Motor Transport 11 November 2019

Sharp ■ Informed ■ Challenging

11.11.19

NEWS INSIDE On the side

Government to review roadside recovery costs

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Dreaming of electric DPD calls on industry players to collaborate

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Not so secret seven

MPs’ report sets measures to solve labour shortage p8

Highways to go au naturel Road signage will be eliminated in less than a decade as self-driving vehicles emerge and digital infrastructure is built, according to the UK’s umbrella organisation for self-driving technology, Zenzic.

So-called “naked highways” will become a feature of the road network from 2027, according to Zenzic, which said new planning guidance and blueprints for connected and automated mobility (CAM)-ready cities, towns, highways and rural roads will become available from early next year.

Zenzic said the physical evolution and decommissioning of signs and signals is expected from 2027 and will be followed by in-vehicle technology that digitally displays speed limits, highway exits and traffic updates.

Zenzic CEO Daniel Ruiz said: “Transport will soon be transformed by the new technologies associated with connectivity and automation, including digital infrastructure that will change the face of the UK’s highways.

SHUSH NOW: Volvo Trucks has started selling its FL and FE electric trucks in selected markets in Europe, meeting the demand for sustainable transport solutions in city environments, the company said. Initially the launch markets will be Sweden, Norway, Germany, Switzerland, France and the Netherlands, with further markets – including the UK and Ireland – to follow later. Volvo believes the reduced noise levels make it possible to carry out deliveries and refuse collections in early mornings, late evenings or at night, helping to improve transport logistics and reduce congestion during peak hours.

Reshuffle planned at the top as owner prepares for sustainable recovery

Bunting to lead review of troubled Tuffnells

By Tim Wallace

Connect Group has ordered a strategic review of its troubled Tuffnells business and announced that CEO Jos Opdeweegh has stepped down. He will be replaced by new interim CEO John Bunting.

The review will look at actions and investments needed to create a sustainable recovery for Tuffnells and its long-term prospects, a group statement said.

In August, Connect Group warned its performance since May was slightly below market expectations, as it revealed that its plan to slash group debt through the sale and leaseback of property had hit the buffers.

A group trading update said market conditions and outlook bids received during the tender process for the 16 freehold and long leasehold Tuffnells properties – which were expected to raise £35m before tax – “did not meet the board’s expectations in respect of value, economic return and timings”.

The failure to make a sale was

a blow to Connect Group’s attempt to cut its more than £75m of debt.

As CEO of Connect’s other core business, Smiths News, where he has been part of the team for more than 25 years and held the position of CEO for two years, Bunting is said to have overseen continued strong financial performance.

Connect Group chairman Gary Kennedy said: “In a challenging year, we have been resolute in pursuing a recovery plan that balanced improvements to profit with necessary investment and prudent capital management.

“The revitalised performance of Smiths News and the progress with our central restructure has established a solid foundation for the group’s medium-term recovery. The turnaround of Tuffnells remains our most pressing challenge. The strategic review of that business reflects our focus on delivering improvement and removing its effect on overall group performance.

“As we look to reinvigorate our

recovery plans we have appointed Jon Bunting as interim group CEO and his leadership and dedication will serve Connect Group well as we deliver improved performance.”

In a move described as strengthening the leadership team, Michael Holt (non-executive director of Connect Group) has become executive chairman of Tuffnells.

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Focus: warehousing p10 Fright in the City p12 Tachographs p16 Bibby Distribution p20 MT Awards winner profiles p26-31

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News

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Home Office to consult stakeholders as it investigates increasing roadside recovery costs

Rising recovery costs under review

By Carol Millett

A government review is to investigate claims by recovery operators and hauliers that soaring vehicle roadside recovery costs are being driven by the high level of fees taken by the managing agencies running the schemes for Highways England and the police.

The review, led by the Home Office, is set to begin this month.

It will investigate the rise in vehicle recovery costs above the fixed

charges set out by the government in 2008. It will also look at the lack of transparency around the level of fees taken by management agencies from the charges paid by hauliers and other road users to have their vehicles recovered.

The Home Office will launch a selective consultation next month, which will gather evidence from all stakeholders including the RHA, the Association of Vehicle Recovery Operators (AVRO),

Highways England, the police and management agencies.

AVRO president Stephen Smith told MT: “The statutory fees from vehicle recovery have not been reviewed since 2008 and so the rates have not kept up with inflation and are not enough for recovery operators to pay their costs let alone make a profit, particularly when in some instances 40% of the fee is taken by the management agencies.”

Hauliers request a halt on Apprenticeship Levy payments Hauliers are calling for a moratorium on Apprenticeship Levy payments following further delays to the inclusion of a Category C+E licence in the LGV Driver Apprenticeship.

Since the launch of the apprenticeship scheme in April 2017, the logistics industry has paid more

than £300m in levy fees but has drawn down less than 10% of that sum. The low take-up has been partly attributed to the absence of a Category C+E licence, which is needed to train drivers to operate artics. Currently the apprenticeship only includes a Category C licence for rigids.

Last year the FTA said the lack of a C+E licence meant the apprenticeship was “not fit for purpose” in the light of the HGV driver shortage crisis.

Although the Institute of Apprenticeships approved the inclusion of the C+E licence last week, hauliers are unhappy

with the length of the process.

The amendment cannot be submitted for formal approval until 8 January. The Department of Education will then need to approve the extra funding required – a process that could take until next summer and which has no guarantee of success.

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11.11.19

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The logistics sector needs to attract a more diverse workforce

Industry is heading for a ‘perfect storm’

By Tim Wallace MOTHER LOVE: DHL Supply Chain pledged to do its “utmost” to protect the jobs of staff working on its Mothercare contract following the retailer’s announcement that it will put its UK business into administration, threatening the closure of 79 stores. DHL has been Mothercare’s distribution partner for almost 30 years, handling national distribution for more than 300 stores and international franchises from its site in Crick, Northamptonshire. In response to Mothercare’s announcement DHL said: “In the coming weeks we will offer every assistance to Mothercare’s administrators to maximise the possibility of the business having an ongoing and successful future, while doing our utmost to safeguard our colleagues working on the account. In the short term, we will work with the administrator to support deliveries to customers who have already placed orders.”

In a statement Mothercare Group said that following a “root and branch” review and talks with potential partners over the summer “it has become clear that the UK retail operations of the group are not capable of returning to a level of structural profitability and returns that are sustainable for the group as it currently stands and/or attractive enough for a third party partner to operate on an arm’s length basis.”

The FTA’s annual Skills Report revealed the driver shortage figure has risen to 59,000 from 52,000 in 2018.

Speaking at the 2019 Labour Shortages Conference in Birmingham last month, FTA head of skills and Welsh policy Sally Gilson said the driver shortage first identified in 2015 was worsening and that urgent measures were needed to tackle the situation.

“We’re heading for a perfect storm,” Gilson told delegates. “Many Polish workers have left.

We’re still getting Bulgarians and Romanians coming over but we’re seeing lower numbers.

Future immigration policy would seriously disadvantage non-UK recruitment. A significant number of drivers are also retiring.”

Gilson also pointed to the lack of diversity in the sector, with the report revealing 89% of workers in the sector are white and 87% are male. Only 1% of HGV drivers are female.

She also repeated her plea for the government’s Apprenticeship Levy to be changed to a skills levy. “We’ve been campaigning for it,” she said. “Vocational training has its place and is just as important as any apprenticeship or degree, but it’s firmly shut out of funding. Parttime employees are shut out because they’re not necessarily fitting into the 12-month apprenticeship criteria. So we need to expand on that and make it a skills levy.

“We also need better career advice in schools and the promotion of vocational qualifications.

We need people who can go into schools and talk passionately about logistics and we need

continued access to non-UK workers.”

Responding to Gilson’s concerns, speaker Ruth Edwards, business development director at Talent in Logistics, proposed a series of steps to help change perceptions of the logistics sector and attract more young talent.

“Review your employer branding,” she advised. “Our people strategies as employers are important. We need to think about the language we use when we’re promoting jobs, our image when we advertise and how we get involved in communities.

“We also need to think about how we’re vocalising our environmental strategies. For young people that’s really important – as is flexible working. Logistics is surely one sector that can do that.”

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11.11.19

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FTA slams Bristol DPD: shift to electric too slow CAZ scheme Call for manufacturers, energy providers and government to collaborate

By Chris Tindall

DPD has significantly scaled up its plans for operating electric vehicles (EV) with the aim of boosting its current fleet of 139 electric vehicles to 500 by the end of 2020.

