New Fleet Performance Mgmt Tool

7/28/2019 New Fleet Performance Mgmt Tool

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Fleet Perormance Management

Tool Incorporating CO2

Emission

Calculator

Guide

2009 Edition


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ForewordFreight Best Practice is unded by the

Department or Transport and managed by

AECOM to promote operational eciency and

reduce environmental impact within reight

operations.

Freight Best Practice oers FREE essential

inormation or the reight industry, covering

topics such as saving uel, developing skills,

equipment and systems, operational eciency

and perormance management. All FREE

materials are available to download rom

www.businesslink.gov.uk/reightbestpractice

or can be ordered through the Hotline on

0300 123 1250.

Disclaimer: While the Department or Transport (DT ) has made every eort to

ensure the inormation in this document is accurate, DT does not guaranteethe accuracy, completeness or useulness o that inormation; and it cannot

accept liability or any loss or damages o any kind resulting rom reliance on the

inormation or guidance this document contains.
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IntroductionFreight Best Practice is unded by the Department or Transport and oers FREE and impartial advice to

enable eciency savings.

All FREE materials are available to download romwww.businesslink.gov.uk/reightbestpracticeor canbe ordered through the Hotline on 0300 123 1250. We would welcome comments on use o the tool and

suggestions or improvement: please email [email protected] to give us your thoughts.

Freight Best Practice has produced a ree interactive download called the Fleet Perormance Management

Tool. This practical work based resource has been updated rom the previous spreadsheet version to help

you to implement best practice in your day to day activities. The new 2009 edition tool is a ull application

designed in Vbnet and allows you to monitor your perormance or any number o vehicles, over any

number o years and includes the ability to measure new Key Perormance Indicators including the cost

o PCNs and FPNs, engine idling time and percentage o deliveries on time in ull.

Who Is the Tool Aimed At?The Tool is designed or any organisation that runs a eet, whatever its size and wants to monitor how

well it is doing against Key Perormance Indicators such as mpg and cost per mile. The tool can be used to

record data and produce output reports, graphs and charts.

Installing the Tool

I You Have a Hard Copy o this Guide

To install the Fleet Perormance Management Tool rom the CD in the pocket at the back o this guide

double click on the le marked install, select the number o periods you would like to work to within

each year and ollow the instructions. The tool will work or a year that consists o 12 or 13 periods.

Depending on your accounting procedures, you can choose to work with 12 calendar months or 13 equal

periods o our weeks The tool will automatically install any background sotware (reeware) required to

run rom Microsot. This may require you to input the administrator password or your computer (i you

are unsure what this is speak to your IT department/provider).

Figure 1: Homepage o the tool
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I You Have Downloaded this Guide

To download the FREE Fleet Perormance Management Tool, register or log on to the Resource Centre

owww.businesslink.gov.uk/reightbestpractice. Once you have logged onto the Resource Centre

click on the Fleet Perormance Management Tool. Download the appropriate version o the tool rom the

website.

I You Have Already Downloaded the Tool rom The Website

To install the tool ater downloading rom the website save the tool on your desktop, double click on the

le and ollow the instructions. The tool will automatically install any background sotware (reeware)

required to run rom Microsot. This may require you to input the administrator password or your

computer (i you are unsure what this is speak to your IT department/provider).

One You Have Downloaded the Tool

The Tool will open to the Main Menu as shown in Figure 1. From here you can select which KPIs you wish

to record, input details or your vehicles and start to monitor your KPIs (see Chapter 2).

Measuring Key Perormance Indicators

The enhanced Fleet Perormance Management Tool allows you to actively record Key Perormance

Indicators (KPIs). Perormance measures, or KPIs, are essential tools to help you to manage your business

eectively. Examples include average miles per gallon, maintenance costs or your vehicles and average

cost to deliver a load. By monitoring this inormation you can understand your business costs and decide

where to ocus your eorts to maximise protability. KPIs also provide a consistent basis or measuring

transport eciency across dierent eets and depots, comparing like with like.

The enhanced Fleet Perormance Management Tool allows the recording o up to 30 separate KPIs. You

can choose which KPIs to measure according to how the requirements o your business.

There are 6 KPI Groups:

Cost

Operational

Service

Compliance

Maintenance

Environmental
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How You Can Use the Fleet Perormance Management

Tool to Improve Your Operations Perormance

The Fleet Perormance Management Tool aims to lead the way in encouraging operators to measure and

reduce their costs, uel consumption and CO2

emissions.

The Fleet Perormance Management Tool helps you to record the actual and continuing perormance o

your eet o vehicles. The quality o the inormation produced by the Fleet Perormance Management

Tool depends on the amount o inormation you submit to the tool - the more you put in, the more you

will get out.

Setting targets or your business to achieve will ensure that high standards are maintained and new

eciencies are realised. For example, you may want your operation to achieve 8MPG. This will be your

target or this KPI. The Fleet Perormance Management Tool can compare the perormance o all your

vehicles against this target allowing you to see which vehicles are underperorming or exceeding the

target set and determine a strategy or improvement.

