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The Business Of... Managing Uptime (2015)

Managing vehicle uptime is critical for businesses to minimize costs and disruptions. The average daily cost of an off-road vehicle is estimated at £700-£1000 per day in lost revenue and productivity. However, many fleet managers are unaware of these costs. Simple steps can be taken to maximize uptime, such as proper vehicle selection, routine maintenance checks, and scheduling repairs in advance. Working closely with dealerships and leasing companies can also help businesses improve vehicle availability.

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giovanni
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0% found this document useful (0 votes)
127 views8 pages

The Business Of... Managing Uptime (2015)

Managing vehicle uptime is critical for businesses to minimize costs and disruptions. The average daily cost of an off-road vehicle is estimated at £700-£1000 per day in lost revenue and productivity. However, many fleet managers are unaware of these costs. Simple steps can be taken to maximize uptime, such as proper vehicle selection, routine maintenance checks, and scheduling repairs in advance. Working closely with dealerships and leasing companies can also help businesses improve vehicle availability.

Uploaded by

giovanni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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THE BUSINESS OF...

MANAGING UPTIME
Minimising vehicle off-road time can save a business money, improve
customer loyalty and boost its reputation – find out how inside

Published by
Sponsored by
CommercialFleet
T HE BUSINE S S OF... M A N AGING UP T IME

Maximise uptime
to minimise cost
and disruption
Any vehicles off the road can have far-reaching
effects for a business, but simple steps can be
taken to avoid problems. Gareth Roberts reports

£1,000
E
very minute a vehicle is off the road costs a
company money and harms its customer loyalty,
competitive edge and reputation.
potential daily loss for
The stakes are extremely high. LeasePlan has an off-road vehicle,
calculated that the average cost of having a van estimates LeasePlan
off the road is between £700 and £1,000 per day.
However, a substantial number of fleet managers appear
to be unaware of the financial impact, with 40% of those
surveyed by Autoglass unable to estimate the business cost
of having a vehicle off the road. Those who were able to give
a figure said the average cost in terms of lost business
40%
of fleets are ignorant
revenue was £727 per day per van. of downtime cost,
“Ensuring fleet managers are aware of this cost is often an Autoglass survey
the first step in improving the utilisation of a vehicle,” says has found
Mark Lovett, head of commercial vehicles at LeasePlan UK.
The cost is not just confined to the price of a component,
labour rate or replacement vehicle, it also relates to an
employee’s wages and productivity, along with a reputational
impact if an appointment cannot be kept or a delivery made.
99%
vehicle uptime rate
But so often this key component of cost management is achieved by the RAC
neglected. Mark Cartwright, head of light commercial vehi-
cles at the Freight Transport Association, says: “An increasing
number of van operators are managing their fuel spend and
residual values, but still almost half of respondents to a
recent Van Excellence survey admitted they fail to manage
planned and unplanned vehicle off-road time.”
He adds: “Given that many operators would put the cost of
having a vehicle off the road as being in the hundreds, if not
thousands, of pounds per day, it is surprising that more
operators aren’t taking more positive action.”

MAXIMISING RELIABILITY
Vehicle selection is a critical first step to maximising relia-
bility and minimising downtime, but all too often businesses
are tempted to cut costs.
Price becomes the motivating factor and vehicles end up
on the fleet that are not fit for purpose in terms of size, gross
vehicle weight and axle weight.
“Vans are worked hard in our industry, in every area,” says
Charlie Shiels, executive director for central operations at
DPD UK. “We need the van to be well designed and built with
the robust nature of our industry in mind.
“For example, load doors can be opened 120 times per day, For more on reducing
which is 600 times a week, 30,000 times a year or 150,000 vehicle downtime, visit:
times over the van’s life – van design and build is everything.” fleetnews.co.uk/downtime
A vehicle that isn’t fit for purpose will be placed under

