhp and 90bhp. New for phase 2 is a 110bhp 1.6-litre unit and there will also be a petrol variant for the UK in auto-mode, although this is expected to be a minor seller. Renault is claiming class-leading fuel economy figures of up to 65.7mpg and 112g/km of CO2, although Mercedes-Benz also makes this claim too with the Citan. Three lengths are available in Europe but in the UK Renault won’t be selling the Compact version, leaving us with standard and long wheelbases. Payloads range from 630kg to 800kg and volumes go from 2.8 cubic metres to 3.5 cubic metres. Meanwhile, there are three specification levels – Debut, Core and Sport. The Core is expected to take the lion’s share of sales.
Verdict The modern centre console is taken from the Clio
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A fine effort by Renault in terms of fuel saving, technology and dashing good looks. The diamond and the three-pointed star will now go head to head on an even footing. We will watch the outcome of the sales battle with interest.
“As the Kangoo is between £1,000 and £2,000 cheaper than the Citan, it would appear to put the French in a strong position for fleet sales” Behind the wheel Look at the sales charts and you’ll notice that Renault is 34% down so far this year. The problem is not that UK fleet buyers have fallen out of the love with the French firm but that it has sold all its outgoing Kangoos and is waiting for the new phase 2 versions to arrive. Consequently, to date it has sold 694 models in 2013, compared to 1,773 a year earlier. Anyone who has ordered one of these new vans will certainly be pleased with the enhancements that have been made. Phase 2 models looks a lot more stylish than the old model and ride and handling is much more taut and responsive. Looking at the outside, it’s amazing how many rival vans don’t have a lot of
plastic round them. We all know how may dings an urban delivery van is likely to get in its life so all this plastic should keep the Kangoo nice and trim. Climbing aboard, the seats are soft and comfortable and totally different from those in the Citan, which are typically hard and Germanic. Which are best is debatable. The Citan’s are probably better over a 200-mile journey but for shorter trips I prefer the comfy Kangoo variety. The new dash gives the van a more up-to-date appearance and there are two coffee cup holders in the centre console and a handy overhead storage shelf. In the back the Kangoo has a ribbed wipe-clean floor which allows loads to be slid in and out easily and there are eight
load-lashing eyes. With the optional folding passenger seat, loads of up to 2.8 metres can be carried, which is quite extraordinary bearing in mind this is supposed to be a small van. Our test drive took place in the French countryside and we selected the standard length 90bhp version with a half-load of 350kg on board. Other testers reckoned the Kangoo’s engine was noisier than the Citan’s, possibly due to there being less padding under the bonnet, but my co-pilot and I had no complaints and managed to chat in muted tones. The ride and handling have certainly been sharpened up over the old model and the van happily threw itself round some tight turns safely and without
any hairy moments. I played around with the eco button and to be honest I couldn’t feel a lot of difference in power with it on or off. If that’s the case, why didn’t Renault make the eco mode the default option and call the button “sport mode” or suchlike to give increased power? If I was buying this van for fleet purposes I’d want the eco button on all the time without my drivers having the option of turning it off. A 10% fuel saving is well worth a few moans from drivers. It’s nul points, however, to Renault for failing to offer ESC as standard as it is in the Citan. Mind you, even if you pay the required £350 extra for it, the van is still cheaper than the Merc rival.
