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Social enterprise organisation First Ark has saved £210,000 by collaborating with Fleet Operations on a series of fleet initiatives, aimed at increasing value for money. These savings contribute to the commitment First Ark makes as a social enterprise to re-invest back into the local community.

First Ark’s partnership with Fleet Operations has helped to eliminate vehicle ‘spot hiring’ and has led to significant lease and insurance cost efficiencies across the company’s facilities management and refurbishment services division, Vivark.

[quote float="left"]Operational efficiency is paramount for First Ark as we strive to maximise our investment in local community initiatives

“Operational efficiency is paramount for First Ark as we strive to maximise our investment in local community initiatives,” said Angela Coffey, First Ark Value for Money and Procurement Manager.

 

“With Fleet Operations, we have exceeded expectations in terms of our fleet performance and have seen significant gains related to value for money.”

Following a reduction in the size and profile of Vivark’s fleet, from 176 to 132 vehicles, an internal widespread communications campaign was delivered to promote the new value for money initiatives and address vehicle ‘spot hiring’.

“The success of this campaign, which included one-to-one briefings with contract managers, was remarkable with efficient vehicle utilisation realised within just three months,” added Coffey.

“Our mobile Vivark staff now have access to a dedicated ‘helpdesk’ number for Fleet Operations, who now communicate regularly with them. Considerable time and financial and savings have been realised as a result.”

In addition, Vivark’s fleet risk policies have been reviewed by the fleet specialist and risk assessments have been carried out to ensure the organisation remains compliant with the latest health and safety regulations. A ‘permit to drive’ scheme, involving regular licence checks, has been rolled out across all grey fleet drivers while driver risk profiling, using telematics data, is set to deliver further improvements in road safety standards.

 

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Only one in ten companies (11 per cent) take total cost of ownership (TCO) into account when procuring vehicles, according to latest research.

Purchase price or lease cost ranked as the biggest consideration, selected by 64 per cent of companies, with vehicle reliability a priority for just a third (33 per cent), the study by fleet management specialist Fleet Operations revealed.

“Given the number of businesses that we talk to about the importance of using TCO, these findings were very surprising and suggest many companies may be incurring unnecessary fleet costs,” said Ross Jackson, CEO of Fleet Operations.

 

Although headline prices must be taken into account, TCO offers the most complete and meaningful evaluation for selecting fleet vehicles.[/quote] “Although headline prices must be taken into account, TCO offers the most complete and meaningful evaluation for selecting fleet vehicles. This calculation includes not only leasing and purchasing costs but all real-life costs over the period vehicles are retained – from depreciation, fuel, insurance and maintenance to interest, tax and employers NI.”

 

Almost half of the companies surveyed (46 per cent) said they were unaware of the correct formula for calculating TCO.

The study also found that more than a quarter (26 per cent) of companies have seen lease costs rise in the past 12 months. In spite of this revelation, more than a third (38 per cent) of those that lease vehicles do so using a solitary supplier.

“Lease costs can have a considerable influence on TCO but rising prices can be mitigated through competitive, multi-supplier, procurement practices,” Jackson added.

“Eye-catching deals on specific makes and models can lure companies, but a preferred sole supplier is unlikely to offer the best deals for all vehicles. Significant savings can be realised by searching the market for the best price on every vehicle. Although this can prove labour-intensive, it can be cost-effectively outsourced to a fleet management specialist.”

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In the wake of a BBC Panorama documentary highlighting the dangers of cognitive distraction among motorists, TomTom Telematics Director UK & Ireland, Giles Margerison, considers what road risk means for fleet managers and how it can be best managed.

More people than ever before are now being convicted for causing death behind the wheel of their motor vehicle – and the consequences of this for businesses can be severe.

Back in 2007, there were a total of 233 convictions for causing death by dangerous driving. That same year the offence of causing death by careless driving was introduced – and according to the Ministry of Justice, by 2013 the number of convictions for death caused by both dangerous and careless driving had reached 310.

