Fleet Performance Management Tool Incorporating CO2 Emission Calculator

Guide

2009 Edition

Foreword
Freight Best Practice is funded by the Department for Transport and managed by AECOM to promote operational efficiency and reduce environmental impact within freight operations. Freight Best Practice offers FREE essential information for the freight industry, covering topics such as saving fuel, developing skills, equipment and systems, operational efficiency and performance management. All FREE materials are available to download from www.businesslink.gov.uk/freightbestpractice or can be ordered through the Hotline on 0300 123 1250.

Disclaimer: While the Department for Transport (DfT) has made every effort to ensure the information in this document is accurate, DfT does not guarantee the accuracy, completeness or usefulness of that information; and it cannot accept liability for any loss or damages of any kind resulting from reliance on the information or guidance this document contains.

Introduction
Freight Best Practice is funded by the Department for Transport and offers FREE and impartial advice to enable efficiency savings. All FREE materials are available to download from www.businesslink.gov.uk/freightbestpractice or can be ordered through the Hotline on 0300 123 1250. We would welcome comments on use of the tool and suggestions for improvement: please email info@freightbestpractice.org.uk to give us your thoughts. Freight Best Practice has produced a free interactive download called the Fleet Performance Management Tool. This practical work based resource has been updated from the previous spreadsheet version to help you to implement best practice in your day to day activities. The new 2009 edition tool is a full application designed in Vbnet and allows you to monitor your performance for any number of vehicles, over any number of years and includes the ability to measure new Key Performance Indicators including the cost of PCNs and FPNs, engine idling time and percentage of deliveries on time in full.

Who Is the Tool Aimed At?

The Tool is designed for any organisation that runs a fleet, whatever its size and wants to monitor how well it is doing against Key Performance 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

If You Have a Hard Copy of this Guide
To install the Fleet Performance Management Tool from the CD in the pocket at the back of this guide double click on the file marked install, select the number of periods you would like to work to within each year and follow the instructions. The tool will work for a year that consists of 12 or 13 periods. Depending on your accounting procedures, you can choose to work with 12 calendar months or 13 equal periods of four weeks The tool will automatically install any background software (freeware) required to run from Microsoft. This may require you to input the administrator password for your computer (if you are unsure what this is speak to your IT department/provider). Figure 1: Homepage of the tool

If You Have Downloaded this Guide

To download the FREE Fleet Performance Management Tool, register or log on to the Resource Centre of www.businesslink.gov.uk/freightbestpractice. Once you have logged onto the Resource Centre click on the Fleet Performance Management Tool. Download the appropriate version of the tool from the website.

If You Have Already Downloaded the Tool from The Website

To install the tool after downloading from the website save the tool on your desktop, double click on the file and follow the instructions. The tool will automatically install any background software (freeware) required to run from Microsoft. This may require you to input the administrator password for your computer (if 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 for your vehicles and start to monitor your KPIs (see Chapter 2).

Measuring Key Performance Indicators

The enhanced Fleet Performance Management Tool allows you to actively record Key Performance Indicators (KPIs). Performance measures, or KPIs, are essential tools to help you to manage your business effectively. Examples include average miles per gallon, maintenance costs for your vehicles and average cost to deliver a load. By monitoring this information you can understand your business costs and decide where to focus your efforts to maximise profitability. KPIs also provide a consistent basis for measuring transport efficiency across different fleets and depots, comparing like with like. The enhanced Fleet Performance Management Tool allows the recording of up to 30 separate KPIs. You can choose which KPIs to measure according to how the requirements of your business. There are 6 KPI Groups:

Cost Operational Service Compliance Maintenance Environmental

How You Can Use the Fleet Performance Management Tool to Improve Your Operations Performance
The Fleet Performance Management Tool aims to lead the way in encouraging operators to measure and reduce their costs, fuel consumption and CO2 emissions. The Fleet Performance Management Tool helps you to record the actual and continuing performance of your fleet of vehicles. The quality of the information produced by the Fleet Performance Management Tool depends on the amount of information you submit to the tool - the more you put in, the more you will get out. Setting targets for your business to achieve will ensure that high standards are maintained and new efficiencies are realised. For example, you may want your operation to achieve 8MPG. This will be your target for this KPI. The Fleet Performance Management Tool can compare the performance of all your vehicles against this target allowing you to see which vehicles are underperforming or exceeding the target set and determine a strategy for improvement. Continuous data entry into the Fleet Performance Management Tool will allow you to view your operations performance over a period of time. This could show improvement or otherwise. The Fleet Performance Management Tool also enables you to view the performance of individual vehicles and of your whole fleet.

