Drivers hold the key to improving the bottom line

Investment in good driver management practice helps operators to derive maximum value, including improved fuel performance, increased road safety and protection of their company image

Employing drivers is the biggest cost that road freight providers face when operating heavy goods vehicles, closely followed by fuel. So, it makes sense to ensure that your drivers are delivering more than just the goods in the backs of their trucks.

The high cost of fuel remains the biggest cause for concern amongst haulage operators, according to the July 2011 update of the Freight Transport Association’s Manager’s Guide to Distribution Costs. Commercial vehicle operators continue to be squeezed by rising operating costs and pressure for earlier payment terms from suppliers, whilst facing downward pressure on haulage rates and lengthening payment terms from customers.

FTA’s latest update calculates that, on average, vehicle operating costs for rigid, articulated and drawbar vehicles have risen by 5.6 per cent in the year to 1 July 2011 and remain close to the all-time highs recorded as at April 1, 2011. The largest contribution to the rise came from an increase in the price of diesel, which has risen by 12 per cent in the year to July 1, 2011. In addition, tyre costs have risen by 7.3 per cent and overheads by five per cent in the same period.

It is against this backdrop of rising costs that FTA has produced its Guide to Managing Drivers, which its sponsor, Shell, believes will become an industry ‘must-have’ providing advice to companies from the recruitment and induction of new drivers to ensuring their fleets are being driven safely, legally and efficiently.

Recruit right
Getting the best out of the drivers that we employ and those that are taken on for short-term cover is crucial if we are to operate vehicles in a cost-effective and customer-focused way. In the main, this means getting the basics right: careful interviews, reference checking, robust inductions, regular driver licence checks, compliance and performance monitoring and ensuring drivers receive the right training are part and parcel of achieving the right results.

Good driver management starts with the recruitment process. Employers need to think long and hard about the type of candidates they want to attract and how much they want to spend in doing so. Once recruitment requirements are settled and a job description has been prepared, the company has to think about how to attract those drivers. This is not just about making your advert stand out but more about differentiating yourself from the herd of other employers looking for the cream of the crop themselves. Companies also need to know the legal parameters within which they are recruiting, for example the implications that the Equality Act has on discrimination. To streamline the recruitment process, employers may consider using a recruitment agency instead, but there will be a cost involved and it is important that this is factored into any final decision.

Getting the recruitment process right in the first instance will pay dividends in the long run as not only will it ensure that you have the right people for the right job, but it will avoid the often unseen cost of having the wrong people for the job.

The principal aspects of employment legislation policy covering equal opportunities, part-time workers and equal pay can be found in FTA’s Yearbook of Road Transport Law.

Drivers hold the key
Minimising fuel usage is the Holy Grail for all transport operators, but it starts with training the drivers themselves. For example, any new vehicles introduced to the fleet should be accompanied by training on appropriate driving style (gear changing/braking). Regular refresher training and regular feedback on their fuel efficiency performance will help this process.

The introduction of fuel efficiency targets for drivers is essential for rewarding and promoting good practice. However, fuel efficiency targets need to be credible. To this end, operators should consider establishing targets comparing performance to the previous year rather than averages, to reflect cyclical business activity which can affect fuel performance. The age and condition of the vehicle must also be considered as these factors will have a direct bearing on fuel consumption. Needless to say, the diagnostics of under-performing vehicles can be very useful here.

To ensure that all depot or site managers are made aware of the importance of fuel saving, nominating a ‘fuel champion’ comes highly recommended. These individuals must be trustworthy and responsible as it will be up to them to monitor usage and develop a competitive culture between drivers through incentivising them to drive ‘smarter’. For example, league tables showing the best performing driver can create a competitive edge and sharpen drivers’ focus on fuel saving. A fuel champion can also help to reduce carbon emission outputs, which reflects well in a company’s operational reporting figures.