The domestic parcels carrier has also called on manufacturers, energy providers and the government to work together to help the industry move faster towards widespread EV adoption.

DPD has published a white paper with an eight-point plan it

said would radically accelerate the pace of change – including vehicle manufacturers making more righthand-drive EVs available in the UK. The paper said the government needed to streamline and remove bureaucracy from the registration process for alternative fuel new-to-market vehicles; local authorities, London boroughs, TfL and other stakeholders must engage final-mile operators to establish micro-depots; and policy makers should create consistent

clean air, ULEV and zero emission zone standards.

DPD CEO Dwain McDonald said: “The decarbonisation of transport fleets is challenging, both operationally and financially. DPD has made large financial commitments to purchase commercial EVs and change operating models to reduce emissions and congestion for the benefit of our society. But it isn’t happening fast enough, so we need to remove the barriers that are slowing the pace of change.”

Industry calls for smart motorways to be made safer The haulage industry is urging the government to make smart motorways safer by educating drivers on how to use them and ensuring that those drivers who fail to observe the rules are fined rather than warned.

The call follows transport secretary Grant Schapp’s decision to launch an inquiry into driver safety on smart motorways last month.

This was prompted by rising concerns about the number of deaths that have occurred on smart motorways when all-lane running is in place and the hard shoulder is being used as a live lane.

The DfT review was announced just days after Highways England chief executive Jim O’Sullivan told

6 MotorTransport

the transport select committee that the strategy of intermittently using the hard shoulder as a live lane on smart motorways – known as

dynamic all-lane running – was “too complicated for people to use” and would no longer be rolled out to other routes.

Hauliers will be left picking up the bill if Bristol City Council gets the go ahead to allow private cars free access to most of its Clean Air Zone (CAZ) while charging non-compliant HGVs £100 a day, the FTA has warned.

It follows the publication of the council’s CAZ proposals, which recommend that Bristol becomes the first city in the UK to ban all privately owned diesel vehicles from a small area of the city centre.

This area would lie within a wider CAZ, which would charge non-compliant commercial vehicles, but allow private cars free entry.

The council’s favoured option is a combination of its two original options. The first of these was for a CAZ that would charge preEuro-6 buses, taxis, HGVs and LGVs. The second proposed a smaller area from which diesel cars would be banned between 7am and 3pm.

But the FTA questioned Bristol City Council’s decision to exempt private cars from most of the CAZ. FTA policy manager for the southwest Chris Yarsley said: “Why should the logistics sector be left picking up the bill, when private motorists continue to drive unsanctioned?

“A charging CAZ should include all vehicle types within its remit; the size should also be kept as small as possible to mitigate the very worst economic damage.”

11.11.19

News

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Report from MPs outlines package of measures to solve haulage industry’s chronic labour woes

Seven steps to salvation

By Steve Hobson

The haulage industry needs in the region of 60,000 drivers to address its current labour shortages, MPs have claimed.

A year after forming the all-party parliamentary group (APPG) on road freight and logistics, chairman Sir Mike Penning MP (right) has delivered its first report, setting out seven recommendations for the government and industry.

And key was a need to focus on driver welfare, making the most of former military personnel and maximising training opportunities.

The recommendations are: ■ significantly improve the Driver CPC so young people receive worthwhile training and see a clear career path as a professional driver; ■ make physical and mental wellbeing a mandatory part of the Driver CPC as drivers are both sedentary and isolated, putting them at high risk; ■ review parking facilities to pro-

vide drivers with basic sanitation and safety; ■ better promote the value of the industry and communicate the range of apprenticeships and career opportunities to school-leavers and the public; ■ reform the Apprenticeship Levy because funding available is not

enough to cover the cost of training and the standards approved are not what the industry most demands. The industry has contributed £280m in levy payments and only drawn down £20m since April 2017; ■ better signpost support military leavers and support their transition into careers in logistics as they are a highly skilled and chronically under-used labour pool, and ■ add HGV drivers and warehouse operatives to the Shortage Occupation list as 80% of the workforce earns less than the threshold of £30,000 and their absence gives the perception that the government does not value their role in keeping Britain moving Speaking at the RHA’s annual parliamentary reception at the House of Commons, Penning reminded MPs and RHA members that he pledged he would walk away from the APPG if it became no more than a talking shop.

“It hasn’t,” he said. “It has actually made a difference. The report means that government knows exactly what our concerns are and where we are coming from.”

The group – dissolved pending the General Election – set three goals for its first year: addressing driver shortages; improving the reputation of the industry in the eyes of the public; and getting the government to understand how important this industry is to the economy.

“There is a lot more to do, not just around the shortage of drivers,” said Penning.

“This country has trained 20% of the armed forces who leave every year in HGV driving. The percentage of women drivers in the Army is 20% – why are they not coming into the industry? Partly because we are not offering the sort of career prospects, the roadside facilities and all the things we need in the 21st century.”

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There is every indication of development in the use in this country of the all-electric industrial vehicle for certain classes of work. Its range may be said to be that of the mileage capacity of the battery, but that limit allows it a very wide scope, and though it has not yet reached the popularity that it enjoys in the US, signs are not wanting of a wider appreciation of its usefulness in this country.

Municipalities in particular are adopting the all-electric truck in increasing numbers, and railway companies and the big stores are adopting it for delivery work over comparatively small radii.

As regards its position in relation to the petrol or steam vehicle, we consider the respective interests of the three methods of propulsion should not crash: each has its own sphere of usefulness, and with the increasing demand for speedy and efficient transport of passenger and goods, there will always be demand for all three.

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Focus: warehousing

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Take-up remains steady in a shifting market although speculative development is likely to reduce

3PLs are most demanding Demand for warehousing from 3PLs and manufacturers has eclipsed that from e-commerce firms and traditional retailers, according to research from agent and property advisor Cushman & Wakefield.

The company’s ‘UK logistics & industrial market outlook autumn 2019’ reports that 3PLs accounted for 26% of take-up in the first three quarters of the year, up from 20% in 2018.

This proportion was slightly below that of manufacturers, which rose from 21% to 29%, but this figure was skewed by Jaguar

Land Rover’s decision to open a 2.9m sq ft global parts distribution centre in the East Midlands.

By contrast e-commerce facilities accounted for 13% of take-up, down from 25% in 2018, while other retailers fell from 15% to 10%.

The report suggests these changes might be due to retailers turning to logistics firms to help manage their Brexit preparations and a “growing reliance on specialists to navigate increasingly complex supply chains”.

Overall take-up of 24m sq ft for the first nine months of 2019 was

on a par with the five-year average.

However, enquiries from occupiers looking at taking space were down 16% in Q3 compared to the same time last year, suggesting that economic and political uncertainty is taking its toll and might begin to affect demand.

The level of speculative development is also likely to reduce next year. The report found that 14m sq ft of speculative space is due to have been completed by the end of 2019. At the end of Q3 there was around 6.6m sq ft under construction, of which 1.7m sq ft was due to complete in 2020.

TAKE UP BY SECTOR 2018 Manufacturers 3PLs Ecommerce Retailers Wholesalers/ distributors Post and parcel Other

21% 20% 25% 15% 4%

Q1-Q3 2019 29% 26% 13% 10% 7%

3% 12%

1% 14%

Source: Cushman & Wakefield

PLP plans to develop several sites across the north Developer PLP has received planning consent for a 343,000sq ft speculative warehouse at Smithywood Business Park in Sheffield.

Construction is planned to begin before the end of this year.

PLP development director Matthew Fitton said that the location, adjacent to Junction 35 of the M1, gave the company the confidence to build one of the largest speculative warehouses in the region.

“Given the proximity of the site to the M1 and Sheffield, PLP

Smithywood will offer great accessibility and market connectivity,” he commented.

Completion of the facility, on a 17-acre development site acquired from St Pauls Developments and The Norfolk Estate, is scheduled for autumn 2020.

PLP is also active elsewhere in the North. It will develop two buildings of 92,500sq ft and 43,000sq ft at Basford West in Crewe, having been granted planning consent by Cheshire East Council. These are due for

completion by next summer.

In Leeds, PLP has been granted planning permission by the council to develop 900,000sq ft at Gateway 45 in the city. This

will be made up of units from 59,000sq ft to 400,000sq ft and will be delivered through a mixture of speculative and build-to-suit development.