Quick Start
To start the tool go to your Start Menu and within your Programmes select Freight Best Practice and click on the Fleet Performance Management Tool. Figure 2: Start Up

Basic Commands within the Tool

Help
The tool includes a help system - if you want to know what any input or KPI means simply select the following symbol from the top right corner of the sheet click on the heading (or press F1 if 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 information, 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 Information
To delete information either delete as you would normally or use the following symbol:

Import / Export
On the right hand side of the main menu the Import / Export button allows you to download all the information from the tool to any location within your computer. You can use this to back up your information (in case your computer crashes), or to email information easily to another depot.

Identify Your KPIs

The Fleet Performance Management Tool allows you to select up to 30 KPIs. You can select as many KPIs as are relevant to your operation. Not all of the KPIs will be useful to all operations so the tool enables you to choose to monitor the measures of most relevance to your business. Table 1 lists the KPIs included in the tool along with a brief description and the unit of measure. Table 1: Select which KPIs you want to measure by clicking on the KPI Selection button within the tool. Cost KPI Average Cost per Unit Delivered Total Whole Vehicle Cost Average Running Cost Average Standing Cost Average Driver Cost Total Maintenance Cost Total Cost of PCNs and FPNs Operational KPI Average MPG Total Miles Run Total Empty Miles Run Percentage Empty Running Total Percentage Average Vehicle Fill Unit MPG Thousand Miles Thousand Miles % % Description Average cost of delivering a specified unit Total cost of your fleet per mile, incorporating running, standing and driver costs These are the costs incurred for running the vehicles (fuel, tyres and maintenance) Standing costs are those incurred whether or not the vehicle is running depreciation of the vehicle, road fund licence, operator licence fees and insurance Average cost of drivers wages per mile Unit Pence/mile Pence/mile Pence/mile Pence/mile Pence/mile Description Average cost of delivering a specified unit Total cost of your fleet per mile, incorporating running, standing and driver costs These are the costs incurred for running the vehicles (fuel, tyres and maintenance) Standing costs are those incurred whether or not the vehicle is running depreciation of the vehicle, road fund licence, operator licence fees and insurance Average cost of drivers wages per mile Total cost of maintaining the fleet per mile Total cost of Penalty Charge Notices and Fixed Penalty Notices

KPI Percentage Average Time Utilisation Engine Idling Time Service KPI Percentage of Late Deliveries Percentage of Damaged Deliveries Percentage of Complaints Percentage of Deliveries On Time In Full Compliance KPI Total Number of Overloads Total Number of Vehicle Traffic Infringements Total Number of Drivers Hours Infringements Total Number of Traffic Incidents Total Number of Load Shed/ Load Shift Incidents Number of Incidents per 100,000 miles Number of Standard Operating Procedure Failure Maintenance KPI Percentage of Failed Inspections Percentage of Defects Rectified Within 24 Hours

Unit % Minutes

Description Total cost of maintaining the fleet per mile Total cost of Penalty Charge Notices and Fixed Penalty Notices

Unit % % % %

Description Percentage of late deliveries made by your fleet Percentage of deliveries made by your fleet where the goods were either missing of damaged Percentage of deliveries made that resulted in a complaint of any nature Percentage of deliveries made by your fleet that arrived on time in full (OTIF)

Unit # # # # # # #

Description Total number of overloads in the fleet Total number of traffic infringements in the fleet Total number of drivers hours infringements in the fleet Total number of traffic accidents/incidents in the fleet Total number of load shed/load shift accidents in the fleet Total number of incidents (including traffic incidents, load shed incidents, RIDDOR and recordable incidents) over 100,000 miles of fleet running This KPI can be used to record operating procedure failures as defined within the business

Unit % %

Description Percentage of failed or overdue safety inspections by your fleet Percentage of vehicle defects reported by drivers that are rectified within 24 hours

Environmental KPI Total Fleet CO2 Average Fleet CO2 CO2 Intensity Unit Tonnes Kg/km Kg/unit carried per km Description Total CO2 produced by the fleet Average CO2 produced by the fleet for each kilometre travelled per km Average CO2 produced by the fleet for each unit carried per km

Inputting Data
There are two places within the tool where data should be input. The first is Vehicle Input which collates all the details about individual vehicles such as their size, type and fixed costs. The second is Weekly Input where you can input operational and cost information for a particular week. In either input, it is not necessary to record every piece of information if it is not relevant.