2 commercialfleet.org
Sponsored by

Ford’s van
network
introduced
extended
servicing hours
in March

increased strain, leading to unreliability and vehicle down-


time. Making the right choice, however, can provide compa-
nies with a quick win, says Lovett.
“Vehicle utilisation can be significantly boosted by simply
“The importance
ensuring the chosen vehicle is correctly specified for the job
it will be doing,” he adds.
of the daily
But to push home that advantage, fleet operators must routine checks
also ensure they employ the right service, maintenance and
repair (SMR) regime. cannot be
underestimated.
TAKE A PROACTIVE APPROACH All our drivers of
“Planning is key,” says Mohammed Imran, head of vehicle patrol and recovery vehicles will
and supplier operations at Arval. “Take a proactive approach
to avoid unscheduled work, including daily vehicle checks
complete daily checks, which
and a clear process for recording and rectifying faults.”
Achieving an uptime rate of 99% on around 1,500 vehicles,
are electronically recorded”
the RAC’s fleet operations manager, Tim Hartles, agrees. Tim Hartles, RAC
“The importance of the daily routine checks cannot be
underestimated,” he says. “All our drivers of patrol and
recovery vehicles will complete daily checks, which are elec- or technical teams which allows discussion to drive out any
tronically recorded.” future faults.
It allows the RAC’s drivers to plan any service or repair at Lawson says: “Fleet operators need to ask themselves if
a time convenient to them and the business, helping to their vans are being maintained by a dedicated van network
maximise vehicle uptime. or being shoehorned in-between the ‘more important’ car
Booking SMR work with franchised dealers, independent customers or sat in a queue behind a lorry, which requires
garages and fast-fits in advance also avoids unnecessary much more time spent on it.”
delays and ensures part availability.
Franchised dealers are also starting to join many fast-fit
centres and independent garages by offering longer opening WORKING IN PARTNERSHIP
hours and weekend working, which will be welcomed by
fleets wanting to increase vehicle availability. Leasing companies have also been eager to adapt their
A Commercial Fleet poll late last year found that of the 43% services to help fleet operators improve vehicle availability.
of respondents who did not have access to out-of-hours LeasePlan’s Uptime uses telematics data to capture
servicing, 69% would like it. vehicle mileage every 24 hours and then plan each service,
Andy Lawson, head of fleet at Mercedes-Benz Vans, says: inspection or other scheduled event around the operator’s
“On average, our workshops are open up to 100 hours a working patterns. Launched three years ago, it applies an
week, including Saturdays, with more than one-third of these HGV approach to LCV maintenance.
open 24 hours a day throughout the working week, and more Arval operates a similar service called Downtime Manage-
than 90% operating at least two shifts daily, meaning that ment, while Lex Autolease launched the first of its new range
vans can be repaired and maintained at times to suit the of purpose-built ‘Driveaway’ commercial vehicles last year.
customer, not the manufacturer.” The vehicles are pre-fitted with industry-specific internal
Ford’s network of 100 van specialists introduced extended fixtures and fittings such as racking and storage solutions
opening hours to customers for vehicle servicing and main- and are held as stock. With supply time averaging between
tenance in March. Transit centres must open from 7.30am 14 and 21 days, businesses benefit from shorter lead times
to 6.30pm Monday to Friday as a minimum, and also from and by not having to remove the vehicle from the road to
8am to 1pm on Saturdays. They must also offer one late undergo a separate conversion.
night service every Thursday, which must, as a minimum, But, with a wealth of third-party suppliers providing every-
allow customers to drop their vehicles off at the dealership thing from glass repair and replacement to breakdown and
at 4pm and collect them no later than 10am the next day. recovery services, matching the customer with the most
Having strong links to manufacturer and independent appropriate supplier is vital.
garages helps the RAC. “Working closely with manufacturers “This ensures that the service supplier builds a strong
enables early identification of possible trends and allows understanding of the customer’s business so they can
both parties to plan any rectification,” says Hartles. deliver planned service schedules, quick diagnosis and an
RAC has direct links to either manufacturer customer care effective response to problems,” says Imran.

commercialfleet.org 3
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Case study:

100% fleet uptime Compare this to the same period


two years ago, with a fleet made
“This is a fantastic result
up entirely of vans from another across both accident and
for Iceland Foods manufacturer –15% of the total
maintenance for our fleet.
number of vehicles off the road
On 13 August 2014, not a single one
of Iceland Food’s 420 Mercedes-Benz
were the same age as today’s The 24-hour support of
Mercedes-Benz stock.
home delivery vans was off the road.
This achievement wasn’t a one-off.
Mercedes-Benz Vans
Iceland’s fleet is split fairly evenly dealers really helps to
between Mercedes-Benz vans and
vehicles from the other manufacturer. keep vehicle downtime to
In May 2015, there were 21 Iceland a minimum, but to have
Food vans off the road. Only 6 of
these were Mercedes-Benz – and a fully utilised fleet is
each one was only out of action for virtually unheard of.”
an average of 6 hours, compared to
an average of 16 hours per van for Alex McKinlay, Head of Home
the other manufacturer. Delivery, Iceland Foods
t he busine s s of... m a n aging up t ime Sponsored by

