Fleet Support Group compiles New Year action plan to deliver fleet efficiencies

Cost management should remain the focus across business for 2010, but too many companies continue to leave themselves open to unnecessary financial expenditure, according to Fleet Support Group.

As a result, FSG Chairman Geoffrey Bray has compiled an action plan that will deliver financial savings to businesses.

• Cash opt-out schemes - many organisations are continuing to run company car cash alternative schemes along pre-recession lines, according to Mr Bray. “Cash opt-out schemes should undergo a top-to-bottom review particularly in relation to the amount of money paid to staff and the viability of employees remaining outside of a company car scheme. Given the wide range of low-emission cars available today, it is likely that many people and their employers would be financially better off opting back into a company car,” he said.
• Reducing business mileage - FSG is encouraging its own staff to cut down on business miles by utilising services such as web exchange and video-conferencing. Clocking up business miles is one of the priorities for cash opt-out drivers as they look to gain maximum financial dividends. However, such a strategy runs contrary to corporate cost management programmes, said Mr Bray. “Businesses should fix financial targets and then monitor progress on a regular basis,” he said.
• Focus on the fleet ‘Holy Trinity’ - cost savings, environmental efficiencies and occupational road risk management delivering health and safety legislation compliance are mutually inclusive and part of the same virtuous circle. “A ‘green’, safe fleet will deliver cost savings to all businesses,” said Mr Bray. “However, too often, companies pigeonhole each issue and do not make the link.”
• Fleet funding reviews - when reviewing funding strategies, use independent advisers and clearly identify the aim of the process. Mr Bray said: “Too often, fleet decision-makers seek the views of organisations with a vested interest in the outcome of the review process. Obtaining independent quality advice and being absolutely clear on the targets to be achieved are essential if cost-saving objectives are to be achieved.”
• Tender competency - when going out to tender, companies must be explicit about their specific requirements. Mr Bray said: “The competency of many people completing tender documents is not at the level it should be. This is because, in some cases, they are not fleet professionals. The fleet industry is full of intangible costs as a result of incompetence and often that is caused by poor tender procedures because an organisation is not clear about what it is trying to achieve. We have rejected some tenders because of the vagueness of the proposed aims. Apart from being clear on the objectives, fleet decision-makers should specify correctly what is required from potential suppliers and identify companies that can deliver.”
• KPIs key to winning financial battle - establishing key performance indicators (KPIs) to monitor total cost of vehicle ownership data on a monthly basis is crucial if cost savings are to be achieved. Mr Bray said: “Fleets must look at every facet of vehicle cost and then budget for achievable reductions and measure and monitor progress frequently.”
• Employ fleet professionals - crucial to establishing and monitoring realistic KPIs is the employment of fleet experts. Mr Bray said: “Fleet operations can drain a lot of money out of businesses and too many companies do not employ a fleet professional. A fleet expert will deliver significant financial savings by working hand-in-hand with key suppliers.”
• Drivers crucial to strategy success - the biggest cost in terms of fleet operations is the driver, who has direct control over fuel usage, vehicle wear and tear, SMR costs and accident bills. As a result, Mr Bray says: “Drivers are key to businesses achieving the fundamental aim of cost reduction. Therefore, fleet chiefs should explain their strategy to drivers and identify the role they can play in delivering savings, which could ultimately be the difference to them being in or out of work.”
• Communication - board-level communication to company car and van drivers as well as ‘grey’ fleet drivers is vital. Mr Bray said: “Clear and succinct communication on all revisions to fleet policy is crucial to getting staff on-side in terms of strategy success and, simultaneously, eliminating rumour and speculation.”

FSG to launch Masterserve Automotive Academy to further boost fleet service

A MAJOR new initiative is being launched by Fleet Support Group in 2010 to further raise standards within its nationwide network of Masterserve independent garages.

The Masterserve Automotive Academy is being developed in partnership with motor industry training provider Remit and offers staff at the network’s 470 garages the opportunity to improve their skills through Government-funded apprenticeships and adult qualifications across the UK.

FSG Technical Director Julian Bailey-Watts said: “The Academy is in the final stages of development. We believe Remit is extremely well positioned to support FSG’s core principles of further improving service to our fleet customers, simplifying administration as far as possible and eliminating costs.

