Guide
Advice to help fleets improve overall efficiencies in their operations Brought to you by
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3 Leasing All companies have different operating models so no one funding method will fit all. To help clear the confusion on what finance options are available for purchasing vehicles, the BVRLA has published a Vehicle Funding Guide, done in partnership with Grant Thornton
7 Electric vehicles The majority of fleet operators want to embrace a zero emission future, but there is still confusion regarding the cost of ownership, infrastructure, journey planning and driver education. Peter Eldridge, director of ICFM, gives food for thought for those considering the switch to electric vehicles
11 Electric Vehicles Seasoned electric vehicle integration manager Nigel Morris from Swansea University’s Active Building Centre, shares some advice on what to consider when implementing electric vehicles into an organisation’s fleet
13 Grey Fleet Staff-owned vehicles are still widely used for business purposes, which poses a problem for employers in terms of ensuring the safety and green credentials of such vehicles. So what should a grey fleet policy look like and what are the alternatives?
15 Telematics Fleet Telematics gives organisations insight into their fleet operations, enabling more informed-decision making for a smoother-running and cost effective fleet. Here is a look at some of the common uses and benefits of telematics systems
17 Road Safety Having effective fleet safety policies and procedures in place that are supported and promoted from the top of the organisation will help you to develop a strong safety culture among your workforce, writes Ross Moorlock, chief operating officer of road safety charity Brake
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Making informed best practice decisions Chevin is delighted to be the platinum sponsor of this year’s Best Practice guide. As the environment and sustainable initiatives receive more media attention, the fleet industry is facing perhaps one of its biggest challenges to date – and it’s moving at a pace we have never seen before It will, for example, be possible to make more intricate conclusions relating to predictive maintenance, allowing fleet professionals to automate business‑enhancing processes, from booking alternative mobility solutions to eliminating the risk of road accidents altogether. Chevin expects to see a drive towards mobility, and by taking insight from “big data” fleet decision makers will be able to understand not only the total cost of ownership (TCO), but also the much broader cost of mobility with regards to people, vehicles, associated assets and commercial goods.
This pace of change is due, in large part, to technological advancements such as alternatively powered vehicles, network enhancements and the rise of “big data”. Companies that operate large fleets are under increasing pressure to invest in greener vehicles, and the demand for “mobility over metal” is on the rise. But saving the planet is not a one-player game, we all – manufacturers, operators and suppliers alike – have an important part to play when it comes to creating a sustainable future for the industry. That’s where Chevin and its FleetWave software plays a pivotal role. Within its web-based solution, a multitude of third-party data sets are seamlessly integrated into one platform, allowing fleet managers to make informed decisions. This, in turn, helps fleet professionals to drive industry best practice, simplify important operational insight and connect all aspects of the supply chain. Modern day fleet managers live in a world of fluctuating costs and tight budgets, so finding a means to reduce operational expenses – at the same time promoting a sustainable business model – should be high on any list of priorities. When it comes to this challenge, the most successful fleet managers are those who combine industry knowledge with real-life data – both historical and live – in order to make informed decisions and drive best practice.
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Using Chevin’s FleetWave, it is possible for fleet professionals to make informed best practice decisions, in key business areas such as procurement; fuel management; preventative maintenance; compliance and risk; inventory management and driver safety. Leading provider Today, Chevin is the leading global provider of dedicated fleet management solutions, and its multi award-winning software is used in more than 180 countries worldwide, to manage in excess of 1.2m vehicles and associated assets. Its client base includes some of the world’s largest, most reputable organisations across multiple industry sectors, from major OEMs, construction and utilities to government, non-profit and emergency services. Chevin views its client base as a large community, working together where possible to promote industry best practices, generating positive outcomes from a sustainability standpoint. By working as one, it is possible to speed up change that will have a positive outcome for all concerned. Looking to the future, the role of data will become even more important, particularly as technology advances further and smart vehicles start to dominate the market. Artificial Intelligence (AI) will be a driving force here, enabling advanced automated workflows that are facilitated by live data feeds, further supporting the value of industry best practices.
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The best strategy It is Chevin’s belief that implementing resultsdriven decisions based on sound and accurate knowledge about your operation is the best strategy for weathering change in the most efficient manner. It recommends taking steps to gather as much data as possible, to help make more balanced decisions. Its FleetWave product has a proven track record in allowing fleet managers to make better, fully informed decisions, providing a means of comparison across all business areas and enabling individuals to drive best practice in this fast paced and ever-changing environment. Ultimately, nobody knows what changes the future will bring, but the best decisions will be made by those organisations that are proactive rather than reactive. If you would like to learn more about industry best practice and how software can help to optimise fleet operations, contact Chevin today to arrange a free demonstration or speak to one of its fleet experts. L FURTHER INFORMATION +44 (0)1773 821992 sales@chevinfleet.com
Financing your fleet vehicles All fleets have different operating models, so no one funding method will fit all. Here’s a look at the different options available
All companies have different operating models so no one funding method will fit all. Indeed even within a fleet itself, different vehicles may be suited to different finance models. To help clear the confusion on what finance options are available for purchasing vehicles, the BVRLA has published a Vehicle Funding guide, done in partnership with Grant Thornton. Contract hire Contract hire is the main type of vehicle leasing. Explaining the process, the guide says: “Contract hire sees a user hire a car for a set period of time and pre-determined maximum mileage at fixed monthly rentals. There is no option for the hirer to purchase the vehicle and at the end of the contract, it is returned to the leasing company.” The monthly rental rate takes into account registration fees, road fund licence, its period of use, agreed mileage, funding costs, and forecast residual value, as well as the cost of the car. The number of miles a car does has major implications for both its service requirements and resale value and so will have an impact on the rental rate. The monthly fee may include a ‘service’ element covering additional services, such as maintenance, replacement vehicles, roadside assistance, motor insurance, accident management and fuel cards. Finance lease A finance lease allows the lessee to hire a vehicle for a fixed monthly fee, with the vehicle remaining the property of the leasing company. This is similar to contract hire, however, the vehicle will appear on the lessee’s balance sheet, with outstanding rentals represented as a liability because the risks and rewards of ownership rest with the lessee.
