Motor Transport 14 May 2018

Sharp ■ Informed ■ Challenging

NEWS INSIDE Secret ingredient

DHL recruits Palletways for KFC contract p3

Supermarket sweep

Sainsbury’s and Asda deal could hit distribution p6

Clean up

Wales looks to introduce clean air zones p8

OPERATORS IN THIS ISSUE Arrow XL .............................................p18 Asda .....................................................p6 Canute Group ........................................p4 DHL Supply Chain ............................ p3, 25 DPD .....................................................p4 DX Group ...............................................p6 Hermes........................................... p6, 18 Knights of Old .......................................p4 Reason Transport ..................................p6 Sainsbury’s ...........................................p6 Tuffnells .............................................p25 UK Express............................................p6 UPS ......................................................p3 Wincanton ...........................................p4 XPO Logistics ......................................p25

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LOW AND BEHOLD: Scania has completed its Next Generation line-up with the launch of the low entry L-series cab, designed for urban operations where direct vision is essential. The L-series uses Scania’s latest 9-litre engine which can run on diesel, biodiesel or methane with ratings up to 354hp. The L-series features a ‘kneeling’ option that lowers the bottom step height to just 150mm when two steps are specified. The truck can be driven at up to 30km/h in the kneeling position. See MT 28 May for more on Scania’s urban range.

Wincanton to surrender transport to previous incumbent after only a year

Stobart wins back Britvic

By Chris Druce

Drinks company Britvic is switching its UK transport requirement back to Eddie Stobart Logistics, just over a year after signing up Wincanton as part of a five-year deal, MT can reveal.

News last year that Wincanton had been appointed from 1 April marked the apparent end of Britvic’s relationship with Eddie

Stobart, which took on distribution work for it in April 2011.

Wincanton has been managing approximately 100,000 deliveries a year for Britvic. It also renewed its deal to manage the manufacturer’s Lutterworth national DC, a relationship that has endured for nearly 30 years and is unaffected by this latest decision.

Speaking last year, Wincanton chief executive

Adrian Colman said: “This contract is further evidence of our partnership approach and dedication to delivering effective and innovative supply chain operations.

“Britvic’s ambitious plans, paired with Wincanton’s ability to operate and optimise warehouse and transport operations, makes for an ideal partnership over the next five years.”

A Britvic statement said: “We can confirm that we have appointed Eddie Stobart to manage our UK transport operations. Wincanton will continue to operate our Lutterworth national DC warehouse and it remains a valuable and trusted partner.”

Responding to the win, David Pickering, COO at Eddie Stobart, said: “We are delighted to be working with Britvic to enhance its supply chain and UK transport operations. We look forward to working closely with the team again.”

A Wincanton spokesman told MT: “We have worked

hard with the client to meet the complex demands of its business and have maintained an excellent relationship despite the challenges we have faced together.

“We have agreed that from a date to be agreed, which we anticipate will be within the first two weeks of June, we will relinquish the transport contract. We will continue to run Britvic’s main DC at Lutterworth.”

Focus: Politics p9 CV Show 2018 review p12 MT Awards shortlists: Team of the Year p18, Business Excellence p20, Training p22

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ARRIVAL TIME: UPS is to trial 35 electric trucks across London and Paris, which will be built

by UK technology firm Arrival. The logistics company has been working on prototypes of different sizes with Arrival since 2016, with the first of these expected to be deployed by the end of the year. Although few details have been released about the trucks’ specification, UPS said the lightweight, zero-tailpipe emission vehicles will have a range of more than 150 miles. They will be equipped with Advanced Driver Assistance Systems to help improve safety and reduce driver fatigue. An advanced vehicle display will provide the driver with an intelligent, connected vehicle. “This is a pioneering collaboration that helps UPS develop new ways to reduce emissions,” said Luke Wake, international director for automotive engineering in the advanced technology group at UPS.

DHL Supply Chain signs pallet network to handle the non-chilled requirements of its troubled contract

Palletways is KFC secret ingredient

By Chris Druce

DHL Supply Chain has signed up Palletways to handle the non-chilled requirement of its troubled KFC contract, MT can reveal.

The 3PL made international headlines in February when its KFC supply chain and distribution deal suffered a failure to launch, leading to hundreds of store closures and ultimately the reawarding of some of the work to the previous incumbent, Bidvest.

In an account brief sent to network members and seen

by MT, Rob Gittins, the newly promoted UK MD of Palletways, said: “You will be aware that we have been supporting DHL Supply Chain with their troubled start-up with KFC recently.”

Gittins added that ongoing issues with the contract remain, and reminded members that

it is “critical that deliveries get made on the due date”.

“On a positive note, the pallet delivery requirement is now here to stay as a separate operation to the chilled supply chain,” Gittins said.

The letter, dated 20 April, sets out a number of changes that are being made to improve the situation, including: ■ The picking will move to dispatching only what the location needs, which will avoid some instances of pallets being refused as the site had no room to hold the stock; ■ A fixed weekly delivery schedule has been put in place to help avoid peaks and troughs in delivery volume; ■ Stores will get between one and four deliveries each week; ■ Additional products including flour and oil will be dispatched via Palletways meaning that criticality of

delivery is even higher as without these products the stores can’t open. As deliveries can be made up to 9pm daily, there is an opportunity to improve vehicle productivity.

In addition to Fradley, goods will be trunked to the regional hubs at both Greenford and Avonmouth.

Gittins conceded that taking

on the work around the network’s busiest time (in the lead up to the Easter peak) had presented “some challenges”.

“It is important that we focus on meeting the requirement of this key account,” he said before emphasising two key requirements.

These are ensuring that in the event of a genuine issue,

“communications are of the highest standard” and that PODs are available within the hour; and, as many locations have no facility to hold pallets, drivers remove them if requested by the store.

A Palletways spokesman said: “As a net work, Palletways has been working with DHL across multiple divisions for a long period of time.

“This is a positive and ongoing relationship that encompasses a wide range of requirements.

“To provide service excellence to our customers, we work closely with our members, using our market leading regional hub model, to ensure the network has both the capacity and resources to respond to demand.”

DHL Supply Chain declined to comment.

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The group has landed a £7m-a-year contract with a client in the construction sector

Knights of Old is back on track after loss

By Chris Druce

Knights of Old has come out fighting after landing a major contract and vowing to overcome a difficult period that resulted in it recording a substantial operating loss of £2.7m.

The group’s latest accounts for the year to 31 May 2017 reveal a bruising period that led to it restructuring its finance team and replacing personnel. In the strategic report accompanying the accounts, the business describes “a material misstatement of information presented to the board during the course of the year”.

Knights of Old group director Paul Abbott told MT that the information being presented appeared positive but was actually the opposite.

“The board wasn’t made aware of this and it only became apparent when the new team investigated,” he said.

“There were also some challenges in terms of certain contracts. We had to make a decision to part company with a particular contract. It was an extension for some existing

business, but due to the misrepresentation it wasn’t stacking up.”

Abbott alluded to the fact that AE Parker, purchased in 2013, had also been a victim of this and consequently “proved costly to the point that we brought it to a close at the end of last year”.