Vehicle Input
The first step is to enter the details of 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 differentiate between different vehicle types - in terms of either data input or report outputs. This is important because, if you run a mixed fleet, the analysis will have to take into consideration different outputs for different vehicles (i.e. a larger vehicle may have different fuel consumption from a smaller one, so therefore direct comparison is not advised). Vehicle details may be entered in any sequence. However, if you want outputs to be grouped, for 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. If a vehicle is removed from service simply edit the vehicles details by clicking on Vehicle List and the edit button for that vehicle and enter the date out of service. The Vehicle First of all you are required to enter a Registration Number; this number will be used as a reference for this vehicle throughout the tool. Whilst you would normally enter the Vehicle Registration Number, if you use a different reference system (i.e. a Fleet Number) you can also use this so it matches your existing records. Once a vehicle is given a unique reference number you need to enter the make of the vehicle and the type of vehicle. This is done by using drop down menus; if you cannot find 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 of the vehicle. Payload Following the vehicle details you need to enter information about the type of payload the vehicle carries. First of all you enter the maximum possible amount of a given payload, followed by the type of payload.

The type of payload is entered using a drop down menu; if the payload you use is not there you can enter a new payload type using the Add New Payload Unit button. If 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 of the vehicle you click the drop down list and navigate the calendar provided. After this you should enter the planned life of 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 specify which unit of measure you are using. Engine and Fuel Type As part of the new environmental KPIs, you can now enter your engine type and fuel type. These are both selected through a drop down list. For vehicles which use more than 1 type of fuel select Hybrid from the list. Depot Selection If you or your company operates multiple depots you can now assign a depot to a vehicle. This is for comparison between depots, adding an extra level of analysis. Operating Cost Information Fixed operating costs can be recorded within the vehicle input section of the tool. First of all you can record whether the vehicle is purchased or leased. This will set up different fields 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 for the vehicle. If your vehicle is purchased you will need to enter an annual depreciation. Annual

deprecation is a fixed percentage of the purchase price less the anticipated residual value. E.g. a five-year vehicle purchased for 40,000, with an expected residual value of 5,000 would have an annual deprecation of 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 of the drawing vehicle. If a number of 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 of allocating an overhead cost (yard space, management, traffic office, etc.) against each individual vehicle. Where these figures are known and used, they can be added to the values entered for individual vehicle depreciation - if this is helpful. It is crucial to understand that, unless costs for overheads are included, the outputs from the tool should not be used directly for costing jobs:

Road Fund Licence (RFL): enter the annual

cost of Vehicle Excise Duty (VED)

Operator Licence: enter the cost of the

specified vehicle fee. Do not enter the cost of applying for 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 (if you have a maintenance contract) or driver costs if you usually use the same driver for that vehicle and his/her remuneration is fixed. Standard Driver Costs can be entered in the relevant box specifying 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 by 52.

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To import this data when you are carrying out your weekly input simply click the Use Default button. Data can be modified if required. If you are working with the 12 period version of the tool for months which have 5 weeks you will need to amend that data as appropriate for the 5th (and shorter) week of the month.

In defining 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 of mileage you have decide whether Empty Mileage is:

From the last drop off to the vehicles base

in an own account operation; or for a hire and reward operator.

Weekly Input
Each week you will need to input data for 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 for you to enter data on a monthly basis; this could apply to costs such as fuel and maintenance where such expenditures might occur on a fixed 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 final week of the month. N.B. If choosing to enter monthly costs in the final week, this will affect weekly reports and you have to consider this in the interpretation of your results. Within the weekly inputs you then have 7 different areas where you can enter data. You can access each area by clicking on the tab with the relevant heading. If you are not recording for certain KPIs you can leave some areas blank. Distance & Time This section requires trip data in the form of distance travelled and time spent travelling and working. You enter data from your Odometer (remembering to enter this data in Kilometres or Miles dependent on the type of odometer) for the start of the working week and the end, including the distance the vehicle travelled empty.