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balloon payment can be varied to reduce or increase the monthly repayment amount. “This type of funding appeals to companies that want to retain ownership of their vehicles, do not want to use their capital or overdraft to pay for them, and want to avoid mileage restrictions,” the guide says. However, it presents a residual value risk and requires inhouse expertise and management resources. Outright ownership Purchasing a vehicle outright is regarded as an acquisition of a fixed asset for accounting purposes. As such, the vehicles are recorded on the organisation’s balance sheet and depreciate over their useful life down to an estimated residual value. This gives the greatest level of control over how a vehicle is procured and also provides a potential influx of funds when vehicles are sold. But that does mean tying up capital in a rapidly depreciating asset, the guide says.
Zero emission vehicles The government’s Road to Zero strategy made clear that it Contra wants to pursue a zerohire see ct emission transport future. sa user hir But for many, there are still too many concerns a set pe e a car for that electric vehicles will r i o and pre d of time The BVRLA / Grant not be fit for purpose in d Thornton guide fleet operations. Leasing maximu etermined m says: “A finance and rental, over outright m i l e at fixed a lease generally purchase, can help lessen monthl ge conforms to one of these concerns and allow y r entals two standard formats: fleet operators to try the a lease with a final vehicles without the risk. balloon payment (smaller Explaining the benefits of monthly payments with a final leasing electric vehicles, the BVRLA’s big payment at the end), or the fully Gerry Keaney said: “Many of the longamortised lease, in which the finance is standing benefits associated with vehicle spread over a fixed period with the same leasing are particularly attractive when amount being paid on a regular basis, it comes to fleets and people looking to usually monthly. “In a lease with a final adopt zero or ultra-low emission vehicles. balloon payment, the overall depreciation of “These vehicles are expensive and leasing the vehicle is reflected in the monthly rental, companies can pass on the purchasing with the final payment covering the original discounts they get from buying so many estimated residual value at the end of the of them. Leasing enables you to fix the contract. If the vehicle is subsequently sold cost of your vehicle acquisition over a at a price above that of the predetermined set period, meaning that you don’t have balloon payment, the leasing company will to stump up a lot of money up-front. refund a percentage of the proceeds to “This can be particularly attractive for the lessee. If the price is below the balloon businesses that would like to use that payment, the lessee will be liable to pay working capital elsewhere. With the the shortfall to the leasing company.” most popular form of leasing, contract hire, you never actually own the vehicle. Contract purchase This means that you are immune from Contract purchase sees a customer agree any risk associated with that vehicle’s to purchase a vehicle via a series of residual value. Should a vehicle’s residual monthly instalments, the BVRLA guide value fall sharply, perhaps due to the says. Ownership passes to the purchaser introduction of a new range of much at the outset or the end of the contract, more efficient electric vehicles, the leasing depending on whether a conditional company will have to absorb this cost.” sale or credit sale agreement is used. With London’s ULEZ and the imminent Hire purchase meanwhile is a type of arrival of Clean Air Zones around the UK, agreement where the purchaser in effect leasing may also provide an attractive takes out a loan to buy vehicles from a way to use compliant vehicles. L third party. The agreement may require a three or six month deposit at the outset and FURTHER INFORMATION usually terminates with a balloon payment – typically equivalent to the expected residual See the BVRLA / Grant Thornton guide on value of the car. Both the deposit and the Vehicle Funding at tinyurl.com/rgcmqql
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What to consider when switching to electric vehicles? Making a case for an electric vehicle (EV) fleet continues to be something of a conundrum for UK fleet operators given the broad range of business-critical factors involved. The majority of fleet operators want to embrace a zero emission future, but the road to get there remains fraught with challenges and continuing confusion regarding the cost of ownership, infrastructure, journey planning, driver education etc. It is no surprise that many fleet operators simply don’t know what to do for the best and that, of course, is no basis to move forwards strategically. The first golden rule of any change process is clarity and the problem with the way that EV technology is being dealt with in the UK is that there continues to be a great deal of shifting sand surrounding the subject. Let’s take a look at some of the key areas involved. On a positive note, ‘range anxiety’ is progressively becoming yesterday’s news and in real terms, it is now perfectly feasible for fleet drivers to successfully fulfil their business and private journeys with an electric vehicle.
vehicle will rapidly consume valuable battery performance and thus reduce ‘real world’ range. Avoiding harsh braking also pays dividends in respect of extending battery charge, since it maximises the use of the regenerative braking system. Improved anticipation when overtaking and braking and leaving enough space for routine driving manoeuvres is another key to maximising energy efficiency. Many EVs are equipped with some form of economy mode that automatically chooses the most energy-efficient way to drive from A to B. Maximising the use of these systems will ensure that economy parameters are utilised and enhanced battery life promoted. Encouraging drivers to adopt a frugal approach with the use of the vehicle’s climate control, in-car entertainment, satellite navigation and mobile phone charging systems, will also positively improve range capability. This is particularly important during periods when battery power is low.