Larger properties fall out of favour in the south-west Demand for large warehouses has fallen steeply in the south-west this year, but agents still believe the market is strong and there are greater levels of activity among smaller occupiers.

According to Savills’ ‘Big shed briefing’, take-up of warehouses over 100,000sq ft in H1 reached just 266,173sq ft. This was the lowest figure ever recorded and 76% below the long-term average.

The largest deal involved Oak Furniture Land, which took a 149,000sq ft warehouse at Groundwell Distribution Centre in Swindon.

However, Savills director Rob Cleeves said that there are occupiers actively looking for buildings.

“There are a number of requirements among companies searching for space that haven’t yet landed,” he said. “People are look-

St Modwen has recently completed three facilities in Avonmouth

10 MotorTransport

ing at the longer term.”

The addition of smaller buildings into the equation shows greater levels of activity. The ‘Market Monitor Mid-Year Update’ report from south-west agent Alder King found that take-up of warehouses of all sizes was 2.09m sq ft in H1, a rise of 27% over the same period last year.

Developers believe there is a demand and are pushing forward with their schemes. St Modwen, for example, has completed two speculative buildings of 25,000sq ft and 45,000sq ft at its Access 18 development in Avonmouth. An earlier building of 151,000sq ft was completed in March.

Barwood Capital is also involved in the Avonmouth market, with

its 137,000sq ft Junction One unit about to complete. The property lies adjacent to a new motorway junction on the M49, which is due to open in December.

According to Savills’ Cleeves, the junction will open up access to new sites. “It creates a great deal of potential in the surrounding area,” he commented.

There is a handful of other sizeable buildings available in the region, the largest of which is a former Morrisons warehouse of 385,000sq ft at Cribbs Causeway on the M5.

Overall, supply levels of large buildings fell slightly, down by 4% to 1.95m sq ft in H1, according to Savills. Meanwhile, top rents remained steady at £7.25 per sq ft.

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Freight in the City Panellists discuss the likely dominance of electric as fuel of choice

The future is electric Panellists at this year’s Freight in the City Expo have agreed that electric is likely to be the dominant fuel of the future for hauliers.

However, they also speculated that the sector will ultimately choose a mix of technologies.

At the event, held at London’s Alexandra Palace on 6 November, Graham Neagus, head of LCV, Renault Trucks insisted that “going electric is the way forward and should almost leapfrog other alternative fuels which are tinkering around the edges.”

He went on to explain that electric is the most easily adaptable fuel, and that gas presents a much more challenging infrastructure.

“But the future will be about a blended solution – a mix of technologies.”

Neagus predicted that urban charging points and related facilities would be shared amid a new

mood of sector “co-operation”.

“I also think there are a number of areas highly suitable for electric HGV charging that are as yet untapped,” he added. “Look at the football and rugby stadiums in London. Why can’t they work with our sector?”

Asked if companies were wasting time “pussyfooting around with other fuels”, Neagus said two things were currently “holding electric back – one is battery technology and the other is the ability to work with the energy supply companies.”

Paul Farr, UK business unit director at CEVA Logistics Transport Centre of Excellence, agreed that there would be “no one-size-fits-all solution” to the fuel challenge.

“You have to back the right horse in terms of technology and get over hurdles, particularly concerning the infrastructure around electric charging ports etc.

“There is definitely a role for electric in urban deliveries but we also need to invest in [a solution for] 44-tonne vehicles.”

David Thackray, sales and marketing director at Tevva, argued that the key to the debate was not about electrifying vehicles but electrifying miles.

“You want mileage covered to be down to zero,” he said. “The more zero miles you do the better from an environmental and financial point of view.”

Diesels revived by power packs Hauliers left in dark over Reducing the environmental impact of refuse collection vehicles is about more than just switching from diesel to electric. Rather than scrapping and replacing end-of-life RCVs, they can be recycled into full electric vehicles.

This concept has been proven by a four-vehicle trial run by a consortium including Veolia, Sheffield City Council, Magtec and Microlise and funded by Innovate.

Four obsolete diesel RCVs were repowered to battery electric and fully refurbished to as-new condition by Dennis Eagle, using complete power packs built by Magtec. Veolia is running two of the vehicles in Sheffield and two in Westminster.

12 MotorTransport

The 300kWh power packs are built on a “raft” by Magtec, so they can be quickly and easily installed by the vehicle builder as a plugand-play unit. The batteries last for two seven-hour shifts, even when running a fully electric bin lift, and are recharged by 50kW chargers using energy from waste plants.

The repowered 26-tonne vehicles weigh 385kg less than before and require far less maintenance.

“We make the motors, gearboxes and controllers at the moment,” said Magtec MD Andrew Gilligan at the Freight in the City Expo. “We are looking for partners as we build up volumes to over 3,000 units a year. I also want to partner with OEMs so they can install the kit themselves.”

zero emissions timetable

Speakers at this year’s Freight in the City Expo have urged politicians to give hauliers much clearer guidelines on the part the sector should play in a zero emissions future.

The event saw RHA head of policy, environment and regulation Chris Ashley (right) call on the incoming government to reduce the “ambiguity” around its advice and instead offer a “tangible timetable” on how hauliers can play their part.

“We are facing an immense amount of emotion, pressure and noise being created by environmental activists,” Ashley said. “We want to channel that emotion to give positive benefits, but the challenge is how we get there.”

He went on to claim that “where emotion and reaction meet it can lead to bad policy making”.

“In the case of CAZ, a blanket approach to charging – punitive charges – is not the way forward,” he said. “For CAZ policy to work it needs to target and address the exact sources of the poor air quality with a much more nuanced and intelligent approach.

“There are warm words about a net zero future but what’s missing is a tangible timetable on how hauliers can play their part in it.

We need clear milestones.

“We hear about lofty aspirations to bring forward the date of getting rid of diesel cars to 2030, but that’s only 10 years away. Does this apply to lorries? Nobody knows. The list of alternative fuels is long and the investment required is involved and expensive. Decisions need to be made on the infrastructure, tax and regulatory framework.

“Will the incoming government allow market forces to determine the way forward in terms of tomorrow’s fuel, or will there be state intervention? There are very few answers to the questions.”

11.11.19

Freight in the City motortransport.co.uk

Will 2020 be the year of the battery?

Battery electric vehicles may come of age in 2020, as what have been until now mostly prototypes start to become mainstream, according to speakers at the 2019 Freight in the City Expo at London’s Alexandra Palace last week.

Swedish startup Volta is aiming to put close-to-production spec demonstration versions of its 18-tonne battery electric truck on the road with customers in the UK and France next summer. It plans to start building customer vehicles in 2021, with full series production beginning in 2022.

Operators signing up for a seven year ‘Truck-as-a-Service’ rental contract will get the vehicle, maintenance, smart charger, electricity and driver training for a fixed monthly fee that should be competitive with diesel.

The box-like Volta truck has a range of around 150km and a recharge time of three to four hours, depending on the battery pack chosen. A refrigerated version will also be available.

Gnewt Cargo operates a 70-strong fleet of fully electric

BEVs carrying out low emissions last-mile distribution. A two-year trial to reduce congestion by using larger capacity BEVs, carried out with the support of the Mayor of London, is nearing completion.

The vehicles included 15 Voltia vans, seven eNV200s and four Fiat eDucatos fitted with smaller batteries supplied by BD Auto. The results of the trial will be published at the end of this year.

The importance of telematics and geofencing to getting the most from EVs was emphasised by Andrew Pearce, director of LEVL Telematics, the UK supplier of the world’s largest telematics system, Geotab.

Geotab is used by major fleets that are already rolling out EVs. It extends the range of the vehicle by monitoring the state of the battery, the energy used and driver behaviour.

While full battery electric trucks are gaining ground, the range extender may still have a role to play. Scania showed a productionready 9-litre L-series 6x2 rigid series hybrid that can run 10kms

on batteries within an ultra low emission zone before switching to diesel for stem mileage. A plugin version will be available next year.

UK truck convertor Tevva builds range-extended electric trucks using small diesel or petrol internal combustion engines to recharge vehicle batteries on the move. Sales and marketing director David Thackray said its customers were saving £90 a month in real world operations.

Tevva has switched to a lithium iron phosphate battery, which is slightly heavier but uses no cobalt.

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MotorTransport 13

Viewpoint

motortransport.co.uk

Don’t be confused about Euro-6

W Steve Hobson Editor Motor Transport

e have all seen those confused.com TV adverts – so much confusion in the world we don’t know where to turn.

