SME Guide | GreenFleet 115

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SME GUIDE

Advice for small and medium-sized enterprises facing fleet management challenges 28 Electric vehicles What are the overall benefits of making the switch to electric cars for SMEs and fleet managers? Where are the savings to be made, and how easy is it to switch? Poppy Welch, head of the governmentindustry campaign, Go Ultra Low, investigates

39 Service, maintenance & repair (SMR) For small firms, perhaps the most time-consuming and burdensome aspect of looking after a fleet is making sure vehicles are fit for the road.

Fleet organisations should therefore have robust SMR policies and procedures

47 Telematics For SMEs, selecting the right telematics provider isn’t easy.

There are lots of suppliers to choose from and prices and functionality can differ greatly.

What’s more, the benefits can be ignored altogether if the firm does not have a dedicated transport manager

Brought to you by

Volume 115 | GREENFLEET MAGAZINE

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BMW Fleet & Business Sales

VENTURE INTO SUCCESS.

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Official fuel economy figures for the new BMW 225xe Premium Active Tourer: Combined 113.0 mpg (2.5 l/100km).

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Figures are obtained in a standardised test cycle. During the test plug-in hybrid vehicles used a combination of battery power and petrol fuel after the battery had been fully charged. All figures are intended for comparisons between vehicles and may not be representative of what a user achieves under usual driving conditions. Plug-in hybrid vehicles require mains electricity for charging.

Metallic paint optional on 225xe Premium Sport and M Sport models.

We’ll keep your fleet working for you

From 24-hour breakdown cover to accident assistance, mobile tyre fitting to technical mobility solutions that help optimise vehicle performance, we’ll keep your fleet on the road.

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fleets to comply with any targets.

The introduction of Ultra Low Emission Zones xoxoxoxo (ULEZs) across the country means businesses and SMEs areINFORMATION set to be affected, with the fleet FURTHER industry requiring more support to stay ahead of xxxfuture regulatory and legislative changes.

With almost 95 per cent of fleets currently made up of diesel or petrol-fuelled vehicles, as found in the second annual Operational Fleet Insight report produced collaboratively by the AA and BT’s Fleet Solutions, the introduction of ULEZs will have a major impact on UK businesses.

Air quality Currently high on the UK environmental agenda is air quality, with the Mayor of London, Sadiq Khan, bringing forward his aim to establish a series of ‘Zero Emission Zones’ in areas of the capital by five years, announced in the London Environment Strategy in May. These zones would require emitting vehicles to pay a road user charge from 2020 in town centre areas across the capital.

London has already introduced a Toxicity Charge (T-Charge), coming into action in October 2017. Although this has impacted small businesses by doubling the cost of driving a vehicle through London during peak hours, it has been reported that the fee has already reduced the number of highly-polluting vehicles driving within the centre of the city by nearly a third.

This is set to be replaced by a ULEZ in central London from 8 April 2019. It will implement tighter exhaust emission standard, requiring high emitting vehicles to pay a daily charge to travel within the area of the ULEZ. As well as London, ULEZs have been introduced in Brighton, Norwich, Nottingham and Oxford, with Birmingham, Leeds, Derby and Southampton all looking to follow suit by charging polluting vehicles. Therefore, SMEs need to implement a long-term fleet strategy, such as a switchover to alternative fuels.

will need to add more alternatively fuelled vehicles. The Operational Fleet Insight report found that SMEs are increasingly worried that manufacturers aren’t always treating them as a priority when it comes to advice and support due to their small fleet size.

According to research, we recently conducted with BT Fleet, the lack of expert fleet knowledge that often exists within small businesses means that only 26 per cent of SME fleet managers and decision-makers say their role focuses on long-term fleet initiatives, such as a switchover to alternative fuels.

It is vital for fleets to start making decisions ahead of the introduction of ULEZs by maximising efficiency through the implementation of connected car data and moving towards alternative fuels to power their business vehicles.

The AA has already trained all of its patrols to respond and assist owners of electric vehicles as well as joining forces with Chargemaster to launch the multi-brand Electric Vehicle (EV) Centre in Milton Keynes.

The centre provides information and advice on electric vehicles, as well as free driving lessons. Our partnership with Chargemaster also includes launching polar network cards across our patrols in the south-east which will provide a free complementary charge for customers who run out of charge on the road. By adopting more alternatively fuelled vehicles, fleets will be able to minimise costs from the introduction of ULEZs. Charging points There is a long way to go to reassure fleets that the route to an alternatively-fuelled future will be a smooth one. 82 per cent of AA members say they have been deterred from purchasing an EV by the lack of charging points nationwide. However, the infrastructure is growing. In the last Budget, the government announced plans to allocate £400 million for the fitting of electric car charging points, £100

AA research has found that SMEs are increasingly worried that manufacturers aren’t always treating them as a priority when it comes to support

million to boost the sales of clean cars and £40 million in charging research and development.

In London alone, there are currently 128 open access rapid charging points, with 644 electric vehicle charging points having been installed since January 2017, with another 2,630 to be installed by the end of 2018/19.

Furthermore, Chargemaster has committed to invest £50m over the next two years on expanding its public charging points (POLAR network) with a combination of rapid and destination charging points in hotels, leisure facilities, shopping centres and other locations across the UK. By 2020, there could be around 70,000 charging points both on the road and at destinations, with the number expected to rise to over 500,000 by 2030. Through this increase in readily available charging points, fleets will have greater confidence in choosing alternatively fuelled vehicles, leading to a reduction in running costs.

Indeed, fleets are the backbone of British industry, and the AA is committed to providing businesses with the guidance to make the most of the upcoming EV revolution. We urge the automotive industry to provide the support businesses require to help them to anticipate upcoming legislation and reduce costs. L

Written by Advertisement Feature

The introduction of Ultra Low Emission Zones (ULEZs) across the country means businesses and SMEs are set to be affected, with the fleet industry requiring more support to stay ahead of future regulatory andicidisquid legislativequam changes Udae nonsend elisimincim facepro et et, sed quodi blaborum ut molorem aut ationse nos eumque laboribus As reduction andqui air quality Alternatively fuellednullacianti vehicles etemissions quoditiat dolo de volecab orerisqui nitibusdae becomes a focus for the UK’s large Numerous issues still surround the adoption rest, sitiatis ut idem quodi consequat facimagnime pernatemquae cities, businesses are finding themselves of alternatively fuelled vehicles. For fleets to nimus earibus, tem ipsaest moluptatium es netfuture et ongoing costs, they under pressure to futureproof their mitigate against

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FURTHER INFORMATION www.theaa.com

Stuart Thomas

Stuart Thomas, head of fleet and SME – the AA With more than 20 years’ experience in the fleet sector, Stuart’s extensive knowledge of the industry comes from roles across contract hire, disposal and related fleet services. His experience includes working with organisations including Nissan Finance and Lombard. Stuart joined the AA in 2000.

Volume 115 | GREENFLEET MAGAZINE

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SME Guide Written by Poppy Welch, Go Ultra Low campaign

In association with

How SMEs can benefit from switching to EVs What are the overall benefits of making the switch to electric cars for SMEs and fleet managers? Where are the savings to be made, and, just as importantly, how easy is it to switch? Poppy Welch, head of the Go Ultra Low campaign, investigates With lower running costs, reduced maintenance and a choice of more than 45 models, a switch to zero emission electric cars and vans should be an easy decision for any SME. In fact, according to research published

by Go Ultra Low in January 2018, almost 435,000 SMEs could save up to £1,440 a year by switching to their first electric car.

If companies use whole life costs to assess their fleet purchases there is a massive £625m of potential savings on offer to UK businesses with the transition to electric.

Despite this fact, two thirds of SME owners fail to consider the long-term savings of an electric car, focusing more on the initial cost.

Making the switch to electric also poses benefits beyond just saving money for SME owners and fleet managers. So, what are the overall benefits of making the switch to electric cars for SMEs and fleet managers?

Where are the savings to be made, and, just as importantly, how easy is it to switch?

Making the most of the support For many small businesses, the switch to electric can seem daunting, but the evidence has shown that there are significant savings available and support to help the process.

To help drive uptake of both 100 per cent electric and plug-in hybrid cars vehicles, the government offer a number of grants which can help offset the initial cost. The Plug-in Car Grant provides a saving of £4,500 off the price

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of an eligible new 100 per cent electric car, £2,500 off an eligible plug-in hybrid car, while the Plug-in Van Grant offers up to £8,000 off the price of an eligible new electric van.

When it comes to charging, there are grants for that too. The Workplace Charging Scheme (WCS) provides eligible businesses up to £300 towards the purchase and installation cost of each charging connection, up to a limit of 20, meaning employees can make the most of charging while at work. For those that use company cars, the Electric Vehicle Homecharge Scheme (EVHS) gives up to £500 toward the cost of installing a dedicated home chargepoint.

Miles of savings Once you have your electric fleet in place, the significantly lower running costs will quickly begin to pay dividends.