Data gathered by
the latest technology
can be used to keep
vehicles on the road

Embrace technology to
cut vehicle downtime
advanced telematics and the latest technology are providing fleets with
the tools to drive efficiency and vehicle availability. Gareth Roberts reports

C
rash avoidance systems, electronic vehicle the RaC’s 1,500-strong fleet is fitted with a telematics
checks, advanced telematics and engine fault
reporting all have the potential to help fleet
operators improve their vehicle uptime.
80%
potential reduction in
system developed in-house by the breakdown and recovery
company. tim hartles, RaC fleet operations manager, says:
“We link telematics data to fuel drawn and maintenance
“innovation in the sector is now really gener- unplanned downtime spend, which helps us understand where our focus needs
possible to increased
ating value,” says gerry Keaney, chairman of the british to be to reduce downtime and identify drivers that may need
connectivity
Vehicle Rental and Leasing association (bVRLa). training or education.
“Whether it is safety functions, such as autonomous emer- “for example, matching maintenance spend with telem-
gency braking or fleet management features, such as tele- atics data can give a direct correlation with brake wear and
matics, the rental and leasing sector is well aware of the
potential developments in automotive technology.”
Leaseplan uK’s technology-based proactive vehicle off-
54%
of fleets say the main
driving style which allows us to have a more informed
conversation with a driver.”
mohammed imran, head of vehicle and supplier opera-
road management solution uptime has led to cost savings cause of unexpected tions at arval, is convinced that telematics has a role to play
of up to 60% for its customers, primarily stemming from an downtime was general in improving vehicle availability.
overall increase in vehicle availability. wear and tear “at a basic level, data supports journey planning and
through in-vehicle telematics, uptime transmits perfor- vehicle allocation,” he says. “additionally, it provides valuable
mance updates to Leaseplan’s dedicated LCV team every 24 information highlighting issues with driver behaviour which
hours. all routine mots and repairs are then automatically can lead to increased levels of mechanical wear, accidents
co-ordinated through its service network. and damage.”
mark Lovett, head of commercial vehicles at Leaseplan, travis perkins, which has equipped its fleet of 4,000
says: “solutions like uptime can also maintain electronic commercial vehicles with telematics, has taken costs worth
copies of mot documents, as well as all service, mainte- millions of pounds out of the business.
nance and repair work carried out to ensure each vehicle is it is also running an uptime rate of 93% , compared to 60%
fully compliant with existing legislation.” before the technology was fitted. other benefits
uptime is just one example of how real-time feedback have included a 12.6% reduction in vehicle acci-
served by telematics-based products is helping fleets make dent costs as a consequence of managing
smarter decisions on which vehicles to service and when. vehicle speed and monitoring driver behaviour.