In light of these statistics, and the alarming fact that around a third of all road traffic accidents are believed to be work-related, businesses need to take the management of road risk extremely seriously.

The long arm of the law

Employers, after all, have the same duty of care obligations for their mobile workers as they do for all their office site staff. The Health and Safety at Work Act requires them to ensure, so far as is reasonably practical, the health and safety of all employees while at work.

What’s more, the legal implications of the Corporate Manslaughter and Corporate Homicide Act should provide all the motivation needed for service fleet managers to ensure adequate road risk management systems are in place.

 

Courts can impose unlimited fines for Corporate Manslaughter convictions and the damage to a company’s reputation could have even graver implications. In addition to corporate exposure individual criminal charges, including manslaughter, can be brought against directors or ‘thinking minds’ of an organisation.

 

As for field service employees, under sentencing guidelines a driver can face up to 14 years behind bars for death by dangerous driving.

The Health and Safety Executive’s advice is clear – companies should ensure work-related road safety is integrated into wider arrangements for managing health and safety at work. To ensure risks are effectively managed they must address their health and safety “policy, responsibility, organisation, systems and monitoring”.

Fostering a safety culture

Simply ensuring drivers hold valid licences and that their company vehicles have valid MOT certificates is not enough to ensure their safety. Beyond the introduction of a company-wide health and safety policy, organisations must strive to achieve a cultural shift among their employees to make sure policies are adhered to. This is where fleet management systems have a big role to play – helping enforce behavioural changes and significantly modifying driver attitudes.

On a basic level, telematics can be used to monitor the number of hours a driver spends behind the wheel and enforce a policy of regular breaks. This however is just the tip of the iceberg, with driver performance tools allowing managers to monitor the behaviour of their mobile workers – providing data on factors such as speed, fuel consumption and even harsh steering or braking.

A survey by road safety charity Brake discovered people driving for business purposes are more likely to take risks on the road than the general driving population. For example, more than half (54 per cent) admit speeding on 60mph limit roads, compared with 34 per cent of non-work drivers.

Helping the driver

What’s more, the importance of being able to monitor and act on such data was highlighted in a recent BBC Panorama documentary that examined the dangers of cognitive distraction.Professor Paul Atchley, Cognitive Psychologist at the University of Kansas, revealed that drivers using hands-free device mobile phones, for example, suffer from a mental workload and that reduces their ability to deal with hazards on the road, increasing the likelihood of crashes.

 

Telematics systems that automatically send job details and route drivers to customer locations via integrated in-vehicle navigation devices can reduce this mental workload. They also empower drivers them by feeding live performance information to their in-vehicle navigation devices, enabling them to change their behaviour in real time.

 

In the office, managers can use the performance data to build accurate profiles for every driver and identify where their strengths and weaknesses lie, allowing training to be tailored to suit individual requirements. The opportunity to measure driver performance in a sustainable manner following training sessions also becomes a reality, protecting the business investment in meeting duty of care obligations.

Scotia Gas Networks (SGN), for example, reduced incidences of negative driver behaviour (speeding, harsh steering, braking or acceleration) from 1,600 a day to less than 400 after implementing teleamtics technology.

Although there can occasionally be resistance from staff with such systems involving in-depth performance analysis, this can be overcome if they are positioned correctly and implemented with employee involvement.

Consultations should be held with staff throughout the process and open lines of communication maintained. Incentives offered for improvements in performance can also result in healthy competition among staff.

By understanding their obligations and committing to road safety, service companies can stay on the right side of the law, safe in the knowledge they have secure business future.

City West Works was established as a subsidiary of City West Housing Trust in April 2013 and carries out maintenance works on the housing association’s 14,600 homes across West Salford.

In its first year, the City West Works carried out almost 50,000 repairs jobs and answered more than 150,000 calls in its service centre.