This meant that despite a 1% increase in turnover to £49.9m (2016: £49.4m), the

group’s operating loss for the period was £2.7m (2016: £943,881 profit).

With Mainland already absorbed (and AE Parker now closed), Abbott sung the praises of wholly-owned subsidiary Nelson Distribution, which performed well.

Actions taken since the period include the sale of Mainland’s Northampton site on 20 March for £3.05m, the

integration of that operation into Knights’ Kettering base, and annual cost savings of approximately £3m.

The group has the support of its bankers and landed a “significant win” this March with a £7m-a-year contract with a client in the construction and building sector.

“We have work to do but we have a good, committed team,” said Abbott.

Canute’s Gary Sharp retires

TIP TOP: Infrastructure investment specialist I Squared Capital has acquired a 100% interest in leasing company TIP Trailer Services. The private equity group purchased the business from Chinese company HNA Group (International), which bought the trailer rental firm in 2013 from GE Capital. TIP Trailer Services sources new trailers for customers, provides financing, compliance management, R&M, and buys and sells used trailers. It manages more than 25,000 trailers across the UK and Ireland.

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Canute Group has confirmed that its operations director Gary Sharp has retired.

Sharp joined the firm in 2013 and, according to the company’s website, was responsible for all logistics operations.

In a statement to staff, Canute MD Noel Marshall said: “It is with regret that Gary Sharp has decided to retire from transport operations after 43 years in the industry.

“He has decided after long deliberation that his days are now in the fields tending to his cattle, and I wish him well and good luck in his retirement.

“I am sure we all thank him for his time at Canute and the contribution he has made, and wish him good luck for the future.”

It is not yet known who will replace Sharp.

Last month, Canute was forced to reassure staff that the business would endure after a delay in paying wages following a switch of lender sparked concern (MT 23 April).

In a letter to employees, seen

by MT, Marshall attributed staff payment delays to problems arising from the company’s decision to switch banks earlier this year, which “proved to be the wrong choice”.

DPD to pay drivers Real Living Wage DPD has promised to pay its drivers the Real Living Wage, after concluding its employment review and releasing more details about its Driver Code.

The living wage is set at £8.75 across the UK and £10.20 in London for those 18 and older. This compares with the National Minimum Wage, which is £7.38 for those aged 21 and older.

DPD said its new ‘worker’ contract, which includes pension, 28 days’ paid holiday and sick pay, will set a benchmark for the express delivery industry when it goes live from 2 July.

The business said the new worker contract should generate average driver salaries of £28,800, based on a standard five-day week contract.

There is no upper cap on earnings.

In the future, all new DPD drivers will have the opportunity to ‘try before they buy’, by starting as an employed driver before deciding if they wish to be a self-employed worker, a self-employed franchisee or remain an employee.

Before becoming selfemployed, they will have access to free, independent business advice from approved suppliers.

Wincanton is in the MiX

Wincanton is to install MiX Telematics systems in 1,800 of its vehicles as part of an ongoing safety programme.

The operator has signed a three-year contract with MiX off the back of its WinSafe programme, headed by Wincanton group fleet director Carl Hanson. The contract was signed after a six-month trial of the products.

Hanson said: “Safety in operation is always our top priority, and we believe MiX Telematics’ solution will help us derive significant benefits in this respect.”

The deal will see MiX’s cameras and in-cab driving aid DriveMate installed in the fleet vehicles along with telematics software.

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CHICK, CHICK, CHICKEN. “We have 30 trucks on Scania repair and maintenance contracts and get most of our servicing done overnight to maximise our uptime. The work is carried out by Scania-trained technicians using specialist tools to ensure jobs are completed quickly and right first time. The quality of their work is excellent, and that’s invaluable to us – we wouldn’t go anywhere else.”

Michael Pedersen, Chairman Pederson Contracting Services Ltd.

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10/05/2018 09:32:58

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Distribution could suffer cuts if the Sainsbury’s and Asda merger goes ahead

Warning issued over supermarket merger

By Carol Millett

Sainsbury’s and Asda’s distribution networks could be a target for cuts if the proposed merger between the two supermarket giants goes ahead, a retail analyst has warned.

The merger agreement between Sainsbury’s and Asda’s owner Walmart would see both supermarket groups maintain their distinct brands, creating an estate of 2,800 Sainsbury’s and Asda stores, with almost a third of the grocery market.

If the deal gets the green light from the Competition and Markets Authority, it will also create a combined in-house fleet of nearly 1,500 vehicles, along with a combined network of dozens of primary and secondary

logistics suppliers and scores of depots across the country.

While Sainsbury’s and Walmart insist the merger will not see stores closed, analysts are predicting that if the merger gets the go-ahead the retailers’ distribution networks could be a target for cuts.

David Madden market analyst for CMC Markets UK, told MT: “Wherever there is duplication of distribution chains and depots we should expect to see some trimming down, if not in the first phase then somewhere down the line.

“And it will be the distribu-

tion network and the depots that are the more likely targets for cuts, because while customers might care about a local store closing down, they will not care how and from which depot their goods are delivered to the store.”

Asked if the merger could see a restructuring of the logistics operations of the brands, an Asda spokeswoman said: “It is early days in terms of the details but Asda will remain Asda, operating as an individual brand, so we won’t see a complete merger of everything.

“In terms of distribution, we haven’t got that far in terms of the specifics. There are definitely synergies between the two businesses but how that will look in real terms, we could not say at this stage.”

Investors back DX Group plan Embattled DX Group’s turnaround plans have been backed by investors, who have approved the issuing of new shares amounting to £4.76m of fundraising for the firm.

The fundraising, which remains subject to shareholder approval, would fund the transformation and growth plans from DX Group’s new leadership team.

DX said that if approved on 22 May, it will put the money into growth initiatives including an expansion of its sales capabilities, building more depots, and boosting its IT network.

In a trading statement issued on 4 May, the company announced it intended to release just under 49 million new shares to raise the money, which will also pay for the key element of the management team’s recovery plan, being the separation of its freight and express businesses.

The statement added that Gatemore Capital Management, which presently holds 23.8% of the business, will increase its shareholding to between 35.3% and 36.4%.

PRIME TIME: Palletline has officially opened its Coventry hub, which acts as a consolidation point for its rapidly growing work for online retailer Amazon. The hub has been operating for several weeks but had a launch event last month (30 April).

Located at Siskin Parkway West, Middlemarch Business Park, it was opened by TV presenter and race driver Tiff Needell (pictured with Palletline MD Graham Leitch, left). The 180,000ft2 hub includes 138,000ft2 of warehouse space, 28,000ft2 of exterior canopied area and 14,000ft² of offices.

The pallet network holds Amazon’s preferred carrier status for inbound deliveries, and handles the bookings and administration for its members, who then run into Amazon’s 22 fulfilment centres around the UK. Palletline member Reason Transport, previously with Palletways, will relocate its operation to the new hub.

Hermes at Leeds employment tribunal after union challenge Delivery firm Hermes is defending itself before an employment tribunal in the latest gig economy challenge from a union.

The legal case has been brought against Hermes by eight delivery drivers, supported by the GMB, and is 6 MotorTransport MTR_140518_006.indd 6

currently before an employment tribunal in Leeds.

