Post on 04-Apr-2018
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Van eet manaement uide
cut business costs
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IntroductionVans are the workhorse o our economy. The data suests this is the case:
The number o vans reistered to drive in the UK increased rom 2.5 million in
2001 to 3.2 million by 2011, an increase o almost 30 per cent1.
Annual van use increased 25 per cent to 41.4 billion miles in the same time rame.
In comparison, over the same period, the HGV population declined by two per
cent. The Government orecasts van trac to rise by 88 per cent between 2010
and 20352. Equally, numbers o cars and HGVs are orecast to row by around
40 per cent over the same period.
Assumin an averae cost o 50 pence per mile, then the UKs vans cost around
20 billion a year. In 1990, vans contributed 10.7 per cent o road trac carbon
dioxide emissions, whereas today they are responsible or approximately
15 per cent1. This shows the importance o manain your runnin costs and
cuttin your carbon emissions.
This uide aims to help you cut costs and emissions throuh:
procurin cost-eective vans
maximisin uel economy minimisin mileae.
Contents
Business case 02
Gettin started: settin benchmarks 03Van choice 04
Van manaement 07
1 Transport Statistics Great Britain. Department or Transport.2 Road Transport Forecasts 2011. Results rom the Department or Transports National Transport Model.
January 2012.
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Fuel costs are increasin the burden on
budets, but eet runnin costs are
controllable and should be careully
manaed. It is crucial or eet manaers to
know how much they spend on uel or each
van and driver. Without this essential
startin point, achievin cost and carbon
savins will be dicult.
The table below shows typical uel costs or
dierent eets and the potential savins
solely rom reducin uel consumption:
1. Based on a Ford Transit Connect with
real world uel economy o 40 mp,
coverin 15,000 miles/yr and uel at
1.17 per litre ex VAT.
2. Assumes a 10 per cent reduction in uel
consumption.
Additionally, costs may be reduced by
downsizin vehicles and reducin mileae:
savins could be as much as 30 per cent o
total costs. This may seem unrealistic at
frst lance, but implementin several
measures could deliver a sizeable savin,
or example:
Downsizin vehicles where possible could
cut total costs by 20 per cent over thereplacement cycle (see raph on pae 3).
Improvin driver perormance could
achieve a 10 per cent reduction in uel
costs (three to our per cent o eet costs).
Usin telematics could result in a 5 to
10 per cent reduction in costs, partly
by makin drivers aware they are
bein monitored.
Cuttin operational mileae could
reduce vehicle numbers, and thereoreeet costs.
There are other benefts:
Employee saety. Improvin driver
perormance and reducin mileae will
reduce accident levels and improve
employee well-bein.
Environment. Reducin uel
consumption and costs oes hand-in-handwith cuttin carbon emissions and local
air pollutants.
Company imae. Consumer demand or
corporate social responsibility and
sustainability is increasin. Reducin
emissions and improvin driver
perormance can enhance customer
perception and win more business.
Fleet Size Fuel Costs/yr1 Potential Fuel savins/yr2
5 Vans 9,950 995
50 Vans 99,500 9,950
200 Vans 398,000 39,800
Business case
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The frst step is to audit your eets current
fnancial and environmental perormance.
Environmental perormance benchmarks
should be established, such as:
averae mp data or the whole eet,
sub-eets (e.. departments) and
individual vehicle types
mileae includin eet total, per
vehicle, per income, etc
carbon dioxide emissions calculated
rom uel consumption or mileae.
Gettin started: settin benchmarks
0
10
20
30
40
50
60
7080
Large Van A
Insurance & Accidents
Fuel
Servicing, Maintenance
& Repair
VED
Depreciation
Type of van
Pencepermile
Large Van B Medium Van Small Van
Good base data is essential when you make
a business case to senior manaement or
investment, or example in more expensive
but more ecient vehicles to reduce whole
lie costs, or or investment in telematics.
Financial perormance is measured by
reviewin whole lie costs in pence per mile
(ppm) or each vehicle type. The chartbelow is a fctitious whole lie cost
comparison which illustrates the benefts
rom switchin between comparable sized
models, or indeed downsizin.
Determine which vehicles are right oryou by auditing your eets fnancialand environmental perormance.