Powering an electric vehicle can be up to 90 per cent less expensive than for conventional internal combustion engine cars – pure electric cars can be driven from as little as 2p per mile, compared to 10-12p for their petrol or diesel counterparts. Meanwhile, electric cars are made of far fewer moving

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mechanical parts, meaning they have lower service, maintenance and repair (SMR) costs – as much as 70 per cent less than petrol or diesel-powered alternatives.

These day-to-day savings and increased reliability mean they require far less time off the road. This means that an electric fleet will save your business not only valuable cash, but priceless hours too.

Calculating the benefit There is a long list of tax benefits and incentives that that are available to both drivers and businesses. This includes exemption from London’s Congestion and T-Charges, lower benefit-in-kind (BIK) tax rates for company cars, Vehicle Excise Duty (VED) on 100 per cent electric cars under £40,000, as well as capital allowances and salary sacrifice regimes.

When we think about applying all of these savings across a business fleet, the benefits soon multiply. According to research conducted by Lex Autolease in 2017 a business with a fleet of just 10 cars can save an impressive £14,000 each year by making the switch to either pure electric or plug-in hybrids.

Although calculating this may seem a daunting task, especially when considering a whole fleet of vehicles, help is at hand. Go Ultra Low’s car tax calculator allows you to compare the overall tax benefit of switching to a pure electric or plug-in hybrid vehicle, while the journey cost savings calculator provides an estimate on savings on travel. Completing these calculators is simple and easy to do, and

For many s busines mall switch t ses, the can see o electric md but evid aunting, has sho ence significa wn that nt can be savings made

Poppy Welch, head of the joint industry and government funded Go Ultra Low campaign

can provide SME owners and fleet managers with a stronger understanding of exactly how the savings may apply to them.

Improving local air quality While the bottom line will always be an important factor for fleet owners, there are many other reasons why they should choose electric. With 100 per cent electric cars having zero tailpipe emissions and plug-in hybrids releasing emissions at a considerably lower rate than their petrol or diesel alternatives, they can make a significant contribution to improving local air quality across our towns and cities.

On a broader level, even when we factor in the emissions associated with electricity generation, electric cars still produce substantially lower greenhouse gases. This comparison will only swing further in favour of electric vehicles in the years to come, as the UK continues to increase the proportion of renewable electricity generation across the network. This means that by adding electric cars and vans to their fleets, SMEs have a great opportunity to make a significant contribution to the UKs greenhouse emission goals, while also meeting their own sustainability objectives.

Confidence for fleets It is often the perception of potential new car buyers that opting for a car that helps the environment will mean sacrificing either choice or convenience, but this couldn’t be further from the truth. There are now more than 45 models available in the UK – meaning there is a model for every motorist.

And when it comes to charging

your electric car, research from ChargeMaster has found that around 60 per cent of EV charging takes place at home, meaning that the majority of charging does not take place at public chargepoints. For those times when drivers do need to charge on the go, there are over 16,500 public chargepoint connectors in the UK, while 96 per cent of motorway service stations now have rapid chargepoints, which can charge cars to 80 per cent power in as little as 30 minutes. And with investment in charging infrastructure continuing apace, access to public chargepoints and charge times are improving all the time.

Join the revolution To help more businesses realise the benefits of adding electric cars and vans to their fleets, in 2016, we formed the Go Ultra Low Companies initiative. Once a company officially obtains this status, they are provided with a toolkit to help them communicate their green credentials with the wider world, while also having the chance to be referenced as part of the Go Ultra Low campaign in trade media. There are now more than 140 Go Ultra Low Companies of all sizes – from household names like Microsoft and Britvic, to smaller businesses such as Eco Friendly Taxis and Battersea Property Maintenance.

The process of becoming a Go Ultra Low Company is easy, just fill out the online form to kick off the application.

Getting it right Making the switch to electric can deliver significant savings for SMEs, although financials are not the only benefit. SMEs have the opportunity to make a substantial contribution to UK emission targets and their own sustainability goals, as the evidence shows 700,000 UK motorists would make the switch to electric if given the chance by their employers. With all the latest information on grants and tax incentives, options for booking an electric test drive as well as tools to help you figure out how much your business can save, visit www.GoUltraLow.com/ fleet to take your company’s first step to an electric fleet. L

SME challenges and how BMW supports the SME market

SME Guide

SPONSOR’S COMMENT

There are a number of benefits available for drivers choosing a plug-in hybrid model. Our wide iPerformance range ensures that most drivers should be able to find a model that fits their requirements and budget.

For many company car drivers, the reduced BIK compared to a diesel or petrol alternative is enough of a reason to choose a PHEV, however this is only one of the benefits. In the right circumstances, these models are able to deliver incredible fuel economy but this does of course depend on them being used appropriately, charged daily and used where the electric range can be taken advantage of. Performance is very strong as well, typically stronger than the 2.0 litre equivalents. PHEVs therefore have an important role to play in reducing CO2 emissions and improving air quality. As with all plug in hybrids, care should be taken to ensure that the right powertrain is chosen for the job the car is required to do. Our key account teams will provide advice on this to customers.

As the iPerformance brand is still early in its life, BMW is able to react to the supply and demand very quickly. We know that the public perception of hybrid and full electric cars has changed dramatically and positively over the last 12 months and residuals are now improving. The current generation of BMW iPerformance cars are well received within the Retailer network as used cars with demand currently outstripping supply.

Analysis suggests that the behaviour of iPerformance models are aligned to petrol for residual depreciation and both are performing well in the current climate.

BMW plans to continue to develop products in line with regulation and customer requirements and offer a mobility solution for all needs, which will lend towards a balanced supply of all propulsion systems and aid to maintain the equilibrium of supply and demand thus leading to strong residuals.

Whilst I can’t confirm specific details, BMW Group has announced that there will be 25 electrified models by 2025, 12 of which will be fully electric. The current model line-up is already the broadest premium range of plug in hybrid vehicles available. Our availability has been strong from launch and don’t forget we also have the MINI Countryman SE PHEV. It is fair to say that the majority of new models to be launched will have PHEV models becoming available at some point in their lifecycle.

Adam Harley is national leasing manager, BMW Group Corporate Sales FURTHER INFORMATION www.bmw.co.uk/business Adam Harley

FURTHER INFORMATION www.goultralow.com

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Industry Comment Advertisement Feature

‘It takes one to know one’, as the saying goes.

Most people don’t know what defines SMEs as a category. There may be no universal definition of small-to-medium in terms of turnover or employee numbers, but if you are an SME, then you just know it. And you can spot other SMEs a mile off too. How? Consider the issues affecting your vehicle fleet.

You’re small enough to be able to do a licence check for each of your new employees, xoxoxoxo but big enough to forget to carry out annual MOT and insurance checks on your grey fleet.

You’re small enough to notice when one of your sales reps has more collisions than the xxx but big enough not to bother talking rest, to him about it because it seems like such a minor issue in the grand scheme of things.

You’re big enough to consider employing a dedicated fleet manager to deal with these problems, but small enough for the suggestion to be promptly dismissed as a luxury by your finance manager. Talk to other businesses who have the same concerns, they are probably SMEs too.

For so many SMEs, the net result of these issues is that due diligence and duty of care tend to fall by the wayside. My team of account managers receive enquiries every day from businesses of all sizes who are looking for help in getting their driver risk compliance back on track. We often get the same kinds of issues repeatedly coming up in conversation. With so many SMEs having no dedicated fleet manager, a lot of the enquiries come from people with responsibility for other aspects of the business, i.e. health and safety, HR or finance. They may have identified a safety, compliance or cost issue but have no one to turn to internally for a solution.

Outsource for expertise There is a perception, especially amongst businesses at the smaller end of the scale, that any kind of outsourcing will be costly, both in monetary terms and in terms of commitment to an external supplier. Initially, some of our clients are tentative about outsourcing what seems like a very complex business function, perhaps because of the belief that they would relinquish control of the output, or maybe from unproductive previous experiences with external consultants.

In reality the cost of driver risk compliance usually represent a small fraction of the

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cost of employing more internal resource, and the level of commitment is essentially no greater than doing what’s required just to become legally compliant, or to fulfil the requirements of an existing fleet policy. Far from taking control outside of the business, our driver risk management solution has been designed to make it much easier for a business to obtain drivers’ documentation, analyse their risk and organise training solutions. Beyond an initial (free) consultation to establish their requirements, our system is underpinned by an industry-leading online portal that’s been designed to put control back in the customer’s hands. We offer packages that spread the cost of on road driver training over a set period, meaning no hidden costs further down the road.

Outsourcing a driver risk management programme can arguably produce one of the greatest wins for an SME and there are a number of benefits. For example, it can help reduce driver and vehicle administration; establish best-practice processes for maintaining documents and vehicle checks; identify high-risk drivers and target expert training interventions where they are likely to have the most positive effect.