The eight Hermes selfemployed ‘lifestyle’ couriers claim they are being denied basic workers rights, from holiday pay to the national living wage, by being forced to operate as self-employed workers.

Hermes declined to comment.

This is the latest in a string of gig economy cases brought by the GMB on behalf of members, challenging delivery firms’ selfemployment practices.

In January this year, Amazon delivery company UK Express

settled out of court with a group of drivers who had brought a similar case against the firm.

The union has also lodged a case against delivery firm DX Group, which has yet to be heard.

Hermes has already vowed to increase its self-employed

couriers’ pay to meet competition for the workers as the e-retail market surges.

The carrier is increasing the minimum hourly pay from £8.50 to £9.10 from 1 June, which, with expenses added, will bring take-home pay up to £10.70 an hour.

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Framework suggests minimum diesel standard of Euro-6

Wales launches CAZ consultation

By Hayley Pink

The Welsh Government has launched a consultation on introducing clean air zones (CAZs) in areas with poor air quality, which could see the most polluting lorries and vans prevented from entering or charged for access.

At present only Caerphilly County Borough Council and Cardiff Council have been

directed to explore CAZs as part of their plans to comply with air quality standards as soon as possible.

In the CAZ framework issued alongside the consultation, the minimum emissions standard for diesel vehicles is Euro-6.

The categories of vehicles affected would depend on which level of CAZ is applied,

which is down to the discretion of each local authority, as is the level of any charge imposed.

The framework suggests local authorities look at incentivising the use of alternative fuels in the HGV and van sector. It states: “Alternatives are becoming more available, including gas-powered options and EVs, and these can offer some advantages to

hauliers, particularly where it can provide them with an edge when tendering for contracts.”

It also suggests allowing additional perks for businesses using ultra-low-emission vehicles, such as preferential delivery bays, restricted road lanes and accreditation schemes.

In addition, the Welsh Government said locating consolidation centres outside

a CAZ can be a “means of redirecting more polluting lorries and vans away from roads within”.

Goods can then be carried into the CAZ on compliant vehicles.

The consultation runs until 19 June, with a final clean air zone Framework for Wales expected to be published on 31 July.

Death of campaigning journalist John Dickson-Simpson, 85

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After almost 70 years involvement in road transport, John Dickson-Simpson has died at the age of 85 following a long illness. He was best known as an enthusiastic and knowledgeable transport journalist.

Starting with an engineering apprenticeship at Leyland Motors, John went on to be a journalist with Motor Transport before becoming a freelance, writing for almost every magazine that involved road transport. He was editor of the IRTE’s monthly magazine Transport Engineer, and published his own monthly summary of items of interest in his Transport News Digest.

John supported, and often initiated, campaigns for improvements in commercial vehicle design, stability, safety, economy, driver comfort and loading aids.

There was a two-year break when he was invited back to Leyland Motors to be product planning engineer.

His opinions and advice on

transport matters were often sought, which inspired him to start his own consultancy business Transport Press Services.

He provided professional support, particularly to smaller and newer manufacturers, in dealing with press relations and, where appropriate, engineering design. He later employed other writers and engineers, full and part time.

His enthusiasm saw him writing and campaigning well beyond the age when most people retire and his dogged interest was still evident even near the end of his illness.

John is survived by his wife Ebba, whose support enabled him to devote his time to journalism while she took care of the administrative side.

His legacy will be the influence he has had in the improvement of nearly all aspects of road transport.

His funeral will take place tomorrow (15 May) at 2pm at St Peter’s Church, Kensington Park Road, W11 2PN.

Consortium buys Fraikin Rental and leasing firm Fraikin Group has been acquired by a consortium.

Fraikin’s parent company FTI has been bought by a consortium led by asset management firm Alcentra and global alternative invest-

ment adviser Värde Partners.

Following the transaction, the group will be recapitalised, with a significant reduction – approximately €500m (£436m) – in its holding debt.

Last year its sale to Petit Forestier collapsed 14.5.18

10/05/2018 10:53:08

Focus: Politics

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Freight industry invited to participate in Brexit inquiry

By Christopher Walton

The Transport Committee is calling on the freight industry to contribute to its inquiry into the potential effect of Brexit on the sector.

Launching the inquiry this month, the Transport Committee chair, Lilian Greenwood MP, said: “While the agreement of a transitional period to December 2020 is welcome, there remains a great deal of uncertainty for UK freight operators and their customers.

“The implications of Brexit will vary across freight modes and types of freight. We want the sector to tell us what’s worrying them. What is required to make this work?

“We want to cast our evidence-gathering net as wide as possible, then focus our attention on areas where government and industry actions will be most pressing, to prepare for both the challenges and opportunities of Brexit.”

The committee is calling for written evidence on the following: ■ The scale and nature of the challenges and opportunities Brexit will present to UK freight companies and their customers; ■ The adequacy of steps being taken by freight companies, their representative bodies, their customers and the government in preparation for the challenges and opportunities of Brexit; ■ Mode and/or sector-specific requirements for additional government funding, or other changes to government funding plans, particularly in relation to transport infrastructure, to support the needs of freight; and ■ Any new arrangements needed for the licensing, regulation and training of operators and workers in the freight sector after Brexit (including the adequacy of measures set out in the Haulage Permits and Trailer Registration Bill).

The closing date for written submissions via the inquiry page on the committee’s website is 8 June.

The committee’s inquiry comes on the back of prime minister’s Theresa May’s EU Withdrawal Bill getting a thumping in the House of Lords – an amendment to the bill giving MPs the power to stop the UK from leaving the EU without a deal, or to make the prime minister return to negotiations, was approved by 335 votes to 244.

And the Terms of Withdrawal from EU (Referendum) Bill – which, if passed, would require the holding of a referendum to either endorse the 14.5.18

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UK’s exit package proposed by the government for withdrawal from the EU, or to decide to remain a member, following the completion of formal exit negotiations – was due to be debated in the House of Commons on 11 May. With continued uncertainty surrounding the future of the UK’s membership of the EU, membership of the EU customs union and membership of the single market, the FTA has warned that such a move would have “big consequences for supply chains and the continuity of the UK’s European trade”.

FTA deputy chief executive James Hookham said: “If the government remains fixed on this course, then it must prioritise sorting out the potential ‘showstoppers’ that will kick in on day one of Brexit.

“Leaving the customs union is only one part of the story, and a customs union on its own would not remove the need for checks at the borders or provide frictionless trade for businesses. Ending all the single market arrangements could cause even bigger delays, disruptions to integrated supply chains and barriers to trade.”

Hookham warned that leaving the single market would mean new checks on food safety or product conformity would need to be made at the EU border, “unless less intrusive arrangements can be negotiated and implemented in time”.

With some 10,000 HGVs travelling through the Port of Dover and Eurotunnel each day, the FTA is lobbying across eight priorities: 1. Urgent confirmation of the terms and length of the transition/implementation period.

2. Frictionless trading arrangements with the EU during the transition/

implementation period in line with the Brexit transition agreement reached in March 2018.

3. Continued access to benefits of EU agreements during the transition/ implementation period.

4. Urgent clarification regarding the UK’s future customs classification system.

5. Conformity, sanitary and phytosanitary checks should take place away from the borders (for example at the point of production or as part of ongoing market surveillance).