That must be how any fleet operator looking to buy new trucks next year must be feeling. Looking around Freight in the City last week, it is clear that there is no lack of solutions to the problem of emissions: battery electric, hybrids, range extenders, hydrogen, methane, bioLNG – and probably some more I missed.

But exactly what problem are these solutions looking for? If we are talking about improving air quality in our cities by cutting NOx and particulate emissions, then let’s be honest, Euro-6 diesel is still the best solution. These are extremely clean vehicles emitting very low levels of these pollutants, and the biggest challenge is encouraging the

rapid replacement of older – especially Euro-3 and 4 – vehicles with Euro-6.

Which is why most of the clean air zones proposed by the 30 cities with the worst air quality are trying to do just that by charging pre-Euro-6 buses and HGVs to enter the zones.

For maximum effect, the schemes should also cover cars and vans but politicians in both central and local government know this is a vote loser. So once again it is commercial vehicle operators who get hit.

It is also why TfL’s £1m hydrogen buses are a waste of money that would have been better spent subsidising upgrades of, say, 20 dirty old trucks to Euro-6. Euro-6 is the solution not the problem when it comes to urban air quality and more carrot and less stick would be a welcome change.

Embedding a safety-first culture I Stuart White General manager operations, Fortec Distribution Network

magine you’re a manager walking through a warehouse in office shoes and you step outside the safe pedestrian area into a safety boot-only area. How likely is it that a member of staff will challenge you?

While many organisations say they want to have a safety-first culture, not all of them achieve it: the process isn’t always an easy transition and yes, it does include creating a working environment where people speak up if they have safety concerns. But it’s how to get to that point.

A good health & safety culture must be embedded throughout an organisation, from the boardroom to the shop floor, if it’s going to work. Every single person should have a voice and feel free to make suggestions about safety.

Honest feedback is critical to success.

If you don’t get feedback, you won’t uncover any flaws in your working practices and if you wait until something happens, you could end up with a serious accident – and then it’s too late.

With feedback you can put preventative measures in place. When people suggest good ideas, you should put at least some

14 MotorTransport

of them into practice, otherwise people won’t have faith in the process and suggestions will dry up.

Communication and training are keys to creating a safety-first culture. Everyone in the company should be clear about what safe procedures are in place and the process to follow in reporting nearmisses or suggesting improvements.

Near-misses can give you vital insights in how to prevent accidents in the future.

Instil a programme of continuous improvement. Send staff on training, create bespoke training, issue newsletters, hold meetings, create a dedicated safety working group – do everything you can to give people ownership and ensure that individual staff members take responsibility for their own safety and that of their colleagues and the public.

It’s vital for your business. After all, if someone doesn’t care even about their own safety, how can you expect them to care about the safety of others?

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Head of content Tim Wallace 2158 Deputy head of content Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Jo Saunders 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Head of sales Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Jane Casling 2133 MT Awards Katy Matthews 2152 Managing director Andy Salter 2171 Editorial office Road Transport Media, First 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 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 © 2019 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 11.11.19

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Tachographs

Big data

Jack Carfrae examines the latest developments in tachograph analysis, which is not always as straightforward as it sounds

O

f all the difficulties staring hauliers in the face, tachograph compliance shouldn’t be the biggest. In theory, it’s straightforward; they were digitised in 2006 – and before that, there were systematic ways of managing the old paper tacho discs – and there’s no shortage of analysis systems to keep fleets abreast of drivers’ and vehicles’ hours.

Like a lot of simple procedures, it isn’t always as easy as it sounds, and acquiring the data can be the trickiest part. Operators sometimes go to almost unbelievable lengths to do so, and if there’s a more extreme example

FLEETS STILL USING ANALOGUE TACHOS Tachographs went digital in 2006, which is long enough ago to assume that the old analogue format using paper discs has well and truly died out. But there are a number of operators still using yesteryear’s technique.

“I’ve got a team of eight people analysing analogue discs,” says TruTac’s Jemma James. “We’ve got [customers] who scan the disc and it comes through as a compressed image. Alternatively, they post the charts to us.

“There are various reasons for it. Many smaller operators will buy as opposed to leasing and they will look after their vehicles and keep them for longer.

Equally, if you’re transporting particularly dangerous goods and you have a very, very high-spec vehicle, you’re not going to change it as quickly as someone who is doing general haulage, for example. There are many reasons why analogue is still around, and I just don’t see it going away any time soon, regardless of what people may think.”

16 MotorTransport

than FlyByNite, then MT has yet to hear it. The Midlandsbased entertainment logistics specialist operates a fleet of 170 trucks, which regularly travel to mainland Europe and beyond, sometimes for several months. Compliance and data are big deals for the company – they’re highly valued and heavily scrutinised – and due the long absences overseas, tacho analysis was manual to say the least.

“Everything was hands-on regarding tachographs, driver monitoring and compliance,” says transport manager Richard Brown. “Quite literally, we had to fly people to far-flung destinations so they could manually download tachograph data from every truck.”

Legal time limit

The legal limit for downloading tacho records is 28 days for the driver and 90 days for the vehicle. Many specialists recommend doing so more frequently and weekly is the anecdotal industry average for driver data, so the company had to get creative in order to ship them back to HQ, but even so, it’s an astonishing case.

It sounds mad that such a task is so difficult in the digital age, but although the industry is moving in the direction of remote downloads, there are still pockets that rely on highly labour-intensive methods. “The most common story we hear is the transport manger having to jump in a car and drive up to some remote location – northern Scotland or somewhere – to get the downloads,” says Marc Caplin, national account manager at software specialist Aquarius.

“That happens less than it used to because you’ve now got devices that can run remotely, so you could either have a box on the wall in that remote location where the driver can put the Sim card and it will transmit data, all the way through to the onboard downloading equipment that will transmit it wherever the vehicle is.”

FlyByNite ceased jetting tacho downloaders into the field when it plumped for the latter option and hooked up analysis specialist TruTac’s Dynafleet software to its 11.11.19

motortransport.co.uk

fleet management system. Put simply, the software facilitates remote downloads of driver and vehicle data, regardless of location.

“They didn’t have to physically put anyone on a plane to go and download vehicle data or a driver’s card,” Jemma James, TruTac’s director of commercial operations and marketing, tells MT. “It also meant they had instant access to it, so if they needed to make a decision or get another driver out, then they could do that using the data in front of them.

“That’s the difference between having live data and having to wait weeks for the vehicle to come back – then get access to the data, which, yes, makes it very difficult from a planning perspective.”

Remote downloads

It isn’t hard to see the appeal of remote downloads, which larger fleets in particular are favouring, according to Caplin. However, he claims there is still no shortage of smaller operators relying on cumbersome techniques.“It’s moving more towards automation but a lot of the smaller ones, either through lack of resources or lack of knowledge, will still be stuck in the pattern of driving to wherever to download a vehicle at four in the morning, then uploading the data later on,” he says.

He admits the cost of installing a remote download unit can be “quite high on the face of it” but claims the savings in time, logistics and employee utilisation can more than make up for it, while many new vehicles will come with a certain amount of relevant hardware built in.

Help is on hand from the trade associations if the cost of the latest download and analysis gear proves prohibitive.

The FTA launched its Earned Recognition data hub in April 2018, designed as a “low-cost, not-for-profit solution” to gather driver and vehicle data from multiple ➜ 18

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Tachographs sources and simultaneously bring hauliers up to the DVSA’s Earned Recognition standard. Its Driverfta app helps drivers stay up to date with their hours and card downloads, while members can access a 24-page digital tachograph compliance guide and a template letter prompting drivers to renew their tacho cards from fta.co.uk.

THE NEXT GENERATION New ‘generation two’ digital tachographs became mandatory for all new vehicles from 15 June 2019 under EU regulations. The systems include a Global Navigation Satellite System (GNSS) source that generates a location stamp at the start and the end of the trip and at three-hour intervals.

There’s also a wireless enforcement function that flags up possible manipulation to the authorities – although that doesn’t include driving and break data – and they can be easily synced with telematics and other smart driving systems.

However, the consensus among analysis specialists is that the new tech makes little difference to drivers and hauliers.

“From the driver’s point of view, nothing really changes,” says Aquarius’ Marc Caplin. “The only thing they’ll notice is that, when they renew their driver card, it will be a generation two card, but that can be used in any tacho, anywhere.

“The only issue that operators might find is, depending on the age of their equipment, it might not be able to download this new smart tacho. We’ve had a few of these already whereby, depending on the device, we can sometimes offer a firmware upgrade. Otherwise, if it’s over a certain age, it’s a new device, unfortunately. But that’s the only real difference.”