The vast majority of SME businesses don’t have this kind of training expertise internally, but this is where the real benefits to driver safety come from, especially if you have a reliable system for identifying those with the greatest need of training. The positive knock-on effects are far-reaching: establishment of best practice and full compliance at a minimum, plus improved driver safety, reduced collision rates and often improved fuel economy where our on-road training is used to full effect.

A two-way street There’s an important point here for suppliers when working with SMEs. If you’re an SME yourself (you’ll now know if you are) you’ll know that an SME may well be big enough to have a significant need for your services, but still small enough to keep an eye on you and make sure you’re delivering value for money. There’s no room for poor service or hiding behind disingenuous claims.

Think of your relationship with your client as more of a partnership and understand what you have in common. Being a charity,

DEDICATED TO PROMOTING A CLEANER ENVIRONMENT | www.greenfleet.net

Tony Greenidge

Tony Greenidge, business development director, IAM RoadSmart Tony Greenidge has over 30 years’ B2B sales and sales leadership experience, the majority of which has been gained in the corporate fleet sector working for a number of leading global and UK providers that include Arval, Inchcape and Hitachi Capital. He joined IAM RoadSmart in July 2017 with a clearly defined brief to grow the charity’s commercial division and a real focus on the corporate fleet sector. 2018 has seen the launch of a number of new products and a revised commercial model that makes it easier for clients to access driver risk management services at an affordable rate.

This builds on IAM RoadSmart’s unique market position in that commercial success contributes to their charitable objectives.

some of IAM RoadSmart’s most enduring and productive relationships with clients and other organisations have been genuine partnerships, particularly with other businesses and charities of a similar size as ourselves. Many of these businesses share our belief in improving driver behaviour to achieve greater safety and efficiency. If you can get the right processes in place, a small-to-medium sized workforce can adopt a culture quite readily, and that’s when we see the greatest ongoing benefits. L FURTHER INFORMATION For more information, visit www.iamroadsmart.com/business

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Outsourcing a driver risk management programme can arguably produce one of the greatest wins for an SME and there are a number of benefits, writes Tony Greenidege, business development director at IAM RoadSmart

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SME Guide

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Encouraging all colleagues to drive more fuel efficiently can significantly reduce your company’s carbon footprint, save money and result in safer driving. Emily Stone from the Energy Saving Trust explains how to adopt a greener driving style Whilst there are many benefits to making the switch to ultra-low emission vehicles (ULEVs), the reality is that it may not always be possible to invest in a brand new EV fleet and the necessary charging infrastructure, especially for SMEs. Thankfully, it’s possible to take some practical measures when driving an internal combustion engine vehicle to slash fuel consumption. The benefits of encouraging all colleagues to drive more fuel efficiently include a significant carbon footprint reduction, safer driving processes, and a financial saving perhaps more substantial than you would have first thought.

Drive smoothly The vast majority of fuel is used when accelerating. Using eco-friendly driving techniques – which simply entail driving smoothly and therefore accelerating less heavily or frequently – will help you to save fuel. Generally, this is achieved by exercising greater anticipation of road and traffic conditions so that you can slow down sooner and more gradually, therefore reducing the need for substantial re-acceleration. Try coming off the accelerator sooner to slow down, as opposed to maintaining speed up to a junction and braking heavily. Decelerating

to slow down for a stretch of road means that no fuel is being injected into your engine, and emissions for that stretch are virtually zero.

When you do come to accelerate, doing so steadily and changing up a gear at reasonably low revs (around 2000 for a petrol engine and 2500 for a diesel engine) ensures that you are not pumping out fuel unnecessarily.

Consider booking your drivers onto an Energy Saving Trust approved FuelGood driver training course if you are based in Scotland, or an EcoDriving course if you are in England.

Details of these can be found at energysavingtrust.org.uk/ scotland/fuelgoodtraining and energysavingtrust.org.uk respectively, or by searching ‘Fuelgood’.

By assessing each individual’s driving habits, a FuelGood trainer can recommend tailored behaviour changes to improve driving efficiency. Delivered by professional instructors, the success of these courses is in the statistics: amongst the drivers who undertook FuelGood driver training

Written by Emily Stone, assistant programme manager – electrification, Energy Saving Trust (EST)

Cut fuel costs through smarter driving in Scotland during the 2017-18 financial year, the average MPG increase was 16.6 per cent. The associated cost saving, for an assumed average mileage range of 10,000 miles per year per driver, is a significant 13.5 per cent.

Perhaps more impressive is the carbon saving that this brings about: 427 kilograms across a group of 182 drivers.

Eradica tin excess g accelera compan tion on a is a gua y-wide scale to help ranteed way the tread a business lit lighter tle

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Feeling the drag?

At motorway speeds, drivers accelerate less, however MPG will generally drop considerably. How come?

Well, at high speeds air resistance, or drag, comes into play. Between 60 and 75mph, fuel consumption for a typical modern car increases by around 18 per cent, with 11 per cent of this kicking in between 70 and 75mph. Vans therefore demonstrate an even greater increase fuel consumption at speed, due to their less aerodynamic size and shape. Large diesel vans demonstrate a fuel consumption increase of around 23 per cent between 70-75mph. E

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SPONSOR’S COMMENT  Remember, strapping extra items to your vehicle can also drag you down – even an empty roof rack can account for an additional five per cent of fuel consumption, whilst a roof box according to one study will add up to 23 per cent. Of course, for any vehicle, factors such as engine size and fuel type also come into play, with diesels generally displaying higher disparities between the maximum MPG and real life fuel consumption at speed.

Ultimately, basic physics dictates that the faster and larger the vehicle, the greater the air resistance. In any case, a reasonable adjustment would be to slow down to just below the national speed limit.

If you can’t trust your drivers to adhere to this, consider fitting company vehicles – particularly large vans – with speed limiters at 60 or 70mph.

The popular belief is that a limiter may be fitted for safety reasons, or to reduce accidents, however their most positive side effect is more measurable as well as being economically beneficial.

Turn it down You can also make the most of your vehicle’s potential efficiency by using air conditioning sparingly. To answer an age-old question, yes, air conditioning does increase fuel consumption by a significant percentage.

Here’s how: air conditioning systems use heat pumps to pump a fluid around a circuit.

The fluid evaporates in one part of the circuit – taking in heat – and condenses in another part – losing heat.

The compressor that drives the movement of this fluid is powered by the vehicle engine, which is of course driven by your fuel. With a/c on ‘full blast’ around town, you’re likely to use anything up to a quarter more fuel. Don’t worry – you can still avoid arriving at afternoon meetings hot and sticky. The a/c does not have to be switched to the most extreme setting, and making use of the windows whilst in town actually exerts minimal drag and is far more efficient than using air conditioning.

Steer away from using grey fleet Do you pay staff for journeys made in their own cars? You

could be paying much more for mileage than you need to.

Grey fleet generally consists of older vehicles with poorer fuel consumption figures, resulting in outputs of CO2 and NOx which could be avoided if a more modern vehicle was used. However, the HMRC standard reimbursement figure of 45p per mile often leaves employees with far more of your money in their own pocket than they actually spent on fuel, and somewhat incentivises them to drive further on business mileage. Encourage smarter journey planning in your organisation by using convenient and stress-free options available to business customers, such as car clubs and rental companies. Last year, average emissions from UK rental cars were 12 per cent lower than the average emissions from a typical standard UK car fleet. Similarly, car club vehicles must meet Euro 6 emission standards. This is largely attributed to the fact that rental and club vehicles are newer, cleaner models, with some companies starting to add ULEVs to their fleets as well.

One of the best ways to find a rental company is through the website of the British Vehicle Rental and Leasing Association (www.bvrla.co.uk). Whether you rent a vehicle or join a club, you’ll be guaranteed a top-of-the-range model in terms of emission standards.

In addition to improving your carbon efficiency, ditching grey fleet driving also smooths out bureaucracy and administrative challenges because insurance is taken care of by the rental company or car club.

Head to the EST website for information on how you can use car clubs to best suit your company’s requirements.

By encouraging smarter driving, you are simultaneously protecting your organisation’s transport budget and reducing its carbon footprint. Every unnecessary rev of an engine contributes to atmospheric pollution, so eradicating excess acceleration on a company‑wide scale is a guaranteed way to help the business tread a little lighter in the run-up to full fleet electrification. L

The value of connected cars with small-tomedium enterprises

SME Guide

In association with

BMW always prides itself on delivering market leading technologies that make drivers’ lives safer and more convenient.

Customers now expect a high level of connectivity in all vehicles, be that Bluetooth and Navigation, or digital services such as Real Time Traffic Information (RTTI) or Remote Services.

Where BMW is concerned, all models come with DAB digital radio, built in 4G SIM, BMW Navigation and Bluetooth as standard. In addition, vehicles get a great level of ConnectedDrive technologies as part of a standard three year subscriptions across the range on all models. This now includes ConnectedDrive Services, Emergency eCall (for the lifetime of vehicle), BMW Online, Map Updates (either USB or Over the Air), Connected+, Access to the BMW Connected App, RTTI and the introduction of Remote Services (for the lifetime of the vehicle).