6. Continued unrestricted numbers of vehicles able to cross the UK-EU borders: market access arrangements should be preserved after the end of the transition/implementation period, to protect the existence of the ro-ro model on which just-in-time supply chains rely.

7. Continued recognition of vocational driving licences and qualifications (both transport and driver CPC): the FTA says the logistics sector needs to secure continued recognition of driving licences and qualifications after Brexit.

8. Continued access to EU logistics workers employed in the UK on a seasonal basis.

Hookham concluded: “These points range from full certainty regarding the transition and implementation period, to greater clarity on detailed customs and VAT-related procedures, measures to remove the need for regulatory checks at the borders and arrangements to protect the ro-ro model and allow trucks to cross the borders after Brexit.

“These eight priorities cover the bare minimum of what logistics and supply chain managers need to keep Britain trading.”

OPERATING WEIGHT ARRANGEMENTS Minister for road freight Jesse Norman MP fielded a question in the House of Commons from Labour MP Mike Amesbury regarding the operating weight arrangements for volumetric concrete mixers.

Norman said that the announcement from the DfT last month followed a long period of consideration and review.

This review, he said, “indicated that the department will put in place a temporary arrangement for a period of 10 years to enable mobile concrete batching plant to be operated in excess of the standard weight limits”.

“The effect of this measure will be that relevant operators are provided with time to make any necessary changes in order to come into compliance with the currently applicable legal requirements without the risk of prosecution,” Norman added.

Meanwhile, David Evennett MP asked Norman what the DfT’s plans were to reduce delays at the Dartford Crossing.

Norman said that further work was needed to address the congestion experienced at and around the Dartford Crossing and the government had committed £10m on measures to improve the traffic flow and reduce delays. “This includes improvements to the A282 junction 1a by Highways England working in collaboration with Kent County Council, and work on the M25 junction 2 to help reduce congestion south of the crossing is due to start imminently,” he said.

“These were part of the preferred route announcement for the new Lower Thames Crossing that aims to provide more than 70% of additional capacity and a long-term solution to help relieve congestion at the Dartford Crossing.

“Alongside this, a Dartford-Thurrock study will identify further proposals to reduce congestion that could be delivered in advance of the opening of the Lower Thames Crossing.”

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Humans and automated e-fulfilment

T Andy Kaye CEO Bis Henderson Group

he nature of order fulfilment in e-commerce is changing radically and, with it, the demands placed on the human resources needed to manage and support it.

With leading online brands looking to upscale operations for picking single items, conventional methods are starting to show the strain. In the wake of the Brexit vote, fewer eastern European workers appear to be available for work in DCs, and yet the UK consumer’s penchant for buying goods via the internet remains undiminished.

How are online businesses going to continue to expand – and offer consumers the service they have come to expect – when labour is becoming harder to find, and many e-commerce fulfilment sites are still manual and labour-intensive?

To improve service levels, online businesses are beginning to automate their fulfilment operations – bringing goods to the person – which may reduce the call for armies of order-pickers. But this changes the nature of the work for individuals and influences the skills needed by managers to run this type of operation.

Using automation to support order-picking creates a production environment wherein the

warehouse worker is no longer actively moving about the facility to perform duties, but is expected to stand in one spot and pick from totes delivered to a pick station.

Some retailers investing in automated warehouses believe it creates better jobs. They have successfully moved people from the shop floor to more technical roles, because in an automated operation there is a requirement for people with more analytical skills and an understanding of how material flows through a system.

However, motivating staff that are working in isolation in static positions requires management with highly developed personal skills that are more in tune with the needs of the individual.

These are skills more commonly acquired by managers experienced in running factories.

Clearly, those ecommerce organisations looking to meet rising demand by adopting automated technology will need to carefully consider the necessary commitments to the human side of the operation. Automation may reduce the total number of people required to run an e-fulfilment centre, but it does not remove the need for skilled individuals – far from it.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Group news editor Chris Druce 2158 Deputy news editor Emma Shone 2164 Group technical editor Colin Barnett 2141 Aftermarket editor Roger Brown 2168 Vans editor George Barrow 2156 Urban editor Hayley Pink 2165 Group production editor Clare Goldie 2174 Chief sub-editor Rufus Thompson 2143 Key account managers Andrew Smith 07771 885874 Miranda Hall-Morley 07825 409551 Display telesales Barnaby Goodman-Smith 2128 Event sales Richard Bennett 07889 823060 Tim George 0755 7677758 Classified and recruitment advertising Head of sales operations Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Stephen Pobjoy 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705

It’s costs and revenue that lead to success O Steve Hobson Editor Motor Transport

n a recent trip to Scania’s headquarters in Sodertalje, Sweden, for the launch of the urban range, I came across a new TLA (three-letter acronym) – TOE. This is total operating economy, as opposed to TCO (total cost of ownership) and takes in both the cost and revenue side of running trucks profitably.

A good example of improved TOE was the manufacturer’s new 7-litre engine, which is available in ratings up to 280hp and is therefore able to replace the 9-litre power plant in many urban and even regional applications.

As well as offering at least a 3% fuel saving on the 9-litre, the smaller engine is 360kg lighter, enabling more payload to be carried on the same vehicle. So it reduces operating costs and enables more revenue to be generated, hence the term TOE rather than TCO. It is tempting for transport operators to continually focus on reducing costs to gain a competitive edge by cutting rates to win business.

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But there is a danger that this just leads to a race to the bottom, where every hard-won gain in efficiency is just given away to customers in the form of lower rates. Doubledeck and longer trailers, more efficient engines and longer service intervals all contribute to reduced cost per pallet or kilometre. Yet profit margins for many hauliers remain wafer thin.

Yes of course every operator should aim to run as efficiently and with as little effect on the environment as possible, but the truly successful firms know that just offering the lowest rates is not the way to a successful, sustainable (in every sense of the word) business. Generating more money by giving customers want they want is just as important as shaving every penny from the running costs.

Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/ year. RoW £163/year. Cheques made payable to Motor Transport.

Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2018 DVV Media International Ltd ISSN 0027-206 X

Got something to say?

If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 14.5.18

10/05/2018 11:10:42

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10/05/2018 09:41:16

CV Show 2018 review The CV Show 2018 took place from 24-26 April at the NEC in Birmingham, and we made our annual pilgrimage to bring you the latest news and innovations from the show floor. Among the highlights was the launch of the earned recognition scheme

2018

Giti to sponsor Oliver for 2018 season Giti Tire, one of the largest tyre makers in the world, is throwing its weight behind the British Truck Racing Championship (BTRC) by sponsoring multiple BTRC and European Truck Racing Championship winner Stuart Oliver for the 2018 season.

Team Oliver Racing will be running two trucks this year: a US-style bonneted Volvo VNL driven by Oliver; and a Scania P1100 driven by Martin Gibson, manager of Giti’s EU Te s t i n g C e n t r e a n d Motorsport UK (pictured here with Oliver’s Volvo).

Giti is also supplying its Race-Tuned V1 racing truck tyre to the BTRC as part of its development programme for roadgoing tyres.

“We put the race tyres through hell,” said Gibson.