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First drive Mercedes-Benz Sprinter
Safety and efficiency first for modified Sprinter van Only panel van to meet Euro6 emissions standard has five new safety options Need to know
Specification
n Up to 20% fuel savings over old model n Only panel van to comply with Euro 6 emissions n Load floor lowered by 30mm
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By Trevor Gehlcken ercedes-Benz has treated the Sprinter panel van to a mid-life makeover which includes a stylish new front end, a lower body for easier loading and various nips and tucks in the cab. But the really big news lurks under the bonnet where, thanks to a series of safety and environmental innovations, the German panel van now firmly takes the number one slot as the safest and most fuel-efficient vehicle in its class. It is the only panel van that meets Euro6 emissions standards. No fewer than five new safety systems have been installed to help prevent accidents, although sadly, four of them will come as paid-for options. Deliveries of the new upgraded van will start in September and while prices have been released, there are no costs as yet for these add-ons. At the launch of the new Sprinter in Dusseldorf, Norbert Kunz, Mercedes-Benz’s head of product management, told Fleet Van: “The unique position of the Sprinter has always motivated us to become even better. Today, the Sprinter is an icon and we have focused here on assistance systems that help counteract the most frequent causes of accidents.” Kunz revealed that: n Around one out of every four accidents involves a rear-end collision n One out of five occurs when a vehicle makes a turn
Gross vehicle weight (kg): 3,000-5,000 Power (bhp/rpm): 95/3,800-163/3,800 Torque (lb-ft/rpm): 184/1,400-2,400 - 265/1,400-2,400 Load volume (cu m): 7.5-17.0 Payload (kg): tba Comb fuel economy (mpg): 29.7-44.75 CO2 emissions (g/km): 191-270 Prices (ex-VAT): £20,825-£45,170
“We have focused on assistance systems that counteract the most frequent causes of accidents” Norbert Kunz, Mercedes-Benz
n One out of six accidents results from a driver losing control of the vehicle. He said: “The Sprinter now has five systems to help prevent such accidents. I think we all agree that every accident is one too many, especially if people are injured. “And there’s another factor to be considered – our assistance systems can prevent accident-related downtime and thus ensure maximum vehicle availability. “Our confidence in the utility of the new systems is also demonstrated by the fact that Mercedes-Benz Bank in Germany and other European markets are offering discounted insurance premiums for Sprinters equipped with safety packages. Our safety measures are therefore making our vehicles more economical in many ways.” Prices start at £20,825 ex-VAT, a rise of around 1%, but the new models are up to 20% more fuel-efficient and reduce NOx emissions by 85% thanks to an AdBlue tank, which will need to be topped up every 3,700 miles. The new front end gives the van a more stylish look, while in the cab, there are new seat fabrics and coverings to give extra comfort, a better steering wheel grip and the air vents are now embellished with chrome. There’s also a new gear knob, while the Sprinter offers Bluetooth connectivity with telephone keypad and phonebook, along with a new Becker navigation system. The van has been lowered by 30mm, which not only means easier loading but also reduces fuel consumption and adds to the Sprinter’s driving dynamics. The safety system which comes as standard is Crosswind Assist, which automatically helps to correct the van’s forward path when a strong sideways gust of wind affects it. The need for counter-steering is reduced, although it only acts at speeds of 50mph and more. Collision Prevention Assist (CPA) sees the van taking over when it detects that it is too close to the vehicle in front. CPA comprises the proximity warning function and
Behind the wheel The Sprinter has been a giant among panel vans since its launch in 1995 and indeed it has won the Large Panel Van of the Year award every year since the Fleet Van Awards began. I did think it was nigh on impossible to improve the vehicle’s looks but the designers have done a wonderful job of smartening up the front end. But looks mean little when we see the rest of the under-metal tweakery that has been going on. At Dusseldorf we were able to put the new van through its paces both on road and on track.
Ride and handling were never a problem with the old Sprinter but that lower bodywork gives the new van an even more solid feel and a great cornering capability. Anyone who has to load and unload frequently will also appreciate the lower rear sill. Our test drive was in the long wheelbase 129bhp variant equipped with the seven-speed auto-box and what a smoothie it turned out to be – plenty of acceleration on the autobahns, masses of torque up the hills and a smooth gearchange that left me feeling completely
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relaxed even after hours of driving in various conditions. On the track, we tried the CPA system and with the help of a trained driver we all gasped as we approached the rear of a slow-moving dummy car at high speed. As the driver braked at a last moment in a move that would normally have resulted in a nasty crash, the brakes pushed themselves full on and we ground to a halt safely. Less impressive, though, was the Crosswind Assist system. We drove past a series of fans blasting air at us and
despite the system cutting in, we were still blown off course. The problem is that if the driver tries to counter-swerve (as I did in a reflex reaction) it overrides the system altogether. On the autobahn the Blindspot Assist proved a godsend as there’s a noticeable side blind area on LWB models and on several occasions the system spotted a vehicle I hadn’t seen. But the Lane Assist bleeping rather got on my nerves after a while – it seemed to come on at every little twitch of the wheel.