Continuous data entry into the Fleet Perormance Management Tool will allow you to view your

operations perormance over a period o time. This could show improvement or otherwise. The Fleet

Perormance Management Tool also enables you to view the perormance o individual vehicles and o

your whole eet.


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Quick StartTo start the tool go to your Start Menu and within your Programmes select Freight Best Practice and click

on the Fleet Perormance Management Tool.

Figure 2: Start Up

Basic Commands within the Tool

Help

The tool includes a help system - i you want to know what any input or KPI means simply select the

ollowing symbol rom the top right corner o the sheet click on the heading (or press F1 i you have

clicked with the box) and a short explanation will be provided.

Saving

Whenever data is submitted, you will need to save it. For adding new vehicle inormation, click Add. For

Weekly Input, click Save.

Printing

Where reports and charts are printable, there is a print icon available to click on. It looks like this

Once this button is clicked, a print preview screen appears. This screen will show what the print will look

like.

Deleting Inormation

To delete inormation either delete as you would normally or use the ollowing symbol:


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Import / Export

On the right hand side o the main menu the Import / Export button allows you to download all the

inormation rom the tool to any location within your computer. You can use this to back up your

inormation (in case your computer crashes), or to email inormation easily to another depot.

Identiy Your KPIsThe Fleet Perormance Management Tool allows you to select up to 30 KPIs. You can select as many KPIs

as are relevant to your operation. Not all o the KPIs will be useul to all operations so the tool enables you

to choose to monitor the measures o most relevance to your business.

Table 1 lists the KPIs included in the tool along with a brie description and the unit o measure.

Table 1: Select which KPIs you want to measure by clicking on the KPI Selection button within the

tool.

Cost

KPI Unit Description

Average Cost per Unit Delivered Average cost o delivering a specied unit

Total Whole Vehicle Cost Pence/mileTotal cost o your eet per mile, incorporating

running, standing and driver costs

Average Running Cost Pence/mileThese are the costs incurred or running the vehicles

(uel, tyres and maintenance)

Average Standing Cost Pence/mile Standing costs are those incurred whether or not thevehicle is running depreciation o the vehicle, road

und licence, operator licence ees and insurance

Average Driver Cost Pence/mile Average cost o drivers wages per mile

Total Maintenance Cost Pence/mile Total cost o maintaining the eet per mile

Total Cost o PCNs and FPNs Total cost o Penalty Charge Notices and Fixed

Penalty Notices

Operational


Average MPG MPG Average cost o delivering a specied unit

Total Miles RunThousand

Miles

Total cost o your eet per mile, incorporating

running, standing and driver costs

Total Empty Miles RunThousand

Miles

These are the costs incurred or running the vehicles

(uel, tyres and maintenance)

Percentage Empty Running Total %

Standing costs are those incurred whether or not the

vehicle is running depreciation o the vehicle, road

und licence, operator licence ees and insurance

Percentage Average Vehicle Fill% Average cost o drivers wages per mile


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Percentage Average Time

Utilisation% Total cost o maintaining the eet per mile

Engine Idling Time MinutesTotal cost o Penalty Charge Notices and Fixed

Penalty Notices

Service


Percentage o Late Deliveries % Percentage o late deliveries made by your eet

Percentage o Damaged

Deliveries%

Percentage o deliveries made by your eet where

the goods were either missing o damaged

Percentage o Complaints %Percentage o deliveries made that resulted in a

complaint o any nature

Percentage o Deliveries OnTime In Full

% Percentage o deliveries made by your eet thatarrived on time in ull (OTIF)

Compliance


Total Number o Overloads # Total number o overloads in the eet

Total Number o Vehicle Trac

Inringements# Total number o trac inringements in the eet

Total Number o Drivers HoursInringements

# Total number o drivers hours inringements in theeet

Total Number o Trac Incidents #Total number o trac accidents/incidents in the

eet

Total Number o Load Shed/

Load Shit Incidents#

Total number o load shed/load shit accidents in the

eet

Number o Incidents per

100,000 miles#

Total number o incidents (including trac incidents,

load shed incidents, RIDDOR and recordable

incidents) over 100,000 miles o eet running

Number o Standard OperatingProcedure Failure # This KPI can be used to record operating procedureailures as dened within the business

Maintenance


Percentage o Failed Inspections %Percentage o ailed or overdue saety inspections by

your eet

Percentage o Deects Rectied

Within 24 Hours%

Percentage o vehicle deects reported by drivers

that are rectied within 24 hours


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Environmental


Total Fleet CO2

Tonnes Total CO2

produced by the eet

Average Fleet CO2

Kg/kmAverage CO

2produced by the eet or each kilometre

travelled

CO2

Intensity

Kg/unit

carried per

km

per km Average CO2

produced by the eet or each

unit carried per km

Inputting Data

There are two places within the tool where data should be input. The rst is Vehicle Input which collates

all the details about individual vehicles such as their size, type and xed costs. The second is Weekly

Input where you can input operational and cost inormation or a particular week. In either input, it is not

necessary to record every piece o inormation i it is not relevant.

Vehicle Input

The rst step is to enter the details o the vehicles that will be monitored; this is done through the Vehicle

Input. There is no limit to how many vehicles can be input.