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

In determining what Empty means you have to decide whether you are going to take into consideration packaging, pallets and rubbish from the deliveries, and whether this constitutes a load or not. Whatever you decide it has to remain consistent throughout all vehicles and inputs. After determining the distance the vehicle travelled you must then determine the amount of time that vehicle was available that week, the amount of 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 information for any vehicle. Under the Drivers tab you can import this information to save you re-entering this every week; you do this via the Use Default button on the right hand side of the page. You can also edit this data once it is imported. Otherwise select the driver type (agency or own staff ) and enter driver hours and costs in the box. You can enter either the drivers wages or their total cost including holiday pay, national insurance and pension contributions according to the requirements of your business. Fuel This tab is for entering what type of fuel has been used, how many litres used, and how much has been spent on fuel.

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Maintenance Similar to the Drivers tab, this information can be imported from the vehicle details, and modified as necessary. The different types of costs recorded are planned maintenance, unplanned maintenance and tyres. Select the type of maintenance using the drop down menu. Other Costs Enter all other costs that would not be covered under fixed costs, maintenance, fuel or driver costs, this includes seven different types of cost; Accident Damage, Adblue, PCNs, FPNs, Congestion Charge, Low Emissions Zone and Tolls. Operational Enter the number of trips completed by the vehicle. A trip begins when a vehicle leaves the depot and finishes when it returns. Trips are important as they measure how much activity a vehicle has done that week, which is integral to the outputs from the tool. You also need to enter the units carried (i.e. volume of goods) for the whole week using whichever units you chose for the vehicles payload. If you carry mixed goods, you may have derived your own unit of measure. For example, a stillage with dimensions of 2 x 1.2 metres could be regarded as two pallet equivalents. If this is the case, you may wish to record what was actually carried in Comments. Enter the number of deliveries and collections for the week. If your vehicles deliver or collect multiple orders at a single point or customer, this should be counted as one delivery or collection. Customer service entails the number of deliveries or collections that:

Resulted in a complaint of any other nature,

e.g. wrong type of vehicle, driver conduct, etc. Complaints

Were on time and in full OTIF

Compliance Compliance data indicates how well the fleet complies with legislative requirements governing its operation and the safety of those who drive the vehicles. For each incident type or inspection due / overdue simply select the type from the drop down box and enter the number for the week.

Outputs
The results of 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 effective way of 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 from the tool in some detail. This can be very useful when undertaking such tasks as budgeting or planning for the future. A number of KPIs are also available as graphs and diagrams. The charts are automatically generated and are a very effective of setting out all of the information. They are easy to use and print. Figure 3

Were out of their designated time window,

i.e. late Late deliveries

Were either missing or damaged at the

point of delivery Damages

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What to Do with the Results

The information in the KPI Report is designed to provide you with an overview of essential information on the performance of your vehicles. This section explains how you can use the KPI figures to measure the efficiency of your operations and what you can do to improve your fleets performance if some areas are poor. In addition, the weekly, monthly and annual reports provide valuable information that can highlight potential areas for improvement, allowing you to take action at an early stage.

payload may improve (increase) your miles per gallon KPI, but it is not usually an efficient way to run a vehicle.

How to Improve Performance

Scrutinise the other KPIs (particularly those relating to costs and operations) to uncover potential savings in your fleet. Improvements in these KPIs (e.g. increasing average vehicle fill 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 for every gallon of diesel. In this case, a higher figure indicates better use of fuel in terms of distance travelled.

Setting Targets
The KPI Report shows a measure of each KPI for the whole fleet, which builds month by month. The Annual Target row allows you to enter a target for any measure. The report then tracks how you are doing against the target, showing your actual figures and the percentage that you are varying from your target. If the variation is better than expected it will be shown in blue, if it is worse than expected it will be shown in red. You can use the guidance in Sections 3.2 - 3.8 to identify potential areas for improvement and set yourself a target to aim for.