Written by Peter Eldridge, director, ICFM
The majority of fleet operators want to embrace a zero emission future, but there is still confusion regarding the cost of ownership, infrastructure, journey planning and driver education. Peter Eldridge, director of ICFM, gives food for thought for those considering the switch to electric vehicles
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That said, ensuring that EV choices are finely tuned to a specific driver’s journey Fleet Consider the and mileage profile is decision charging critical, as there are still makers infrastructure marked differences n e e d present to The current charging in the achievable financia powerful infrastructure in real ‘real world’ mileage l terms continues to ranges of available their bo arguments t o ards in be one of the more EVs. Providing drivers order to significant drive en areas with information that viro of uncertainty as far helps them understand policy c nmental hange as the average fleet the range capabilities driver is concerned. of their chosen EV and There is no question how to strike a good balance that the situation could be greatly between energy efficiency and improved if all motor manufacturers performance usage is a vital first step. and charging point providers were to get together and deliver a more mature and Getting the most from an EV joined up approach to universal plug-in Continuing with the topic of driver awareness, compatibility, the variable charge point let’s explore a few more key elements capabilities/timescales involved and the involved with educating drivers to ensure multitude of payment systems in place that they get the best from their EV. depending on the charge point provider. Driving style has a significant impact and it Depending on the actual vehicle choice is highly advisable to maintain steady speeds and battery kilowatt performance, a full E when driving an electric vehicle. ‘Gunning’ the
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recharge can take anywhere from circa 35 minutes to 13 hours and this is obviously an unacceptable variable. This is particularly relevant for the latest, high mileage range, manufacturer offerings, which equipped with larger 75-100kw batteries, but are left somewhat exposed as a result of the limited numbers of commensurate charging points available in the UK. These dynamics are also driving a shift from ‘range anxiety’ to real concerns about reported ‘recharging congestion’ at many of the outlets available and this continues to have a real impact on driver and fleet operator confidence regarding EV uptake. Additionally, EV production lead times continue to frustrate potential buyers and when all the elements are taken into consideration, it explains why the current fleet registrations provided by the Society of Motor Manufacturers and Traders clearly endorse that although progress is being made towards a zero emission future - it still has a long way to go. Battery electric/ hybrid electric/plug-in hybrid/mild hybrid vehicle registrations represents 9.9 per cent of the market share, while conventional petrol and diesel vehicles take the lion’s share at 91.2 per cent. Petrol is the predominant player at 62.4 per cent and mild hybrids make up the balance at 3.5 per cent. Once the stakeholders involved stop battling for supremacy in terms of the different technologies and adopt a more universal charging point system and payment mechanism approach, the situation will improve significantly. Cost of ownership Turning to the matter of cost of ownership, fleet decision-makers require encouragement to introduce and present powerful financial arguments to their boards in order to drive environmental policy change. However, a failure by Government until July this year to announce company car benefitin-kind tax rates post April 2020, although slightly incentivising the take-up of zero emission vehicles, also failed to take account of the lack of availability of those cars in today’s marketplace and further frustrated a proactive switch to an electric vehicle future. It should also be noted that with the cancellation of the November Budget due to a general election being called for December 12, the company car benefitin-kind tax rates post April 2020 have yet to be enshrined in law as the 2020 Finance Bill - usually published postBudget - has been delayed as a result. One assumes that post the election a Budget will be held quickly – but due to Christmas and the New Year and the Parliamentary recess being December 21 to January 5 that is unlikely to be until the New Year. We must therefore wait and see if the announced tax rates are retained by a newly elected Conservative administration or replaced by a Government of a different political persuasion. For fleets and company car drivers to truly embrace the plug-in vehicle revolution, the Government needed
to take greater account of reviewing benefit-in-kind tax rates in conjunction with model launches and availability. The benefit-in-kind tax changes due in April 2020 promoting a 0 per cent rate, followed by one per cent in 2021/22 and two per cent in 2022/23, coupled with a plug-in grant of up to £3,500, will attract fleet operators and employees to EVs, but lead times must be in-line as well. If all the elements come together, then real progress will be made with EVs, but there is also a word of caution that needs to be mentioned. There is a real danger that because of the benefit-in-kind tax changes, drivers will rush to take advantage of the personal financial benefit available and, if not managed carefully, fleet operators could be left heavily exposed by drivers making uninformed vehicle choices, that for the reasons mentioned earlier do not fit for their business use profile. This is not a new problem and the previous switch to petrol hybrid cars to take advantage of the benefit-in-kind tax benefits, exemplifies how, what was intended to be a positive environmental move, for many, actually had the opposite effect. The reason was simply that for many fleet operators they became a proverbial duck out of water due to poor driver/journey analysis that resulted in hybrids operating predominantly outside of their economic efficiency zone. The outcome - significantly higher operating costs, specifically fuel bills, compared to their previous (now demonised) diesel counterparts. In summary, fleet drivers will make improved environmental vehicle choices, but only if the benefit-in-kind tax regime is beneficial; electric vehicle recharging is straightforward at all points in their business and personal travel; and electric vehicle selection is straightforward. Fleet operators will then be able to get down to business and select the right EVs for the right application; help employees understand the benefit-in-kind tax implications of their company car choice; provide driver guidance on how to run electric vehicles efficiently and responsibly. This will include maximising electric only miles in plug-in hybrids and the effective management of street, home and workplace charging routines and etiquette. Let’s be completely clear - fleet operators are not averse to change, but they will not expose themselves or their businesses to the potential fall-out of poor or uncertain policy decisions. Consequently there are presently still too many unknown factors across a sector that remains embryonic in terms of sales. If you would like to find out more, the best place to start is by taking a look at the ICFM training and education programmes. More details are available on the ICFM website www.icfm.com or you can contact administration@icfm.com for further information. L FURTHER INFORMATION www.icfm.com