The challenge

City West Works has a range of tradesman from roofers to electricians working in their team, all playing key roles in maintaining strong customer relations and working to improve customer homes. With many tradesmen on the road daily, City West Works needed a solution that could not only track their location but help reduce CO2 emissions and rising fuel costs.

The solution

Masternaut offered City West Works a solution that could provide benefits above and beyond simple vehicle tracking. Masternaut’s solution can monitor for poor driving habits through a points system where drivers are scored against vehicle economy and driving behaviour, alerting them to any bad manoeuvres they make.

Co-ordination challenges were also minimised with at-a-glance visibility of vehicle whereabouts at any given time.

The outcome

Since implementing Masternaut’s solution, City West Works has seen economical improvements in employee driving habits.  The solution has been installed across 105 of City West Works’ vehicles, with a plan to extend the contract for another two years.

Managers receive weekly email reports that accurately monitor and record the behaviour of their drivers and determine those who are exhibiting the best driving performance. Poor driving habits such as harsh; cornering, breaking, acceleration and speeding are all measured and put forward in these reports. Managers can then approach drivers performing poorly and discuss ways of improving their driving with guidance from Masternaut. These reports not only helped the managers gain a good overview of their team’s driver behaviour but also aided with their KPIs.

The Masternaut solution also provides an additional HR benefit with managers being able to remotely monitor their employees’ location in real time therefore providing added security. The solution can also help provide evidence against claims where customers state a tradesman has not turned up to a job.

Commenting on the results John Ashworth, Facilities Officer at City West Works said:

“Cutting down CO2 emissions and reducing fuel costs have been high priorities for us. We’ve saved just short of £17,000 in fuel alone and reduced CO2 emissions by 40.6 tonnes thanks to Masternaut’s solution. The reports Masternaut provide us with allows managers to see how drivers are wasting fuel and put a stop to this. Since April last year we have also started receiving a second report from Masternaut on a month to month basis showing how much fuel and Co2 savings we have made.

We chose Masternaut following a full process and when compared against competitors, Masternaut was the overall better choice against other tenders.” 

 

Giles Margerison, TomTom Telematics’ Director UK & Ireland, considers how field service firms can best organise their resources to cope with the holiday season.

The arrival of summer usually receives a warm welcome on these shores but that's not to say it's without its challenges.

Field service companies, in particular, face the often taxing issue of ensuring service levels don't drop below expected standards during a period of resource instability.

The need for smart planning to cope with staff holidays is made ever more pressing by the continued growth of the service sector, as economic recovery keeps gathering pace, and the shift from a transactional to a relationship economy.

Customers expect higher standards of customer service and expertise from field workers than perhaps ever before and those companies capable of meeting this demand will be best equipped to thrive in an increasingly competitive marketplace.

Data as the foundation for good planning

Of course, good service delivery relies upon effective planning. On a basic level this means coordinating holidays with expected workloads to ensure staffing and skills levels remain sufficient through the summer period.

But there is a need for organisations to become ever more sophisticated in order to cope with the changing face of the UK economy and this is where 'big data' can help.

Armed with the appropriate data, it is possible for field service companies to work out how many jobs their staff are able to attend in a day, accounting for factors such as time spent on the road journeying between jobs.

For example, using routing and scheduling software integrated with real-time data from telematics allows working schedules to be optimised, planning each mobile worker's day to ensure they spend as little time as possible out on the road.

Once work schedules are finalised, the details can be sent to each worker's in-cab navigation device, with navigation automatically loaded to send them along the quickest route, taking into account the effect of traffic flow, roundabouts, traffic lights and other obstacles.

Shifting scheduling from static to dynamic

Variables such as traffic or the emergence or unexpected, urgent call-outs can throw a spanner in the works, hence the need for  dynamic methods of planning.

Rather than setting workflow schedules in stone at the start of each day, field service organisations might be better served by planning on the fly with real-time information in order to make better use of resources and ensure the absence of staff isn't felt.