How to Improve Performance

The Reports break down fuel consumption for each vehicle by both fuel costs and miles per gallon for. This means you can compare the fuel consumption of vehicles and identify any vehicles that are performing poorly in terms of miles per gallon. You can also monitor fuel costs in terms of prices paid (depending on the source of the fuel), and you may wish to re-assess how you source your fuel supply. Many factors can influence fuel consumption, including the vehicle specification and maintenance, the way the vehicle is driven, the load, the route, traffic conditions and the weather. Use the KPI information to identify trends The Freight Best Practice programme has produced a series of publications offering independent and authoritative advice on how to minimise your fuel costs and maximise your mpg. The following publications can help you reduce your fuel consumption:

Delivery Cost
Cost Per Unit Delivered
This KPI tells you how much in pounds () it costs you to deliver a unit. You determined the load unit (e.g. a tonne or a pallet) when you entered information about payload into Vehicle Details. This KPI determines the cost-effectiveness of your fleet. The lower the figure, the more efficient your fleet. You should aim to keep this figure low, as it indicates low transport costs. The KPI is also an important tool in assessing the effect of any changes in the other KPIs. For example, higher vehicle mileage with a lower

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Drive It! DVD - This 25 minute film looks at the efficiency measures implemented by different types of companies and champions the important role of the driver. The DVD is designed to be used for driver briefings and training to help support fuel management, training and efficiency initiatives Save It! DVD - two programmes that provide a general introduction to fuel efficient operations (including vehicle specification and maintenance) and tips for fuel efficient driving Fuel Management Guide - a comprehensive guide covering all aspects of fuel efficiency including vehicle specification and driver training Truck Specification for Best Operational Efficiency - this guide provides advice and real life examples to help operators motivate their staff effectively and shows how to implement and manage change more successfully. Saving Fuel Through People - offers practical information on truck aerodynamics and appropriate add-ons Fuel Ready Reckoner - this is the first tool of its kind and has been created to provide you with impartial information on the fuel savings that can be made by implementing various interventions on your vehicles. Using this tool you can work out which interventions would be of the greatest use to your fleet and see where a small amount of investment would make the most difference to your bottom line. Access the Fuel Ready Reckoner at www.fuelreadyreckoner.org.uk using your Freight Best Practice log in (you can set this up the first time you try to log in).

Miles Run
This KPI shows the total number of miles run by your vehicles in thousands (e.g. 30 means that the fleet has actually done 30,000 miles). Mileage is important when looked at in terms of the cost of operations and work done. This is best reflected in the KPI, Cost Per Unit, (see Section 3.2, page 9) Empty Miles, Empty Miles %, and Vehicle Fill KPIs (see below).

How to Improve Performance

See Maximising Efficiency, Section 3.9.

Vehicle Fill
This KPI calculates the percentage of actual load carried compared with the potential capacity of the vehicle fleet. The higher this figure, the more payload is being carried, contributing to the efficiency and cost-effectiveness of the operation.

How to Improve Performance

See Maximising Efficiency, Section 3.9.

Time Utilisation 14

This KPI calculates the percentage of time the vehicle fleet was actually in use compared with the potential time available. A high figure indicates that you are making good use of your vehicles.

mile. It is made up of the cost of fuel, tyres and vehicle maintenance. Ideally, the lower the figure, the more efficient the operation.

How to Improve Performance

High running costs can indicate:

How to Improve Performance

See Maximising Efficiency, Section 3.9.

High fuel consumption - see advice given

under Miles Per Gallon in Section 3.3

Engine Idling Time

This KPI looks at the total time the vehicle fleet spent idling compared with the time it was in use. A low figure indicates that you are making good use of your vehicle and minimising emissions.

Poor preventative maintenance procedures

- see advice given under Maintenance Cost later in this section Report breaks down tyre costs by vehicle. The Annual Report by vehicle and for the whole fleet will allow you to compare the costs for individual vehicles and across the fleet over a period of time. You can use this information to re-assess the cost, maintenance and supply of tyres

Poor tyre performance - The Monthly

How to Improve Performance

Train your drivers to switch of their engine

when stationary

Automatic cut off equipment can be

installed to reduce engine idling

Standing Cost
This KPI calculates the average standing costs for your vehicles in terms of pence per mile and, as before, the lower the figure, the more efficient the 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 of:

Engine Idling Costs you Money and Gets You Nowhere - this Case Study highlights how companies have introduced Anti-Idling Campaigns and the key points to consider.

Cost
Total Cost
This KPI indicates the total cost of your fleet in pence per mile. This figure includes running, standing and driver costs and you should aim for these to be as low as possible.

