Green for go; red for stop. FSG’s new ‘traffic light’ reporting to encourage fleet management cost control

A new ‘traffic light’ fleet management monthly report format has been introduced by Fleet Support Group to enable customers to more easily focus on key issues in a bid to cut operating costs.

The reports, using a series of red, amber and green dots to highlight action areas or whether a company is already conforming to best practice, have already been rolled out to all FSG’s fully outsourced FleetMaster customers.

The reports are now being rolled out to other customers, who perhaps only take one or two services from FSG but, nevertheless, the company believes it has a duty to draw attention to fleet-related issues that may not be at the cutting-edge of management control.

Issues flagged up on the traffic light reports include: company vehicle policy; fleet vehicle acquisition and disposal policies including end of contract charges; vehicle maintenance; accident management; fleet management service; duty of care and fleet administration including driver communication.

Topics flagged ‘red’ are deemed by FSG to require urgent attention; those marked ‘amber’ require monitoring or action; and those marked ‘green’ are shown to be satisfactory or on target.

FSG Chairman Geoffrey Bray said: “The traffic light reports to customers will continually highlight areas requiring action or intervention

“The key to reducing fleet operating costs is driver management so it is vital that fleet decision-makers focus on how fleet management data, delivered by ourselves or any other third party service suppliers contracted by them, is being used to manage their drivers. 

“Many clients have achieved dramatic cost reductions by using data in a more proactive way. Whilst accepting the HR ramifications around managing drivers, it does seem clear that organisations are seeing the current economic downturn as an opportunity to drive down costs.”

With around 55,000 company cars, vans and HGVs under management, Mr Bray said: “FSG has a vast amount of fleet expertise and we want all of our clients to benefit from the knowledge base that we have established over more than two decades.

“Some companies can get bogged down in reams of management reports and, as a result, pay little attention to the information contained within. So we believe that our new traffic light reporting system is a simple mechanism for drawing decision-makers’ attention to important action areas.

“We are practising what we preach: that cost management and compliance are key. But we are delivering our verdicts in a straightforward, easy-to-understand format.”

Referring to fleet issue verdicts delivered when a company takes perhaps only one or two services from FSG but other services from an alternative supplier(s), Mr Bray explained: “Where a company is using some of our services and we are not aware of how they are managing the fleet in other areas we will flag those issues up in red.

“If clients feel comfortable that they have those issues covered then good. But, at least we are drawing their attention to potential areas of concern as we see them.”

He concluded: “We are improving communication with our clients. One A4 sheet contains our comments on their fleet operation. If everything is green then there is nothing to worry about and that is what we want to see. However, red and amber dots should give cause for concern.”

Five numbers focus fleet chiefs’ minds on cost control

Maintenance management reports using five key performance indicators have been introduced by Fleet Support Group to help customers improve vehicle cost control.

The monthly reports are now being sent to all of FSG’s fleet maintenance customers enabling them to see at a glance the headline cost per vehicle per annum of vehicles on their fleet.

If costs have increased, customers can then use FSG’s interactive website to drill down into individual reports and see where and why costs are on the rise.

The five KPIs are: the number of vehicles on the fleet, average vehicle age in mileage, average age of vehicle in months, average miles travelled per vehicle per annum and pence per mile operating costs.

Using the data to provide fleets with a month-by-month at-a-glance view of the cost of a vehicle per annum gives, according to FSG Chairman Geoffrey Bray, the ultimate reference point to see whether or not costs are being controlled.

One FSG customer has seen the size of its fleet increase more than eight-fold over the last eight years. However, while average age and mileage has increased and pence per mile costs have also risen, the cost per vehicle per annum has reduced by around 15%, a saving of almost £100 per vehicle per year.

Mr Bray said: “There is an absolute correlation between firm fleet management and lower fleet costs. Our simplified analysis is designed to help companies take action to reduce fleet operating costs. Companies that are able to reduce their cost per vehicle per annum figure are doing so because of firm management.”

FSG is Britain’s largest independent fleet management organisation managing 55,000 company cars, vans and trucks. It uses a nationwide network of specialist independent garages for service, maintenance and repair (SMR) work.