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EV charging: Supporting the electrification of your fleet Charging electric vehicles doesn’t have to be a minefield. If the correct vehicles are acquired for the business operations and adequate, resilient charging infrastructure is specified to support those requirements, then it will be a proverbial ‘walk in the park’ It is all too common (and incredibly frustrating for users) that adequate consultations have not been carried out by charging providers and as such, the infrastructure installed is unsuitable or, in many cases, inoperable. I recently travelled to London for an event where I was speaking about the correct implementation of EV charging and was, I’ll admit, a little excited to see that the car park had charging units installed. As I proactively search for the nearest charging units to my destination, they were a bit of a surprise as they weren’t listed on any of the usual charging point maps but I recognised the network they were attached to so I set about registering with them to allow me to charge up. However, once I had registered (at the cost of £10) I called them as the charger wasn’t showing on their portal. I was informed that the chargers were no longer on their network and that I should call another network provider. Which I did and I registered for that network as recommended (at the cost of another £10) only to the be told that, while the chargers were a part of their network, they “had been consumed, but not yet activated”. This meant that there were perfectly adequate charging facilities that users wanted to access but were unable to because the back office was not correctly configured. The whole process took about 30 mins (that frankly I didn’t have) and lead to a lot of frustration and no charge for my car. I find this unacceptable. Charging frustrations Technological advances in vehicles mean greater ranges and more models
available, which in turn mean that more and more private owners and businesses are looking at electric vehicles as a truly viable option. However, in the majority of cases, it is the issues with charging these vehicles that tops the list of concerns when considering EV as the choice of vehicle. But it’s not just public charging units that cause issues for users. I met with a delegate at an event a short while ago whose charging infrastructure was failing him terribly: electrification of his fleet was ideal for their operational requirements; his staff loved the vehicles and they did the job required of them. However, the charging infrastructure installed hadn’t been properly specified and were installed in an area of poor GSM (mobile phone) reception that the chargers rely on to communicate with their management network or ‘back office’. This meant that the chargers couldn’t be accessed remotely or managed in any way but most catastrophic to the business case for the electric vehicles was the fact that when the charging units lost connection to the back office, they either stopped charging, refused to begin charging or shut down completely. This resulted in vehicles not being charged ready for work and staff not being able to initiate charging of the vehicles. Consequently (and somewhat tragically in my opinion) the staff are now asking for them to be replaced with conventional combustion engine vehicles. Charging needs to get easier If the predictions are correct and our transport future lies firmly away from petrol and diesel fuels, then the charging and refuelling
solutions that are provided have to be better. I have written articles in previous Greenfleet magazines (issue 120 & 123) regarding the requirements of implementing EV charging and where the crucial factors are considered, EV charging can be successful, resilient and user friendly. ElectrAssure’s objective is to fully satisfy the charging requirements of our customers while minimising the disruption their business during the installation and operation of the EV charging system. We believe that the provision of charging solutions does not finish when the installation is handed over to the customer; in fact it is only the beginning of the support and assistance that we provide. We ensure that our installations are monitored and managed by a back office or CPMS (chargepint management system) that provides the information the customer requires, authorises users correctly, reports faults or issues and allows remote maintenance to be carried out. We have access to the management portal directly and are therefore able to react quickly and efficiently to any issues reported by the either the back office or the customer. Couple this with an installation of quality charging units that satisfy the customer’s need and an electrical installation of the highest standards and complies with the BS7671 18th edition wiring regulations, and the EV charging infrastructure provided will support the business case to electrify the fleet vehicles for years to come. L FURTHER INFORMATION www.electrassure.com
Issue 124 | GREENFLEET MAGAZINE
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Implementing EVs into your fleet: how to get it right 1. Why go green? Sustainability, decarbonisation and the environment are headline issues. All of us with the opportunity to do so have a responsibility to review, reflect and do better. In the fleet world change is here and now; our dependency on importing and burning fossil fuels with associated emissions is under heavy scrutiny. Change costs but no change will cost us more. Get it right and we can create new opportunities and benefits and secure a healthier future for the industry and those effected by it. 2. Team up Find or become an EV Champion; this is an opportunity to make a difference, boost a new career or breath new enthusiasm into an existing one. Then find your stakeholders; this is not just transport anymore, this is energy managers, carbon managers, E&FM, policy makers, sustainability and marketing. There will be issues along the way so find your sponsor – the person with influence in your organisation that gets it, will have your back and unblock the inevitable. This step has inter-dependencies and will evolve so keep the right people near you at the right time. Work to get the decision makers and the end users on board. 3. Phases No one size fits all but there are commonalities. Not many fleets will shift wholesale overnight other than
sole traders and even then, there will be a few phases before adoption. Do some research on vehicle types, battery sizes, charging speeds, charger types, apps and maps and learn the lingo of kWh, kW and miles/kW. Gen up on Clean Air Zones and Congestion Charges in your operational area, taking into consideration the costs and potential savings. Talk to dealers, manufacturers and fleet providers and get extended demonstrators in. Promote a few EV try out sessions. Get bums on seats and target your allies from step two. Get your CEO in a white van, get your van drivers in a good electric car. Enable first hand experience. Might be wise to look at EV charge cards, fobs or apps at this stage too and if your drivers take vehicles home, look at the OLEV funding deals so you can answer questions on cost. 4. Plan Confirm resources and strategic buy in. Talk to fleet providers or specialists on evaluation tools and gather data to determine best EV fit to your business. Look at daily mileages, look for regular duty cycles, look for easy EV deployment. You want this to work so don’t set it up to fail. Average daily mileage is less than most drivers think and telemetry data can back that up. Think about charging infrastructure; will it be depot style back to base? In which case plan a scalable solution, work