Generation two tachos are a much bigger issue for enforcement authorities than for operators. Despite the supposed extra insight they bring, the associated agencies may not yet be equipped to analyse the additional data.

“The problem we’ve got is that, although these new gen two smart tachos are currently out there, a lot of the enforcement agencies don’t have the technology hardware to download the devices at the moment,” adds TruTac’s Jemma James.

“It is a real problem, and they’ve got a number of years before they have to invest in that new hardware.”

For those with a more hands-on approach, the RHA and VDO offer training in the art of tacho analysis. Courses start from £48.50 for a 45-minute explanation of VDO’s TIS-Web system and top out at £950 for the Initial Tachograph Technician, Forensic Analysis of Digital Tachograph and four-day Digital Tachograph City and Guilds courses.

Compliance issues

The point of tachographs is obviously to keep a legal lid on drivers’ hours and tick the compliance box, which means operators are obliged to follow up any infringements they find in the data. According to the FTA, insufficient daily breaks, exceeding the weekly maximum of 60 working hours and surpassing the daily drive limit are the most common transgressions.

Spotting them is the first step, which is where the aforementioned training, advice and specialists, which typically produce infringement reports, can help.

The most important thing is that the data is correctly verified and legally enforceable. You can usually bank on that when it’s supplied by a specialist but if you’re using other methods, such as telematics, then they don’t necessarily guarantee verification, so do your homework and check with your source or provider.

It’s critical that the transport manager – or whoever is responsible for the data – communicates infringements to the driver and documents the conversation. How and where that happens is down to company policy, but there’s no excuse for skirting the issue, and drivers may often have a good reason for exceeding their hours.

There is little they can do about a three-hour snarl-up at the Dartford Crossing or the lack of truck parking and, as long it’s followed up and correctly documented, the business remains on the right side of compliance. ■

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Profile: Bibby Distribution

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A fresh approach Bibby Distribution plans to become the ‘Employer of Choice’ in logistics by 2021, with a senior management team putting the skills and well-being of its colleagues at the core of future strategy. Hayley Pink finds out more

W

hen MT last met with Bibby Distribution in the summer of 2017, the business was hard at work getting back to the basics of strengthening its core transport and warehousing operations.

This included a network overhaul focusing on key geographical locations; investment in new fleet and warehousing management systems; reviewing lowmargin work; and a divestment of non-core divisions, such as driver agency, packaging and training arms (see box, page 22).

Out was the ‘logistics without limits’ concept and ambition to diversify into multiple business streams, replaced instead with a passion to strengthen and build upon its core logistics operation.

Newly appointed CEO and former CFO Richard Morson says of the refocus: “The journey we’ve been on throughout the past two years, the pace of which increased in the latter half of 2018, is about getting back to what we are good at.

“We are a strong logistics provider and particularly strong on full load transport and that’s what we are getting back to.”

Operational efficiency

The firm’s network restructure is now almost complete, with consolidation of smaller sites and a move towards a model of radial distribution from warehousing hubs.

“We won’t have sites specifically just for network, as this 20 MotorTransport

is an expensive luxury,” says Morson.

In the back office, the route-planning function has been centralised in a high-tech department, leaving the day-to-day management of loading, drivers and vehicle management to local teams.

This move has helped improve the utilisation of Bibby’s fleet, with vehicles in action more hours of the day, including nights and weekends where possible.

The company is also using technology and fleet innovation wherever possible to attract and retain new customers. For example, 95% of its trailer fleet are high cube units, which prove extremely successful for its paper and packaging customers and retail businesses due to their capacity.

It has also established a new transport optimisation team, based at its Wakefield hub, which has full visibility of all loads and is tasked with finding backhaul loads.

“From a standing start of nil in 2018, it probably now equates to about £2.5m of revenue a year through that workstream,” says Morson. “No additional assets or people, it just drops on to the back of what we’re doing and helps improve efficiency and fleet utilisation.”

During the latter half of 2018, the business also put a strong focus on its customer service levels, which enabled it to see a strong record of renewals retention into 2019 and gave it the ability to improve commercial rates where necessary.

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Profile: Bibby Distribution conversations that we’ve had to have in the back part of last year,” says Morson.

Core sectors for Bibby Distribution in 2019 remain traditional full load transport, warehousing and associated network transport, and tankers delivering food and ingredients. The latter stemming primarily from the £26m buyout of Atchison Topeka in 2011.

But while the business has had ample opportunity to continue to expand its core operation at any time, it has been choosing to take things slow and steady as it continues its transformation.

“We’d taken a step back and said we want to get the service levels right and this has to be at the core of everything. Now we’ve got this right we will gradually take on work,” says Morson.

“The organisation and the structure is lean and efficient but is capable of organic growth on top. With the strong retentions this year particularly, and some exciting new business that we will announce shortly, it’s an exciting time.”

Bibby reports that it is ahead of budget and forecasts for this current operating year, and on track with the three-year operating plan it set at the start of 2019. “We’re delivering everything we said would do, which is great,” says Morson.

was to go out to our colleagues and tell them how the business is performing and share our views and visions; the second part was to listen to feedback.”

The company had previously carried out three engagement surveys over the past three years and while it had actioned a number of things raised, it hadn’t followed up on everything.

“We sort of bared our souls to our colleagues and said we’ve done some of this stuff, but we're now sitting opposite you and want to ask you what you think. We got far more from listening and learning,” says Haworth.

“That’s when we started to recognise the value of flipping the pyramid. Instead of command and control and the person at the top being the expert, the reality is the people closest to the customer have a better understanding of what’s required and how we can improve.”

Enabling change

The executive team wrote to each site and supported them in making necessary changes to the operation. In total, around 600 actions have been committed to, each one overseen by a member of the executive team.

These can vary from small items such as installing a microwave in a local depot canteen and fixing leaky roofs, through to exciting ideas for the business and improving efficiency.

For example, on the fleet side of the business, whereas previously specification decisions were made at head office, the drivers had not been consulted.

“What we’ve done now is start to listen to the drivers using those trucks and there is so much good feedback.

We’re now making better, more informed business decisions,” says Morson.

Communication has indeed been one of the biggest win-wins to come out of the staff engagement exercise.

Rather than generic emails being sent to only those office-based staff with PCs, the business now uses social media such as Twitter and Facebook to reach everyone at depot level and on the roads as well.

“We've had to really think about this,” says Morson.

“We're trying to bring millennials and the new generation into the industry, and they want things on an iPad and social media.”

And the effort spent on engaging with the workforce will be key in Bibby’s ambition to be the logistics Employer of Choice by 2021. ➜ 24

Leading the way

The driving force behind Bibby’s restructure and focus is a determined, newly formed executive team led by Morson, who himself took the reins in July 2018 following seven years with the business, most recently as CFO. “I’ve been in finance roles within logistics for the past 20 years, but always wanted to be the CEO,” says Morson.

“But you are leaving your comfort blanket behind. It’s a big step, a big challenge.”

He has been supported in the move to his new role by parent company Bibby Line Group CEO John Cresswell, who joined the group in June 2018.

“I've had phenomenal support from him. To be his first appointment as a CEO means a lot to me. I’ve absolutely loved the job,” says Morson.

“For me, this isn’t about a finance guy running a business, it’s about a people person running a business, who is getting back to good core values and communicating and listening to the business.”

He is joined on the leadership team by Peter Clarkson, who took on the CFO role after seven years at Bibby himself, having previously worked with Morson at Nobert Dentressangle and TDG. David Haworth joined the executive team last year as HR director, while Dean Jones returned to Bibby again as operations director, having previously worked at Eddie Stobart.

The newest member of the team is Elspeth Doyle, who joined as general counsel bringing her legal expertise, and will also champion the firm’s diversity commitment.

Working together

“The energy level and enthusiasm and strength of the exec team are fantastic,” says Morson. “It’s the strongest team I’ve worked in for the past 20 years in industry.

There is a really good buzz around the place and we all work really well together.”

This connection has been fundamental in driving forward the culture change at Bibby to put employees at the heart of the business.

Haworth says: “About this time last year, we sat in the room as an exec and said the critical thing for us was to go out and listen to people. So one of the core values therefore is called ‘Working together’.”

To get the ball rolling, the executive team went out on the road and visited staff at 62 sites over four months, with Morson attending every single visit.