A core group of 125 independent supplier workshops in towns and cities close to where the majority of customers’ vehicles are located are equipped with FSG’s Masterview system and undertake the majority of SMR work.

Masterview is a unique remote video inspection system that enables fleet managers and FSG’s technical staff to view the condition of vehicles and components anywhere around the country, either in real time or recorded for later transmission.

When vehicles are booked into these garages for service and repair, a video link allows FSG maintenance experts at its Chippenham headquarters to view live pictures via broadband. When vehicle abuse is detected, fleet managers in charge of the damaged vehicles are informed and shown the evidence.

The video evidence continually uncovers a chamber of horrors of how company car and van drivers abuse their vehicles resulting in significant maintenance cost rises for fleets.

The new reports support both the recent introduction of comprehensive ‘traffic light’ fleet management reports and FSG’s established Are Your Vehicles Fit For Purpose campaign.

“Companies that have an appetite to effectively manage their drivers will keep costs down. Organisations that do not proactively manage their drivers won’t,” said Mr Bray.

“The KPI reports show how a fleet’s profile has changed from the day FSG took over maintenance management. In many cases businesses have already taken action as a consequence of FSG flagging up areas of cost concern.

“But not all companies have taken steps and our new simplified single-page document KPI format delivers the headline facts. From the comments we are already receiving from customers they welcome the development because key information is being flagged up in an easy-to-understand format.”

RiskMaster updates take place to manage fleet Driver CPC records

New functionality has been introduced to RiskMaster, Fleet Support Group’s comprehensive occupational road risk management system, RiskMaster, to ensure corporate and driver compliance with the new commercial vehicle Driver CPC (Certificate of Professional Competence).

As well as being made to meet legislative demands as a result of the certificate’s introduction by the Driving Standards Agency, the revision has taken place due to customer requests for RiskMaster to help them manage the administrative processes associated with the qualification.

The CPC for drivers of commercial vehicles weighing 3.5 tonnes or more was introduced last month. Driver CPC for bus and coach drivers was introduced in 2008. The qualification is aimed at raising and maintaining the standards of commercial vehicle, bus and coach driving throughout the UK.

The CPC requires all PCV drivers who passed their PCV driving test before September 10, 2008 to undertake 35 hours of approved training before September 2013. Periodic training will need to be completed by all PCV licence-holders every five years to enable drivers to continue to drive professionally.

The new qualification also requires all LGV drivers who passed their LGV driving test before September 10, 2009 to complete 35 hours of approved Driver CPC training before September 2014. This also needs to be completed every five years to enable drivers to continue to drive professionally.

As a result, RiskMaster has been modified to enable the storage of CPC training records, allowing fleet decision-makers and company directors to manage the 35 hours worth of training that needs to be completed within the five-year period.

FSG RiskMaster manager Daryl Cottle explained: “The RiskMaster programme’s regular reports can be produced to show which drivers are under CPC management. The report will detail the training courses that have been completed within their five-year period, the amount of training completed (hours) and the number of hours that remain outstanding.”

The 35 hours of training can be completed at any point before the end of the five-year period of licence validity. Fleet operators can select how much training should be completed each year for an individual driver - one seven-hour day of training per year or all 35 hours of training in one week. All training must be delivered by a Joint Approvals Unit for Periodic Training (JAUPT) approved course provider.

Pay-on-use breakdown cover will help fleets cut costs

Businesses could be spending thousands of pounds unnecessarily on annual breakdown cover which they never use due to the increasing reliability of today’s vehicles.

That’s the view of Fleet Support Group, which offers its fleet management customers the option of pay-on-use vehicle breakdown and recovery through its own motoring organisation.

FSG Chairman Geoffrey Bray said: “Our breakdown and recovery service delivers the identical peace of mind service offered by the well-known national motoring organisations. However, companies only pay for the service when they use it.”

Indeed, the AA admits that in the last five or six years the number of call-outs for its services has reduced due to the increasing reliability of modern vehicles. In addition, motoring organisations calculate that around 80% of call-outs result in the problem being fixed at the roadside.