Sprinter’s new front end gives the vehicle a more stylish look
adaptive Brake Assist. It warns the driver when the distance head is too small and, at a further escalation level, when there is an acute danger of collision. The radar-based proximity warning assistant helps the driver to maintain an appropriate safe distance from the vehicle in front. A radar sensor in the front bumper continuously measures the distance from the vehicle ahead in the same lane and the vehicles’ relative speeds. Blindspot Assist looks down each side of the van and detects when there is another vehicle alongside, even though the driver might not be able to see it in the rear view mirrors. When a vehicle is detected, a red spot appears on the relevant side mirror, warning the driver not to cross into that lane. Lane Keeping Assist gives an audible warning to drivers when they drift into an adjacent lane while High Beam Assist looks at the road ahead at night and automatically switches the headlights from dipped to high without any input from the driver. Sprinter will be available with a 2.2-litre four-cylinder diesel engine offering from 95bhp to 163bhp and there will be a seven-speed auto option available. Thanks to various hi-tech tweaks in the engine compartment, the Sprinter will be the most fuel-efficient in its class and will return up to 44.75 miles per gallon. Service intervals have been extended to up to 37,000km.
The steering wheel and air vents are embellished with chrome
30mm
The amount the van has been lowered which makes loading easier and improves fuel consumption
Verdict
The Sprinter has built up an awesome reputation and these new improvements will see it go even further ahead of its current competitors. I do wonder, however, how many fleet buyers will be prepared to pay for all these safety extras.
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First drive Fiat Doblo Cargo XL Doblo Cargo XL is as big as its bigger brother Scudo
Behind the wheel Regular readers will already know that at Fleet Van we rate this vehicle very highly. It was a quantum leap forward in terms of build quality over the old Doblo and was voted Van of the Year in our awards when it first appeared. It must be said that this version has rather curious looks – almost like a huge sardine tin has been welded on the top – but there are certainly not shortcomings in the practicality stakes. There seem to be acres of loadspace for a small van and a nice wipe clean ribbed floor so that loads can be slid in and out easily. The XL has eight load-lashing eyes to keep things in place. There’s a full bulkhead behind the front seats (rather meanly a £25 option), which imbues the cab with a quiet air of efficiency and the seats themselves are chunky and comfortable with plenty of side support and lumbar adjustment. There’s a handy overhead shelf too and two coffee cup holders in the centre console. On the downside the 12-volt take-off is down between the two seats, which means that when I plugged my sat-nav unit in, the wires trailed across the cab and got tangled with the gear lever. Most vans nowadays have reversing sensors but this model didn’t and it’s amazing how vulnerable I felt without them. In my book, these items should be a legal requirement on all vans. And talking of legal requirements, ESC will be just that in October 2014 and it’s a shame Fiat hasn’t grasped the nettle and added this wonderful life-saving device for free now. After all, it’s standard on the rival Volkswagen Caddy, Mercedes-Benz Citan and Ford Transit Connect.
Class-leading load space for XL Cargo Class-leading five cubic metre loadspace in Doblo Cargo Need to know n Massive five cubic metre loadspace n £1,000 cheaper than the same size Scudo n 1.6-litre diesel engine offers 49.6mpg
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By Trevor Gehlcken he Fiat Doblo Cargo has been causing quite a stir since it first appeared in the UK in 2010, with its chunky looks, low running costs and rock solid build quality. Since then we’ve seen a host of new variants – not to mention the van’s rebadging as the Vauxhall Combo – but the latest incarnation launched last year sees Fiat’s light van blown up to such proportions that the cargo area is now the same size as its bigger brother the Scudo. No wonder it’s called XL! So why buy this van instead of the Scudo? Well for starters it’s around £1,000 cheaper than its medium panel van brother and as it is technically smaller, it should return better fuel economy figures, although
Verdict
Ignore the bizarre looks and this van stands out proud as the biggest little ’un on the block. Build quality is superb and handling is top notch too.