The tool does not dierentiate between dierent vehicle types - in terms o either data input or

report outputs. This is important because, i you run a mixed eet, the analysis will have to take into

consideration dierent outputs or dierent vehicles (i.e. a larger vehicle may have dierent uel

consumption rom a smaller one, so thereore direct comparison is not advised).

Vehicle details may be entered in any sequence. However, i you want outputs to be grouped, or

instance, by vehicle type, then these details should be entered in the same order you would like them to

appear.

Further vehicles can be added at any time. I a vehicle is removed rom service simply edit the vehicles

details by clicking on Vehicle List and the edit button or that vehicle and enter the date out o service.

The Vehicle

First o all you are required to enter a Registration Number; this number will be used as a reerence or this

vehicle throughout the tool. Whilst you would normally enter the Vehicle Registration Number, i you use

a dierent reerence system (i.e. a Fleet Number) you can also use this so it matches your existing records.

Once a vehicle is given a unique reerence number you need to enter the make o the vehicle and the

type o vehicle. This is done by using drop down menus; i you cannot nd your vehicle make and/or type

you can add a new make/type by clicking the button next to the drop down menu.

Depending on the vehicle type you have selected you can then enter the Gross Vehicle Weight o the

vehicle.

Payload

Following the vehicle details you need to enter inormation about the type o payload the vehicle carries.

First o all you enter the maximum possible amount o a given payload, ollowed by the type o payload.


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The type o payload is entered using a drop down

menu; i the payload you use is not there you can

enter a new payload type using the Add New

Payload Unit button.

I your vehicle uses a mixed payload you might

want to consider creating this option using the

Add New Payload Unit option.

Service Length

To enter the date into service o the vehicle

you click the drop down list and navigate the

calendar provided. Ater this you should enter

the planned lie o the vehicle in months.

Odometer

The tool will accommodate vehicles with

odometer readings in either kilometres or miles.

However, to ensure that outputs are calculated

correctly, you need to speciy which unit o

measure you are using.

Engine and Fuel Type

As part o the new environmental KPIs, you can

now enter your engine type and uel type. These

are both selected through a drop down list. For

vehicles which use more than 1 type o uel select

Hybrid rom the list.

Depot Selection

I you or your company operates multiple depots

you can now assign a depot to a vehicle. This is

or comparison between depots, adding an extra

level o analysis.

Operating Cost Inormation

Fixed operating costs can be recorded within the

vehicle input section o the tool.

First o all you can record whether the vehicle is

purchased or leased. This will set up dierent

elds in which to enter data depending on the

choice.

Depending on whether the vehicle is leased or

purchased will determine whether you enter

the purchase price or the monthly lease or thevehicle. I your vehicle is purchased you will

need to enter an annual depreciation. Annual

deprecation is a xed percentage o the purchase

price less the anticipated residual value. E.g. a

ve-year vehicle purchased or 40,000, with an

expected residual value o 5,000 would have an

annual deprecation o 7,000:

40,000 - 5,000

5

Where trailers are permanently allocated to

articulated tractor units or rigid vehicles, their

depreciation cost should be added to that o the

drawing vehicle. I a number o trailers are shared

between drawing vehicles, calculate the average

trailer depreciation cost per drawing vehicle and

add that to each drawing vehicles depreciation

cost.

The tool does not include any way o allocating

an overhead cost (yard space, management,

trac oce, etc.) against each individual vehicle.

Where these gures are known and used, they

can be added to the values entered or individual

vehicle depreciation - i this is helpul. It is crucial

to understand that, unless costs or overheads are

included, the outputs rom the tool should not be

used directly or costing jobs:

Road Fund Licence (RFL): enter the annualcost o Vehicle Excise Duty (VED)

Operator Licence: enter the cost o the

specied vehicle ee. Do not enter the cost

o applying or or amending/renewing the

companys Operators Licence

Insurance: enter the annual cost

Other vehicle costs which remain the same

(or similar every week) can also be entered.For example maintenance costs (i you have

a maintenance contract) or driver costs i you

usually use the same driver or that vehicle and

his/her remuneration is xed.

Standard Driver Costs can be entered in the

relevant box speciying their standard hours

and cost per week. Planned maintenance costs

and tyre costs can be entered within the Fixed

Maintenance cost section. These are entered in

weekly units simply divide your annual cost by52.


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To import this data when you are carrying out

your weekly input simply click the Use Deault

button. Data can be modied i required. I you

are working with the 12 period version o the tool

or months which have 5 weeks you will need to

amend that data as appropriate or the 5th (and

shorter) week o the month.

Weekly Input

Each week you will need to input data or each

vehicle in turn. Accessing Weekly Input will

allow you to enter the necessary data. Within this

option you can pick the vehicle and operating

week to enter data.

It may be easier or you to enter data on a

monthly basis; this could apply to costs such asuel and maintenance where such expenditures

might occur on a xed monthly date. Where this

situation arises you can either split the monthly

cost over the weeks in that month, or you can

simply add the cost into the nal week o the

month.

N.B. I choosing to enter monthly costs in the

nal week, this will aect weekly reports and you

have to consider this in the interpretation o your

results.