The aim of this was twofold, explains Haworth: “One 22 MotorTransport

motortransport.co.uk

BACK TO BASICS In Bibby’s mission to get back to basics, it has gradually been divesting its non-core activities over the past four years. This includes the disposal of training arm Systems Training in 2015 and agency business Direct Workforce at the end of 2016.

“In April 2018, we did the final piece of the divestment of the non-core activities and disposed of the PLS business, which was the packaging and technology business,” says Morson.

The remainder of 2018 saw a further consolidation of activities, including an exit from the milk collection sector, which Morson says was a tough decision to make.

Ultimately, the sector was delivering a large amount of revenue for the business, but instead of making profit, was actually proving loss-making.

Morson adds: “Milk is a commodity and you're in a very low-margin sector where you can work very hard for very low returns and if the milk price changes, you can very quickly find yourself in a negative position.

“Customers want to move from a traditional full open book cost recovery model to a fixed pence per litre for collection which pushes all the risk on to the logistics provider and it wasn’t one we were willing to take.

“Even with 20-plus years’ knowledge of the industry, it's just too big a gamble if the milk price drops and the volumes drop. One of the pieces of business also included cross-border operations in Ireland and with Brexit looming, again it was too big a risk.

“So 2018 was a continuation of divestment and back to basics to the core of what we do,” he says.

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www.motortransport.co.uk

Profile: Bibby Distribution It has created a number of successful employee training schemes to both attract, train and retain skilled staff to the business. The national shortage of drivers being a core challenge for all logistics businesses, Bibby has set its focus on this area of the workforce to ensure it keeps a steady workforce.

A driver apprenticeship programme launched in March for its first intake of nine students. The 13-month course sees students achieve their C and C+E licences in the first few months and join the business as drivers, with the remainder of the programme completed after this.

The goal is for training up to 50 drivers in the first 12 months. As well as training vital new drivers, Bibby is pleased the scheme is also shifting the demographic of its workforce. “We reflect the rest of the industry,” says Haworth. “Roughly 2% of our driver population are female and 98% are male.

“It’s baby steps I guess with our first apprentices, but within that group we have two females. We've also got people from diverse ethnic backgrounds because we believe this the route to go.

“If you think about the diverse UK population, as an industry we are massively under represented and don't reflect this. Our desire is to reflect this and apprenticeships are the first stage.”

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Newly appointed CEO and former CFO Richard Morson, and Elspeth Doyle, who joined as general counsel and will also champion the firm’s diversity commitment

Funding

The scheme is partially funded through the Apprenticeship Levy, which industry pays into and Bibby sees as an important landmark that this can be achieved.

Morson adds: “In essence, the levy funding will help towards Class 2, but there is still a significant investment for us outside the fund of between £3,000 to £5,000 per apprentice.

“But it’s absolutely right we do this. It’s critical on a number of levels: one is because it’s investing in people; two because it’s enhancing our driver profile; and finally because it makes us more attractive as an employer.”

Drivers also receive full inductions from Bibby’s training team, supportive and corrective coaching when needed, and recognition and competition to keep them engaged in the role.

“We now have the technology to analyse how drivers are driving and can focus on the key areas for training, and have brought in place reward and recognition,” says Haworth. “We're really starting to get recognition for this.”

Indeed Bibby recently scooped the Microlise Driver of the Year Award 2019, receiving external recognition for its driver training, while internally the best drivers are taken out for a fun day with their families to reward their hard work.

Across the rest of the business, Bibby has also focused on training its managers, with Level 3 and Level 5 courses created to focus on the company’s core values.

A new head of talent has also been brought in to prioritise recruitment and induction processes for new starters, as well as help develop existing employee skills and shape the next generation of managers.

“We have a real understanding of the calibre of our leadership and where we can support them to develop,” says Haworth.

At local level, the leadership team is also keen to encourage depots and employees to build strong links with their nearby communities, charities and organisations.

A charity committee has been created and Haworth said the local activities are boosting engagement and retention of staff based at warehouses

Diversity

The newest member to the executive team, Doyle has not only brought her legal expertise to the board, but with it a passion to develop a more diverse workforce across the business.

“When I got asked to join the exec, I was really passionate about looking at our gender diversity and bringing 24 MotorTransport

more women into the business, because it is a very male dominated industry and we need to change this,” she says. “Not just from a ‘living the values’ piece, but also commercially it makes more sense to widen the pool we're reaching out to.

“So Richard asked me to look at diversity as a whole, so that’s my starting point at the moment, as we’re right at the beginning of the project.”

Doyle adds: “We want to make the business a more inclusive environment. Making people feel like they belong. If you’re a family business, you want people to feel like family.”

One of the first things on the agenda is to listen to employees and understand what their thoughts are across the business and the best way to tackle diversity.

And to get the ball rolling on this for Bibby, Doyle led a session for the executive team in March this year on International Women’s Day, focusing on diversity.

“We want their ideas on how to make them feel more supported, as there’s no point us sitting round as an exec group and deciding what will work – we need to be led by our colleagues.”

Early indications are showing that the exec team’s passion to boost morale, skills and retention of its workforce are already having a positive effect across the business. Staff engagement surveys are on an upward turn, Morson confirms, and he is confident Bibby will achieve its ambition to become Employer of Choice by 2021 and the first-choice logistics provider for customers.

“The people element is a massive part of our growth in the past 12 months,” he says. “We’ve been on a real journey. We’ve refound the purpose of Bibby Distribution again I feel. There’s a completely different atmosphere and feel to the place.” ■ 11.11.19

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MT Awards 2019 winner profile Customer Care Award

Shining example Serial winner DPD UK never loses sight of the fact that its customers are the retailers who pay DPD to deliver their products. Project Shine, designed to address a host of minor yet significant issues in 2017, raised the bar

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PD UK picked up another two MT Awards in 2019 to add to its already bulging trophy cabinet, taking both Customer Care and Home Delivery Operator of the Year.

It has been a serial winner of the Customer Care Award, making the trophy its own since 2014. DPD has also had nine years of unbroken growth in turnover and profit that has seen it rise to top dog in the home delivery market, delivering 250 million parcels last year for 8,000 retail customers. Despite this incredible track record, DPD’s winning entry this year opened with the honest admission that “despite financial success, peak 2017 was far from our finest hour”.

That is not to say the wheels came off but DPD’s Net Promoter Score fell from 66 to 63 – still well above the 50 considered ‘excellent’ but below a ‘world class’ 70.

While the firm knows that the basis of its success has been creating a great delivery experience for consumers, director of marketing Tim Jones says that it never loses sight of the fact that its customers are the retailers who pay DPD to deliver their products.

“Very clearly, it's all about our customer, the retailer,” Jones says. “Because only with retail customers do you have a consumer customer as well.”

With peak (classed as the six weeks from Cyber Weekend to Christmas) accounting for an incredible 20% of some customers’ annual sales, it was essential DPD made sure peak 2018 went like clockwork.

PUTTING THE SHINE BACK ON DPD Project Shine pulled together a multi-disciplinary team of 140 people to take a fresh look at DPD’s processes.

Key outcomes included: ● Persuading major customers to agree volume caps ● New self-serve customer dashboards to give shippers more control ● A new IT system to give DPD real-time visibility of all parcels ● Operating hubs at full speed from 6pm rather than 8pm to improve volumes delivered by 150% at weekends and ease the pressure on Mondays ● Deployment of 220 sales and IT staff from head office to support the depots ● Creation of an Intelligent Operations Centre to act as ‘mission control’ for peak 2018 The project was a complete success, ensuring all major clients who had expressed dissatisfaction in 2017 were retained.

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The answer was Project Shine (see panel), designed to address a host of minor yet significant issues in 2017.

“We were very clearly committed to Project Shine, which was all about improving things for our retail customer by making sure we were at our usual high DPD standard,” says Jones. “Every day, when we come to work, everybody is thinking about the paying customer.

One of the ways that we can give more to our customers is to look after their customers, but let's be very clear that our customer is the retailer.”

Doing a great job for the recipient of a parcel has several benefits for DPD and its retail customers.

Predict app

“The DPD app, Predict, and other things that improve the delivery experience and convenience for recipients do two things for both parties,” explains Jones. “It minimises calls to the retailer’s call centre from consumers wanting to know ‘where's my parcel’, which takes out costs from the retailer and improves the overall experience.

“Second, we drive up repeat order levels, which is good for us because we get more deliveries and great for our customer. That’s the way the relationship’s structured, and that’s why our business strategy is definitely geared primarily around the retailer.”