with your E&FM and energy buddies from step two to look for best location. Talk to commercial charge point operators for a managed solution or buy outright and operate. Again, look for the OLEV workplace charging available. Local grid capacity – do you have sufficient? Can you consider embedding solar PV generation and building battery to assist the local grid and reduce costs over time or to avoid costly grid upgrade? A small roll out may suit some firms; one charger, one vehicle and rotate amongst your operational groups for evaluation. Go large and put a bigger project into motion. Educate and train your drivers. Change driving style to a safer, more economic technique. Explain benefits of using heated seats and steering wheel instead of cabin heaters, explain regenerative braking. Hammer home the benefits and keep the emissions, air quality and renewable energy strand live and kicking along with running cost savings. Communicate internally, promote externally, leverage value, logo your zero emission investment, play social media and look for local events to attend and exhibit – this can be free advertising to a new market opportunity. 5. Monitor and feedback Encourage and listen to user feedback, work together to reward and resolve issues, encourage and coach behavioural change. Develop and review policy. Some may need this before action but either way, policy can anchor decisions. Etch a fuel policy in decision makers minds but be mindful of user requirements and duty of vehicles. Remember – set up to succeed. Evidence success, gather data, report, case study. You can do this of your competitors if this would help support your case. Publicise your achievements, keep the internal and external comms going and look for next steps.
Written by Nigel Morris, electric vehicle integration manager, Active Building Centre at Swansea University
Seasoned electric vehicle integration manager Nigel Morris, shares some food for thought when considering implementing electric vehicles into a fleet
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6. Acceptance Are your drivers now requesting EV? Are other departments or sections within your organisation coming to you for advice or trial vehicles? Are the numbers adding up or projecting well? Can you see your leasing or ownership model changing? Is the issue now availability of EVs and not finance, procurement or desirability? Hopefully so; whether a one vehicle trial or a 150 vehicle fleet change, if scoped and phased, you have user acceptance, data to evidence and achieved EV integration. L FURTHER INFORMATION www.activebuildingcentre.com
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BP Fuel & Charge delivers maximum flexibility to fleet managers With electric vehicles moving further and further up the agenda, fleet managers will need to make vital decisions on how, why and when to transition to electric in the future be most effective when the majority of charging is carried out overnight at home, taking advantage of lower electricity rates. So, while new infrastructure offers convenience and peace of mind on the road, drivers’ capability to charge at home is something important to consider within your fleet. BP offers customers fully integrated support through the installation of home and office charging via BP Chargemaster. With an extensive public charging network – and work and home charging solutions – BP is committed to ensuring EV is a viable option for more and more fleet customers. And for those who rely on on-road charging it’s good to know that once signed up to the Fuel & Charge subscription, the majority of the Polar network is free to use.
While some may say the move to an EV or even to a plug-in hybrid vehicle is inevitable, there are many things to consider when switching an entire fleet to being electric. The needs of each driver and vehicle will be different, so while some might be ready, others won’t be and managing this effectively will be crucial. BP’s innovative Fuel & Charge card option offers a seamless, nationwide option for managers and fleet vehicles of all engine types, which delivers maximum flexibility, so fleets can make the decisions that are right for them. Taking the plunge to electric can often be daunting but there is no reason to be apprehensive. As ever, research is key, but BP’s Fuel and Charge card can help eliminate some of the biggest concerns facing fleet managers facing this industry change. Range Range anxiety seems to be the biggest thing playing on drivers’ minds when considering the switch to an electric vehicle. While the charging network is growing and always being improved, particularly with infrastructure
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being put in place by the Polar Network, you should consider the effect charging time will have on your fleet especially if your drivers will be required to make long journeys. BP’s Fuel & Charge package covers access to the Polar network – the UK’s largest public charging network which consists of over 7,000 EV charging points. Drivers can easily plan ahead using the Polar app to map convenient charging points on their route, and check availability. With BP Chargemaster also installing ultra-fast charge points on BP forecourts in the coming months, fleets have another reason not to suffer range anxiety. The new 150kW chargers are able to provide convenient ultra-fast charging to the latest and next generation of EVs with an expected dwell time of 10-12 minutes, not dissimilar from the average of around seven minutes spent by drivers of petrol and diesel cars on a forecourt today. Charging Many fleet managers will switch to EV to make fuel cost savings by charging however you should be aware that cost saving can
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Cost Fleet managers need to consider the long-term gains when weighing up the cost of switching to electric, and consider the upfront cost of the vehicle against savings on fuel, tax and maintenance. BP’s Fuel and Charge card, can be used by fleet drivers to pay for petrol, diesel or electricity, offering flexibility for fleets who don’t want the restraints or the cost of committing an entire contract to EV, giving you the time to make the right decision. Time Fleet managers are busy, and some may think they don’t have time to process all the admin that comes with changing to EV. The easy-to-navigate BP Fuel & Charge card online reporting provides one simple solution and an overview of expenses for individual fuel types and EV charging in one place, allowing precious admin time to be cut to a minimum. Jo McDonnell, UK Fuel Cards Manager, commented: “The shift to EV is happening and at BP we are committed to serving our fleet customers with safe and convenient fuelling options regardless of the engine type they choose. Our new BP Fuel & Charge offer gives fleets the flexibility and the solution if and when they chose to move to electric vehicles.” L FURTHER INFORMATION www.bpplus.co.uk/FuelCharge 0345 603 0723
Grey fleet and staff travel dilemmas Staff-owned vehicles are still widely used for business purposes, which poses a problem for employers in terms of ensuring the safety and green credentials of such vehicles. So what should a grey fleet policy look like and what are the alternatives?