Within the weekly inputs you then have 7

dierent areas where you can enter data. You

can access each area by clicking on the tab with

the relevant heading. I you are not recording or

certain KPIs you can leave some areas blank.

Distance & Time

This section requires trip data in the orm o

distance travelled and time spent travelling and

working. You enter data rom your Odometer

(remembering to enter this data in Kilometres

or Miles dependent on the type o odometer)

or the start o the working week and the end,

including the distance the vehicle travelled

empty.

In dening what Empty means you have decide

how this applies to both mileage and what the

vehicle is carrying at the time the vehicle is

Empty. In terms o mileage you have decide

whether Empty Mileage is:

From the last drop o to the vehicles base

in an own account operation; or

From the last drop-o to the next pick-up

or a hire and reward operator.

In determining what Empty means you have

to decide whether you are going to take into

consideration packaging, pallets and rubbish

rom the deliveries, and whether this constitutes

a load or not. Whatever you decide it has to

remain consistent throughout all vehicles and

inputs.

Ater determining the distance the vehicle

travelled you must then determine the amount

o time that vehicle was available that week, the

amount o time it spent working, and the total

time the vehicle was idling.

Drivers

As covered on page 6 it is possible to enter

standard driving inormation or any vehicle.Under the Drivers tab you can import this

inormation to save you re-entering this every

week; you do this via the Use Deault button on

the right hand side o the page.

You can also edit this data once it is imported.

Otherwise select the driver type (agency or own

sta) and enter driver hours and costs in the box.

You can enter either the drivers wages or

their total cost including holiday pay, nationalinsurance and pension contributions according

to the requirements o your business.

Fuel

This tab is or entering what type o uel has been

used, how many litres used, and how much has

been spent on uel.


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Maintenance

Similar to the Drivers tab, this inormation can be

imported rom the vehicle details, and modied

as necessary. The dierent types o costs

recorded are planned maintenance, unplanned

maintenance and tyres. Select the type o

maintenance using the drop down menu.

Other Costs

Enter all other costs that would not be covered

under xed costs, maintenance, uel or driver

costs, this includes seven dierent types o

cost; Accident Damage, Adblue, PCNs, FPNs,

Congestion Charge, Low Emissions Zone and

Tolls.

Operational

Enter the number o trips completed by the

vehicle. A trip begins when a vehicle leaves the

depot and nishes when it returns. Trips are

important as they measure how much activity a

vehicle has done that week, which is integral to

the outputs rom the tool.

You also need to enter the units carried (i.e.

volume o goods) or the whole week using

whichever units you chose or the vehiclespayload.

I you carry mixed goods, you may have derived

your own unit o measure. For example, a stillage

with dimensions o 2 x 1.2 metres could be

regarded as two pallet equivalents. I this is the

case, you may wish to record what was actually

carried in Comments.

Enter the number o deliveries and collections

or the week. I your vehicles deliver or collectmultiple orders at a single point or customer, this

should be counted as one delivery or collection.

Customer service entails the number o deliveries

or collections that:

Were out o their designated time window,

i.e. late Late deliveries

Were either missing or damaged at the

point o delivery Damages

Resulted in a complaint o any other nature,

e.g. wrong type o vehicle, driver conduct,

etc. Complaints

Were on time and in ull OTIF

Compliance

Compliance data indicates how well the eet

complies with legislative requirements governing

its operation and the saety o those who drive

the vehicles.

For each incident type or inspection due /

overdue simply select the type rom the drop

down box and enter the number or the week.

OutputsThe results o data entry can be displayed in

tables or as graphs and diagrams. The charts are

generated automatically by the tool. A chart is a

very eective way o setting out all the data and

is easy to use and print.

Outputs are reported weekly, monthly and yearly.

These reports allow you to study the outputs

rom the tool in some detail. This can be very

useul when undertaking such tasks as budgetingor planning or the uture.

A number o KPIs are also available as graphs and

diagrams. The charts are automatically generated

and are a very eective o setting out all o the

inormation. They are easy to use and print.

Figure 3


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What to Do with

the ResultsThe inormation in the KPI Report is designed

to provide you with an overview o essentialinormation on the perormance o your vehicles.

This section explains how you can use the

KPI gures to measure the eciency o your

operations and what you can do to improve your

eets perormance i some areas are poor. In

addition, the weekly, monthly and annual reports

provide valuable inormation that can highlight

potential areas or improvement, allowing you to

take action at an early stage.

Setting Targets

The KPI Report shows a measure o each KPI or

the whole eet, which builds month by month.

The Annual Target row allows you to enter a

target or any measure. The report then tracks

how you are doing against the target, showing

your actual gures and the percentage that you

are varying rom your target. I the variation is

better than expected it will be shown in blue, i it

is worse than expected it will be shown in red.

You can use the guidance in Sections 3.2 - 3.8 to

identiy potential areas or improvement and set

yoursel a target to aim or.

Delivery Cost

Cost Per Unit Delivered

This KPI tells you how much in pounds () it costsyou to deliver a unit. You determined the load

unit (e.g. a tonne or a pallet) when you entered

inormation about payload into Vehicle Details.