Specification Gross vehicle weight (kg): 2,460 Power (bhp/rpm): 105/4,000 Torque (lb-ft/rpm): 154/1,500 Load volume (cu m): 5.0 Payload (kg): 1,000 Comb fuel economy (mpg): 47.1 CO2 emissions (g/km): 158 Price: (ex-VAT): £16,465
that depends on how it is used and driven. Payload is better than the smallest Scudo too as it’s a lighter van. The problem would come if you needed to carry three people – unlike its rivals the Citroën Berlingo and Peugeot Partner, the XL only has seating for two. But if two seats are all you require this titan of the small van world certainly has a lot to offer. There’s a five cubic metre loadspace in the rear – more than any other small van on offer at present – and the XL features two side sliding doors for ease of loading, along with eight load-lashing eyes. Under the bonnet goes Fiat’s 1.6-litre MultiJet common rail diesel engine offering a meaty 105bhp and 154lb-ft of torque. Fuel economy is 49.6mpg on the combined cycle. Standard fittings include ABS, electric windows and electric heated door mirrors, although Electronic Stability Control (ESC), which helps prevent sideways skid, sadly remains on the options list at £375. Our van also came with climate control at an eyepopping £795, effectively ensuring that no fleet vehicle will have it.
Unlike some of its rivals, the Doblo Cargo XL only has seating for two
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L o n g - t e r m t e s t V o l k s w a g e n Tr a n s p o r t e r
Distance no problem for comfortable Transporter Van takes 600-mile round trip in its stride while fuel efficiency also impresses Need to know n Steel bulkhead compromises driving position n Transporter passes the long-distance test n Average test fuel economy of 38mpg
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By Simon Harris ab comfort for vans has long lagged behind that of cars, and it isn’t difficult to understand why. Vans are primarily a business tool and their ability to do the job with low operating costs has been a priority. However, our Transporter seems to have a few concessions to comfort. The optional SE pack provides air conditioning and it has electric windows. The driver’s seat has height adjustment as well as forward and backward adjustment for the base and the seatback. The steering wheel also adjusts for height and reach. There should be no reason for me to be uncomfortable behind the wheel, but the addition of a full steel bulkhead limits how far back the seat can travel, and in my case it isn’t quite far enough.
Specification Gross vehicle weight (kg): 2,700 Power (bhp/rpm): 114/3,500 Torque (lb-ft/rpm): 184/1,500 Load volume (cu m): 5.8 Payload (kg): 871 Comb fuel economy (mpg): 44.8 Test fuel economy (mpg): 38.0 CO2 emissions (g/km): 166 Price as tested (ex-VAT): £19,035
A full steel bulkhead limits how far back the driver’s seat can move
Raising the seat slightly means it can be reclined a little further, but ideally I’d be happier with more movement. I was a little concerned that a 600-mile round trip (where the Transporter would be put to work using all of its 5.8 cu m cargo area) could cause problems with backache, and wondered whether some physiotherapy might have been necessary at the end of the job. Fortunately, I needn’t have worried. It took long motorway stretches in its stride and is also relatively easy to manoeuvre around town. Carrying a load hasn’t hurt fuel consumption too much, either, with the trip computer settling at around 38mpg. This is around 15% lower than the official combined cycle figure. The bespoke gearing of the Bluemotion model is paying dividends when it comes to fuel economy and it hasn’t had an adverse effect on how the van feels to drive. We have only a month left to run with the Transporter, but already we’re won over by this capable van and the merits of the Bluemotion fuel-saving technology.