One particular feature stands out for business users; Real Time Traffic Information (RTTI). RTTI updates every three minutes with dynamic route guidance based on the latest highly accurate traffic information. It also includes hazard warning with drivers being warned of ice, heavy rain, fog, breakdowns if they are on the same route and within a three mile distance of the hazard. Again this is standard on all vehicles. As well as the above, RTTI includes On-Street parking, showing probability of available spaces within city centres in nine major cities in the UK – further expansion is expected in the near future.

There is a good mix between meeting customer demand and anticipating future needs through technological innovation.

Examples of this include being the first manufacturer to offer an on-board computer with outside temperature monitor, first vehicle telematics system, first off-board route planning system, first music streaming service, first vehicle store for Connected Car services and so on.

Chris Hollis is product manager for BMW ConnectedDrive.

FURTHER INFORMATION www.bmw.co.uk/business www.mini.co.uk/business

Chris Hollis

FURTHER INFORMATION www.energysavingtrust.org.uk

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Industry Comment Advertisement Feature

Outsourcing to access a fleet management company’s specialist knowledge TCH Leasing’s specialist team can take routine administrative tasks off your hands, which will free up your company time, allowing your team to focus on other important areas of the business

TCH Leasing is one of the country’s top 30 contract hire and fleet management companies and is one of the few remaining privately owned companies of its kind in the UK. Holding true to the principles of the Group’s founder, we are committed to providing first class quality services, designed to meet, and exceed, the real needs and expectations of each and every client. As part of the T C Harrison Group, we have traded under the same control and ownership throughout our 50-year history and our commitment for the future is to maintain this continuity for the benefit of our clients.

Whether you are a large company seeking to outsource fleet provision, a public-sector organisation needing to reduce emissions and health and safety exposure, or a small business trying to minimise costs and administrative burdens, you can choose the vehicle funding and fleet management solutions that suit you. Our consultants will help you select from our products and services to build a unique solution to your individual fleet needs At TCH Leasing, we now offer outsourcing for your fleet administration. Our specialist team can take routine administrative tasks off your hands, which will free up your company time, allowing your team to focus on other important areas of the business.

TCH Leasing has found that the two main reasons fleets outsource functions are shortfalls in expertise and/or headcount, says Ken Buckley, head of sales at the company.

“I’ve been in the industry for 40-odd years and when I started, responsibility for the fleet was allocated to a fleet manager and

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it was their primary function,” he says.

“Nowadays, there are fewer fleet managers around and in most cases, fleets are run by one or two people as part of a wider job. So, generally, I find the expertise isn’t there across the board.

That isn’t a criticism, that’s just a fact.”

Many day-to-day tasks involving fleets are also time-consuming and becoming more complicated, he says, and fleet departments frequently do not have the manpower to perform them effectively.

Fleets can often be complicated by internal and external challenges such as legislative changes, dealing with suppliers and safety issues. Many organisations distribute the various elements of fleet management between finance, human resources, health & safety and procurement, but if a fleet is managed poorly it can become a burden on your business and cost you time and money.

Short of your business investing in an in-house fleet manager, it can be difficult to stay in control.

With outsourcing you can access the fleet management company’s specialist knowledge and its experience of managing fleet clients. Its staff will also be up-to-date with the latest legal requirements and industry best practices. This can result in improved efficiency across your business, reduced overheads, new products or a new service.

You would also be utilising and maximising industry experts. This is why outsourcing is a great solution for fleet.

You can outsource driving licence checks, MID updates, issuing and renewing fuel cards, MOT and service reminders and much more.

DEDICATED TO PROMOTING A CLEANER ENVIRONMENT | www.greenfleet.net

By outsourcing your fleet administration, we at TCH Leasing can take all of these tasks on for you, freeing up staff to carry out other core duties. With us on hand we can take this burden off your business and manage your fleet effectively, with our dedicated customer service team on hand to assist. L FURTHER INFORMATION www.outsourcing@tchleasing.co.uk www.tchleasing.co.uk

Emma Hardwick

Emma Hardwick, Outsourcing Team Leader, TCH Leasing Emma Hardwick, Outsourcing Team Leader has been with TCH Leasing for 8 years with experience in all the day to day running of fleet management.

SME Guide

In association with

The UK’s fleet industry is facing an exciting period of change, and getting clued up on the issues of the day is vital for SMEs to stay ahead of rising costs and environmental legislative requirements. This, for some businesses, requires a shift in perception and focus, writes Stuart Thomas from the AA Transport and logistics are key to any firm, but SMEs often place less emphasis on examining any costs they may incur, or future issues which may arise, instead focusing on boosting sales. However, by taking note of, and implementing action towards, the transitions facing the sector, SMEs can increase efficiencies across their businesses, as well as remaining compliant with the latest environmental legislation.

The future of electric vehicles Alternative fuels are a priority for all fleets, as the government continues its focus on reducing emissions. From the introduction of Clean Air Zones in cities and increased taxes for diesel cars, there is a much greater focus on the environmental impact of vehicles.

Companies looking to reduce costs must plan for a move away from diesel and petrol and add more alternatively fuelled vehicles to their fleets, but awareness of this future change across the industry does not appear to be widespread, as we’ve found when talking to our customers. The best way businesses can avoid picking up any charges and safeguard themselves against forthcoming environmental fees is to implement a long-term fleet strategy, such as a switchover to alternative fuels.

We at the AA also believe that the government has a role to play in this, and that it should be providing incentives to help businesses achieve this goal, which it has not yet taken a decision to implement.

We’re keen to help the fleet industry as it transitions to an alternatively fuelled future.

In both 2016 and 2017, we undertook an industry-leading research project, the Operational Fleet Report, with BT Fleet, with the aim of discovering how the industry is handling the switchover to alternative fuels, in order to help our customers more effectively. We learned that 95 per cent of fleets in general business are currently made up of diesel or petrol-fuelled vehicles. But in just four years’ time, two thirds of fleets expect to run their vehicles on alternative fuels.

A large number of fleets are already looking for guidance and help on how they can work towards this goal.

That’s why the AA has already trained all of its fleets to help its clients prepare for this industry shift. Our patrols have undergone intensive training in dealing with any breakdowns involving electric or hybrid vehicles using a specialised rig at the patrols’ training centre.

We’ve also joined forces with Chargemaster to set up the multi-brand Electric Vehicle, or EV, Centre in Milton Keynes. The centre provides information and advice on electric vehicles, as well as free driving lessons and the opportunity to trial a range of new electric models.

Our partnership with Chargemaster has also seen us launch polar network cards across

Written by Stuart Thomas, director of fleet and SME services at the AA

SME fleets: future challenges and opportunities our patrols in the south-east, which provide a free charge for customers who run out of power on the road. Patrols are able to identify the nearest charge point via the Zap Map app, which enables EV drivers to locate and navigate to charging points across the UK to minimise recovery and tow times, and to get vehicles back on the road as quickly as possible. We’re keen to ensure that all our members are supported on the road, and our partnership with Chargemaster gives them peace of mind in the event of an emergency.

From Clean Air Z increaseones and The clean diesel c d taxes for air debate a There’s no question that a great rs, there is e r the air quality in the f o c u the env s on UK’s cities, London in iron particular, leaves much impact mental room for improvement. The o vehicles f city has the third worst air quality, after Moscow and Paris,

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out of Europe’s capitals, according to new research.

But the cost to businesses, particularly smaller companies and one-man bands, should not be forgotten in this air quality improvement drive, which will see the introduction of Ultra Low Emission Zones (ULEZ) in London next April. The ULEZ charge will penalise non-compliant cars, vans and motorbikes with a £12.50 daily charge, in addition to the Congestion Charge, and £100 for lorries, buses and coaches, and is E

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SPONSOR’S COMMENT  in 24-hourly operation. Low emission zones have also been introduced in Brighton, Norwich, Nottingham and Oxford, with Birmingham, Leeds, Derby and Southampton all looking to follow suit by charging polluting vehicles.

For many SMEs, the price of upgrading to an electric vehicle (EV) fleet to avoid the £12.50 daily charge per vehicle, may hold too hefty a price tag for their business to swallow, although it’s clear this is a future goal firms should be working to achieve. The AA believes there is too much stick and not enough carrot in the mayor’s plans to increase emissions standards for London’s vehicles, and is urging him to introduce a scrappage scheme for polluting vehicles to stop London’s small businesses grinding to a halt next April, when ULEZ takes effect.

Connected data Because of company size and budgetary restrictions, it is a rare occurrence for an SME to employ a dedicated fleet manager. As a rule, the business owner/operator generally incorporates this role into their busy schedule, and thus, due to an extensive workload may not be aware of the areas where they should be looking to introduce efficiencies to streamline transport costs across their business.

Connectivity is an area which is revolutionising the UK’s fleet sector and has already achieved widespread adoption in terms of first generation connected car technology. It’s a very broad term which covers extensive monitoring capabilities.

