The Business Of... Managing Uptime (2015)
The Business Of... Managing Uptime (2015)
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
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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
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Case study:
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.
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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.
commercialfleet.org 7
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