Vehicle rental, leasing and depreciation Road Fund Licence (VED) Operator Licence (specified vehicle) fees Insurance
How to Improve Performance
As some of these costs are fixed, it may be difficult to reduce them. However, you may want to consider:

How to Improve Performance

Look closely at your average running, standing and driver cost KPIs to help you to identify potential improvements.

Running Cost
This KPI calculates the average costs associated with running your vehicles in terms of pence per

Your choice of vehicle, as depreciation

depends on the vehicle make, model and specification

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 The road fund licence can only be reduced

by changing the vehicle weight or axle configuration, or by making it eligible for a lower rate of duty on environmental grounds. Information on current rates of road fund licences is given in the Driver and Vehicle Licensing Agency (DVLA) information leaflet V149 Rates of Vehicle Excise Duty, available by calling 0300 790 6802 or visiting www.dvla.gov.uk year, rather than a one-year, period can reduce the cost, but this may affect cash flow

Speak to your insurance broker or insurer

to discuss risk-management and insurance issues

Driver Cost
This KPI calculates the average costs for your drivers, including agency drivers, in pence per mile. By keeping this low you are achieving good cost performance from your drivers.

Paying Operator Licence fees over a five-

How to Improve Performance

Drivers wages are a contractual matter to be negotiated between employers and employees. However, the average cost of employing and hiring drivers may be driven up by recruitment and retention problems, particularly where qualified and experienced drivers are in short supply. Information on recruitment and retention issues can be obtained by:

Introducing a risk management system

that aims to lower the frequency, severity and cost of claims, and ultimately reduce premiums, can reduce insurance costs. The following publications may be of help:

Contacting the industrys Sector Skills

Driving at Work, published by the Health and Safety Executive (HSE), offers guidance on managing work-related transport safety (HSE Ref. INDG382). Copies are available free of charge from HSE Books (Tel: 01787 881165) or can be downloaded free from www.hse.gov.uk/pubns/indg382.pdf The HSE also offers guidance on workplace transport safety. Find out more at www.hse.gov.uk/pubns/indg199.pdf or call the Infoline on 0845 345 00 55 Driving style can also play a key role in minimising the risk of accidents. SAFED for HGVs: AGuide to Safe and FuelEfficient Driving for HGVs outlines the principles of SAFED and provides a step-by-step guide through the one-day SAFED training programme. To obtain a free copy, call the Freight Best Practice Hotline on 0300 123 1250 or visit www.businesslink. gov.uk/freightbestpractice Visit www.safed.org.uk for more information about SAFED.

Council, Skills for Logistics, on 0876 2427314 or by visiting the website at www.skillsforlogistics.org Solving the Skills Shortage conference report - October 2003, available to download at www.fta.co.uk (go to Information on key issues and click on Skills development)

Reading the Freight Transport Associations

Maintenance Cost
The total cost of maintenance (planned and unplanned) is shown in terms of pence per mile (ppm). Low figures for this KPI can indicate efficient and effective maintenance systems. If they are high then there may be room for improvement.

How to Improve Performance

The Monthly Report breaks down maintenance costs by vehicle. There are annual reports for operations and costs by vehicle and for the whole fleet. You can compare the costs for individual vehicles and across the fleet over a period of time, with a view to re-assessing the cost of maintenance (whether in-house, contracted out or both)

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Use the compliance KPIs and their corresponding reports and charts to monitor the effectiveness of your maintenance system in terms of:

How to Improve Performance

Monitor individual drivers on the level of

Overdue and failed inspections Defects reported and rectified MOT failures and prohibitions
Having an effective preventative maintenance system is fundamental to any transport operation. It is also an effective way of ensuring that potential problems are spotted and rectified early. Poor maintenance systems can lead to higher fuel consumption as well as higher repair costs, longer vehicle downtime and higher replacement/hire vehicle costs.