This KPI determines the cost-eectiveness o your

eet. The lower the gure, the more ecient your

eet. You should aim to keep this gure low, as it

indicates low transport costs.

The KPI is also an important tool in assessing

the eect o any changes in the other KPIs. Forexample, higher vehicle mileage with a lower

payload may improve (increase) your miles per

gallon KPI, but it is not usually an ecient way to

run a vehicle.

How to Improve Perormance

Scrutinise the other KPIs (particularly thoserelating to costs and operations) to uncover

potential savings in your eet. Improvements

in these KPIs (e.g. increasing average vehicle ll

or reducing running costs) should help to drive

down the average cost per unit.

Operational

Miles Per Gallon

This KPI indicates the average miles travelled or

every gallon o diesel. In this case, a higher gure

indicates better use o uel in terms o distance

travelled.


The Reports break down uel consumption or

each vehicle by both uel costs and miles per

gallon or.

This means you can compare the uel

consumption o vehicles and identiy any vehicles

that are perorming poorly in terms o miles per

gallon.

You can also monitor uel costs in terms o prices

paid (depending on the source o the uel), and

you may wish to re-assess how you source your

uel supply.

Many actors can inuence uel consumption,including the vehicle specication and

maintenance, the way the vehicle is driven,

the load, the route, trac conditions and the

weather. Use the KPI inormation to identiy

trends

The Freight Best Practice programme has

produced a series o publications oering

independent and authoritative advice on how to

minimise your uel costs and maximise your mpg.

The ollowing publications can help you reduceyour uel consumption:


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Drive It! DVD - This 25 minute lm looks at the eciency measures implemented by dierent

types o companies and champions the important role o the driver. The DVD is designed to be

used or driver briengs and training to help support uel management, training and eciency

initiatives

Save It! DVD - two programmes that provide a general introduction to uel ecient operations

(including vehicle specication and maintenance) and tips or uel ecient driving

Fuel Management Guide - a comprehensive guide covering all aspects o uel eciency

including vehicle specication and driver training

Truck Specication or Best Operational Efciency - this guide provides advice and real lie

examples to help operators motivate their sta eectively and shows how to implement and

manage change more successully.

Saving Fuel Through People- oers practical inormation on truck aerodynamics and

appropriate add-ons

Fuel Ready Reckoner - this is the rst tool o its kind and has been created to provide you

with impartial inormation on the uel savings that can be made by implementing various

interventions on your vehicles. Using this tool you can work out which interventions would be o

the greatest use to your eet and see where a small amount o investment would make the most

dierence to your bottom line. Access the Fuel Ready Reckoner at

www.uelreadyreckoner.org.ukusing your Freight Best Practice log in (you can set this up the

rst time you try to log in).

Miles Run

This KPI shows the total number o miles run by your vehicles in thousands (e.g. 30 means that the eet

has actually done 30,000 miles).

Mileage is important when looked at in terms o the cost o operations and work done. This is best

reected in the KPI, Cost Per Unit, (see Section 3.2, page 9) Empty Miles, Empty Miles %, and Vehicle Fill

KPIs (see below).


See Maximising Eciency, Section 3.9.

Vehicle Fill

This KPI calculates the percentage o actual load carried compared with the potential capacity o the

vehicle eet. The higher this gure, the more payload is being carried, contributing to the eciency and

cost-eectiveness o the operation.



Time Utilisation
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This KPI calculates the percentage o time the

vehicle eet was actually in use compared

with the potential time available. A high gure

indicates that you are making good use o your

vehicles.



Engine Idling Time

This KPI looks at the total time the vehicle eet

spent idling compared with the time it was in use.

A low gure indicates that you are making good

use o your vehicle and minimising emissions.


Train your drivers to switch o their engine

when stationary

Automatic cut o equipment can be

installed to reduce engine idling

Engine Idling Costs you Money and Gets

You Nowhere - this Case Study highlightshow companies have introduced Anti-Idling

Campaigns and the key points to consider.

Cost

Total Cost

This KPI indicates the total cost o your eet in

pence per mile. This gure includes running,standing and driver costs and you should aim or

these to be as low as possible.


Look closely at your average running, standing

and driver cost KPIs to help you to identiy

potential improvements.

Running Cost

This KPI calculates the average costs associated

with running your vehicles in terms o pence per

mile. It is made up o the cost o uel, tyres and

vehicle maintenance. Ideally, the lower the gure,

the more ecient the operation.


High running costs can indicate:

High uel consumption - see advice given

under Miles Per Gallon in Section 3.3

Poor preventative maintenance procedures

- see advice given under Maintenance Cost

later in this section

Poor tyre perormance - The Monthly

Report breaks down tyre costs by vehicle.

The Annual Report by vehicle and or thewhole eet will allow you to compare the

costs or individual vehicles and across

the eet over a period o time. You can

use this inormation to re-assess the cost,

maintenance and supply o tyres

Standing Cost

This KPI calculates the average standing costs or

your vehicles in terms o pence per mile and, as

beore, the lower the gure, the more ecientthe operation.