“But they are based on a road carcass, so as well as a marketing initiative it is part of our R&D learning.”

RHA presents £20,000 to Career Ready The RHA presented a cheque for £20,000 to Career Ready, the not-for-profit body working with Think Logistics to raise awareness among school leavers of the career opportunities in the logistics industry.

RHA chief executive Richard Burnett said it was important that individual companies combined their efforts rather than “reinventing the wheel” by making piecemeal approaches to local schools.

“There is a shortage of talent across logistics including drivers, managers and warehouse staff,” he said. “Career Ready and Think Logistics are doing a great job and need our support to tell more young people about the opportunities the industry has to offer.”

12 MotorTransport MTR_140518_012-013.indd 12

The Race-Tuned V1 is available for purchase by any of the teams in the 2018 championship.

The sponsorship is Giti’s

first involvement in European truck racing, and it said the move is part of a greater plan to use extreme motorsport driving conditions to research

and improve its everyday tyres.

Giti’s high-cube trailer tyre pattern also debuted at its stand. The manufacturer said

this allows high-cube operators to maximise the height of their vehicles while still complying with the legal restrictions.

Axis makes first trip to the show Axis Fleet Management was at the CV Show for the first time to mark the completion of a major restructuring under chairman Robert Montague and MD Leigh Goodland.

Axis specialises in long-term contract hire and fleet management services, operating more than 3,000 assets including tractor units, trailers and rigids for 170 customers.

As an independent company with no ties to any vehicle manufacturer, Axis prides itself on a strong consultative approach to customer service, tailoring specific products to suit their customers’ needs.

“We have a small team of 40 people, so customers have access to senior management and get quick decisions,” said Goodland, pictured, who spent 10 years at MAN, latterly as head of sales.

“We can demonstrate that

we are delivering on our fleet management promises.

Customers want one point of contact and assurance they will be treated properly.”

Axis is installing Microlise telematics on its vehicles to provide reliable data on vehicle and driver performance from a single source and is working towards providing the data operators need for the DVSA’s

earned recognition pilot.

While the majority of vehicles in the Axis fleet are Ivecos and DAFs, it is in talks with MAN and Volvo, Goodland said.

It is also looking at taking on some new gas vehicles that will soon be available as 6x2 tractor units.

“There are some opportunities there,” said Goodland.

“The payback period is longer because of the higher purchase price, but if we can give the client a good refuelling infrastructure, there is an argument for taking the payback in lower fuel costs.”

Axis recently appointed Steve Lymer as sales director.

He previously worked for Volvo and gas conversion firm Clean Air Power.

14.5.18

10/05/2018 10:17:14

motortransport.co.uk

Earned recognition scheme officially launched at show The DVSA officially launched its earned recognition scheme on the first day of the CV Show on what the agency described as a fantastic day for road safety.

The scheme rewards operators for keeping their vehicle fleets and drivers compliant at all times.

In exchange for sharing compliance information with the DVSA and adhering to a set of agreed KPIs, earned recognition operators are much less likely to be stopped for inspection by enforcement officers.

More than 60 HGV and PSV operators, which between them run 43,000 vehicles, have been taking part in a pilot scheme since last April.

These companies include large national fleet operators, such as John Lewis and BT, as well as much smaller hauliers to ensure the scheme works for all businesses.

DVSA chief executive Gareth Llewellyn hailed the launch as

a “fantastic day for road safety” and praised those firms that had been willing to take part in

the pilot scheme.

He added: “The DVSA’s priority is to protect you from

unsafe drivers and vehicles. earned recognition allows the best operators to go about their

business unhindered, so we can target those most likely to be a danger to all road users.

“Even during the pilot, participating operators are already seeing the benefits. We’ve heard reports of improved relationships with drivers, better processes and recognition from customers.

“If you’re an operator and you take compliance and safety seriously, we hope that earned recognition is something you’ll aspire to.”

David Wells, CEO of the FTA, said the scheme would be a “welcome boost” to compliant operators. “The DVSA will now be able to target its valuable roadside enforcement teams at those who jeopardise all other road users, while rewarding those who have exemplary records.”

The DVSA confirmed to MT that around 4% of operators are now signed up to earned recognition, with this figure expected to rise to 10% by the end of year one.

RHA launches new app for Roadway magazine

FEELING LIFTED: Hiab, part of Cargotec, launched the new Moffett M5 NX (next generation) truck-mounted forklift at the show. The mid-range M5 NX (pictured above with its smaller sibling the M4 NX) is designed for medium- to heavy-duty tasks, including off-road applications such as building sites. Weighing in at 2.5 tonnes, the M5 NX is light enough to be carried on most vehicles, yet it can lift up to 2,500kg. It is available with the option of the Lift Assist system, enabling it to safely unload from one side of a truck or trailer. The NX version of the popular M5 features improved health and safety for the driver, easier maintenance, a relocated battery for easier access when mounted on the truck or trailer and the ability to be fitted with the cleaner Tier 6 diesel engine that will be required in 2020.

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MTR_140518_012-013.indd 13

The RHA launched a new app for its Roadway magazine, which will provide users with real-time news, interviews and opinion pieces about the road haulage industry.

Chief executive Richard Burnett launched RoadwayLive at the pre-CV Show MIPAA reception in Birmingham, where he encouraged attendees to download the app and experience the new product.

Free to all for 18 months, and permanently for members, the app can be downloaded from app stores for iOS and Android platforms.

Speaking at the reception, Burnett said: “In today’s world where the news agenda changes minute by minute,

we need to keep up with the times.

“Developed by our online editor Josh Reynolds, RoadwayLive is a rolling news timeline that will bring you the latest industry news, comment, legal news, polic y updates, videos, events and operator news.

“We are confident that RoadwayLive will rapidly grow to become the road transport industry’s must-have app.

“If it’s about trucks, RoadwayLive will cover it.”

MotorTransport 13

10/05/2018 10:17:32

CV Show 2018 review

MAN adds features across weight range MAN revealed a selection of new features across the weight range, from 3.5-tonne vans to top-weight tractors.

The whole MAN truck range has been given a heavily revised cab interior, with a rearranged switch gear layout and colour information display.

Floor space is improved by the gear selector being moved to the dash and a redesigned park brake console, although it remains a mechanical device rather than electronic. The TGX also gets a new sounddeadening package.

The medium-weight TGM is now powered by an SCR-only D08 engine, in 4and 6-cylinder versions, offering ratings from 160hp to 320hp. MAN claims a weight

saving of up to 103kg and a fuel saving of up to 5%. The TGS also saves weight with a new hypoid rear axle, while 8x4 tippers now come with a four-year warranty.

The TGE van and chassis-

cab range comes with front, rear or all four driven wheels.

It is also available with a Vans To Go line-up of ready-bodied vehicles, comprising a dropside and tipper from Ingimex and a JC Payne Luton van.

MAN was the only heavy truck brand with a full manufacturer presence at the show, and its UK MD Thomas Hemmerich expressed his bewilderment at other makers’ reluctance to attend.

Hankook expands Hungarian plant Hankook is spending €290m (£250m) expanding its Hungarian plant to manufacture truck and bus tyres from 2020 to ensure it is not hit by EU import tariffs on Chinese tyres.