PCNs and FPNs each of them accrue over the year are repeat offenders FPNs

Determine a penalty system for those who Offer incentives for not obtaining PCNs and Understand why penalties are being issued.
Take the feedback and integrate into training

Become part of your local Freight Quality

Preventative Maintenance for Efficient Road Freight Operations - this guide explains the concepts and benefits of preventative vehicle maintenance and provides practical help on how to implement a proactive maintenance strategy in your business. The Guide to Maintaining Roadworthiness is a free guide published by the Department for Transport. It provides comprehensive advice on establishing an effective maintenance system. Copies can be ordered by calling the Vehicle and Operator Services Agency (VOSA) on 0300 123 9000, or can be downloaded from www.vosa.gov.uk (go to the Manuals & Guides area of Publications) Also available from VOSA is the video Check it Out - Truck Driver, which describes how to carry out a daily vehicle defect check. Details are given on www.vosa.gov.uk (go to the DVD area of Publications) or call VOSA on 0300 123 9000

Partnership - this will enable you to provide any feedback 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 of Late Deliveries
This KPI records the percentage of late deliveries made by your fleet. A consistently low percentage of late deliveries indicates good performance in terms of service and suggests effective planning.

How to Improve Performance

Investigating the reasons for late deliveries and improving planning should help to prevent them. See also the advice on routing and scheduling in Section 3.9.

Percentage of Damages and Complaints

The percentage of deliveries made by your fleet that were either missing or damaged is recorded in the KPI, % of Damages Total. The KPI, % of Complaints Total, records the percentage of deliveries that lead to a complaint. For both of these KPIs, a low percentage indicates good service performance; a high figure suggests

Total cost of PCNs and FPNs

The total cost of Penalty Charge Notices and Fixed Penalty Notices is accumulated over the year. The lower the figure the better this reflects how well your drivers obey highway rules.

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poor performance and could lead to the loss of customers or contracts. Missing or damaged items will usually result in return and repeat deliveries, which can increase costs.

Think about how the load can be made

How to Improve Performance

Investigate the reasons for the problems and put in place procedures to try to prevent repeated poor performance and repercussions.

safe for offloading, as well as while being transported on the road. Could a load shift during transit? Could this present a risk to the driver when they open back doors, release curtain sides, or undo chains or strapping? from, not next to the vehicle where there could be hit by a fork lift truck or falling load place

Ensure drivers have a safe area to observe

Compliance
The seven compliance KPIs record the total number overloads, traffic infringements, drivers hours infringements, load shift/load shed incidents, the total number of traffic accidents, number of incidents per 100,000 miles and number of Standard Operating Procedure Failures.

Never rely on curtain sides to hold a load in Encourage drivers to report near misses and
damaged equipment

Get information from companies you are

How to Improve Performance

Investigate the reasons for every occurrence and put in place procedures to prevent repetition and to ensure compliance with regulations. This may include:

delivering or collecting from about facilities and off-loading arrangements on their site, before your vehicles visit. See the PDF at www.hse.gov.uk/fallsfromvehicles/ wpt06.pdf for more information

The main UK guidance regarding the security of loads is the free code of practice The Safety of Loads on Vehicles and can be found at: www.dft.gov.uk/pgr/roads/vehicles/vssafety/ safetyloadsonvehicles.pdf Comprehensive load-specific advice can be found in the European Best Practice Guidelines on Cargo Securing at: http://ec.europa.eu/transport/road_safety/ vehicles/guidelines_cargo_securing__en.htm (click the EN (English) link on their webpage)

Introducing new equipment to weigh

vehicles or axles regulations

Training on traffic or drivers hours

See VOSAs free guide Drivers Hours and Tachograph Rules for Goods Vehicles in the UK and Europe (GV262) at www.vosa.gov.uk (go to the Manuals & Guides area of Publications) or call 0300 123 9000

Managing risk (see advice on reducing

insurance costs in Section 3.4) The Health and Safety Executive suggests that measures for reducing accidents can include:

Maintenance
Percentage of Overdue Inspections
This KPI shows the percentage of vehicle roadworthiness inspections that are overdue. A high percentage suggests a poor maintenance system.

Follow the Department for Transport Code

of Practice (see below)

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How to Improve Performance

See the advice on total maintenance costs in Section 3.4.

How to Improve Performance

You can improve your environmental performance by reducing the amount of fuel you consume, improving your vehicle fill and rate of backloading or by switching to a more environmentally sustainable type of fuel.

Percentage of Defects Rectified in 24 Hours

This KPI shows the percentage of defects reported by drivers that are rectified within 24 hours. With this KPI, a low percentage suggests a poor maintenance system.

How to Improve Performance

See the advice on total maintenance costs in Section 3.4.