commercialfleet.org 5
t he busine s s of... m a n aging up t ime Sponsored by

“that’s why data is so important,” says graham


bellman, group fleet director at travis perkins.
“it influences driver behaviour and mainte-
nance regimes and can help reduce accidents.”
andy Lawson, head of fleet at mercedes-benz Vans,
agrees. he says: “the telematics within vans now enables
fleet managers to measure the performance of the vehicle
and the driver, checking everything from miles per gallon to
maintenance schedules.”
Richard Robinson, director of strategy analytics, believes
that more than half of vehicles on the market will be fitted
with embedded telematics by 2021 compared to less than
25% now. this means more vehicles will be able to report
‘home’ to the dealer with faults, wear and tear, and servicing
requirements, so specific parts can be pre-ordered in
advance of the service booking.
he says: “the commercial vehicle sector has been using
data and technology successfully, and manufacturers need
to realise that data also has value for them.”
advanced telematics solutions can provide insight into how
vehicles are performing by reporting trouble codes directly
from their engines. if a vehicle is low on oil or has an engine PoThole deTecTion and avoidance Technology
fault, the fleet manager can be immediately notified to
ensure problems are quickly fixed. Jaguar Land Rover (JLR) is characteristics, giving passengers a
paul foster, solutions engineer at telogis fleet, says: researching technology that will allow more comfortable ride over uneven
“manufacturers such as ford are now building these a vehicle to identify potholes, broken and damaged road surfaces.”
preventative solutions on the factory floor, offering managers drains and manhole covers. While this is being developed for JLR
a range of integrated vehicle health information and alerts If a car can receive a warning from vehicles, the manufacturer thinks
on mechanical issues, including water contamination in the another vehicle about a problem there is a huge opportunity to turn the
diesel and oil life remaining.” ahead, then drivers would be able to information into ‘big data’ and share it
Volvo trucks says incidents of unplanned downtime can be slow down and avoid the danger – or for the benefit of other road users,
cut by 80% thanks to the growth of online connectivity. “any the vehicle could adjust suspension including commercial fleets.
unplanned downtime can hit a company hard,” says hayder settings to reduce the impact and “This could help prevent billions of
Wokil, director of quality and uptime at Volvo trucks. smooth the ride. This could help pounds of vehicle damage and make
“We have to be better at understanding why these reduce punctures, wheel and vehicle road repairs more effective,” says Bell.
unscheduled incidents happen, then help both customers damage as well as accidents. The project is also investigating
and drivers increase vehicle uptime and their profitability.” Dr Mike Bell, global connected car whether JLR’s experimental camera
Volvo recently conducted a survey based on real-life user director at JLR, says: “By monitoring the could take an image of the pothole or
data from 3,500 Volvo trucks gathered over a five-year motion of the vehicle and changes in the damaged manhole and share this with
period. it used this information to conduct simulations and height of the suspension, the car is able the road authorities, together with a
to continuously adjust its suspension GPS location.

generated a variety of possible service situations to analyse


“Technology has how, why and when trucks suffer from unexpected down-
a massive role to time. the aim was to find out how this can be avoided.
“the study clearly showed that by being able to monitor
play in improving the truck’s usage and the current status of the vehicle’s
various key components, it is possible to plan maintenance
vehicle utilisation” better,” says Wokil.
For more ways to maximise mercedes-benz is also looking at harnessing the vehicle’s
Andy Lawson, vehicle uptime, visit: own systems to further help with vehicle uptime, which will
Mercedes-Benz Vans fleetnews.co.uk/downtime be rolled-out next year. Lawson concludes: “technology has
a massive role to play in improving vehicle utilisation.”

Technology sTreamlines vehicle checks


Technology is helping fleet operators Jaama’s Defect Manager, can be used commercial vehicles and 2,500 company
increase efficiency and reduce administration by drivers to record information from a cars, recently introduced an electronic
by streamlining vehicle checks. walkaround check on a smartphone, vehicle check system.
Tim Hartles, fleet operations manager for which automatically transfers it into a fleet It replaced a paper-based questionnaire,
RAC, says: “All our drivers of patrol and management software package. with checks tailored to each vehicle rather
recovery vehicles will complete daily checks, However, only 27% of fleets surveyed by than being generic, and also gives the ability
which are electronically recorded. Autoglass last year said they performed to message drivers individually.
“Having this focus and diligence allows our regular maintenance checks. “We have some great drivers, but we need
drivers to plan ahead any service or repair This was despite 54% of respondents to have an audit trail that checks are being
which may include replacing tyres at a time saying the main cause of unexpected undertaken,” says Graham Bellman, group
convenient to them and the business, helping downtime for emergency repairs was fleet director at Travis Perkins.
to maximise vehicle uptime.” general wear and tear. “An electronic system further enhances
Some products, such as Fleetcheck or Travis Perkins, which operates 4,000 our procedures.”