Journey planning and mileage capture are two of the most common, but elements such as geo‑fencing and servicing integration can provide added value to business owners who use them effectively.

Businesses which use connected car technology often report significant savings in areas

such as fuel and insurance, while others praise the positive reduction in risk and improved driving techniques.

Going forward, connected car technology will become even more crucial to businesses which are looking to achieve more control of their vehicles.

Owners are increasingly keen to employ the prognostic capability of connectivity to predict when vehicles may need servicing and schedule preventative maintenance, as well as calculate where spending can be reduced across mileage.

With increasing incidences of shared mobility and the roll‑out of autonomous add‑ons in modern fleet vehicles, businesses will also need to support multiple drivers.

The AA provides a number of mobility solutions to the SME sector and we’re aware that utilising vehicle management services can allow small businesses to maximise impact by focusing investment on other key areas, allowing more scope for growth. The AA’s connected car technology provision for fleet and SME incudes route planning capability which allows drivers to minimise time spend on managing their vehicles.

A tool for compliance The use of data as a tool for compliance management with environmental legislation is another trend we are seeing emerge across the industry, particularly with the introduction of ULEZ. Rigorous planning is essential for SMEs in particular, which will be the hardest hit by the new charges, to ensure the right vehicle goes to the right job, with the correct equipment and can travel compliantly through a range of locations to avoid fines and penalties. The geo-fencing and journey planning elements of connected car technology could prove invaluable to businesses in managing this difficult issue.

As the largest business provider in breakdown cover and specialist in fleet and SME, the AA is able to offer a specialised provision to companies operating across the UK’s small business sector, which will play a key role in the UK’s forecasted growth going forward. L

Citroën’s Business Centre Network provides expertise for SMEs

SME Guide

In association with

Citroën’s Business Centre Network was designed to give SMEs the help they need in sourcing cars and vans and provide a source of expertise in finding the most suitable way to acquire the vehicles they need. The Citroën Business Centre Network and its dedicated sales teams can offer a wide range of products and services to meet the needs of businesses of all sizes and types. The PSA Group, Citroën’s parent company launched Free2Move Lease in the UK last year and they can provide a wide range of finance, service and maintenance and fleet management tools for business fleets.

Sales teams are trained to help business customers choose the best vehicles for their needs from the extensive Citroën car and van ranges. Citroën can supply a range of cars offering some of the lowest levels of CO2 emissions, helping to ensure low business taxes and low BIK rates for drivers.

The Citroën car range includes the latest C3 Aircross SUV and C4 Cactus models launched earlier this year, while the C5 Aircross SUV and new Berlingo will join the range later this year. The Citroën SpaceTourer MPV range was revised earlier in 2018 and now includes a range of models with seating for between five and eight people.

The Citroen engine range includes petrol, electric and diesel power, featuring engines that meet the latest Euro 6d TEMP emissions limits, giving Citroën some of the lowest emitting diesels available. The company’s multi‑award‑winning 1.2-litre PureTech engine range offers a low emission petrol alternative, while the C-Zero and Berlingo Electric L1 and L2 vans offer zero-emission electric models.

The Citroën van range consists of the Berlingo, Expert and Relay ranges, covering the entire light commercial vehicle spectrum. The Berlingo range includes the zero-emission Berlingo Electric, which offers a multitude of savings, both in terms of NOx and CO2 emissions and in running costs.

Berlingo Electric can benefit from the 20 per cent Plug-in Van grant, as well as exemptions from the London Congestion Charge and Vehicle Excise Duty. Some local authorities offer discounts or exemptions for electric vehicle parking permits and grants are also available towards charging infrastructure.

Dispatch and Relay are Citroën’s larger vans. Dispatch offers three different lengths, while Relay vans are available in four different lengths with three different roof heights. At the CV Show in April, Citroën launched the revised Relay Ready to Run conversions range, which now includes Tipper, Dropside, Curtainside, Luton, Box and Low-Floor Luton models. This extends the versatility of the Relay range still further, with completed vehicles covered by a three-year/100,000 mile converter warranty, matching that offered with all Citroën Relay vans.

Kris Cholmondeley is head of business sales for Citroën & DS. FURTHER INFORMATION www.citroen.co.uk

FURTHER INFORMATION Kris Cholmondeley

www.theaa.com/business

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Remove the administrative burden whilst still maintaining an effective management of your fleet My Fleet Manager Online is a cloud based fleet system that is tailored to enable you, as a customer, to manage your company fleet.

My Fleet Manager Online offers a full reporting suite, incorporating date alerts for vehicles and a driver portal for your company vehicle and grey fleet drivers.

The management of any fleet and travel policy is an involved role. For many businesses, large and small, simply determining the best way forward can prove a tricky decision. Whether you employ a dedicated fleet manager, bolt the role on to another specialist from departments such as HR, procurement, finance and facilities management or even make it the responsibility of a director, you will need outside involvement.

Using My Fleet Manager Online is going to remove the administrative burden whilst still maintaining an effective management of your fleet and travel policy. No more piles of paper or numerous spreadsheets, no need to set calendar reminders – My Fleet Manager Online will take care of as much or as little as you need.

Irrespective of funding method or funding supplier, all your vehicles can be managed under one, easy to use, fleet management

platform. Through its single supply of fleet management services, My Fleet Manager Online will help you ensure your employee travel policy is compliant, efficient and competitively priced. Its services include all aspects of company leased vehicles, personal leases, salary sacrifice, short term rental solutions, maintenance solutions, grey fleet management and many other services.

As we embrace the growth in the use of technology, the firm also believes in retaining that personal touch, with every client having a dedicated account manager. And whether you are running five or 500 vehicles, the company will work with you to create a cost effective bespoke fleet management solution.

My Fleet Manager Online will free up time in the management of your company vehicles and drivers, allowing the time for your business to concentrate on its core activities.

Using a smaller fleet management specialist will mean you are dealing with a business and people who take the time and care to understand your business.

To arrange an initial discussion with a local consultant, please contact a member of the team on the details below.

FURTHER INFORMATION 0330 332 6136 info@myfleetmanageronline.co.uk www.myfleetmanageronline.co.uk

Accepted at over 1400 Applegreen, Morrisons, Tesco & Sainsburys sites in the UK. Competitive transparent pricing, free cards, No Admin or transaction fees.

Call: 0113 3572060 Email: fuelcarduk@applegreenstores.com Visit: www.applegreenstores.com/uk/fuelcard

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DEDICATED TO PROMOTING A CLEANER ENVIRONMENT | www.greenfleet.net

SME Guide

In association with

Keeping vehicles on the road For small and medium-sized enterprises (SMEs), perhaps the most time‑consuming and burdensome aspect of looking after a fleet is making sure vehicles are fit for the road. Fleet organisations should therefore have robust service, maintenance and repair (SMR) policies and procedures in place Research from Allstar Fuel Cards has revealed that managers at small-medium firms spend an average of 32 hours a month on fleet administration, often with little supporting knowledge and tools.

The research also revealed that 98 per cent of those accountable for fleets in SMEs are also responsible for many other tasks, such as general management, finance, sales, marketing and HR. In terms of SMR, 65 per cent manually approve all service, maintenance and repair work and 82 per cent are getting no discount of any kind from suppliers on their service, maintenance and repair costs.

Against this backdrop, Allstar Fuel Cards has created a guide for SMEs on effective SMR for company vehicles.

Why SMR is important?

While SMR is a time-burdensome task, it must be performed to keep drivers safe and operations running smoothly.

Organisations running fleets have a legal responsibility under their duty of care to keep their business vehicles in roadworthy condition. This applies to the very smallest businesses as well as the very largest. If there is a serious accident and vehicle condition is found to be a factor, the owners and directors can be prosecuted and even imprisoned.

Fleet managers need to keep accurate records. Vehicle documentation such as MOT test certificates, insurance certificates and Operator Licences should be available in one place in preparation for audit and inspection by the relevant authorities.

What’s more, well maintained vehicles are generally cheaper in the long term. This is because they tend to perform at optimum efficiency, and because minor problems can be rectified before they become major ones if they are identified early on. Unplanned maintenance increases vehicle downtime and costs. Plus, a vehicle with a full set of service stamps in its history will usually be worth substantially more when the time arrives for it to be sold.

An SMR policy To get their SMR procedures in place, fleet managers need to establish an SMR policy as a crucial first step.

The guide from Allstar Fuel Cards advises that to implement this, you’ll need to gather some key information first.

Firstly, consider how often servicing is recommended by the manufacturer and what kind of suppliers you want or need to use – franchise dealers, independent garages or fast-fits?

Asks yourself if drivers regularly inspect their vehicles, and if so, how often?

Have you provided them with guidelines on making an inspection and created a robust feedback mechanism?

Replacing key wear items such as tyres and brake pads often involves making a choice. Can you set a policy in this area? For example, you could decide that tyres will be replaced when there is 3mm of wear left.

