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More than a quarter (27%) of transport professionals who attended the FTA Transport Manager events said they do not have the systems and technology in place to benefit from the DVSA’s Earned Recognition scheme; and a further 15% do not know if they have.

The survey findings are based on responses from more than 900 delegates who have been attending the conferences taking place up and down the country since September, finishing in Coventry this month.

The DVSA’s new Chief Executive Gareth Llewellyn confirmed in September that transport service providers will need technology in place to enable the sharing of information to take full advantage of the scheme, due for launch in 2017.

Hinging on next generation enforcement, operators will be able to achieve Earned Recognition status by sharing tachograph and maintenance data with the DVSA. Exemplar transport service providers would then not be engaged at the roadside, reducing delays and associated costs.

The survey also uncovered which technologies transport professionals feel make the biggest difference in supporting compliance; and how they gauge liability following an incident.

 

The majority (32%) felt that digital walk-around checks make the biggest difference for compliance, with driver hours visibility and alerting (24%) and remote digital tachograph download (15%) the second and third most influential technologies.

Meanwhile 66% said they use video, telematics or integrated telematics and video to gauge liability following an incident. Just over a quarter (26%) take their drivers’ word as the main source of evidence; and just 7% use an external accident investigation service.

“It’s great that almost half of those who responded at the FTA Transport Manager conferences have got the technologies and systems in place to take advantage of Earned recognition next year. But it still leaves a large proportion who aren’t sure, or know they aren’t ready,” said Matthew Hague, Executive Director – Product Strategy, Microlise. “I believe Earned Recognition will be a game changer for compliant operators – delivering a real competitive advantage for those that are ready.”

Existing Microlise fleet management solutions which can benefit operators with compliance include Remote Digital Tachograph Download, digital vehicle walk-around checks and tools to ensure optimum vehicle health and record keeping.

 

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Faced with high fuel costs, congestion, driver shortages and changing delivery patterns, the UK road transport industry has to change radically to improve profit margins and survive. Servitization is the solution, recommends this report by Eleanor Musson and Dr Ali Bigdeli  of the Aston Centre for Servitization Research and Practice

The road transport industry is crucial to the UK economy; 68% of freight goods are moved by road according the UK's Department for Transport Transport Statistics 2014. But the industry faces the challenges of fuel costs, driver shortages, congestion and regulation. Moreover changing consumer behaviour in the UK is turning the industry on its head; 74% of adults bought goods or services online in 2014, compared with 53% in 2008, according to the Office for National Statistics, Internet Access in Households 2014, and the demand for flexible, fast delivery is growing rapidly according to the Guardian newspaper.  These are just some of the factors behind the low profit margins in the industry: 3% for operators , reports the  Freight Transport Association in its 2014 Logistics Report,  and 6% for manufacturers.

This industry has to change radically. There is little to be gained from piecemeal changes to products or pricing; the customer’s priorities and requirements must be placed at the heart of operational strategies. This is achieved through what we call advanced services, which are implemented in an organisation through servitization. Advanced Services are provided by manufacturers and technology innovators with an intimate understanding of the customer’s business priorities, and their difficulties in achieving these. They are a package of a product, and the services that go around the use of the product, consumed as a single offering, which help the customer achieve its requirements.

In order to understand how advanced services and servitization are being adopted in the road transport industry, we interviewed a panel of senior executives from within vehicle manufacturers, component manufacturers, operators, fleet management companies and technology providers, and we outline some of our findings here.

There are three categories of advanced service currently been offered in this industry: [ordered_list style="decimal"]

1. The first is vehicle condition and safety related services. Real-time reporting about the condition and performance of the vehicle helps the service provider (e.g. manufacturer, fleet management company) to see how the vehicle is being used by the customer, which mitigates the contractual risk and gives opportunities for service and product improvement. Data are used to help fleet managers monitor costs and identify problem vehicles, either by sharing the information with the customer, or by the manufacturer providing this function as a service. For fuel efficiency and safety, manufacturers test tyre pressure and tread depth, with real-time reporting to alert drivers to problems, and service operatives on hand to make repairs or replacements.
2. The second type of services is driver-related services. Through the use of telematics, the manufacturers and operators are able to assess how the truck is being driven, to examine any incidents such as harsh breaking, speeding and idling, and to inspect driving and rest periods. This data is analysed to identify training requirements and in some cases pay performance bonuses.
3.   The third type is route planning and delivery services. Real-time reporting allows operators to manage routes, taking into account live road conditions. Data on deliveries made compared to schedule and route information enable managers to identify opportunities for improvement.