Monitoring and Understanding CO2 Emissions from Road Freight Operations - This guide provides step by step advice for creating a comprehensive CO2 inventory and the benefits this can bring. It provides templates to enable the reader to monitor the amount of CO2 produced by its Trucks, Vans, Warehouses, MHE and Company Cars.

Environmental
Total Carbon Dioxide Produced (tonnes)
This KPI shows the amount of CO2 produced by the fleet over the year. A high number means your vehicles are producing a high amount of emissions.

Maximising Efficiency
Making the best use of your assets, such as vehicles and driving time, has the potential to reduce costs and environmental impact much more significantly than by reducing fuel consumption alone. Increasing miles per gallon will save a percentage of the fuel cost of all journeys, but reducing the mileage that is done to carry out a job will save even more.

Carbon Dioxide (kg per km)

This KPI shows the level of carbon dioxide in kilograms per kilometre. A high number means your vehicles are producing a high amount of emissions.

Routing and Scheduling

Routing and scheduling vehicles effectively is the key to minimising mileage while continuing to meet customer demands. Automating decision-making processes makes the best use of resources, reduces planning time and makes it easier to accommodate last minute changes.

Carbon Dioxide Intensity (kg per unit carried per km)

This KPI shows the level of carbon dioxide in kilograms per unit carried per km. This is the most accurate measurement of carbon performance as it directly relates the emissions produced to the work carried out by your fleet. A high number means your vehicles are producing a high amount of emissions.

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Where to Now?
Computerised Vehicle Routing and Scheduling (CVRS) for Efficient Logistics - describes the various types of system available and will help you decide whether introducing computerised vehicle routing and scheduling is worthwhile. It describes real-life case studies and will guide you through the process of selecting and introducing a system. Information Technology for Efficient Road Freight Operations - this guide provides an overview of the available and relevant systems, covering their uses, likely benefits, issues to consider and associated costs. Now that you have a set of data from the Fleet Performance Management Tool and understand what this means to your operation, it is important to start thinking of the future. You may like to set new or long-term targets e.g. reducing your average driver costs, or increasing your average vehicle fill. 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 for a period of time (e.g. six months) then look back and see how close you are to those targets. Performance management is a long-term commitment and requires a structured approach to fleet management. The rewards can be:

Telematics
Telematics is the use of 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 efficiently.

Reduced fuel use Improved operational efficiency Higher service levels Increased customer loyalty Greater staff retention

Telematics for Efficient Road Frieght Operations - provides information on the types of system available, how they can be used and which issues you should watch out for when buying a system.

Reduced CO2 emissions

and ultimately increased profits and maintaining, or improving, your companys competitive edge.

Maximising Load
Making the best use of the available load space in every vehicle trip can be achieved by back loading, consolidating loads, load stacking and the use of multiple-decked vehicles.

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Freight Best Practice publications, including those listed below, can be obtained FREE of charge by calling the Hotline on 0300 123 1250 or by downloading them from the website www.businesslink.gov.uk/freightbestpractice
Saving FUEL Performance MANAGEMENT

Fuel Management Guide

This is the definitive guide to improving the fuel performance of your fleet. It gives step-bystep explanations of the key elements of fuel management, how to measure performance and how to implement an effective improvement programme.

Performance Management for Efficient Road Freight Operations

This guide explains the process of measuring performance effectively. It includes advice on how information is best collected and interpreted to allow informed decision making in order to achieve operational efficiency improvements.

Developing - SKILLS

Multi-MODAL
TOP provides practical every day support material to help operators implement best practice in the workplace and acts in direct support of tasks essential to running a successful fuel management programme.

Safe Driving Tips

Written especially for commercial vehicle drivers, this pocket-sized guide provides essential safety hints and tips on all aspects of driving safely.

Equipment & SYSTEMS

Case STUDIES
There are over 25 case studies showing how companies have implemented best practice and the savings achieved. Check out the following selection of case studies: Owner Drivers and Small Fleet Operators... Simple, Cost Effective Ways to Improve Efficiency (SFPMT) Helps A1 Paper Improve Efficiency Power To Your People Motivation Breeds Success.

Truck Specification for Best Operational Efficiency

A step-by-step guide to the process of correctly specifying an efficient and fit for purpose vehicle.

April 2010. Printed in the UK on paper containing 100% recycled fibre. FBP1102 Queens Printer and Controller of HMSO 2010.

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