Standing costs are those that are likely to be

incurred by the business whether or not the

vehicle is actually running. They are made up o:

Vehicle rental, leasing and depreciation

Road Fund Licence (VED)

Operator Licence (specied vehicle) ees

Insurance


As some o these costs are xed, it may be

dicult to reduce them. However, you may want

to consider:

Your choice o vehicle, as depreciation

depends on the vehicle make, model andspecication


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The road und licence can only be reduced

by changing the vehicle weight or axle

conguration, or by making it eligible or

a lower rate o duty on environmental

grounds. Inormation on current rates o

road und licences is given in the Driver

and Vehicle Licensing Agency (DVLA)

inormation leaet V149 Rates o Vehicle

Excise Duty, available by calling 0300 790

6802 or visiting www.dvla.gov.uk

Paying Operator Licence ees over a ve-

year, rather than a one-year, period can

reduce the cost, but this may aect cash

ow

Introducing a risk management system

that aims to lower the requency, severity

and cost o claims, and ultimately reducepremiums, can reduce insurance costs. The

ollowing publications may be o help:

Driving at Work, published by the Health

and Saety Executive (HSE), oers guidance

on managing work-related transport saety

(HSE Re. INDG382). Copies are available

ree o charge rom HSE Books (Tel: 01787

881165) or can be downloaded ree romwww.hse.gov.uk/pubns/indg382.pd

The HSE also oers guidance on

workplace transport saety. Find out more at

www.hse.gov.uk/pubns/indg199.pd or

call the Inoline on 0845 345 00 55

Driving style can also play a key role in

minimising the risk o accidents. SAFED or

HGVs: A Guide to Sae and Fuel Efcient

Driving or HGVs outlines the principleso SAFED and provides a step-by-step

guide through the one-day SAFED training

programme. To obtain a ree copy, call the

Freight Best Practice Hotline on

0300 123 1250 or visitwww.businesslink.

gov.uk/reightbestpractice

Visit www.saed.org.ukor more

inormation about SAFED.

Speak to your insurance broker or insurer

to discuss risk-management and insurance

issues

Driver Cost

This KPI calculates the average costs or yourdrivers, including agency drivers, in pence per

mile. By keeping this low you are achieving good

cost perormance rom your drivers.


Drivers wages are a contractual matter to be

negotiated between employers and employees.

However, the average cost o employing and

hiring drivers may be driven up by recruitment

and retention problems, particularly wherequalied and experienced drivers are in short

supply. Inormation on recruitment and retention

issues can be obtained by:

Contacting the industrys Sector Skills

Council, Skills or Logistics, on

0876 2427314 or by visiting the website at

www.skillsorlogistics.org

Reading the Freight Transport Associations

Solving the Skills Shortage conerencereport - October 2003, available to

download at www.ta.co.uk(go to

Inormation on key issues and click on

Skills development)

Maintenance Cost

The total cost o maintenance (planned and

unplanned) is shown in terms o pence per

mile (ppm). Low gures or this KPI can indicate

ecient and eective maintenance systems.I they are high then there may be room or

improvement.


The Monthly Report breaks down maintenance

costs by vehicle. There are annual reports or

operations and costs by vehicle and or the whole

eet. You can compare the costs or individual

vehicles and across the eet over a period o

time, with a view to re-assessing the cost omaintenance (whether in-house, contracted out

or both)
http://www.hse.gov.uk/pubns/indg382.pdfhttp://www.hse.gov.uk/pubns/indg199.pdfhttp://www.hse.gov.uk/pubns/indg199.pdfhttp://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.safed.org.uk/http://www.skillsforlogistics.org/http://www.fta.co.uk/http://www.fta.co.uk/http://www.fta.co.uk/http://www.fta.co.uk/http://www.skillsforlogistics.org/http://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.safed.org.uk/http://www.hse.gov.uk/pubns/indg199.pdfhttp://www.hse.gov.uk/pubns/indg382.pdfhttp://www.fta.co.uk/http://www.skillsforlogistics.org/http://www.safed.org.uk/http://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.hse.gov.uk/pubns/indg199.pdfhttp://www.hse.gov.uk/pubns/indg382.pdf


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Use the compliance KPIs and their corresponding

reports and charts to monitor the eectiveness o

your maintenance system in terms o:

Overdue and ailed inspections

Deects reported and rectied

MOT ailures and prohibitions

Having an eective preventative maintenance

system is undamental to any transport

operation. It is also an eective way o ensuring

that potential problems are spotted and rectied

early. Poor maintenance systems can lead to

higher uel consumption as well as higher repair

costs, longer vehicle downtime and higher

replacement/hire vehicle costs.

Preventative Maintenance or Efcient

Road Freight Operations - this guide

explains the concepts and benets

o preventative vehicle maintenance

and provides practical help on how to

implement a proactive maintenance

strategy in your business.