Vehicle pence per mile analysis
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Van choice
Minimise wholelie costs
Ater depreciation, uel is the reatest
expense, responsible or 25 - 35 per cent o
whole lie costs. Thereore choosin the
best, or better, in class in uel economy can
cut costs and emissions.
In workin out whole lie costs, it is
important to consider actors that inuence
the uel economy a vehicle will achieve
under your operatin conditions. Ocial
uel economy fures are or an empty van:
actual consumption depends upon the type
o use, load carried and drivin style. The
ollowin should be considered:
Real-world uel consumption is typically
15 per cent hiher than the vehicles
ocial fure.
Lower powered enines are most suitable
or town and B-road drivin, while a
slihtly more powerul enine may be
more economical or vans used
predominantly on motorways.
Althouh most vans are used or urban
and motorway drivin, one or the other
will oten dominate. Use the most relevant
uel consumption fure (urban or extra
urban) rather than the combined fure
when comparin vehicles, especially or
vans ftted with start/stop technolog.
Downsizinopportunities
Many manuacturers have introduced
model ranes which fll previously empty
niches and oer a reater rane o options
within each model. Issues to consider
durin procurement include:
Ensure vehicles are not bein treated as
mobile store rooms or rarely needed spare
parts. With better job schedulin, these
could be more eciently stored at base.
I larer vans are needed only occasionally,
usin spot-hire when the extra capacity is
required could be cost eective.
Fit lihtweiht, space-ecient rackin
systems to maximise load space. Speciyside loadin doors and/or exible bulkheads
which make smaller vans more adaptable.
Foldin ront passener seats and
exible bulkheads acilitate the transport
o lon items in a smaller van.
For more inormation, read the Energ Savin
Trust uide: Interpretin weiht plates or
liht commercial vehicles (pd), or watch
our webinar - Vans: thinkin inside the box.
http://www.energysavingtrust.org.uk/Publications2/Transport-fleets/Guides-and-information/Interpreting-weight-plates-for-light-commercial-vehicleshttp://www.energysavingtrust.org.uk/Publications2/Transport-fleets/Guides-and-information/Interpreting-weight-plates-for-light-commercial-vehicleshttps://www3.gotomeeting.com/register/223972630https://www3.gotomeeting.com/register/223972630http://www.energysavingtrust.org.uk/Publications2/Transport-fleets/Guides-and-information/Interpreting-weight-plates-for-light-commercial-vehicleshttp://www.energysavingtrust.org.uk/Publications2/Transport-fleets/Guides-and-information/Interpreting-weight-plates-for-light-commercial-vehicles7/29/2019 Van Fleet Management Best Practice Guide
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The fure above shows whole lie pence per
mile (ppm) or a Corsavan 1.3CDTi (75PS)
with and without start/stop, under extra-
urban and urban drivin conditions. In both
scenarios, the start/stop vehicle has lower
whole lie costs despite a hiher purchase
price, because o its lower uel consumption.However, the benefts are most noticeable
in urban drivin: the start/stop vehicle
could save 1,000 over three years.
Optional equipment
Most manuacturers oer speed and/or rev
limiters as a actory ftted option and,
increasinly, dealers can proramme limits
into existin vehicles. Sinifcant savins arepossible: Ford demonstrated that a Transit
260 or 280 used 19 per cent less uel at
60mph than 70mph. This will lead to
sinifcant fnancial and emissions savins,
and can reduce service and maintenance
costs. Additionally, your business reputation
isnt improved by a speedin van with your
company name on it and there are duty o
care issues i unsae or illeal drivin
continues unchallened.
Case study: RME Services ft speed
limiters
RME Services vans ensure their team
reaches jobs across the south east o
Enland oten coverin 30,000 miles per
vehicle per year.
With less resistance rom employees than
anticipated, almost every RME van has been
ftted with speed limiters set at a maximum
speed o 65mph. That is plenty or most
journeys and hasnt led to delays in
reachin jobs. Operations Manaer Keith
Fort explains: One or two drivers were
concerned about the implications at frst,
but the response ater the limiters were
installed has been positive. Many drivers
say its much more relaxin when youre not
rushin to arrive at breakneck speed. The
other issue is that our drivers represent the
company. They have our name on the side
o their vans, so we want them to be
responsible drivers.
RME has seen a all in its uel consumption
which, durin a period o escalatin uel
prices, is ood news indeed. In addition,they have not been issued with a sinle
speedin ticket in nearly three years.