Virtually every vehicle on FSG’s books initially comes with manufacturer-provided free-of-charge breakdown and recovery. FSG monitors and controls all aspects of any call-out as part of its standard fleet management service inclusive of full reporting on any breakdowns.

However, when the manufacturer-provided cover expires, many fleet decision-makers automatically buy annual breakdown and recovery cover.

But Mr Bray says: “I understand that organisations and their drivers feel they have peace of mind if they buy annual cover. However, in our experience the vast majority of fleet vehicles go through their entire life under our management without requiring the services of a roadside breakdown and recovery operator.”

Membership of FSG’s own national motoring organisation - CARE (Car, Accident, Roadside Emergency Services) - is free, with charges applied on a pay-on-use basis. Comprehensive management reporting remains part of the service.

Mr Bray said: “Just like the national motoring organisations we provide a 24/7 service, 365 days a year that delivers peace of mind to both businesses and their drivers in the event of a breakdown.

“With the economic downturn having thrown companies’ focus increasingly on cost management it seems a common-sense move to only pay for services that are used. Pay-on-use breakdown and recovery is the route that cost-focused companies should follow. Why pay for a service that will never be required?”

And both of the UK’s two major motoring organisations highlight that if drivers looked after their company-provided vehicles better, AA and RAC support would be needed even less than it is now.

So-called ‘self-induced’ driver faults are the main cause of the majority of call-outs. For example, the AA says that flat batteries and battery-related problems are the number-one call-out reason (500,000 a year). They are followed by tyre-related issues (350,000 call-outs) and key-related faults (100,000 call-outs). The motoring organisation responds to approximately 3.5 million call-outs a year - around 10% of the vehicles on the UK’s roads.

A spokesman said: “Up to 50% of the call-outs could be prevented by drivers taking better care of their vehicles.”

Call-outs are often the result of lights being left on or mobile electronic equipment being charged up and draining the battery; drivers kerbing wheels or failing to check tyre wear and pressures at least monthly; breaking keys through carelessness either in the ignition or door lock; or failing to check fluid levels.

The AA spokesman added: “Company car and van drivers don’t expect their vehicles to go wrong. However, they are increasingly complex machines and do need looking after with basic checks carried out.”

It’s a view shared at the RAC, which has calculated that more than 13,500 days’ downtime could be saved by fleets if drivers conducted basic maintenance checks on their vehicles.

More FSG employees win praise for going the extra mile

Fleet Support Group chief Geoffrey Bray believes that all customers deserve ‘good old-fashioned first-class service’.

That is the concept behind FSG’s ‘Going the Extra Mile’, which is designed to ensure that all staff deliver service standards that are unmatched by their rivals.

It is such courtesy and assistance to fleet decision-makers and business drivers that has seen FSG expand to become Britain’s largest privately-owned fleet management business with 55,000 vehicles on its books.

Below, Flagship publishes some of the most recent comments received from satisfied fleet managers and drivers:

From Alasdair Stevenson, NATS, to Alex Whitehall, FleetMaster: “I [recently] received my new contract car and on checking it through found that it was not the specification that had been agreed and ordered. Since I reported this to Alex he has taken up my case and, while not able to wave a magic wand, has spent long hours trying to resolve this issue. During this period he has kept me constantly up to date despite long (and I am sure difficult) discussions with the suppliers. I do not feel I could have better support during what was a difficult period (plus the fact I am trying to bring a new Air Traffic Control Centre into service) and has taken a great load off my mind. Once again, I would like to commend Alex for his hard work and constant communication.”

From Lee Hawkins, Basingstoke Commercials, to Ozzie Mounty and the TruckMaster team: “I find that all your staff we speak to are helpful and try and sort things speedily and efficiently, so not easy to better that. Oz in particular does whatever is needed to get the job done.”

From Fiona Thomson, Arnold Clark, to Vince Chandler, Accounts Department: “I was on the telephone this morning to Vince. I found him helpful and pleasant to speak to. As a credit controller for Arnold Clark Linwood Vauxhall I am often on the phone to different companies. This morning it was a pleasure phoning your company.”