“The Academy will not only act as a staff recruitment ground for garages but will also ensure that their existing staff are able to access the very best training courses to further develop their skills if required.

“The complexity of motor vehicles is increasing with every new model launch and we owe it to our fleet customers to ensure that when their vehicles are in the hands of our garage network for SMR work the very highest calibre of workmanship is applied.

“Feedback from existing customers tells us that the Masterserve network already provides first-class service and the formal launch of the Academy later this year will deliver even greater benefits.”

Remit, the training arm of the Retail Motor Industry Federation, specialises in providing both technical and non-technical training/qualifications across several automotive disciplines including service technician, vehicle body repair, vehicle paint refinishing, auto electrician, customer service, parts consultant and business administration.

James Pegg, Remit Account Manager, said: “Essentially we help organisations to recruit the very best people to undertake apprenticeships through our relationships with schools, colleges and regional Connexions offices.

“We manage the whole process; starting with a telephone call from the manager or business owner to discuss any specific requirements. We will then search through our database of over 14,000 applicants to identify 15 to 20 applicants to conduct an initial telephone interview and shortlist three to five suitable candidates to put forward for interview. This service is at no cost and inclusive of the apprenticeship package.”

Remit has relationships with over 90 colleges nationally to deliver the technical elements of the apprenticeship and has 24 regional assessors to undertake in-company visits every eight to 10 weeks to conduct progressive technical assessments.

Mr Pegg said: “Our assessors have the best experience of the industry to develop and assess apprentices, having worked in either an independent establishment or a franchised dealer themselves. New apprentices and their employers are allocated an assessor who will be the point of contact throughout the programme duration”.

A typical service technician apprenticeship is delivered by a regional college one day a week during term time and would be delivered over a three-year year duration, however some non-technical disciplines can be delivered on site without college attendance.

Mr Pegg added: “Remit designs and delivers automotive development programmes that ensure the very best people are selected for employment; that employees are developed to reach their full potential; and that the best people are successfully retained within organisations. We look forward to providing the Masterserve network with an Automotive Academy and the next generation of technicians.”

• Further information on the Masterserve Automotive Academy or funded adult qualifications is available from James Pegg on 07528 977146 or via email james.pegg@remit.co.uk.

JCT600 Contracts backs FSG’s RiskMaster to deliver crash reductions

Independent confirmation that RiskMaster, Fleet Support Group’s occupational road risk management programme, is the best in the market has come from vehicle leasing company JCT600 Contracts.

The West Yorkshire-based company operates a fleet of 6,000 vehicles and in 2010 is considering offering the web-enabled RiskMaster as part of its enhanced vehicle leasing package to customers.

JCT600 Contracts initially forged a business partnership with FSG seven years ago when it offered accident management through FSG on its menu of services to clients.

That partnership worked so well that JCT600 Contracts’ Managing Director Andrew Mann extended the relationship by offering his customers FSG’s RiskMaster.

He said: “With the corporate focus on at-work driving safety we looked at the various risk management initiatives that were in the marketplace. As we already directed our clients towards FSG’s accident management service we looked at RiskMaster when it was launched.

“We believe that RiskMaster is the complete occupational road risk management package and that there is nothing better available.”

One of JCT600’s clients which is using RiskMaster is The Labour Party, which introduced the programme on the strength of already being a user of FSG’s accident management service known as CrashMaster.

From October 2007 to the end of September 2009, figures show that proactive risk and accident management by The Labour Party triggered a 29% crash reduction in fleet vehicle incidents.

Mr Mann said: “The Labour Party is testimony to the ability to cut road traffic incidents and therefore save money through the positive management of vehicles, drivers and journeys.”

Explaining JCT600’s relationship with FSG, he said: “I wanted to offer our customers an accident management service. We looked at a number of credible service providers and decided that the philosophy and culture of FSG was a good fit with our own business.

“I like the fact that FSG employees answer the phone to customers in their own call centre and conversations are recorded. Everyone is accountable.

“When RiskMaster was launched and our customers wanted help with their at-work driving duty of care we looked at what was offered and decided the service was right for our customers.

“It is a good relationship between FSG, ourselves and our clients. The impact that RiskMaster has had on reducing crash frequency on The Labour Party’s fleet is testimony to that.”

