Conference delegates plan for life after the recession as fleets urged to look forward to a brighter future.

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Chris Pascall - EDF Energy
Steve Helliwell - Amey Logistics
Gary Banister - United Utilities
Rob Anderson - Van Best Practice Programme
Dan Evanson - Transport for London
Elizabeth Box - RAC Foundation
Paul Nash - PricewaterhouseCoopers
Dr Will Murray - Interactive Driving Systems
Caroline Scurr - Driving for Better Business
Ken Brown - CAP
Janet Entwistle - BT Fleet
 

Chris Pascall - EDF Energy

EDF Energy has achieved an 18% reduction in its CO2 emissions by downsizing its fleet of 1,000 Peugeot Partner vans to the smaller Peugeot Bipper.
It follows an engineer-inspired project to better understand their business needs against what the vehicles were carrying, which resulted in their payload being reduced from 800 to 600kg.

“We find that this is probably our best example of how we can impact on climate before we start looking at alternative fuels,” said Chris Pascall, head of transport at EDF Energy.

Pascall was sharing his experiences of making EDF’s fleet greener by adapting and changing it in a “successful and sustainable way” with delegates at the Fleet Van Conference 2009.

“The method we use is what I call the three ‘Cs’ – compliance, cost to serve and climate,” explained Pascall.
“Downsizing is an ideal example of how the three ‘Cs’ work. 
Buying smaller vans saves us money, saves us fuel and saves us CO2.”

By identifying areas of compliance, such as legislation and company procedures, and factors affecting cost to serve, including fuel and SMR costs, EDF has been able to systematically improve its performance while taking into account how individual areas influence each other.

No stranger to trialling electric vehicles, Pascall said EDF has also been testing the Smart, Toyota Prius and Mitusubishi i-Miev vehicles.

He believes they will enable EDF to reduce its carbon footprint even further, predicting improved per- formance and cheaper vehicles. 

“I believe by 2015 that if you’re running a fleet of small vans in London, or a similar-sized city, you will have as many as 5% of these vehicles on your fleet,” added Pascall.

Steve Helliwell - Amey Logistics

Challenging existing business practices and procedures and changing behaviour are the keys to running a competitive van fleet, according to a man responsible for managing nearly 40,000 cars, vans, LCVs and items of plant and equipment.

Steve Helliwell, managing director of Amey Logistics, the transport provision department of service support supplier Amey, said by driving less and driving in a different manner, the company hopes to cut its CO2 emissions by 10% this year – quite a target when you consider that fleet makes up 85% of Amey’s 50,000-tonne per annum carbon footprint.

Helliwell said: “A 10% reduction in fleet equates to £10 million on our bottom line.”

He added: “We have 10,000 employees who drive or use plant and machinery. The challenge is to get them to think about ways to spend less time driving to get the best use of the fleet, and we have got to give them the information to do things better. Ultimately, the objective is to reduce the number of vehicles we run and impact less on the environment.”

Gary Banister - United Utilities

As one of the largest utility companies in the UK, United Utilities’ head of transport Gary Banister is responsible for 6,000 drivers and 4,000 vehicles and items of plant.
And while implementing a policy for managing road risk may seem daunting, Banister says that is not the case.

He is about to roll out a simple system he has developed which ensures compliance across many areas of risk management through an online portal.

Called Travel Safe, the website and associated mobile communication is driven by the idea that users do not need complicated approaches, complex risk management expertise or legal knowledge to have a successful risk management policy.

Banister said: “This ensures our managers know what is required – we need to give them knowledge.”

Travel Safe offers best practice advice, a focus for all mobility
information, advice on health and safety priorities, a forum for driver updates and questions, a noticeboard for action plans and also controlling the audit process for vehicle and licence checking.

Rob Anderson - Van Best Practice Programme

Van fleet managers are being offered the chance to shape a new Government-backed programme which aims to offer advice, benchmarking and software in a bid to make their fleets more efficient.

The Van Best Practice Programme, funded by the Department for Transport, is aiming to improve the environmental, safety and operational performance of van users. It will operate as part of the Government’s Carbon Reduction Strategy, which aims to reduce the UK’s greenhouse gas emissions by 80% by 2050.

Rob Anderson, technical manager of the programme, said: ‘We are about to launch the programme but we want to know from van fleet operators how we can help them. This is about developing partnerships between us and the industry.’

The programme’s pilot scheme was launched in August 2008 in consultation with 12 fleet managers and this has shaped the version which is due to be launched in November through a new website ­ www.vanbestpractice.org.uk.

It will include specific guides on fuel management, van operations and van specification, case studies from other operators and email newsletters, as well as a software programme that lets fleet managers assess the fuel efficiency of their vehicles.

Anderson added: ‘Van fleet managers have the opportunity to shape this programme. We want to know how we can help.

‘We will be offering a software trial, which is a very simple spreadsheet that allows fleets to manage costs. We want fleets to use it for a few months and let us know if it is helpful.’

Fleets wanting to find out more information on the Van Best Practice Programme can email info@vanbestpractice.org.uk or call the hotline on 0300 123 1133, which will be operational from November.

Dan Evanson - Transport for London

Transport for London (TfL) is offering van fleets a free benchmarking service as part of its Freight Operator Recognition Scheme.

The service will allow van fleets operating vehicles in London access to data comparing their fleet operations with other, similar companies, on key performance indicators of fuel economy, safety and the number of penalty charge notices issued.

Scheme manager Dan Evanson said: ‘We are coming to the end of our pilot scheme, but we need more van fleet data to make the system more reliable. We’re very keen to liaise with fleets and discuss the system, and tailor it to them.’
Go to www.tfl.gov.uk/microstites/fors.