Fleet managers should also think about what management tools might be useful in managing the fleet, such as spreadsheets, white boards and specialist fleet software systems.

Do you have auditable systems in place to prove that all of the above is happening?

If you are investigated by the Health and Safety Executive in the event of a serious accident, an auditable trail to prove that a vehicle has been kept in good condition will form an essential part of your defence.

Finally, the value for money from suppliers should be considered, as well as whether you can gain greater control over payments and billing.

Suppliers A supplier should be chosen that best fits your business.

The location should be looked at to understand whether it is convenient for your drivers and for the operation of the vehicle and your business.

You will need to consider if the supplier offers good value, how available they are, and if a courtesy car will be available. The supplier’s capabilities need to be looked at; can they carry out the work required to a good standard? For example, a complex or unusual vehicle may require diagnostic equipment only available at a franchise or specialist dealer.

Finally, you should have a good relationship with the supplier, so that they can be relied upon to fix a vehicle quickly, and to charge fairly and transparently.

Managing drivers When it comes to company car and van SMR, there are two main areas where you need to consider how much responsibility

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you want drivers to take, the Allstar Fuel guide advises. Firstly, should drivers have a role in booking work and then paying for it? How should the driver pay, with a company credit card or through pay and reclaim, where the driver pays personally and reclaims through company expenses?

Secondly, you should consider in which ways drivers should be helping you meet your legal responsibilities?

In some small-medium business fleets, especially those that operate on a national basis with a central head office, the entire responsibility for maintaining vehicles is passed over to the driver – they monitor when a vehicle needs servicing or repair, choose the supplier then make the payment and reclaim the cost.

Passing responsibility to the driver is normally not a good way of managing SMR, simply because it means that you are abdicating control in virtually every area. There is no way of ensuring that the work being carried out is actually needed, that suitable suppliers are being used, that you are meeting your legal responsibilities such as timely MOTs and servicing, that the duty of care is being met, that consolidated invoices can be supplied, and that the business is not being defrauded.

Instead, Allstar Fuels believes that the person responsible for managing company vehicles should keep records that indicate when service and maintenance is due, and should stay on top of the administration for vehicles on the company’s behalf, keeping control of all the key aspects.

However, it is very important that drivers are made responsible for monitoring the basic condition of their vehicle on a day-to-day basis. This is something that is part of health and safety guidance.

Researching the price It can be difficult to know whether you are getting value for money when it comes to the cost of servicing and maintenance.

Research from Allstar Fuel Cards shows that fleet budgeting for SMEs is based largely on experience and expectations of what seems acceptable, although this is usually based on nothing more than personal opinion.

The fact is, for many small-medium businesses, researching this kind of pricing is not easy. You can try looking online for typical prices but comparing information in a like-for-like manner is tricky. E Volume 115 | GREENFLEET MAGAZINE

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 In many ways, the best that you can do is follow the tried‑and-tested formula of asking for three quotes from different suppliers, even though this can be time-consuming.

Approving work One of the most difficult financial aspects of SMR is that unforeseen jobs will often occur during planned maintenance that require approval. For example, during a routine service, it could be identified that new tyres are needed.

Research from Allstar Fuel Cards shows that 65 per cent of managers with company vehicle responsibility in small-medium businesses manually approve all service, maintenance and repair work by phone or e-mail, but that they find it, understandably, very time-consuming.

Other methods of approval are occasionally used. Some have a key system of control that requires approval if any bill is more than £500 for example, but a few simply pay whatever bills appear.  The fact is that like trying to ascertain whether an SMR price is good when booking a job in the first place, assessing the fairness of additional work is simply very difficult and most businesses have little choice but to agree. Allstar has conducted analysis of transactions and found that around 11 per cent of jobs completed by garages are not needed – and that these jobs cost an average of £48.

Payments Research from Allstar Fuel Cards shows that paper invoicing systems remain the norm when it comes to paying for car and van maintenance. However, this is a process that is prone to error, time consuming and even open to employee fraud.

A much better choice is to use electronic, centralised invoices from suppliers, which will allow you to process payments quickly and easily, as well as seeing what work has been completed at a glance.

A few companies still use driver pay-and-reclaim which is not recommended. It leaves the driver out of pocket for a while and the employer open to fraud, with little centralised control.

A key point is that you need to ensure that all invoices you receive are genuine VAT invoices and are fully HMRC compliant.

SPONSOR’S COMMENT Management tools Relatively few small-medium businesses use specialist management tools to look after their fleets, according to Allstar Fuel Cards. Instead, they use a combination of whiteboards; Excel spreadsheets, filling systems and Outlook calendar reminders to show them MOT and service due dates and expenditure.

The success of looking after your fleet in this way very much depends on the quality of processes that you put in place, but even the best will provide only limited means of control and little genuinely useful management information.

Notably, using all of these methods is labour intensive, requiring many man hours and extensive manual keying. They are also prone to user error.

However, there are a wide range of software management tools available on the market for small-medium businesses that provide a good management structure for looking after SMR and all other aspects of company vehicle management.

The quality and sophistication of software management tools vary quite widely, as does their cost and effectiveness, and the initial setting up process can be quite time-consuming.

Once in place, though, they will deliver a level of management control and information that is simply not possible using a spreadsheet or paper systems.

Conclusion SMR is not an easy subject for small-medium businesses – but it is one that can be tackled much more successfully with a sensible and structured management approach.

The guide from Allstar Fuel Cards urges SME fleets to create a framework and adopt subsequent strategies that will reduce the amount of time you spend dealing with service and maintenance while, at the same time, delivering much better results.

As a result, your vehicles – and your employees – should operate in a manner that is increasingly cost-effective, safer and more compliant. L

Daimler Fleet Management is proud to sponsor GreenFleet’s SME supplement

SME Guide

In association with

Daimler Fleet Management (DFM) understands that SMEs are expected to accomplish the ultimate balancing act – achieving their growth aspirations whilst simultaneously improving efficiencies and running with the leanest of overheads. Factor in the noise and uncertainty brought on by Brexit, GDPR and WLTP, to name just a few, and it presents a very challenging scenario indeed.

Here at DFM we believe that running an efficient and appropriate fleet shouldn’t be another factor on this already long list of challenges. DFM is an experienced provider of fleet management solutions to organisations running large multi‑marque fleets of cars and vans – we take this experience and apply those same principles and benefits to our SME customers.

We believe that, rather than waiting for SME organisations to grow big enough to benefit from economies of scale and bigger buying powers, we should be supporting these organisations and help them on their growth journeys. Through consultation, ongoing account management and the latest whole life cost modelling DFM support SME businesses to achieve their goals through better fleet management and vehicle financing, helping to steer their fleets in the right direction.

According to the academy for chief executives,* the biggest issue SMEs are facing in today’s market is attracting and retaining the top talent. The choice of an aspirational or ethical vehicle such as a hybrid or electric company vehicle could help with the recruitment process. Given the greater focus on corporate ethics and social responsibility, an organisation’s principles become a huge determining factor for prospective employees.

The right car choice therefore becomes integral to both the perceived ‘perks of the job’ and to the ethos of your organisation.

What’s more DFM will work with you to ensure your choices keep the accountants happy as well as the employees.

Through our parent company Daimler AG, DFM has a heritage that spans all the way back to the invention of the world’s first automobile in 1886. What’s more, through the acquisition of Athlon as one of the leading car leasing and mobility providers in Europe in 2016, DFM has access to a wealth of tried and tested mobility products already proving a success across Europe.

DFM continues to thrive in the areas of rental, leasing, and fleet management whilst keeping a keen eye on these future mobility innovations so we can better support our customers. * Reference www.chiefexecutive.com 2017 survey

Robert Mills is fleet sales operations manager at Daimler Fleet Management and has been at the firm for 20 years.

FURTHER INFORMATION www.daimlersixty.co.uk Robert Mills

FURTHER INFORMATION To view the guide, visit tinyurl.com/y7rmsvs4

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Top tips on how to maintain a healthy and efficient fleet by managing fuel costs all year round with FuelGenie With a push on businesses to work smarter and more efficiently, companies of all sizes will be working hard to plan and budget effectively throughout the year.

For businesses with larger fleets, trying to cut down on costs can seem daunting.

However, fuel card provider fuelGenie, says that having a large fleet doesn’t mean you have to take a hit on fuel costs.

According to RAC, average fuel prices are currently at their highest since late 2014, so it’s important now more than ever to closely monitor your fleet and fuel costs. fuelGenie is the expert when it comes to keeping fuel costs low for SMEs. The team share their top tips on how to maintain a healthy and efficient fleet by managing fuel costs all year round.

Firstly, shop savvy. Pump prices are often one of the biggest challenges facing fleets. Whilst you can’t always predict how prices may change in the future, you can be smart with where you shop.

Filling up at supermarket forecourts means you can benefit from fuel which is up to 3ppl cheaper on average.

Using smart systems is the next step.