The EU is expected to unveil the anti-dumping tariffs of 26% to 37% in May. Even when the UK leaves the union the tariffs will remain in place under the transitional arrangements.

Hankook marketing manager Mark Grace said the manufacturer currently makes its truck tyres in China and South Korea and it was still unclear what the anti-dumping measures would look like. But even a 37% tariff would not cancel out the massive price difference between the cheapest Chinese tyres and other better-quality products.

He added: “Some Chinese product is definitely being sold below cost with the help of government subsidies.”

BT Fleet Solutions unveils apps

BOXING CLEVER: Cartwright unveiled a prototype of a new lifting-roof double-deck box trailer. The prototype has capacity for 98 cages, compared with 75 that other trailers of the same travelling height can carry. Cartwright said the benefits of the trailer will be considerable, promising fuel savings of up to 5% as well as a smaller carbon footprint. The manufacturer said the trailer is particularly aimed at parcel carriers, especially those carrying loose parcels in cages. Full production of the trailer is due to start later this year. Technical director Lionel Curtis said: “On joining Cartwright four years ago, I said that we wanted to solve customers’ problems before they know they have them. With major developments, such as the new lifting roof, we are achieving innovation across the range, but it should be remembered that we are still a regular volume manufacturer with an excellent product range to meet customers’ everyday fleet requirements.”

14 MotorTransport MTR_140518_014-015.indd 14

Van fleet management and maintenance specialist BT Fleet Solutions introduced two time- and cost-saving apps at the show.

They included the DVSAcompliant daily vehicle checker for vans and trucks, which gives drivers an easy way to complete daily defect report and fleets real-time confirmation that vehicles are compliant. The app automatically sends defect reports to the Fleet Solutions booking system and shows when all defects have been repaired.

In accident management, an app takes drivers through vital information gathering and reporting following an incident. By offering a simple framework for collecting images and data, such as driving conditions, speed and third-party and witness details, drivers can quickly send this information to the Fleet Solutions accident management team.

As well as more efficient management of repairs, the suite of accident management tools will include detailed data

insight to track and resolve customer issues and initiatives to reduce accidents.

BT Fleet Solutions MD Henry Brace said: “With responsibility for more than 120,000 vehicles, Fleet Solutions is well placed to meet the requirements of missioncritical fleets and businesses.

“The Fleet Solutions network includes 64 owned garages, more than 500 preferred garages and more than 50 mobile technicians.”

BT Fleet Solutions is also focusing on electric vehicles and finding ways to increase fleets’ abilities to charge and service EVs. 14.5.18

10/05/2018 10:52:17

motortransport.co.uk

Smart Driver CPC showcased by HE Highways England (HE) showcased a Driver CPC training course that focuses on using smart motorways safely and efficiently.

The free, eight-hour course, developed alongside the FTA, provides practical training about smart motorways; it covers the different signals on the network, driver behaviour and the role of traffic officers.

Senior partnership manager at HE Wayne Carey said: “Hauliers are among the most frequent users of smart motorways, so we want to ensure we are providing as much support as we can to ensure those journeys are as safe as possible.”

Dairy firm Müller was one of the first operators to try the course, which has been provided through training firm Pertemps. So far, 350 drivers have been trained.

Speaking at the CV Show, Malcolm Bingham, FTA head of road network manage-

14.5.18

MTR_140518_014-015.indd 15

ment policy, said association members believe smart motorways are the way to go because of the greater reliability they offer.

However, he said there are certain aspects about which operators are unsure, such as why slower speed limits have been set. He believes the training will help inform and guide operators as to why such decisions are made.

“This is the right way forward – providing drivers with true guidance on how to use the network and not adding confusion about which parts of the road they can use and when,” said Bingham.

Operators can enrol drivers at: SPTC_Driver_Education_ Course@highwaysengland. co.uk.

Highways England also used the show to launch a new virtual reality safety app that helps train drivers in tackling HGV blind spots.

AWARD WINNER: Transdek UK exhibited its latest double-deck Wedge trailer, fresh from scooping its third Queen’s Award for Enterprise: Innovation. The Harworth, South Yorkshire trailer maker said the 4.95m Wedge trailer is its most “innovative product to date”. It can hold 52 pallets and accommodate taller loads, such as roll cages or pallets up to 1,862mm high on both decks, due to a specially designed kink in the trailer body that adds extra height at the neck. It can also be fitted with V-Glide sash type rear doors.

MotorTransport 15

10/05/2018 10:52:27

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10/05/2018 09:47:07 27/03/2018 09:39

MT Awards 2018 shortlists Team of the Year Award Sponsored by

MT profiles the shortlists for this year’s awards Arrow XL

Pall-Ex

DPD

TfL

At 8.30am on Thursday 20 April 2017, a catastrophic fire broke out at the Arrow XL site in Worcester. Within two hours the 220,000ft2 facility was burned to the ground, along with all the stock, yet mercifully no one was hurt. The company quickly formed Team Project Phoenix, and each team member had their own area of ownership and deliverables, as well as a strong resolve to save the business. The actions of the team over the days, weeks and months after the fire led to much praise from clients, and Arrow XL’s operational performance eventually exceeded pre-fire levels. MT Awards judges said the team at Arrow XL had made a “great effort, forced on them by a terrible event”. They added that the team had coped effectively with a crisis in a situation that was not business as usual.

DPD’s International Operations Department (IOD) is a team making a large contribution to the success of a firm that has traditionally been seen as a domestic player. IOD has created an operation that now delivers 20% of DPD’s revenue and 35% of its EBIT, increasing sales from £108m in 2013 to £200m in 2017. Its ability to create flexible services for customers includes the Air Classic service, which has become an £18m business in just four years.

The IOD has become a major source of graduate recruitment for DPD, and there is a strong culture of mentoring and coaching. Judges described DPD’s entry as impressive, said it had moved into a new business area well and delivered above expectations.

Hermes

The Peak Planning and Delivery Team at Hermes – formed of senior leaders from various departments – worked side-by-side to deliver a detailed strategy for the last Black Friday peak. The team ensured that Hermes clients benefited from its most successful peak season to date, which involved processing 40 million parcels in the month of December and achieving record service levels. The team also had to factor in the opening of Hermes’ £31m automated parcel distribution hub in Rugby last summer, designed to handle more than 1 million parcels each day, and raise overall parcel processing capacity by 45%. Judges said the entry from Hermes showed that its team had coped well with the Black Friday peak.

18 MotorTransport MTR_140518_018.indd 18

The SHINE team from Pall-Ex, which consists of one person from each department, has created a mechanism for improvement across the business and had a significant effect on the culture of the organisation. Projects have included better workforce communication, new fork-lift trucks, driver performance incentives, driver retraining as well as re-educating the warehouse team on correct protocol. Pall-Ex said its success in implementing SHINE through interdepartmental teamwork has enabled it to exceed its initial objectives and deliver recognised benefits to its customers.

Judges praised the firm’s comprehensive submission and liked the fact that Pall-Ex had focused on its wider workforce.