A key part of Project Shine was a return to the shop floor for the DPD senior management team – including Jones – to see what working at the coalface is really like.

“A lot of people look at companies like DPD as the market leader, a big innovator and with massive growth,” he says. “There's often an assumption that there's some arrogance here or these people get carried away with their own success.

“That’s definitely not how we are at DPD. We strongly believe we’re very close to our customers and very close to all the people in the business. I think to do that, you’ve got to get down and dirty.

“Two examples: all the directors here are aligned to our larger customers. We get out and meet those customers face to face at least twice a year and speak to them more than that. We’ve got our finger on the pulse of the customer.

“Then we have to also understand what’s going on at the coalface. Our CEO, twice now, has been out for the day with a delivery driver, and I’ve been out with a linehaul driver.

“I have also spent time in our call centre where you hear what the issues are on the doorstep. Things can go wrong but when it gets resolved, it’s such a good feeling.

“The main thing I learned was just how often people ring up even when they don’t really need to. They just want to check things are coming, even though we sent a notification and gave a specific time. People are ringing just to check what was said to them is right.”

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Sponsored by

Syan Hancock, general manager of care (fourth left) at sponsor Isuzu Truck UK, presents the trophy to Dwain McDonald, CEO (far left), Sinead Croke, director of customer experience (fifth right), and the team at DPD UK

Apart from the 4 million consumers who have downloaded the DPD app, a lot of what the delivery firm does is behind the scenes and many parcel recipients will never know or care who turned up on their doorstep.

“The notifications we send will be in our customer’s brand,” says Jones. “We'll say ‘your ASOS parcel is coming between…’ Consumers sometimes have less awareness of the different carriers, but they recognise the people they purchase from.

“I think what consumers are starting to remember about carriers is when they have all of the in-flight options that they need, not just the notifications. We believe we’re still leading the field, consistently delivering a one-hour window, which no one else does. But if, with the best will in the world, you can’t be in for even an hour, then it’s all about the in-flight options. This is where we believe we maintain the advantage, because we have more in-flight options with more flexibility.

“Clearly, people overwhelmingly want their stuff next day to their door. We can talk all we want about locker boxes and other things, but that’s what people want and we aim for that, first and foremost. When we can’t deliver that, we aim to give them the next best thing, whether that’s deliver to a neighbour, come back another day, leave safe or take it to a parcel collection point.”

Customer satisfaction

At present, few retailers give the end recipient a choice of carrier when they order goods online. But how satisfied consumers are with the service it provides is clearly a factor when retailers select their home delivery operators.

“We see ourselves as a key component of the e-commerce industry, which has been a massive UK success story,” says Jones. “It’s a huge growth industry and we’ve helped with the success of some of the best e-retailers. Over the past 10 years we’ve helped improve consumer confidence in terms of buying online and getting goods delivered safely and when required.

“Yes, we would like DPD to be recognised, but most crucially recognised by people who pay for shipping of the goods and that remains our primary goal. Of course, the role of consumers will be increasingly important perhaps in the selection of carriers by retailers, so yes, we do need to build brand awareness with consumers.

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That’s one of the major reasons why we launched the app, which is essentially about getting right first time deliveries.”

Jones is equally adamant that DPD will be sticking to its knitting and will not be looking to grow even faster by expanding into two-man or ‘ugly’ freight.

Machine sortable boxes

“We have to recognise what DPD does is next-day delivery of what we call machine sortable boxes,” he says.

“There is traffic out there – large, oversized, heavy, irregular shaped – and there needs to be other players in the market to service that. We want as much business as we can get, but the traffic profile has to be right for things to work to everyone’s mutual advantage.

“We are in a high growth market, and we’re very clear about which parts of that market we want. We spend a lot of our time analysing the market and we wouldn’t have built the fourth hub in Hinckley if we didn’t believe in this market and our part in it.

“We’ve now commissioned our fifth hub, which will also be sited at Hinckley, and will give us the three biggest hubs, we believe, in Europe. It will give us a huge amount of additional sorting capacity. Clearly, we wouldn’t be doing that if we didn’t believe there was sustainable growth in the market we’re in.”

Despite the phenomenal success DPD has enjoyed in the UK since its ground-breaking Predict software introduced the concept of one-hour delivery windows a decade ago, the B2C market remains brutally price driven and the company’s management knows it can never rest on its laurels. As one of the MT Awards judges put it, DPD “recognises there is no room for complacency in its highly competitive market”.

“It will always be very tough,” agrees Jones. “There will always be lots of competition, but we’re very clear on what we want and what we need to invest to continue to serve the market.

“It will always be highly competitive and hugely seasonal. We’ll have Black Friday, we’ll have August summer sales, we’ll have January sales. The peaks and troughs will continue, and that’s why that fifth hub and the additional capacity will help us cope with those operational challenges.” ■ MotorTransport 27

MT Awards 2019 winner profile Business Excellence Award

In a spin Whirlpool is the UK’s only white goods manufacturer to manage its own in-house home delivery network – Hotpoint Home Solutions – and its bosses are determined to match or exceed the standards of any 3PL

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ast year’s winner of the Operational & Compliance Award and Technical Excellence Award, Whirlpool UK Appliances scooped the crown for the Business Excellence Award winner this year, and couldn’t be more thrilled.

As the UK’s only white goods manufacturer to manage its own in-house home delivery network, Whirlpool constantly benchmarks its in-house operation – known as Hotpoint Home Solutions – against 3PLs on price and service, ensuring that providing the consumer with a seamless end-to-end solution is at the heart of everything they do.

Karen Slack, currently senior project manager, supply chain, at Whirlpool UK, previously managed the network and remains close to the operational team in Peterborough, led by logistics director Dominic Vertuccio.

Slack has championed many projects in her role, and last year managed the process that allowed the company to move to seven-day deliveries to provide flexibility for Whirlpool’s customers, as well as extending the cut off time for ordering a next-day delivery from noon to 6pm, and training drivers to install built-in appliances.

She says that HHS is run exactly like a 3PL and has to have a fully costed business plan for each project.

“We calculate everything, as we would if it were a standalone business. Whirlpool is a big organisation, but

28 MotorTransport

in the UK we are relatively small and super agile, because if we’ve got a problem or if we want to change something, then we’ve got IT, operations, commercial and finance all close by. We are ‘one Whirlpool’, with one aim to improve our consumer journey.

Research

“We always have the philosophy, ‘if this were our business, what would we do?’ I think that stands us in good stead, because we’re not spending a lot of time on things where actually we don’t really know what we’re going to get at the end. We do our research to understand what the return is going to be and understand consumer needs.”

That is why she was so pleased – and yet surprised – to win the award at the Grosvenor House in July.

“It’s for the whole business rather than just the logistics arm, which is what I loved the most,” says Slack. “For me, it’s one of the most important awards because it does encompass everything and you have to have all of it right to be successful – it demonstrates that all our hard work has paid off.

“I have to say, I convinced everyone on our table that we weren’t going to win and of all 1,400 people in the room, I was the one who was the most surprised, but delighted.”

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Sponsored by

Tim Gibson, sales director (second right) of sponsor Hireco presents the trophy to Lorraine Byrne, HR manager (fourth right), Karen Slack, senior project manager (holding trophy) and the team at Whirlpool UK Appliances

Around 880,000 appliances each year go through the HHS network of 12 satellite depots, where 330 drivers and attendant staff use 115 vehicles to deliver to homes and small trade outlets. The order cut-off for next day delivery is now 6pm, seven days a week.

An in-house model is the best method for Whirlpool because the home delivery teams do much more than just deliver. As a minimum service every appliance is unpacked and packaging is taken away, but there are now a range of other options including removal of the old appliance and installation of the new one, which helps differentiate Whirlpool from its rivals.

“Some retailers charge for that service, but we don’t because it’s part of our DNA. It’s what we train drivers to do. We ask ‘did the driver offer to unpack?’ We do that because we want to live by our promise,” says Slack.

“As any business, we will benchmark our capability and make sure that we are a profit centre and not a fixed cost that’s a drain on the business. We see the benefit of the customer journey being easy and quick, because we’re not entrusting our brands to be delivered by another operator. We are the ones that are in the consumer’s house and this is what sets us apart.

Driver training

“We’ve really focused on the training that we give to our drivers and because we do it so well, consumers choose our brands again and again. We don’t just train the driver to deliver a parcel that is simply left in a safe place. We’re physically in the consumer’s home, and we want every single driver to delight our consumers. That part of the journey is very important to us and to our organisation.