In order to obtain an accurate account of mileage and costs, accurate GPS

technology, telematics or smartphone apps can be used to help track the time used for business and private mileage.

Implementing systems like these can help to clamp down on incomplete or late records of journeys as opposed to using a manual system, meaning that fleet managers can keep a close eye on expenditure.

The next tip is to avoid driver bad habits.

Advising drivers on how they can tailor their driving behaviour can make a huge difference to fuel efficiency. Department for Transport figures state that you will use up to nine per cent more fuel driving at 70mph than you would at 60mph, and up to 15 per cent more fuel than driving at 50mph. For businesses with larger fleets, vehicles can be on the road the majority of the working week, so consider offering drivers additional training and incentives to encourage efficient driving.

Fleet managers should also look at tightening their choice list based on CO2 and MPG. By rewriting your choice list and by only choosing vehicles with low g/km CO2 levels and higher MPG figures you can make savings in not only fuel but in National Insurance and Benefit in Kind taxation.

Finally, consider the savings you can make

FUELGENIE. THE FREE FUEL CARD THAT HELPS SAVE MONEY ON YOUR FLEET. For more information visit fuelgenie.co.uk

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from a fuel card. By signing up to a fuel card like fuelGenie, not only is it free of charge, but also offers endless benefits for business users such as 24/7 reporting, no hidden fees, easy invoicing and access to over 1,350 supermarket forecourts.

Robert Pieczka, managing director of fuelGenie, said: “Fuel prices continue to rise and if they remain at these levels during 2018, fleet managers may be under significant pressure to find ways to reduce fuel costs back to budgeted levels. Our top tips aim to help cut down on total fuel costs and for their fleet all year round.”

FURTHER INFORMATION www.fuelgenie.co.uk

SMEs and Clean Air Zones

SME Guide

In association with

While research suggests that many SMEs are in favour of Clean Air Zones as a response to air pollution, the reality is that smaller firms will be hardest hit by penalty charges or the cost of upgrading their vehicles to meet emissions standards. GreenFleet reports on the matter Seventy-five per cent of SMEs have said they are in favour of Clean Air Zones (CAZs) to help resolve the problem of illegal air pollution in some cities, despite the cost impact it might have on them.

This is according to the latest quarterly Close Brothers Asset Finance Business Barometer, which examined how responsive firms are to the idea of CAZs. However, the industry is calling for the fair treatment of SMEs when considering Clean Air Zones, as they are most likely to struggle to absorb the penalty costs, or to upgrade their fleets in the time given.

More than 40 towns and cities in the UK are at or exceeding air pollution limits set by the World Health Organisation. As such, the government is mandating that Clean Air Zones should be introduced in at least 22 cities in the UK. Measures are unclear, but city authorities are likely to charge vehicles that do not meet emission compliant vehicles to enter the zones. These are most likely to be Euro 6 for diesels and Euro 4 for petrol cars.

“A Clean Air Zone is an area in which a local authority has brought measures into place to improve the air quality,” explained Neil Davies, CEO, Close Brothers Asset Finance. “Initially, it was thought that the Clean Air Zones would apply only to buses, taxis and HGVs. However, this was widened to include non-compliant private vehicles.”

Regions According to the Close Brothers Asset Finance Business Barometer, firms in the North East and London were particularly open to the idea of CAZs, with 85 per cent of companies saying that they are in favour of clean air zones.

Bottom of the regional list was the North West and South East, both at 67 per cent.

75 per cent of those in the transport & haulage sector were positive, while the construction industry was slightly less in favour, at 68 per cent.

“It’s encouraging to see hauliers so

positive,” said Neil. “They are often an easy target for critics of vehicle emissions, but like everyone else, they have a stake in ensuring air quality improves.”

Businesses with smaller turnovers were not put off by the prospect of clear air zones, despite many of them potentially being located in these areas.

Six in every ten business owners would be prepared to pay to enter a clean air zone if the vehicle fails to meet the required environmental standards.

Regionally, 72 per cent of Londonbased businesses are the most likely to pay the zones, while Welsh firms at 49 per cent were least likely.

At only 46 per cent positive, businesses turning over less than £250k were least prepared to pay to enter a CAZ.

The industr is callin y the fair g for t of SME reatment conside s when r clean a ing how ir will opezones rate

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The negative impact Despite this research from Close Brothers Asset Finance, there are calls from the E

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SMART Leasing SOLUTIONS for business users

Free2Move Lease is part of the global vehicle manufacturer PSA Group and is one of the UK’s top 10 leasing companies*, with over 300,000 vehicles leased to business customers across Europe. With over 25 years of experience in vehicle leasing, we offer flexible and highly competitive vehicle finance. Additionally, with our smart connected services via Free2Move Connect Fleet and Free2Move Lease Command, we can help businesses to reduce their fleet costs, reduce their environmental impact and improve business efficiency.

TO FIND OUT MORE ABOUT FREE2MOVE LEASE, PLEASE VISIT

WWW.FREE2MOVE-LEASE.CO.UK

Free2Move Lease is a trading style of PSA Finance UK Limited, 61 London Road, Redhill, Surrey RH1 1QA. PSA Finance UK Ltd is a company registered in England and Wales under company registration number 01024322. PSA Finance UK Ltd is authorised and regulated by the Financial Conduct Authority. *2017 FN50 list

SPONSOR’S COMMENT  industry to make CAZs fairer for SMEs, who are more likely to feel the financial burden of penalties or a fleet upgrade.

A coalition comprising the British Vehicle Rental and Leasing Association (BVRLA), the Road Haulage Association (RHA), Freight Transport Association (FTA) and the National Franchised Dealers Association (NFDA), wrote a joint letter to Transport Secretary Chris Grayling in April.

It said that firms that rely on HGVs are treated fairly when clean air zones are introduced.

FTA’s head of UK policy, Christopher Snelling, said: “We support the need to improve the quality of our air in the cities, but given CAZs only bring forward the beneficial change that is coming anyway by a couple of years, we don’t want this to be at the cost of small businesses’ ability to trade.”

Sadiq Khan has confirmed that London’s Ultra-Low Emission Zone (ULEZ) will be expanded up to the North and South Circular boundary in 2021.

This will be an area 18 times larger than the Central London Ultra Low Emission Zone and will be managed in the same way as the central London ULEZ, which is being delivered in April 2019. It will operate on top of the congestion charge, 24 hours a day, seven days a week, 365 days a year.

Drivers within the zone using non-compliant vehicles will pay a daily ULEZ charge of £12.50.

These include motorbikes that do not meet Euro 3 standards; petrol cars and vans that do not meet Euro 4 standards and diesel cars and vans that do not meet Euro 6 standards. Diesel buses, coaches and lorries will need to meet the Euro 6 standard.

Commenting on the announcement, Christopher Snelling said: “While some large logistics operators will have mostly compliant fleets, the real losers here will be small companies reliant on their lorries or vans. Small firms tend to buy second-hand so will have older vehicles that do not reach the latest emissions standards and will really struggle to raise the loans they will need to buy compliant vehicles a few years early then they would have.”

FTA has calculated that, for a typical small firm with five lorries or five vans, the extra cost of compliance in 2020 or 2021 will amount to more than 40 per cent of their annual turnover – putting the business model of the company at risk.

How can fleets prepare?

The government has said the clean air zones will come into effect in 2020 to give businesses time to “prepare for the change in order to minimise the impact”.

In this time, fleet operators should review their vehicles to ensure they are compliant if they must operate in and out of clean air zones. If they are diesel, they should be Euro 6. Otherwise, where feasible, alternatively fuelled vehicles should be introduced.

Stuart Thomas from the AA commented: “Companies looking to reduce costs must plan for a move away from diesel and petrol and add more alternatively fuelled vehicles to their fleets, but awareness of this future change across the industry does not appear to be widespread, as we’ve found when talking to our customers.

“The best way businesses can avoid picking up any charges and safeguard themselves against forthcoming environmental fees is to implement a long‑term fleet strategy, such as a switchover to alternative fuels.”

Otherwise, for logistics firms that operate in and out of clean air zones, one method of avoiding the impact of charges could be to establish a delivery hub outside of the city centre, making use of last-mile delivery firms.

Phil Bulman, transport sector specialist at management consultancy, Vendigital, said in a Telegraph article: “It may become more cost-effective for some businesses to outsource the final stages of delivery or even look into leveraging public transport to keep investment and delivery costs down.”

This may also be time to consider other mobility solutions, such as rental, car clubs, and public transport – or a combination of the above.

Andrew Benfield from the Energy Saving Trust, commented: “Mobility as a Service (MaaS) is an increasingly popular concept in transport circles and involves paying for transport solutions as and when you need them in a pay-as-you-go or even subscription fashion. In practice this could mean paying a monthly or annual subscription to access various services as and when. For example, the subscription may include rail travel, bus fare, bike hire and car rental that could be requested when needed.” L

Connected technology for more efficient fleet management

SME Guide

In association with

Free2Move Lease UK, the PSA Group’s multi-marque leasing company, has launched two significant new products. Firstly, the Command range of products uses connected technology to manage vehicle maintenance on your behalf. Secondly, the new telematics software platform, Connect Fleet, offers vehicle administration and driver monitoring in an easy-to-use, live system.