Perhaps the most crucial element to consider when making wholesale operational and structural changes is to get buy-in from the management team. Having a fuel champion will make this process easier and foster closer working relationships between departments. It is therefore essential that the fuel champion understands how important their role is in mitigating rising transport costs. Following input from FTA’s consultancy team, one such FTA client was able to shave £420,000 off its total fuel budget in this way.

Making driver CPC work for you
Potential drivers should be aware of the need to gain the aforementioned Driver Certificate of Professional Competence (CPC) qualification. It requires new drivers entering the industry to complete an initial qualification in order to drive professionally. They must then complete 35 hours of periodic training within five years of the date of qualification and each subsequent five year period. To maintain one’s Driver CPC, all category C and D licence holders (including C1 and D1) will be required to undertake 35 hours of periodic training every five years. Drivers already holding a vocational licence before the September dates will not be required to gain this initial qualification but will need to complete 35 hours of periodic training by September 10, 2014 for Goods Vehicles (or September 10, 2013 for Passenger-Carrying Vehicle licences). After this point periodic training will have to be repeated every five years. Obviously, some drivers will find this off putting, but if your company offers driver training then it will really help attract employees and new entrants into the industry.

To get the most out of training a company’s drivers, it is crucial that you determine what training will work for you. When considering any overarching business objectives, such as reducing carbon footprint, or meeting productivity targets, Driver CPC could make marked improvements. But it is important to evaluate your objectives. For example, if the aim is to reduce carbon footprint and increase fuel efficiency, then a module on fuel efficiency would be an obvious choice.

How effective this training has been could be gauged by evaluating information from engine management systems on driving style (such as identifying harsh braking, for example). Equally, measuring fuel usage on a miles per gallon or unit delivered per gallon basis would help answer the question: did this training work for us? Other eminently measurable objectives that can be evaluated include improving transport safety, increasing productivity and even driver morale. All of which and more are detailed in FTA’s Guide to Managing Drivers.

Using agency drivers
Most organisations that operate vehicles will need to rely to some extent on the flexibility of temporary drivers to cope with sudden or seasonal increases in productivity or a shortage of resources due to staff turnover and absences. However, there are obvious pitfalls that can be associated with using drivers who are unfamiliar to an organisation and its particular ways of doing things. The risks get higher if the driver will be involved in transporting high value, dangerous or sensitive loads, and there may also be additional security responsibilities which will need to be considered. The answer for some companies may be to look at ways of reducing reliance on use of agency drivers, perhaps by training other staff. Even so, the use of agency drivers is a necessity these days so a good procurement process needs to be established so that the agency knows precisely what it is you require. An Operator requirement form will really help you to pinpoint those requirements, an example can be found in FTA’s Guide to Managing Drivers. Choosing the agency itself is also important, and asking the right questions is an essential part of finding out if the agency can be trusted to give you what you need.

Conclusion

The landscape the modern transport operator finds himself in is tough and challenging but extracting the greatest value from our drivers can really help the bottom line. Shell sponsored FTA’s Guide to Managing Drivers because it recognises the challenges that exist and how good advice can really help mitigate these pressures. Perrin Baker, senior UK marketing manager, Commercial Fleet, for Shell UK Oil, explains: “Over the last few years we have seen the price of fuel increase to new levels and industry experts expect this trend to continue. This means that we need to be smarter about reducing fuel consumption through journey management and driving techniques. Managing drivers efficiently is no easy task; from mandatory driver training and tachograph requirements to driver walk-around checks and health and safety, failure to comply with the law can have a devastating effect on the company involved. This guide addresses these issues head-on and is on course to become an industry-must have.”

The FTA Guide to Managing Drivers covers best practice from the recruitment and induction of drivers to management of driver infringements. Crucially, it also looks at good practice when using agency drivers and provides sample forms and checklists that will help managers in their day-to-day tasks.

The guide is available from Shopfta at £15.00 for FTA members, £25.00 for non-members, with discounts for multiple copies. When ordering, please quote code 4375.

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