LoCITY was launched by TfL in January 2016 to encourage the uptake of low emission commercial vehicles. The five-year industry-led collaborative programme has brought together fleet operators, central and local government, other public sector organisations, vehicle manufacturers and refuelling and recharging suppliers to improve air quality. Approximately 1,300 individuals from 819 organisations have already joined the programme and more than 2,000 people have since attended a LoCITY event to meet, discuss and learn about alternatively fuelled vehicles. Judges said the team at TfL had embarked on a collaborative project that had helped move the industry forward.

Wincanton

In 2016, Wincanton proposed a joint venture between the training and development and the health and safety departments at its Lea Green, St Helens-based RDC. The multiskilled team has subsequently become a driving force behind the firm’s five-year contract at the Co-op depot on Merseyside. Each department is committed to continuous improvement, best practice within Wincanton, and promoting its status as an industry leader. With its passion and commitment, its vision is to establish the Lea Green RDC as a Wincanton leader in health, safety, training and development.

Judges liked the fact that the project had delivered clear improvements and used technology in a very good way.

14.5.18

10/05/2018 10:20:36

HIAB ARE PROUD TO SPONSOR

THE TEAM OF THE YEAR AWARD

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10/05/2018 09:49:08

MT Awards 2018 shortlists Business Excellence Award

Europa Worldwide Group

Europa Worldwide Group was acquired by Andrew Baxter in 2013.

Since then it has drawn to a close its most successful year on record, it has raised thousands of pounds for charity and is realising its ambition of becoming the leading distributor of goods between the UK and the continent. Following the acquisition, Baxter split the business into four divisions: Road; Air and Sea; Warehouse; and Showfreight – with separate management, sales organisations and customer service methods for each division. This was followed by breaking ground on its £30m Dartford hub.

Europa closed smaller logistics operations in Glasgow, Newcastle, Manchester and Heathrow as they were too small to be economic, and focused on its three larger sites in Birmingham, Erith and Northampton. The Erith operation was subsequently moved to the new site in Dartford, which opened in May 2015.

Five years after the acquisition, the company is now on a strong financial footing following a huge amount of change in a very short period, which was financially and operationally disruptive. In the year before the acquisition, group profit before tax stood at £412,000, in 2017 it was £3m, and is expected to rise to £4.6m in 2018. Organic sales growth across the business is running at 20%.

The business commits itself to raising money for charity each year. Since 1978 (and the start of Europa’s Charitable Trust) Europa Worldwide Group has raised more than £500,000 for good causes and in 2016 donated £14,500 between 30 UK charities.

The judges said Europa was a “great growth story” and was a business that had a “clear plan” and “good leadership”.

Miniclipper Logistics

Miniclipper Logistics is a fast-growing family business based in the heart of Bedfordshire, specialising in UK B2B pallet delivery and warehousing services.

It was started in 1971 by Mick Masters as a one-man-and-a-van operation, and now runs 40 trucks, 35 trailers, four warehouses and a 24-hour DC, as well as delivering 250,000 pallets a year as members of the Palletline and Hazchem networks. In the three years from 2014/15 to 2016/17 turnover increased 17.6%, while its delivery KPIs are between 97.5% and 99.4%. Miniclipper believes a personalised touch speaks much louder than a formal email, which is why its customers are provided with a specific ‘go to’ customer services representative, who they have met and who understands their business, as well as full access to its leadership team when required. Miniclipper has installed solar panels on its owned warehouses and installed energy-efficient lighting to reduce electricity consumption – and is active in the local community, sponsoring Wing Raiders Junior football team.

Staff retention is

20 MotorTransport MTR_140518_020.indd 20

Sponsored by

high, with almost half the workforce having worked for Miniclipper for at least five years, with approximately 15% being there for 10 to 20 years, and 3% being with the business for 30 to 40 years.

Miniclipper was praised by the judges for its “exceptional service, people and environmental focus”. They also liked its focus on creating a strong foundation for the future.

Palletforce

With unrivalled investment in technology, infrastructure and people – including a new £50m super hub – Palletforce delivered record service, volumes, turnover and profit in 2017. Backed by experienced management, robust financials and business excellence, the company has invested in global growth opportunities to secure long-term success for itself and its members. In 2015 it was acquired by Emergevest, and during that time a three-pronged strategy for growth was adopted. Its 620,000ft2 super hub opened in 2017 and is capable of handling 30,000 pallets per night. It has introduced a new express service to eight European countries, bringing cover on the continent to 25 countries. It is also in the process of rolling out its business model across selected regions of Shanghai, bringing the pallet network concept to China. It launched an in-house freight forwarding services, alongside Allport Cargo Services (a fellow EmergeVest company), earlier this year.

The judges said Palletforce had shown “great progression” and was a “very innovative business” that was “well run and highly profitable”.

TPN – The Pallet Network

In three years TPN has moved from a conservative, low-profile business to an innovative, sector-leading network, with strong investment in IT development, regional hubs, membership and marketing – all while boosting turnover and profit. Following a management buy-out in 2015, it added 20 new members; developed an in-house mobile customer app for job input and track-and-trace; reduced delivery areas to make members more profitable and shorten service times and introduced a new livery in March 2017. TPN has taken a long-term view of sector volume growth and is developing peak-proof service resilience, based in excellence of operations, standards, infrastructure and technology. It nurtures its members and its staff, protects the environment and is committed to promoting collaborative logistics, while maintaining an ongoing programme of charitable and community engagement.

The judges said TPN was “running its business with a long-term sustainable strategy for success” and was “very responsive and focused on managing services to a high level”.

14.5.18

10/05/2018 10:22:47

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10/05/2018 09:51:57

MT Awards 2018 shortlists Training Award Sponsored by

Cemex

John Lewis

DPD UK

O’Donovan Waste Disposal

During 2017, building materials firm Cemex carried out more than 61,000 training interventions for its 3,000-strong workforce (averaging 37 each), from driver-specific guidance through to mental health awareness. It also held its very first Driver of the Year Awards, which included the top 15 drivers of 2017, based on league tables of their sustained performance over the year for fuel efficiency and safe driving style. The judges were impressed with the significant investment Cemex had made in training its staff and its excellent statistics to show the positive impact this was having on the wider road-using community. They could see a strong training culture within the company.

In its first year since launch, DPD UK’s ‘Summer Camp’ training programme has enabled 47 ambitious self-employed delivery drivers to transfer into employed roles as depot shift managers. This succession-planning strategy supports the company’s ambition to double in size by 2025. DPD believes its Summer Camp helps to retain talented people with leadership potential who have its “distinctive DNA” while also saving thousands of pounds in external recruitment costs. Judges said this was an outstanding entry with strong anecdotal evidence. They liked that it was a home-grown programme designed to fit the needs of the business and its growth strategy.

Eddie Stobart Logistics

In 2015 the Eddie Stobart Training Academy was launched in Warrington as an in-house facility. In 2017 it announced it was opening the doors to the wider logistics and supply chain sector and in January 2018 a second driving school facility was launched in the Midlands, complementing the existing school.

The Training Academy supports Eddie Stobart’s wider strategy of supplying qualified drivers and warehouse operatives to businesses through its supply-chain resource services.

Judges felt the “first class, modern training facility” was playing a key role in helping to tackle the national HGV driver shortage and was “just the advertisement the industry needs to attract more quality people”.