With risk management remaining on the list of key fleet issues in the new year, Mr Mann said: “Instead of simply referring our clients to FSG we are contemplating offering RiskMaster as a feature within our enhanced contract hire package in 2010. I’m sure that it will minimise our customers’ road risks further.”

Employees of companies using RiskMaster are granted a Permit to Drive following a DVLA licence check. An online driving ‘test’ is then used to profile drivers as ‘low’, ‘medium’ or ‘high’ risk with the assessment used as the basis for future on-the-road driver training. Vehicle maintenance records, insurance details, MoT and VED records, and any data on crashes and motoring offences are also fed into the system.

As information is supplied, it is analysed by the RiskMaster system that point scores a driver’s data. If points rise above a preset level, management is alerted. So a driver can qualify for a permit, or a temporary permit, or be denied until the necessary corrective action is undertaken.

The system creates an individual and comprehensive Driver Operating Life Report from which data is used to continually assess each employee in their driving-at-work activity with individually targeted, safety-focused interventions available if required.

First-class customer service is key to business survival

First-class customer service is the key to business profitability and that is why Fleet Support Group’s nationwide network of Masterserve garages has a crucial role to play in returning fleet vehicles to the road as quickly and efficiently as possible.

That was the message from Fleet Support Group Chairman Geoffrey Bray as he addressed bosses of independent garages that belong to the company’s Masterserve network at their annual workshop.

The Masterserve network is composed of 120 approved garages and 350 associate garages all striving to obtain approved status.

Mr Bray said: “Customer service should be the number one priority for all businesses because if you don’t meet the requirements of customers then they will go elsewhere, profits will decline and the business will ultimately die.

“That is why customer service is FSG’s number one priority. We are not infallible; we are not perfect; we are not arrogant and we do make mistakes. But if we deal with those mistakes and react swiftly we can continue to take customers with us and move on.

“I believe that we have all the ingredients essential to forge through these demanding economic times and emerge the other side stronger than our competitors, but we will only do that as a team.”

Reflecting on the last 12 months, he told the garage bosses: “We have seen a graveyard of corporate corpses all run by clever people who lacked one ingredient - common sense. Their organisations got too big and complacent and they got out of touch with their objectives. From that moment on the only way is down.

“We can all learn from their experiences and take a fresh approach to bring common sense into the management of our country and our businesses.

“FSG’s culture has always been and always will be to build genuine partnerships. We passionately believe in partnerships and businesses have to work with each other to develop trust. Without trust you have nothing.”

And, in urging a ‘back to basics’ approach, Mr Bray urged the garage chiefs to "tell us about our success and our failures" and added: “We are continually striving to help our customers cut costs and that means getting vehicles back on the road as soon as possible.”

FSG strives to achieve a ‘zero complaint culture'

A ‘zero complaint culture’ has been adopted by Fleet Support Group as the organisation and its independent dealer network aim to eliminate mistakes.

Just as clients Network Rail and Balfour Beatty Utility Services have adopted a ‘zero tolerance’ approach to missed and late vehicle servicing and a ‘zero harm’ approach to accident reduction respectively, so FSG has introduced its new policy.

FSG Chairman Geoffrey Bray announced the move at the company’s annual workshop for its Masterserve garages - a total of 470 outlets nationwide have approved or associate status.

He told garage bosses: “I want to know about every complaint, every issue – and I will take personal control and deal with it. To ensure that we continue to be successful we must deliver sensational customer service. It is something that our customers must experience because I want them to tell me if they don’t.

“We must not make mistakes or make excuses,” said Mr Bray, who added: “It all comes down to managing people within our businesses. There should be no blame culture, but employees should take responsibility for their actions. Issues should be out in the open, dealt with – and then we should make sure they never happen again. Only by doing that will we satisfy our mutual customers.”

Fleet chiefs are all faced with huge challenges and the single biggest one is to eliminate costs, which means looking to improve efficiencies within the vehicle operation.

Mr Bray said: “We can help them improve efficiencies by ensuring vehicle downtime is kept to an absolute minimum and helping them and their drivers to look after vehicles.”

He pledged that a zero complaint culture would be achieved by FSG and its Masterserve network by sticking to the company’s founding principles of: taking out cost, improving service and simplifying administration