Advanced services have a three-fold impact in the industry:[ordered_list style="decimal"]

1. Efficiency
   The greatest efficiencies are achieved by maximising the uptime of vehicles, planning routes efficiently, and processing orders. To illustrate:
   • The use of technologies and data by skilled route planning staff reduces mileage driven by up to 10%
   • Uptime is maximised by reducing roadside failures thanks to greater visibility of the vehicle, its condition and how it’s being used
   • Operators can expect at least a 5-15% reduction in vehicle maintenance and service costs as a result of condition monitoring according to telematics specialist Microlise
2. Safety and better image
   Driver-related services have had a significant impact on driving standards, and in turn the image of operators and the industry. In this regard:
   • Microlise reports customers see annual reductions in speeding incidents of up to 90%, and a reduction of up to 60% in the number of accidents.
   • The same report states operators are seeing a 5-15% reduction in carbon emissions as a result of optimised routes and better driving.
3. Cost Savings By enabling improvements in driving performance and better, more informed route planning, technology is helping to deliver cost savings in terms of fuel usage. According to the Freight Transport Association's Manager's Guide to Distribution Costs, fuel represents on average of 30% of the cost of a vehicle . The average unit costs £49,000 per year in fuel. Microlise reports an average 10% (£4-5000) saving on each unit’s fuel consumption being achieved by customers using driver management and training tools.

Recommendations

While the leading organisations demonstrate what can be achieved, our research demonstrated that advanced services are not being adopted universally or uniformly in this industry. In order to accelerate this, we recommend that manufacturers ensure advanced services are properly led and embedded. Servitization is a wide ranging, complex process that requires transformation and coordination of an entire organisation. In most companies, it doesn’t fit neatly within the realm of one department. Just like any other organisational change, servitization needs a champion to lead it and generate buy-in across departments.

Servitization provides an opportunity to ‘be closer to the customer’ which can also be facilitated by innovative pricing models which assure the prospective service user of the level of commitment, and create alignment of objectives between service provider and user. Selling and supporting services is a very different proposition to selling products, requiring different skills and reward structures. Manufacturers will need to invest in training their staff, and consider the incentive and reward structures that will generate the desired outcomes.

The full whitepaper report Delivering Growth can be downloaded here:

 

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A new industry body is aiming to improve standards across British business fleets by establishing best practice in the use of fleet data.

Fleet Data Insight brings together thought leaders from across the fleet industry, including both operators and suppliers, to share practical advice about using data to achieve operational excellence in fleet performance.

Founded by TomTom Telematics, alongside partners Zurich, the FTA and the Energy Saving Trust, Fleet Data Insight will meet twice a year, using the collective knowledge and experience of its participants to create a series of free best practice advice guides.

Each forum will be independently led by Real World Strategy and the guides will aim to provide practical information in a multimedia format. The community will also be invited to continue the discussion online via Twitter and the Fleet Data Insight LinkedIn discussion group.

The first forum meeting focused on using data to manage risk and brought together fleet professionals from a number of prominent organisations, including Skanska, Sainsbury's, Iron Mountain, Fife Council, BT Fleet, Waitrose.

"The core ethos of Fleet Data Insight is to co-create value and best practice for the industry, by the industry and to promote excellence in data-driven fleet management" said Peter Button, Chairman, Fleet Data Insight.

 

"A vast amount of data is now available to fleet managers, so it is essential they are provided with the right guidance and advice to enable them to get the most out of it," said Irvin Gray, Senior Marketing Manager, TomTom Telematics (founding partner). "We are confident that with the gold mine of experience and best practice our partners and contributors bring, we can give fleet operators the tools they need to become more efficient, safe and profitable."

"Identifying the right data and using it properly is essential in today’s fleet. The Fleet Data Insight group addresses this need in a new way – co-creating valuable best practice and sharing this with the industry through developing a community."

Operators are invited to join the conversation in the Fleet Data Insight LinkedIn discussion group. More information can be found at www.fleetdatainsight.com where you can apply to join the next event, join the community and download the best practice guide. The forum's first free guide on managing fleet risk together with some best practice videos from the forum are available now.

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