Elizabeth Box - RAC Foundation

A combination of road pricing, building extra capacity and a dedicated, non-governmental traffic department are essential if the UK is to avoid gridlock.

Elizabeth Box, head of research at the RAC Foundation, predicts that traffic levels will continue to rise by between 1% and 2% per annum from 2010.

The foundation’s modelling work predicts that by 2041 the UK’s population will have grown by 11%, with a similar increase in the number of vehicles on the road.

Box said: “We need to plan for growing traffic levels – doing nothing is not an option.”

The foundation is suggesting to Government that a combination of factors is needed to cope with increased traffic levels. Interim measures such as hard shoulder running (as pioneered on the M42) have proved effective, although there are safety concerns. 

National road pricing is another option, although it needs an independent body to show fairness.

Box added: “Drivers are paying a lot of money in taxes but are not getting the investment in roads – we need to look at having a different roads administration.

“We also want to see more investment in roads, but this has to be done within the environmental framework. We are talking to Government about this.”

Currently, the Government has pledged £6 billion in investment in the road network and £17 billion in rail. Box added: “Rail makes up 7% of travel – we want to see this split changed quite considerably.”

Paul Nash - PricewaterhouseCoopers

Fleets cannot simply live for survival in the economic downturn – they need to plan ahead to ensure they are in good shape for the future.

Paul Nash, lead partner, asset finance, at PricewaterhouseCoopers, said: “This is the most challenging time since 1980, and the challenges are extreme.

“However, it will get better and fleets need to look to the future. But by looking ahead they musn’t try and guess every detail – it’s about heading in the right direction.

“Fleets need to take decisions quickly and not dwell on them.”

Nash said that lending to businesses will not improve significantly for the next two years, and for small businesses the lack of credit is ‘very, very dire’.

As a result, fleets need to analyse their funding methods to ensure they are getting the most cost-effective option.
He added: “Leases are malleable, so make sure you pay only for what you want. Also, funding providers must be prepared to mould leases to what customers want.”

Dr Will Murray - Interactive Driving Systems

Managing work-related road safety is important to a company’s bottom line and its reputation, as well as in the legal context of duty of care.

However, firstly understanding whether it is the driver or management who is the main cause of work-related road collisions is vitally important.

“Many people immediately assume that it is the driver,” said Dr Will Murray, research director at Interactive Driving Systems. 

“But, in truth, both are equally responsible.”

A manager can determine a driver’s working day, his schedule and the time pressures he may be under, as well as determining safety standards, risk assessments and identifying best practice.

“Key to managing this is taking a systems-based approach and the first thing to do is to undertake a fleet review,” said Murray.

That should include: a compliance check against a good practice standard; cost analysis; benchmarking; risk assessment; and a safety climate survey.
 
Caroline Scurr - Driving for Better Business

Business loses £2.7 billion every year as a result of at-work road traffic accidents, according to Driving for Better Business (DfBB).

However, with companies still not accepting the road safety case, Caroline Scurr, campaign director at DfBB, said it was vitally important to illustrate the business case instead.
“Small changes for a relatively low cost can have a huge impact on your business,” explained Scurr.

The DfBB programme aims to highlight the business benefits through its Business Champions – fleets which have embraced initiatives that have both saved money and improved their safety record.

“These Business Champions understand the pressures of the industry; they understand the importance of reducing risk for their drivers even against the backdrop of economic turmoil,” said Scurr.

“The hidden costs can be crippling, especially for small businesses, and the damage to brand and company reputation can be irrevocable.”

Fleets must embrace a safety culture, as well as accident investigation and analysis. Risk assessments must be carried out and a safety policy and driver handbook should be regularly reviewed.

Ken Brown - CAP

Residual values have been through immense upheaval over the past 18 months, with prices collapsing before staging a recovery.

But what does the future hold and is this latest recovery the calm before a further storm?

“There are many factors which can affect price, but what it boils down to is demand, supply and quality,” explained Ken Brown, valuation manager, light commercials, at CAP.

Brown told delegates that CAP receives 1.5 million pieces of data about the used vehicle market each year and that he personally receives 8,000 pieces of data about the LCV market.

“Currently, most vehicles are selling, auctions are well attended, but there’s no doubt sales volumes are down,” said Brown.

CAP expects to see a steady period of growth in line with the economic forecast, but Brown added: “Let’s not kid ourselves; the limited supply of vehicles is what is keeping prices high at the moment.”

However, he was still upbeat about the market, urging caution only where prices were concerned on the effect that older vehicles coming on to the market may have.

Janet Entwistle - BT Fleet

Falling work volumes, the pressure to reduce costs and problems accessing additional capital have made it a difficult year for fleets.

However, in a rallying call to the fleet industry, Janet Entwistle, managing director of BT Fleet, said it was “time to look to the future”.

“Yes we are in a recession and many of you have been here before,” explained Entwistle. “But we will come out of it and it’s about time we started thinking about the implications of that.”

Many fleets are keeping their vehicles for longer and Entwistle asked if that was the right thing to do.

“Over the past 12 months I think anybody can be excused for saying ‘let’s sit tight’,” added Entwistle. “But, perhaps there are more intelligent ways of facing the issues.”

Longer replacement cycles bring additional challenges, especially when it comes to maintenance strategies and risk management.

“The reality, in terms of the real cost to your business, is that it is not good news,” said Entwistle.

Fleet operators need to consider the sourcing and supply of vehicles with manufacturers focusing on sustainability and how that may impact on the availability of vehicles in the future. 

In addition, they need to consider compliance, where current inspection schedules on an ageing fleet may not be fit-for-purpose, and mitigate maintenance risks.

Simply doing nothing was not an option. Fleets must engage with internal stakeholders and suppliers, prioritise replacements and refresh fleet replacement strategies.