Grey fleet refers to employee-owned vehicles that are used for business-purposes. As a vehicle is considered a place of work, the same diligence over employee health and safety must be applied. What’s more, organisations are accountable under the corporate manslaughter act. It is therefore important for organisations to consider the safety of the vehicles their staff drive for business journeys. Grey fleet vehicles tend to be older than company cars and are likely therefore to be fitted with fewer safety features. As a result it is more difficult for organisations to demonstrate that they are meeting the duty of care requirement. Older grey fleet vehicles may also emit higher emissions, and may incur costs in clean air zones and London’s ULEZ scheme, making it harder for organisations to meet any environmental goals. Grey fleet can be expensive Grey fleet is typically reimbursed at 45 pence per mile (ppm) for the first 10,000 miles, and 25ppm thereafter. There is the risk that an employee could round up journeys. In its Grey Fleet Guide, the Energy Saving Trust says that a driver rounding up a claim from 8 to 10 miles increases the journey cost by 25 per cent. For 50 drivers, averaging 2,000 miles a year, inflating their mileage claims by 25 per cent would mean £11,000 being unnecessarily reimbursed. A grey fleet policy A grey fleet policy should outline the minimum vehicle standards in terms of Euro NCAP safety ratings, vehicle age, emission levels, required safety features and breakdown cover. It should also state that the employee is responsible for ensuring their vehicle complies with laws on roadworthiness, is being serviced in line with manufacturer guidelines and has the appropriate level of insurance and breakdown assistance cover.
average journey lengths are often shorter and electric vehicles (EVs) offer the most viable and sustainable option. Enterprise has also installed car club technology, including the ability to book online or via a mobile app, in many of the council’s own pool cars. The Highland Council estimates that it has cut its carbon footprint from staff travel by approximately 377 tonnes of CO2 equivalent in 12 months by transferring grey fleet mileage onto dedicated hybrid and electric Enterprise Car Club vehicles, a reduction of 19 per cent. The Council covers a large area of Northern Scotland, roughly equivalent to the size of Belgium. Many of its 10,000 employees travel great distances for business to and from around 700 local offices, schools and depots to deliver Grey essential local services. fleet po Before bringing Enterprise should licy on board, its grey fleet o u t mileage amounted to l i n e the min more than six million It should also outline i m u m vehicle miles a year at a cost of the need for drivers to in term standards more than £2.2 million. check fuel, lights, oil, A significant factor rust, water, electrics, ratings, s of safety vehicle in the success of indicators, windscreen ag and em the club has been an (including wipers), ission e, employee communications mirrors and tyres at the levels programme that provides start of each journey. clear information on how to The policy should also state make better travel choices. This that drivers need to show a valid will shortly include the generation of and clean driving licence, details of automated emails to notify when employees insurance, and breakdown assistance cover. could be utilising vehicles more efficiently. The Council aims to increase its car club What are the alternatives? fleet to 80 vehicles by the end of this Today organisations should consider a mix of year to achieve even greater savings. mobility solutions when it comes to business In addition, the Council is rollingtravel. This could include car pools, car share, out an improved ICT infrastructure to public transport and other on-demand encourage video conferencing and is services. Video conferencing could also be focusing on shared and public transport adopted to negate the need to travel. for service delivery where practical. Organisations could also consider installing telematics in grey fleet vehicles. This would Electric vehicles allow for better insight into a vehicle’s location Introducing electric vehicles onto a fleet of and journeys as well as information on how pool cars can be a great way to reduce the safely and efficiently an employee is driving. environmental impact of business travel, Addressing the issue of high grey fleet as well as get more people to try plug-in miles, the Highland Council has reduced vehicles, therefore increasing awareness its annual business mileage by more than and confidence. West Sussex County 825,000 miles and made cost savings Council is using four electric Renault ZOEs in excess of £400,000 in the first 12 as pool cars, helping the council tackle months since introducing a car club. grey fleet car use by offering staff an This represents a 15 per cent reduction in alternative to using their own vehicles. overall business travel costs. The council’s The Scottish Fire & Rescue Service grey fleet mileage has fallen by nearly a (SFRS) has also seen the benefit of quarter (22 per cent) and its overall business offering electric vehicles as pool cars. mileage has dropped by 13 per cent. The fire service will use 45 Renault ZOEs as A fleet of 60 Enterprise Car Club vehicles general pool vehicles, with each covering at located across 21 Highland Council least 10,000 miles a year. They will be used offices is now available for booking by by uniformed staff, office employees and the hour or day by employees who would management to interact with the public in have previously used a private car and non-emergency situations, which span free claimed mileage reimbursement. home safety visits to community events, The majority of the 60 vehicles are plug-in and will be spread across the whole of hybrids. Five plug-in Nissan LEAF electric Scotland, including all major cities and as cars are also based at Council offices in far as Orkney and the Shetland Islands. L Inverness, Golspie and Fort William, where
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Technology for more efficient fleet operations Improved operational efficiencies, cost control and ensuring legislative compliance are among the benefits that organisations across the UK have realised from implementation of Jaama’s multi award-winning Key2 system
Jaama, the industry-leading, fleet software innovator, is seeing a significant increase in both public and private sector interest in its technology. During the last 12 months, the Key2 systems procured has resulted in more than 1.35 million cars, commercial vehicles and assets now being managed via Key2. Cost control is one of the top priorities for all organisations with savvy decision‑makers investing in technology to help them effectively and efficiently manage their transport operations. Martin Evans, managing director of Jaama said: “Some organisations continue to rely on outdated systems and processes to manage fleet vehicles. These ‘historic’ methods are invariably time consuming, administratively cumbersome, involve intensive paper trails and, ultimately, are inefficient and costly. “Too often organisations look to spend money attempting to modernise outdated systems when they would reap significantly enhanced benefits by installing a new solution fit for the 21st century that delivers high‑level reporting and exception reporting.” Recent developments have seen Jaama become a ‘validated IT supplier’ for the Driving Vehicle Standards Agency (DVSA) Earned Recognition Scheme by