“Back in 2014 we opened our purpose-built training academy. We were delighted that this new innovation was recognised by our peers, winning the MTA Training Award in 2015. We’re pleased that others have followed to improve standards within the industry,” she adds.

Whirlpool handles its deliveries and servicing in-house.

Consumers can buy Whirlpool UK’s brands – Indesit, Hotpoint, Whirlpool and KitchenAid – from high street retailers or order online from a variety of retail partners.

“They take the order from the consumer,” says Slack.

“Then they pass the order to us and we do the rest; our retail partners trust us to do the delivery on their behalf.”

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For the past three years, HHS has been conducting net promoter score (NPS) research into its home delivery service, and this now stands at +82, which is comparable with Apple’s rating.

“We’re very proud of our customer satisfaction rating, as we know we’re one of the highest,” says Slack. “It encompasses a customer’s order journey as well as the delivery.”

The research includes asking the customer what HHS could do better, and any comments, good or bad, are fed back to the relevant depot manager for them to discuss weekly with the delivery crews.

Maintaining the ability to cope with short-term spikes in volume means that up to 20% of shifts could be covered by agency staff and rented vehicles at peak periods. That in turn enables HHS to maximise the utilisation of the core fleet. “We need these wheels turning every day,” she says. “For us, it’s important that we’re using the vehicles.

We utilise the equipment we’ve got every single day, which means we need fewer vehicles.”

Slack says the move to seven-day operations was partly to spread volumes over the week, but mainly to offer our customers better flexibility.

HHS will deliver between 7am and 7pm every day and consumers are given a three-hour delivery slot at 8pm the day before delivery, which is narrowed down to a one-hour window the morning of delivery. ■

A BUSINESS WITH A HEART While it has a robust business plan, Whirlpool UK Appliances also has a strong charity and community programme.

Last year, the Hotpoint brand launched its ‘Fresh Thinking for Forgotten Food’ campaign to raise awareness of the problem of wasted food. With 7 million tonnes of food thrown away every year, the campaign included the launch of a pop-up café in London serving dishes inspired by consumers’ recipes using commonly wasted foods, with all proceeds being donated to FoodCycle, a charity using food waste to create community meals.

MotorTransport 29

MT Awards 2019 winner profile Urban Delivery Operator of the Year

Taking care Tackling London’s congested streets every day might seem daunting, but for O’Donovan Waste Disposal the challenge has been transformative

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rban Delivery Operator of the Year was a new category in 2019’s Motor Transport Awards, so it was always going to take something special to win the prize. That it went to London-based waste and recycling haulier O’Donovan Waste Disposal says plenty about the company’s commitment to doing the right thing.

The business – led by MD Jacqueline O’Donovan – has a solid history of working with officials on initiatives to improve the safety of HGV movements in the capital, and mitigate the environmental impact of its fleet.

With a turnover of £21m per year, the business runs six depots, a fleet of 95 HGVs and employs a 165-strong workforce.

It prioritises a range of initiatives focusing on health and safety, fleet innovation, training and environmental best practice, all led by a committed and passionate family management team.

And it strives to be at the forefront of the latest fleet technology too, helping to shape emerging policy by representing the views of SMEs in the haulage industry.

“Because we are seen as innovators within the industry, it is important for us that we lead the way and encourage others to follow suit,” O’Donovan tells MT.

30 MotorTransport

O’Donovan played a significant role in working with the CLOCS team and vehicle manufacturers to help raise awareness of the need for more direct vision in HGV cabs and encourage new designs.

To lead on this issue commercially, the business was the first to introduce Mercedes-Benz Econic skiploaders to its fleet and now boasts the largest direct-vision low-entry fleet for an independent waste haulier in London.

It also works closely with its local community, partnering with the Metropolitan and City Police to carry out regular Exchanging Places sessions.

These sessions enable cyclists and pedestrians to experience an HGV from the driver’s cab and gain a better understanding of the view drivers have.

The business also takes its own Exchanging Places into schools in its community to educate children about the danger zones around HGVs. During Road Safety week in 2018, the business was able to engage with more than 500 local children about road safety.

Leading the way

O’Donovan is proud of the fact that it was not only the first independent waste company to have achieved Fors Gold status, but that it has maintained the rating for eight years in a row.

It has also gone above and beyond the required safety standards on its fleet by fitting equipment such as nearside blind spot side sensors, reversing cameras, nearside CCTV, forward-facing cameras, audible left turn alarms, enhanced side impact bars and Fresnel lenses.

In May 2018, the company also became the first dedicated waste firm to receive ISO39001 certification from BSI, which sets out the requirements for a Road Safety Management System with the aim of reducing the impact of outcomes from road traffic accidents.

As part of its Fors Gold status, the company has taken part in performance management benchmarking and reduced its carbon footprint by 19.5%, based on fuel usage and distances travelled.

The firm’s operational management system monitors driver behaviour in real time and enables transport managers to communicate with the entire fleet immediately via digital two-way radio.

Allocation of jobs is managed as traffic updates come in and HGVs follow routes with the least congestion – and those that are safer for all road users, which means 11.11.19

Sponsored by

they avoid cycle hotspots and schools at peak times.

Driving style is monitored through the management system and any driving behaviour such as harsh braking and cornering, as well as excessive idling, are identified so further training and mentoring can be given, allowing the driver to improve their skills and habits.

Improved driver behaviour, backed up with certified courses such as Transport for London’s LoCITY Driving and Driver CPC modules, has improved safety, fuel efficiency and lowered carbon emissions.

As a result, the firm has seen its insurance premiums

Above left: O’Donovan’s takes its safety message to local schools; above right: Andrew Morley, group sales director (second right) of sponsor Prohire, with O’Donovan Waste Disposal CEO Michael O’Donovan (centre) and Richard Clarke, commercial director

ANYTHING FOR A QUIET LIFE Reducing noise pollution also plays a vital part of O’Donovan’s environmental policy. The company recognised one of the biggest noise impacts was the metal-on-metal clanking that skip chains can make.

So the firm’s environment and transport teams carried out noise-level tests using decibel meters on different models of lorries and various sizes of skips.

They then worked to develop padded covers to minimise the sound. The innovation consists of a sleeve made from a recyclable heavy-duty canvas material with Velcro edging that can be secured around the chains.

Before and after tests from varying distances resulted in a decibel reduction of more than 23% once the covers were fitted. MD O’Donovan also works closely with TfL on its Quiet Deliveries working group to see if innovation from other industries can be adopted or adapted for its fleet.

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drop by 20% and accident rates reduced by 22%.

Meanwhile, fuel efficiency has increased by 26% and carbon emissions have been slashed by 19.5% per kilometre travelled. To further reduce emissions and help improve air quality in the capital, the firm has also introduced all-electric Citroën vans to the fleet, replacing diesel counterparts, along with installing the required in-depot charging points.

It is also looking at ways to introduce alternative fuels to its HGV fleet and considering which options would be a good fit. “We are keen to get on to alternative fuels and are exploring many avenues in respect of this, as the company continues to reduce its environmental impact at every opportunity,” says O’Donovan.

Sharing knowledge

As well as its dedicated driver coaching, O’Donovan also runs a series of training courses for all aspects of the business, which are offered in multiple languages to accommodate the firm’s multi-national workforce.

Its headquarters is a JAUPT-approved and British Safety Council-approved training centre, enabling it to share its best practice with other waste companies.

O’Donovan has designed its own Driver CPC syllabus called Waste Essentials, as well as recently introducing a new security and counter-terrorism course to better focus a driver’s attention on personal and vehicle security.

It raises awareness of the theft of loads and vehicles, but also the dangers of an HGV being used as a weapon if stolen or hijacked.

A number of staff are also qualified in the RHA’s in-cab training, which gives them the skills to carry out in-house driving assessments and support and mentor staff.

The company believes its strong emphasis on training is key to helping its employees handle the challenges that come with operating in busy, built-up London streets.

“Our biggest challenge is the ever-increasing congestion that comes with being a London-centric operator and sharing the roads with so many road users in all forms,” says O’Donovan.

“What helps us manage and overcome these challenges is our commitment to training and having our team as knowledgeable as possible to deal with any situation.”

In particular, she adds, the firm’s wellbeing programme, Dynamo, is crucial to helping employees manage their reactions to challenging circumstances when out on the job, including stress and anxiety. ■ MotorTransport 31

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