22 MotorTransport MTR_140518_022.indd 22

Judges said this “stand-out submission” offered a very holistic approach to training. The retailer recognised a need to adapt its training to meet changing home delivery trends and completely revamped its approach, including the roll out of its Much More Than a Driver scheme, which enables employees to develop their skills and knowledge to enhance the customer experience. A clearly defined progression path has been established, with technical training now offered in 24 different areas, including wet connections and wall-mounted TV installations. Judges praised this “great, all-round programme” and “pioneering assessment techniques” and liked how it enabled existing employees to progress throughout the company.

London-based O’Donovan Waste Disposal uses a top-down approach to instil a strong safety culture across the business. Its MD is a qualified trainer, and the HQ itself is a registered training centre, with a team of multilingual mentors on hand to support the firm’s 160-strong workforce. Training ranges from efficient driving guidance and waste handling, through to transferable skills such as first aid and the use of defibrillation machines. All drivers also take part in safe, urban driving courses to help protect vulnerable road users. The judges praised O’Donovan’s strong links with the local community and work with local schools to promote road safety and the fact safety was driven from the top-down.

Whirlpool UK Appliances

White goods firm Whirpool UK Appliances used feedback from staff to completely revamp its training academy to benefit both new starters and existing employees. It now offers two streams of training from core skills and customer service training for newcomers, through to its “refresher academy” to help upskill existing staff, which they take part in every two years. Judges liked the use of realistic home delivery situations recreated in the training environment, such as replica staircases and loading simulators.

They believed the training academy reboot was a “massive success story” and very much liked how Whirlpool used constructive feedback from employees to design the programmes.

14.5.18

10/05/2018 10:24:20

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Tuffnells will interview any M&S Hardwick staff

By Emma Shone

Tuffnells has promised to interview any of the 450 Marks & Spencer staff who face losing their jobs when the retailer’s Hardwick DC closes in September.

Jonathan Bunting, chief operating officer of Tuffnells’ parent Connect Group, said the operator has a number of vacancies to fill and guaranteed an interview to anyone interested in joining the business.

He said: “We sympathise with all the workers affected by the recent news in Warrington.

“In addition to our vacancies for warehouse operatives, we’re keen to speak with qualified and experienced drivers who may

also lose their jobs as a result of the news. My message to those impacted by the Marks & Spencer decision is simple – get in touch with Tuffnells.”

Interested parties should contact Connect Group via email or its website.

Marks & Spencer announced

the closure of the Hardwick site, currently operated by XPO Logistics with transport provided

by DHL Supply Chain, last month.

The retailer said it would be transferring work from the DC to other operations, and that XPO and DHL were in consultations with the site’s employees.

Abandon apprenticeship target, says Reform The government should abandon its target of 3 million apprenticeships in the UK by 2020 in order to focus on the quality of the actual qualifications, according to think tank Reform.

In a report reviewing the first year of the tax, called ‘The Great Training Robbery: Assessing the first year of the apprenticeship levy’, Reform said measuring the success of apprenticeships by quantity over quality was the “wrong approach”.

It argues that the target of 3 million apprenticeships by 2020 is “driving employers and training providers to accelerate the delivery of new apprenticeship standards

before a solid foundation has been placed underneath”.

Union Unite’s response to the report was to call on employers to up their game on apprenticeship scheme quality.

Reacting to a suggestion in Reform’s report that some employers might be rebranding low-skilled jobs as apprenticeships, Unite assistant general secretary Gail Cartmail said: “It is paramount that there is a new generation of young skilled workers to underpin future growth in the economy.

“History tells us that not enough employers are stepping up to the plate to offer the high quality

apprenticeships that the UK so desperately needs to tackle the UK skills gap and shortages.”

Cartmail also raised a concern that the new report, written from an anti-levy perspective, could be used as an argument against it.

She said: “There is a concern that this study from a centre-right think tank could be used as an argument for employers not to pay into the apprenticeship levy.

“We believe that this would be very wrong as the levy should be robustly assessed, in particular its impact on the ability of SMEs to provide good quality apprenticeships on the scale prior to the levy’s introduction.”

IMI calls for training levy to be reformed The Institute of the Motor Industry (IMI) has called for reforms to the apprenticeship levy after take-up figures for apprenticeships continued to decline in the UK a year after the tax went live.

Steve Nash, chief executive of the IMI, said that while numbers in the motor industry are not as low as in other sectors, the sector should still be performing better, and blamed the complexity of the scheme for the shortfall.

In the six months after the levy was introduced in April 2017, the 14.5.18

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number of people starting an apprenticeship in the UK fell 40% to 162,400, according to a report from think tank Reform.

He said: “Too many employers have struggled to get the training they actually want and need for their businesses approved for re-claim against their levy payments.

“This is why many are simply regarding it as a tax and have disengaged. That’s a great shame because the introduction of the levy should potentially have resulted in new apprenticeships

being offered in a great many sectors and occupations where they haven’t previously existed.”

He added: “A number of our large employers have told us directly that their apprentice recruitment has fallen short of their true business needs, simply because they haven’t found the new processes easy to understand or negotiate.”

Nash called for a more pragmatic approach from the Institute for Apprenticeships, which he said would enable better engagement from employers.

Staffing Matters

By David Coombes

Robotic revolution Watching the speeding autonomous trucks on Blade Runner 2049 recently has made me think that in 30 years’ time this in all probability will be commonplace We are on the cusp of a robotic revolution in the context of automated human replacements in the warehouse and self-driving commercial vehicles on the road, on rail, in the air and on the sea.

In a future trends survey recently taken by 350 logistics industry professionals, 10% currently use robotics technology in their operations, while 70% see robotics as a growing trend in the next three years.

Around 60% of the participants said they would consider having a driverless vehicle in their fleet and make use of vehicle platooning.

DAF is participating in a two-year platooning trial around the UK and Volvo has also successfully demonstrated partially-automated platooning. Mercedes has unveiled its future autonomous truck of 2025.

The use of robots in the warehouse has, of course, been an increasing trend for the last 20 years or so. However, in my opinion we are now only 10 years away from fully automated warehouses being the norm rather than the exception, especially in the larger logistics operations.

In 2028 warehouse robots will have evolved to a point where they are capable of operating in conventionally configured warehouses, with the majority of activities automated from receipt and put away to pick, pack and dispatch. A combination of automated trucks, conveyor systems and picking robots will enable inventory to pass through the DC with little human intervention.

Warehouse productivity gains are thought to be between 35% and 40%.

It is tasks rather than jobs that will be automated, meaning a reorganisation of personnel and operations in which smaller numbers of skilled workers are redeployed to areas that are better suited to their skills while repetitive, time-consuming and hazardous tasks are undertaken by robots.

What will this mean for the future skills needed in our workforce?

Operational excellence is now considered to be a hygiene factor and not a differentiator.

Customers expect us to stretch their thinking and identify unknown and yet to be proven ways to improve the service we supply.

Our future workforce needs to be digitally transformed with innovative and disruptive leadership – something I will be covering in much more detail in my column next month.

Tel: 0117 9859 119 logisticsjobshop.co.uk admin@logistics jobshop.co.uk @LJSJobs MotorTransport 25

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