Command is available in two packages; Level 1 & Level 2.

All Contract Hire vehicle contracts of 18 months or longer are supplied as standard with Command Level 1. This provides service and MOT email reminders and flags up any potential excess mileage, helping fleet managers avoid end-of-contract charges.

Where vehicles are fitted with approved connected technology, Free2Move Lease uses real-time mileage data to calculate precisely when servicing is due, or if excess mileage is anticipated.

The Command team can also make service bookings for you.

For a small additional monthly fee, Command Level 2 removes day-to-day service and maintenance administration, by booking all your scheduled servicing and MOT work, then manages any issues to minimise downtime.

With the Connect Fleet telematics software, vehicle and driver information are gathered live from the on-board vehicle management system and sent to the fleet manager.

Three packages are available, depending on requirements, covering fleet management, eco-driving & geolocation.

Level 1 covers Fleet Management by monitoring vehicle hours and miles travelled. The system also monitors fuel consumption and the on-board diagnostics system for mechanical alerts and servicing and maintenance alerts.

Level 2 adds to the above with eco-driving feedback by analysing driver behaviour, then providing customised eco‑driving reporting. This can help reduce operating costs, (by minimising vehicle wear and tear, fuel consumption and emissions) and can assist with duty of care responsibilities.

Connect Fleet Level 3 then adds Geolocation, enabling fleet managers to monitor the live location of vehicles and receive details of routes taken and itineraries. Level 3 also provides geofencing alerts that can be customised. This can help identify when vehicles enter or leave a particular location to help with monitoring of time-sensitive deliveries, for instance.

Duncan Chumley is Managing Director of Free2Move Lease UK FURTHER INFORMATION www.free2move-lease.co.uk Duncan Chumley

FURTHER INFORMATION www.closeassetfinance.co.uk

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Vehicle tracking cuts costs for Scottish milk supplier An Ayrshire milk delivery company has cut costs after investing in plug‑and-play vehicle tracking.

Based in Largs, Mills Milk is a family‑run business that has been in the dairy industry for more than a century. The firm, run by directors Adam and Alastair Mills, provides doorstep deliveries to over 5,000 homes in Ayrshire and Glasgow, as well as wholesale supplies to shops, restaurants, cafes, hotels, ice cream factories, schools, and offices all over Scotland.

The company wanted to fit vehicle tracking devices to its 20-strong fleet of refrigerated vehicles, but did not want a hard-wired solution.

Adam Mills said: “Some of our vehicles are on hire, which gives us the flexibility we need in our fleet. So while we were keen to invest in vehicle tracking, we did not want to be paying installers to fit and then uninstall tracking devices as vehicles came on or off hire.”

Mills Milk opted for Trakm8 Prime, a self‑install tracking device that plugs into a vehicle’s on-board diagnostics (OBD) port.

There are no installation or removal fees – and vehicle downtime is kept to a minimum.

The company has now installed Trakm8 Prime in all 20 LCVs, a mixture of Mercedes Sprinters and Ford Transit Connects.

“We wanted to be able to track our vehicles in real time, as it is very handy for locating the nearest driver when we are fulfilling last-minute customer orders,” added Adam.

“However, we have also been impressed with Trakm8 Prime’s driver behaviour scoring. In my view, this has definitely helped us to reduce vehicle wear and tear and cut our expenditure on fuel.”

Priced at £12.99 or less per vehicle, per month, Trakm8 Prime is a cost-effective fleet management tool for small and medium-sized businesses. Designed for fleets of one vehicle and upwards, Trakm8 Prime is the only vehicle tracking solution currently available that enables the customer to browse and buy online, without having to deal with a sales person.

More than just vehicle tracking, it is proven to reduce fuel consumption, by coaching drivers out of bad habits such as engine idling, aggressive acceleration and harsh braking. Its unique vehicle health alerts provide an early warning system to drivers, helping sole traders and small businesses to avoid costly breakdowns and non-starts caused by issues such as flat batteries. Trakm8 Prime’s P11D management tool also cuts down on HMRC paperwork and accountancy fees, thanks to easy separation of

NO-NONSENSE, SELF-INSTALL VEHICLE TRACKING Vehicle & Battery Health Alerts Business/Private Mileage

£12.99

PER VEHICLE PER MONTH

Geo-Fencing 31

Service & MOT Reminders

0330 333 4121

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www.

trakm8prime.com

sales@trakm8prime.com

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business and private mileage.

For additional peace of mind, businesses can choose Trakm8 Prime Protect, the combined package of Trakm8’s RoadHawk DC-2 dash cam and Trakm8 Prime, for £23.99 or less per vehicle, per month.

Trakm8 Prime offers a free, no‑obligation, 30-day trial of its vehicle tracking solution to small fleet owners.

FURTHER INFORMATION www.trakm8prime.com

FREE 30-DAY TRIAL

SME Guide

In association with

Telematics: ten tips for small fleet decision makers For SMEs, selecting the right telematics provider isn’t easy.

There are lots of suppliers to choose from and prices and functionality can differ greatly. What’s more, the benefits can be ignored altogether if the firm does not have a dedicated transport manager. GreenFleet asked Trakm8’s Colin Ferguson to offer some advice to SMEs looking to implementing telematics Keep your goals realistic Telematics can provide businesses with hundreds of reports and insights. For SMEs however, many of the reports used by larger companies are simply unnecessary and will only blur your objectives by swamping you with data. Prioritise your objectives and select a few key performance indicators (KPIs) that will help you to achieve them. Popular goals include reducing fuel consumption, eradicating unsafe driving or better management of business and private mileage.

Your time is precious A good telematics solution will be available to buy online without the hassle of lengthy sales consultations. A web-based purchasing process is ideal for SMEs and smaller fleets as orders can be completed in minutes, giving employees the time to focus on their day job. Devices are usually shipped on nextday delivery and can be installed instantly without any professional know-how.

Try before you buy Before committing to a purchase, look for a provider that allows you to test their telematics system. Online demos are a great way for you to explore what features and benefits are on offer but you won’t understand the full advantages to your business until you have fitted a device to one of your business’s vehicles. Any provider worth their salt will offer you a month-long trial and give you full access to web portals and mobile apps.

DIY installation Self-install systems, which plug into the vehicle’s OBD port, enable you to fit the device yourself. Most vehicles are compatible with modern telematics devices but ensure you use an online compatibility checker like the one on Trakm8 Prime’s website – this will help you to locate the OBD port for your specific vehicle. Self-install solutions also allow you to quickly transfer devices between vehicles, for example in the event of hiring a vehicle on a short-term lease. Some companies offer free installation of hard-wired devices.

However, beware of hidden costs for removing the device as many companies charge you for this at the end of your contract.”

Feature rich Telematics systems have come a long way from simply monitoring vehicle whereabouts.

For a small price, features such as driver scoring, determining business and private mileage, vehicle health alerts, and geo-fencing now come as standard with all good tracking solutions. These features will help you to effectively manage your vehicles but also assist with boosting productivity, improving safety and reducing vehicle running costs.

Insights on the move Having the ability to view your vehicle’s data while out of the office can be critical to making business decisions quickly. Keep your eye out for a solution which has a web portal rather than one that requires software to be installed on a specific machine so that you can log on from a mobile device or tablet. Most good providers also offer apps for individual drivers to monitor their personal data and identify their own areas for improvement.

It’s good to talk Some companies try to keep telematics systems secret from employees. This is often counterproductive. Always take the time to explain the benefits of vehicle tracking to your colleagues. It is not just about enhancing the bottom line for the business – it is also a way of improving driver safety, simplifying their mileage returns and preventing frustrating breakdowns. This should help allay any fears from employees who are concerned that telematics is a Big Brother-style monitoring system.

Make it fun Incentivise employees with prizes or cash bonuses for the best performing or most improved drivers. This type of gamification introduces healthy competition among drivers and makes safe and efficient driving more fun for your workforce.

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Creating weekly or monthly competitions also speeds up the effect telematics can have on improving driver behaviour while removing negative opinions employees.

Keep in touch For businesses that are new to telematics or those that have recently switched supplier, some of the features within a web portal can be confusing. While you should look for a provider that has a simple-to-use interface, not everything will always be 100 per cent clear so don’t be afraid to contact the company with any issues you may be experiencing. After all, your problem may have a very simple solution.

Protect privacy Ensure your supplier is serious about data protection. You should be confident that your telematics provider and solution are fully-compliant with privacy and data protection laws including the new GDPR legislation. Look for a company that is ISO27001 accredited, one that vows never to never pass on your personal data to third parties, and one that ensures all personal data is collected in accordance with the Data Protection Act 1998.

FURTHER INFORMATION www.trakm8.com

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