“Carrying a load hasn’t hurt economy too much, with the trip computer showing 38mpg”
The optional SE pack provides the Transporter with air-conditioning and electric windows
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Van running costs
Long-wheelbase medium vans
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By Trevor Gehlcken his month, we turn the spotlight on long-’wheelbase medium panel vans, a sector that has only emerged fairly recently as manufacturers try to plug all the gaps in their ranges. LWB medium vans began to appear around 10 years ago when the various makers took their traditional short-wheelbase models and added longer load lengths and higher roofs so that now the biggest are the same size as the smallest heavy panel vans. So is there any point buying, say, a long-wheelbase Citroën Dispatch when it holds the same amount of cargo as the SWB Relay? Well, yes. Medium vans are generally cheaper to buy than the heavy models and as they are lighter, many offer better payloads and fuel economy. They are also a little easier to manoeuvre in urban areas than their bigger cousins. On the block this month go the Citroën Dispatch L2, Fiat Scudo L2, new Ford Transit Custom LWB, Mercedes-Benz Vito LWB, Nissan Primastar LWB, Peugeot Expert LWB, Renault Trafic LWB, Vauxhall Vivaro LWB and Volkswagen Transporter LWB. The Dispatch, Scudo and Expert are basically the same vehicle, as are the Primastar, Trafic and Vivaro, but you’ll see the PPM running cost figures differ, thanks to slight variations on pricing, specification, SMR costs and predicted residual values. The figures are calculated over a four-year/80,000 mile lifecycle. Citroën Dispatch L2 – beats the opposition on running costs
Renault Trafic LWB: basically the same as the Vauxhall Vivaro and Nissan Primastar but with a different PPM figure The Citroën Dispatch is in pole position for low running costs, beating its twins Fiat Scudo and Peugeot Partner into second and third places, thanks to better expected service, maintenance and repair costs and a higher expected residual value. One possible reason for the good RV figure is that the Dispatch comes with a natty Trafficmaster sat-nav and stolen tracking system as standard, a useful addition for second users. The new Ford Transit Custom sits joint fourth with the Expert. Of the Primastar/Vivaro/Trafic trio, the Nissan wins by a good margin, thanks to its lower front-end price. The Volkswagen Transporter has the highest running costs, thanks to its high front-end price. Mind you, it does have the most powerful engine in our selection, although this also translates into a worse fuel economy figure. The difference between the best and worst performers is 5.46 pence per mile, which means that over the 80,000-mile life of these vehicles, the Transporter will cost £4,368 more to run than the Dispatch.
“Medium vans are generally cheaper to buy than the heavy models and many offer better payloads and fuel economy” RUNNING COST COMPARISON (4YR/80,000 MILES) Citroën Dispatch L2 1200 1.6HDi 90 Fiat Scudo L2 12Q 1.6Multijet Ford Transit Custom 290 LWB 2.2 100 M-B Vito 110 Long 2.1CDi 95 Nissan Primastar LWB 2.9t 2.0dCi 115 Peugeot Expert L2 1200 1.6HDi 90 Renault Trafic 29 LWB 2.0dCi 90 Vauxhall Vivaro LWB 2.9t 2.0CDTi 90 VW Transporter T32LWB 2.0TDI 140
List price (£) 18,174 17,725 20,095 18,580 18,180 18,120 19,674 19,778 23,000
Power (bhp) 90 90 100 95 115 90 90 90 140
Torque (lb-ft) 132 133 229 184 221 132 133 177 251
Load vol (cu m) 6.0 6.0 6.23 5.7 5.94 6.0 5.9 6.2 6.7
GVW (kg) 2,880 2,880 2,900 2,800 3,030 2,880 3,030 3,030 3,200
Payload (kg) 1,188 1,200 1,014 905 1,282 1,173 1,282 1,243 1,227
CO2 (g/km) 177 182 183 206 198 177 180 198 216
Fuel economy (mpg) 40.9 40.9 40.9 35.3 37.66 42.1 35.7 37.7 34.4
Fuel cost (ppm) 15.96 15.96 15.96 18.49 17.33 15.5 18.28 17.31 18.97
Depr (ppm) 18.41 18.09 18.91 17.79 18.69 18.58 20.5 20.16 20.47
SMR (ppm) 3.51 3.86 3.76 2.91 4.05 4.55 3.35 4.17 3.88
Total (ppm) 37.87 37.90 38.63 39.19 40.08 38.63 42.13 41.64 43.33
Figures over four years/80,000 miles – source: KeeResources
For more running costs, visit www.fleetnews.co.uk/vans 74 June 2013 fleetnews.co.uk/fleetvan
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