As such, telematics systems are able to make use of live traffic information to provide accurate times of arrival. If a worker gets held up severely by traffic or a delay in their previous job, the next most appropriate colleague can be dispatched in their place, or at the very least customer expectations can be managed.

Similarly, in the case of emergency call-outs, the system will automatically allocate the best-placed person to take the job, according to the time it will take them to arrive on site, rather than merely distance.

Dynamic schedules can also be tailored to complete both high-priority call-outs and low-priority, scheduled appointments in the most efficient manner. For example, if a worker is called to an urgent job on the same street where a regular visit is planned for later in the week, it often makes sense to complete both jobs at once, reducing the number of man hours wasted.

There's an app for that

Such dynamic scheduling takes into account staffing levels, availability and a host of other factors to ensure the available resources are most efficiently used but doesn't necessarily address any skills shortage that might occur when temporary staff are drafted in during the summer months to help service demand.

However, you’ll be pleased to know ‘there's an app for that'. The remarkable acceleration in the development of business technology means mobile workers can now benefit from a number of applications designed specifically to take advantage of logging workflow and process on one device, which makes their lives easier.

These apps, for example, allow the driver to conduct daily vehicle checks on their driver terminal or tablet device, ticking off each element on a pre-defined list before the details are sent automatically to the office for their records.

Once this is completed, the driver's workflow can be automatically loaded to their device, with navigation queued up for each job as necessary.

Upon arrival at a site, the worker will automatically be sent full details of the job along with any manuals that are required, ensuring they have the requisite knowledge at their fingertips.

There is such a range of technological solutions now available that companies can ensure whatever system is implemented will be tailored to the precise needs of the organisation, the industry and the customer.

End-to-end business systems, which build a seamless link between field and back office, remove the element of uncertainly that might have previously surrounded summer staffing and allow field service companies to deliver year-round, uninterrupted, first-class service.

 

As the organisers of the Field Service Solutions Theatre at this year’s Service Management Expo, Field Service News was on hand to speak exclusively to a number of leading industry professionals straight as they stepped off the theatre podium. In this video series we are pleased to bring you the highlights from the Field Service Solutions Theatre.

Here we hear from Giles Margerison, Director with TomTom Telematics discuss what exactly is meant by the term end-to-end field service.

Masternaut, one Europe’s largest provider of telematics solutions, has been working with logistics firm Currie European since October 2008, delivering both vehicle tracking and driver behaviour monitoring functionality to the business.

The deployment has generated a marked uplift in the productivity of Currie European’s fleet, which operates across the whole of Europe and was awarded the Transport News Scottish European Haulier of the Year award for 2014.

Masternaut’s system has facilitated improved fleet planning, with at-a-glance visibility of every vehicle enabling the organisation to cut down on wasted journey time while sharing exact whereabouts of vehicles and expected arrival times with customers. The driver behaviour module has also allowed Currie European to monitor the safety of its drivers, highlighting habits such as speeding or vehicle idling in order to deliver preventative measures and issue training where necessary. As a result, Currie European has recently renewed its contract with Masternaut for a further five years.

Steve Walls, Business Systems Director at Currie European, comments: “Masternaut’s system has had a huge impact on our business. Since bringing on the solution in 2008, we’ve been able to significantly improve the operational efficiency of our fleet.”

“Improving our productivity has had a knock-on effect on customer service; we can ensure we always reach our customers in time, while keeping them better-informed en-route. What’s more, we share this fleet intelligence directly with customers, allowing them to view exactly where our vehicles are on a map-based interface generated in real time by Masternaut’s data, via our customer portal.”

Martin Hiscox, chairman and CEO of Masternaut, adds: “Managing the efficient coordination of a fleet the size of Currie European is no easy task.  By using our solution, Steve and his team are exemplifying how telematics can be used to not only drive tangible business benefits back to the organisation, but also to deliver significant service improvements to its own customers.

As Currie European goes from to strength to strength, we look forward to a continued successful partnership as we enable the business to keep tabs on its ever-expanding fleet.”