6 commercialfleet.org
T hE BUSInE S S OF... M A n AGInG UP T IME Sponsored by

CASE STUDY: DPD UK

F
leet performance is vital when meeting strict dead-
lines for one of the UK’s biggest time-critical carriers.
DPD UK operates a fleet of more than 4,000
Mercedes-Benz Sprinter vans, 300-plus 7.5-tonne
trucks and 800 tractor units for deliveries across
the UK and Europe.
Charlie Shiels, executive director for central operations at
DPD UK, says the company delivers more than 2.5 million
parcels a week for some of the biggest brands in the UK.
“We clearly cannot fail,” he says. “Reliability is essential in a
service industry such as ours.
“We hate to fail, and move heaven and earth to ensure we
keep our promises to our customers.”
DPD has a vehicle uptime
DPD UK is achieving an uptime rate above 99% for its van rate of more than 99%
fleet thanks to a focus on both its vehicles and drivers.
One of the most important measures it employs to improve
vehicle utilisation is preventative maintenance. important, according to Shiels, is driver engagement. “Drivers
“We would rather over-maintain than under-maintain,”
FACTFIlE need to understand [that] if you look after your van it will look
says Shiels. Company: DPD UK after you,” he says. “It’s common sense.”
It is also vital to ensure a vehicle is fit for purpose. But equally Fleet size: 4,000-plus vans, DPD’s attention to detail is clearly paying off after the parcel
300-plus 7.5t rigids, 800 tractor delivery company was recently honoured by consumer cham-
units and 1,300 trailers pion Which? with a special award.
Executive director for central The courier was recognised for consistently topping
“We would operations: Charlie Shiels
Headquarters: Oldbury, West
customer satisfaction tables, offering the best in customer
care and driving change in its sector.
rather over- Midlands Recognition from the consumer group followed hot on the
heels of DPD winning the Queen’s Award for Enterprise in
maintain than April for its Predict service.
under-maintain” Predict gives customers a one-hour delivery slot and if they
can’t be home they can use a series of ‘in-flight’ options in
real-time to tell their driver to deliver to a specific neighbour
Charlie Shiels, DPD UK or their nearest DPD Pickup parcel shop.

CASE STUDY: ICElAnD FooDS


eeting customer expectations is key when
FACTFIlE

M delivering frozen produce to homes across


the country from a network of 850 stores.
Iceland Foods operates around 1,400
dual compartment refrigerated vehicles to
fulfil a demanding home delivery operation, which was
first launched in 1996.
Almost 20 years later, it continues to go from strength
Company: Iceland Foods
Fleet size: 1,400 dual compartment
refrigerated vehicles, consisting of
panel vans and trucks
Commercial fleet manager:
Alex McKinlay
“We don’t have the
convenience of
dedicated sites”
to strength, making around 200,000 deliveries a week Headquarters: Deeside, Flintshire Alex McKinlay, Iceland Foods
thanks to a vehicle uptime rate in excess of 95%.
The VMS Group maintains the fleet through a combina-
tion of the Mercedes-Benz dealer network and VMS dedicated transport managers. Therefore, when low level
mobile technicians. maintenance is required, we need a third party to put the
With the majority of its stores on the high street, Alex vehicle back on the road.”
McKinlay, commercial fleet manager for Iceland, says: Iceland operates a fleet of spare vehicles to assist with
“We do not have the convenience of dedicated sites with vehicle downtime. These are provided within geographic
areas and their placement is managed by its store teams.
The fleet of spare vehicles is complemented by 30 cour-
tesy vehicles provided by VMS, which are used for any
downtime due to accident damage.
McKinlay says: “Our business prides itself on on-time,
same-day delivery. If our vehicles are not available then
this directly impacts on our ability to deliver what our
customers expect.”
Technology is also playing a part in helping increase
Iceland’s vehicle uptime, with telematics due to be fitted
to all vehicles by December.
“By understanding how our vehicles are being driven
Telematics is being and feeding this back to our drivers, we have cut our fuel
rolled out across bill and reduced accidents,” says McKinlay. “Telematics
Iceland’s fleet also provides the ability to understand exactly where our
vehicles are and when they are, and are not, being used.”

commercialfleet.org 7
Mercedes-Benz Vans range

Nationwide
Dealer
Network –
over one third
delivers
are open 24hrs

Class leading
whole life
costs and
retained
values

MobiloVan Over 80%


– our Free of vehicles
24hr Roadside fixed at the
Assistance roadside

Economy, safety, uptime


www.mbvans.co.uk/fleet
A Daimler Brand

Celebrating 20 years of the Mercedes-Benz Sprinter

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