The Guide to MaintainingRoadworthiness is a ree guide published

by the Department or Transport. It provides

comprehensive advice on establishing

an eective maintenance system. Copies

can be ordered by calling the Vehicle and

Operator Services Agency (VOSA) on

0300 123 9000, or can be downloaded rom

www.vosa.gov.uk(go to the Manuals &

Guides area o Publications)

Also available rom VOSA is the video Checkit Out - Truck Driver, which describes how to

carry out a daily vehicle deect check. Details

are given on www.vosa.gov.uk(go to the

DVD area o Publications) or call VOSA on

0300 123 9000

Total cost o PCNs and FPNs

The total cost o Penalty Charge Notices and

Fixed Penalty Notices is accumulated over theyear. The lower the gure the better this reects

how well your drivers obey highway rules.


Monitor individual drivers on the level o

PCNs and FPNs each o them accrue over

the year

Determine a penalty system or those whoare repeat oenders

Oer incentives or not obtaining PCNs and

FPNs

Understand why penalties are being issued.

Take the eedback and integrate into

training

Become part o your local Freight Quality

Partnership - this will enable you to provideany eedback on operational problems

which cause you to accrue charges to the

relevant authorities in order that action can

be taken to improve the situation

Service

Percentage o Late Deliveries

This KPI records the percentage o latedeliveries made by your eet. A consistently

low percentage o late deliveries indicates good

perormance in terms o service and suggests

eective planning.


Investigating the reasons or late deliveries and

improving planning should help to prevent them.

See also the advice on routing and scheduling in

Section 3.9.

Percentage o Damages and

Complaints

The percentage o deliveries made by your eet

that were either missing or damaged is recorded

in the KPI, % o Damages Total.

The KPI, % o Complaints Total, records the

percentage o deliveries that lead to a complaint.

For both o these KPIs, a low percentage indicates

good service perormance; a high gure suggests
http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/


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18

poor perormance and could lead to the loss

o customers or contracts. Missing or damaged

items will usually result in return and repeat

deliveries, which can increase costs.


Investigate the reasons or the problems and put

in place procedures to try to prevent repeated

poor perormance and repercussions.

Compliance

The seven compliance KPIs record the total

number overloads, trac inringements, drivers

hours inringements, load shit/load shed

incidents, the total number o trac accidents,

number o incidents per 100,000 miles and

number o Standard Operating Procedure

Failures.


Investigate the reasons or every occurrence and

put in place procedures to prevent repetition and

to ensure compliance with regulations. This may

include:

Introducing new equipment to weigh

vehicles or axles

Training on trac or drivers hours

regulations

See VOSAs ree guide Drivers Hours and

Tachograph Rules or Goods Vehicles in the UK

and Europe (GV262) atwww.vosa.gov.uk(go to

the Manuals & Guides area o Publications) or call

0300 123 9000

Managing risk (see advice on reducing

insurance costs in Section 3.4)

The Health and Saety Executive suggests that

measures or reducing accidents can include:

Follow the Department or Transport Code

o Practice (see below)

Think about how the load can be made

sae or ofoading, as well as while being

transported on the road. Could a load shit

during transit? Could this present a risk

to the driver when they open back doors,

release curtain sides, or undo chains or

strapping?

Ensure drivers have a sae area to observe

rom, not next to the vehicle where there

could be hit by a ork lit truck or alling

load

Never rely on curtain sides to hold a load in

place

Encourage drivers to report near misses and

damaged equipment

Get inormation rom companies you are

delivering or collecting rom about acilities

and o-loading arrangements on their

site, beore your vehicles visit. See the PDF

at www.hse.gov.uk/allsromvehicles/

wpt06.pdor more inormation

The main UK guidance regarding the security o

loads is the ree code o practice The Saety o

Loads on Vehicles and can be ound at:

www.dt.gov.uk/pgr/roads/vehicles/vssaety/

saetyloadsonvehicles.pd

Comprehensive load-specic advice can be ound

in the European Best Practice Guidelines on

Cargo Securing at:

http://ec.europa.eu/transport/road_saety/

vehicles/guidelines_cargo_securing__en.htm

(click the EN (English) link on their webpage)

Maintenance

Percentage o Overdue Inspections

This KPI shows the percentage o vehicle

roadworthiness inspections that are overdue. A

high percentage suggests a poor maintenance

system.
http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.vosa.gov.uk/http://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing_en.htmhttp://ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing_en.htmhttp://ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing_en.htmhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.vosa.gov.uk/http://www.hse.gov.uk/fallsfromvehicles/wpt06/pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://http//ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing__en.htmhttp://http//ec.europa.eu/transport/road_safety/vehicles/guidelines_cargo_securing__en.htmhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.dft.gov.uk/pgr/roads/vehicles/vssafety/safetyloadsonvehicles.pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://www.hse.gov.uk/fallsfromvehicles/wpt06.pdfhttp://www.vosa.gov.uk/


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See the advice on total maintenance costs in

Section 3.4.

Percentage o Deects Rectied in 24

Hours

This KPI shows the percentage o deects

reported by drivers that are rectied within 24

hours. With this KPI, a low percentage suggests a

poor maintenance system.


See the advice on total maintenance costs in

Section 3.4.

Environmental

Total Carbon Dioxide Produced

(tonnes)

This KPI shows the amount o CO2

produced by

the eet over the year. A high number means

your vehicles are producing a high amount o

emissions.