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launching a new module that enables commercial vehicle operators to create, store and manage compliance data. The Earned Recognition Scheme is designed to reduce the number of vehicle roadside stops and checks by enforcement officers. Operators that use Key2 are able to send defined Earned Recognition Scheme key performance indicator information to the DVSA every four-weeks including data captured from walk-around vehicle inspection checks, servicing and MoTs. Martin Evans said: “The Key2 module is designed to exactly replicate the requirements of the Earned Recognition Scheme. The
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information recorded in Key2 by transport managers will clearly demonstrate to the DVSA that their fleets are practising robust and timely compliance methods.” Jaama, an Associate member of the Fleet Operator Recognition Scheme (FORS) and a partner to the Freight Transport Association’s Van Excellence scheme, is firmly focused on helping fleets achieve compliance best practice through Key2 implementation. With both standards becoming ever-more crucial in the battle to win business and show compliance requirements are being met, Key2 is used increasingly by organisations to meet and exceed legislative standards. Consequently, Jaama has significantly enhanced the Key2 Compliance Manager module. It enables fleet managers to create their own regular and one-off events relating to vehicles for example; servicing in accordance with manufacturer requirements, MoTs and commercial vehicle inspections - ensuring key events are never missed. Drivers can also carry out their daily vehicle checks through Jaama’s award-winning and industry-leading ‘MyVehicle App’. The app integrates in real-time with Key2, triggering rectification processes. ‘MyVehicle App’ delivers unprecedented levels of efficiency and integration, whilst helping employers meet their compliance requirements. Jaama has invested over £2 million a year in product development to ensure Key2 remains the industry-leading system. Jaama’s policy of continual upgrades included within the customer’s annual fees is a huge advantage for many organisations as they work hard to meet the demands placed on them by their finance departments to remain in allocated budgets. L FURTHER INFORMATION www.jaama.com
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available through a full reporting suite. Instant alerts and notifications can also be sent to emails or via text messages as well.
Case studies Industrial maintenance provider Altrad Services UK is benefiting from vehicle tracking, driver behaviour scoring, and vehicle health alerts from Trakm8. The company has reduced its total fleet mileage Telematics gives organisations insight into their fleet operations, by 1.5 million miles, more than halved its enabling more informed-decision making for a smoother-running accident rate, and average driver scores have and cost effective fleet soared from a baseline 68 per cent to 97 per cent. In addition, vehicle health alerts help prevent breakdowns and costly repairs, Telematics uses GPS tracking to gather More efficient routes saving the company £20,000 per annum. information on vehicles like location, speed, You can use data from telematics to The company has also achieved a return and driving behaviour. Onboard cameras optimise routes by identifying congested on investment due to an 11 per cent can also be installed to record driving routes. You can also set up zones and georeduction in its fuel bill through smoother incidents. This gives organisations better fences to identify problem roads or Clean driving and better vehicle utilisation. visibility of their fleet operations, and Air Zones so that they can be avoided. Traffic management solution provider allows for inefficiencies to be remedied. Telematics can also be set up to alert Class One in Scotland has improved its This will allow organisations to save you if your vehicle goes off route so that fleet safety and efficiency by deploying a money through lower insurance you can swiftly detect unauthorised use. new mobile application with integrated premiums, lower fuel consumption and Video footage from cameras can be used telematics from the Algorithm People. through more efficient operations. as evidence to protect firms from false The mobile app is helping Class One’s allegations and insurance claims. Onboard workforce carry out daily equipment Better customer service cameras can allow you to take control of the and vehicle checks, reducing paperwork One of the benefits of using telematics claims management process by alerting you of and leaving a digital record. is improving customer service. Real-time possible incidents. Having video proof can also The company also required tracking from telematics allows organisations reduce the number of at-fault incidents. vehicle tracking with driver to keep customers updated on location behaviour analytics to help of drivers and provide them with a more Benefits for drivers B y it cut costs, improve efficient service. For example, you can Drivers may be reluctant to monitor productivity, and use telematics to show to customers that be monitored by telematics, in g driver b enhance road safety. drivers have been on site, tell them where but it increases their safety through ehaviour The Algorithm People your drivers are located, and see where by allowing employers to you can telematics, provided Class One other drivers are when support is needed. locate their whereabouts. t a with an integrated Drivers can also use k e a c unsafe telematics and Improved compliance telematics to justify driving tion on habits camera solution By monitoring driver behaviour through any over-time claims or before t which is proven telematics, you can take action on unsafe explain why they were to morehey lead to reduce accident driving habits before they lead to more late to a job, protect s e rates by up to 39 serious incidents. Better driving behaviour themselves from false claims incidentrious s per cent, improve fuel will help reduce accidents and wear resulting from collisions, and economy by up to 10 per and tear on your vehicles, meaning less safeguard themselves from cent and reduce instances expensive insurance claims, less vehicle complaints regarding their driving. of speeding by up to 35 per cent. downtime, and improved safety. Data from telematics can be made easily The Royal National Lifeboat Institution (RNLI) has added Masternaut telematics to 650 of its vehicles, which are used for flood response, fundraising support and lifeguard patrol, around the coast of the UK and Republic of Ireland. This is helping the RNLI to reduce CO2 levels by 25 per cent and improve the safety of its drivers on the road. In addition to that, the RNLI aims to minimise the fuel consumption by 10 per cent as well as reduce the risk of accidents. Ethical grocer Farmdrop, which runs an electric fleet of over 30 Nissan and Renault vehicles, has seen significant improvements in driver behaviour and fuel/energy use thanks to LEVL and Geotab telematics. The company’s electric delivery vehicles has been able to monitor electric energy use and fuel high engagement among drivers. In just a few months, Farmdrop has seen a 33 per cent reduction in incidents of poor driving per mile and a 27 per cent reduction in the kW/ mile needed for its last mile deliveries in London, Bristol and Bath. L