Carbon Dioxide (kg per km)

This KPI shows the level o carbon dioxide in

kilograms per kilometre. A high number means

your vehicles are producing a high amount o

emissions.

Carbon Dioxide Intensity (kg per

unit carried per km)This KPI shows the level o carbon dioxide in

kilograms per unit carried per km. This is the most

accurate measurement o carbon perormance

as it directly relates the emissions produced to

the work carried out by your eet. A high number

means your vehicles are producing a high

amount o emissions.


You can improve your environmental

perormance by reducing the amount o uel

you consume, improving your vehicle ll and

rate o backloading or by switching to a more

environmentally sustainable type o uel.

Monitoring and Understanding CO2

Emissions rom Road Freight Operations

- This guide provides step by step advice

or creating a comprehensive CO2

inventory

and the benets this can bring. It provides

templates to enable the reader to monitor

the amount o CO2

produced by its Trucks,

Vans, Warehouses, MHE and Company Cars.

Maximising Eciency

Making the best use o your assets, such as

vehicles and driving time, has the potential

to reduce costs and environmental impact

much more signicantly than by reducing uel

consumption alone. Increasing miles per gallon

will save a percentage o the uel cost o all

journeys, but reducing the mileage that is done

to carry out a job will save even more.

Routing and Scheduling

Routing and scheduling vehicles eectively is

the key to minimising mileage while continuing

to meet customer demands. Automating

decision-making processes makes the best use

o resources, reduces planning time and makes it

easier to accommodate last minute changes.


20/22

20

Computerised Vehicle Routing and

Scheduling (CVRS) or Efcient Logistics

- describes the various types o system

available and will help you decide whether

introducing computerised vehicle routing

and scheduling is worthwhile. It describes

real-lie case studies and will guide you

through the process o selecting and

introducing a system.

Inormation Technology or Efcient

Road Freight Operations - this guide

provides an overview o the available and

relevant systems, covering their uses, likely

benets, issues to consider and associated

costs.

Telematics

Telematics is the use o computers to monitor

and control remote devices - usually contained

in vehicles and trailers. Systems such as vehicle

tracking, on-board navigation, and real-time

vehicle, driver and consignment data can provide

an opportunity to manage your assets more

eciently.

Telematics or Efcient Road Frieght

Operations - provides inormation on the

types o system available, how they can be

used and which issues you should watch out

or when buying a system.

Maximising Load

Making the best use o the available load space

in every vehicle trip can be achieved by back

loading, consolidating loads, load stacking and

the use o multiple-decked vehicles.

Where to Now?

Now that you have a set o data rom the Fleet

Perormance Management Tool and understand

what this means to your operation, it is important

to start thinking o the uture. You may like to

set new or long-term targets e.g. reducing youraverage driver costs, or increasing your average

vehicle ll.

These targets are totally up to you. You will know

what is achievable in your business. However,

it may be worth remembering not to be too

ambitious and to plan all changes. When you

have been using the tool or a period o time

(e.g. six months) then look back and see how

close you are to those targets. Perormance

management is a long-term commitmentand requires a structured approach to eet

management. The rewards can be:

Reduced uel use

Improved operational eciency

Higher service levels

Increased customer loyalty

Greater sta retention

Reduced CO2

emissions

and ultimately increased prots and maintaining,

or improving, your companys competitive edge.


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22/22

Freight Best Practice publications, including those listed below, can be obtained

FREE o charge by calling the Hotline on 0300 123 1250 or by downloading

them rom the websitewww.businesslink.gov.uk/reightbestpractice

Fuel Management Guide

This is the denitive guide to improving the

uel perormance o your eet. It gives step-by-

step explanations o the key elements o uel

management, how to measure perormance and

how to implement an eective improvement

programme.

Saving FUEL

Perormance Management or Efcient

Road Freight Operations

This guide explains the process o measuring

perormance eectively. It includes advice on how

inormation is best collected and interpreted to

allow inormed decision making in order to achieve

operational eciency improvements.

PerformanceMANAGEMENT

Sae Driving Tips

Written especially or commercial vehicle drivers, this

pocket-sized guide provides essential saety hints

and tips on all aspects o driving saely.

Developing -SKILLSTOP provides practical every day support material

to help operators implement best practice in

the workplace and acts in direct support o tasks

essential to running a successul uel management

programme.

Multi-MODAL

Truck Specication or Best

Operational Efciency

A step-by-step guide to the process o correctly

speciying an ecient and t or purpose vehicle.

Equipment & SYSTEMS

There are over 25 case studies showing how

companies have implemented best practice and the

savings achieved. Check out the ollowing selection

o case studies:

OwnerDriversandSmallFleetOperators...Simple, Cost Eective Ways to Improve Eciency

(SFPMT)HelpsA1PaperImproveEfciency

PowerToYourPeopleMotivationBreeds

Success.

Case STUDIES

April 2010.

Printed in the UK on paper containing 100% recycled bre.

FBP1102 Queens Printer and Controller o HMSO 2010.
http://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpracticehttp://www.businesslink.gov.uk/freightbestpractice

Documents

New Fleet Performance Mgmt Tool