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Managing road risk is your duty of care
As an employer using vehicles to do your killed every day on our roads and more business, no matter the size of your business, than 60 suffer serious injuries. Around a or the type of vehicle you use, or who owns third of reported crashes involve an atthose vehicles, you have a responsibility work driver, and it’s likely this figure is to manage the associated risks, for any being under reported because of the way related legal reasons but also moral reasons the data is collected. Research shows to protect people from death and injury. that at-work drivers are up to 40 per cent Having effective fleet safety policies and more likely to crash than other drivers procedures in place that are supported and and that work-related road crashes incur promoted from the top of the organisation a greater average time lost in worker will help you to develop a strong safety absence than any other workplace claim. culture among your workforce. The legal obligations in relation By making improvements to to health and safety at work are work-related road safety clear. These include the Health procedures, organisations & Safety at Work Act 1974, It is can improve safety for which places a legal duty importa drivers, other workers, of care on all employers n t t o note th road users and to ensure the health, a legal v at, from members of the public. safety and welfare at Investing in fleet work of all of their a vehicle iewpoint, safety can also employees, and the is consid ered to be a deliver significant Corporate Manslaughter pla business benefits and Corporate of work ce such as improving Homicide Act 2007. . productivity, increasing Under this act, companies legislative compliance, and organisations can, for reducing workplace deaths the first time, be found guilty of and injuries, reducing workplace corporate manslaughter as a result absences, and reducing crash-related costs, of a gross breach of duty of care regulations. therefore positively affecting the bottom line and helping to protect the brand image. Duty of care The consequences of one of your drivers The main responsibilities imposed by this legal being involved in a fatal or serious crash are framework fall on the shoulders of the vehicle potentially horrendous for your organisation’s owners. It is important to note that, from a workforce, finances and reputation. legal viewpoint, a vehicle is considered to be a place of work. And companies have a duty of The problem care responsibility to their drivers to make sure In 2017 alone, 1,793 people were killed on that vehicles are fit for purpose and that they Britain’s roads and 24,831 were seriously are as safe as possible while out on the road, injured. That means that five people are with adequate and appropriate insurance.
Fleet safety policies Organisations can minimise this impact through sound fleet safety policies and procedures, such as routing journeys to avoid residential areas and town centres as much as possible, and stipulating that if staff drive in built-up areas, they should drive at no more than 20mph to help protect people and reduce noise and pollution. Beyond any legal responsibilities, managing road risk can also provide benefits to organisations, helping to reduce insurance premiums and claims, improve reputation and morale, and avoid the potentially catastrophic effects of a serious crash. To help reduce costs of collisions, organisations should aim to create a ‘collision-free culture’ that includes management championing of safety issues, a proactive risk management strategy, detailed collision and cost investigation and analysis, assessment of risks, a robust fleet safety policy and tailored procedures. Having a road safety culture is not only about preventing the negative consequences of a crash. It can also have a positive effect on the reputation of the business. It also provides opportunities to engage further with staff, their families, other businesses and the wider community. Brake is a road safety charity working to prevent road deaths and injuries and make communities safer and providing free support to families affected by crashes. Brake administers Global Fleet Champions, a global campaign to prevent crashes and reduce pollution caused by vehicles used for work, by sharing best practice in road risk management. Visit www.globalfleetchampions.org for more details. L
Written by Ross Moorlock, chief operating officer, Brake
Having effective fleet safety policies and procedures in place that are supported and promoted from the top of the organisation will help you to develop a strong safety culture among your workforce, writes Ross Moorlock, chief operating officer of road safety charity Brake
Employers also have a duty of care towards the employee and members of the public who may be affected by his or her work activities. Organisations also have moral and social responsibilities, particularly to staff, customers and the communities in which they operate. If a driver is involved in a crash, it may harm their physical and emotional wellbeing, lead to lost working time, cause distress to colleagues, and damage your reputation locally. If someone is killed or injured in a crash, this has a devastating effect on families and the community. Motor-vehicle traffic itself also has a huge impact on communities, public health and the environment. Organisations should ensure drivers drive as little as possible, and in a safe and fuel-efficient manner. They should also consider the impact of driving on the social environments in which drivers operate, such as the impact on schools and communities of heavy, fast and polluting traffic on their lifestyles and health. For example, if you have a lot of goods vehicles driving past a school or through a town centre, it can cause danger, noise and pollution, put people off walking and cycling, and affect your reputation with local families.
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