Pence per mile comparison or vehicles with and without Start/StopVehicle: Corsavan 1.3CDTi (75PS)
0
5
10
15
20
25
30
35
Corsavan
Start/ Stop Extra
Urban Cycle
Corsavan Extra
Urban Cycle
Corsavan
Start/ Stop
Urban Cycle
Corsavan
Urban Cycle
Insurance & Accidents
Fuel
Servicing, Maintenance
& Repair
VED
Depreciation
Type of van
Pencepermile
Assumptions:3 years/60,000 miles.Diesel = 1.17/litre net o VAT
http://www.rmeservices.com/http://www.rmeservices.com/7/29/2019 Van Fleet Management Best Practice Guide
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Alternative uels
Compressed Natural Gas (CNG) vehiclesproduce sinifcantly less carbon dioxide
and other emissions, and can be quieter than
diesel powered models. Vans up to 3.5t are
typically dual uel and are desined to run
on CNG; however, they have a small reserve
petrol tank in case the CNG runs out. CNG
compatible vehicles will also run on bioas,
which is produced rom waste material.
Per mile LPG (liquefed petroleum as)produces ewer NOx and PM emissions than
diesel and lower carbon dioxide emissions
than petrol. LPG costs less than
conventional uels, but you et ewer miles
to the allon; per mile travelled it is about
25 per cent cheaper than petrol and around
the same price as diesel. LPG tanks can
reduce load space. The uel is less widely
available than petrol or diesel. For more
inormation on CNG and LPG, download ouruide to alternative uels.
Plu-in vehicles produce zero emissions at
the point o use. Because they draw power
rom the rid, there are associated emissions
rom electricity eneration, althouh these
are sinifcantly less than those rom diesel
and petrol uelled enines.
Purchase costs or plu-in vans are usually
hiher than or conventionally uelled
equivalent models, but savins accumulaterom very low operatin costs, particularly
the reduced cost o uel. Electric vehicles
typically require up to eiht hours to chare
ully, and they have a rane o around
100 miles. They are thereore most suited
to urban use, althouh there is a developin
recharin inrastructure with points
available in car parks and on-street.
Per mile LPG (liquefed petroleum gas)produces ewer NOx and PM emissionsthan diesel and lower carbon dioxideemissions than petrol.
http://www.energysavingtrust.org.uk/Publications2/Transport-fleets/Guides-and-information/Guide-to-alternative-fuelshttp://www.energysavingtrust.org.uk/Publications2/Transport-fleets/Guides-and-information/Guide-to-alternative-fuels7/29/2019 Van Fleet Management Best Practice Guide
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Cost-eective van eet manaement
consists o maximisin uel economy and
minimisin mileae. The two determinants o
uel economy - distance covered and volume
o uel used - must be captured on a reular
basis, in order to compare the perormance
o vehicles and drivers and identiy
opportunities or eciency improvements.
It is essential or you to develop a database
o MPG and mileae. This will enable
under-perormin vehicles and drivers to be
identifed, enablin corrective action to be
taken. Drivers who consistently under-perorm
aainst their uel economy benchmark can
be identifed or trainin. Poorly perormin
vehicles may require a deect to be repaired.
MPG data can eed into your whole lie
cost calculations to more accuratelyrepresent what is achieved within your
operatin environment.
Driver perormance
Other than the type o vehicle used, the
driver has the reatest inuence on costs
and emissions. Improvin driver perormance
can reduce uel costs, accident rates and
insurance premiums and minimise vehiclewear and tear.
Van manaement
Driver behaviour can be inuenced by
raisin and maintainin awareness. The
most eective way to do this is throuh
in-vehicle eco-drivin trainin, supported
by disseminatin uel economy inormation
to drivers (or example, usin leaue tables).
Companies are also advised to risk assess
their drivers and select those deemed mostat risk or additional trainin. Risk can be
assessed usin computer proflin tools and
other indicators such as licence endorsements,
accident rate, MPG and tyre chane requency.
Trainin that ocuses on drivin economically
is recommended. Energ Savin Trust oers
Smarter Drivin or van drivers, coachin
them in techniques that enable them to drive
uel eciently. Trainin can be run romyour premises by a hihly experienced,
accredited driver trainer. On averae, drivers
achieve uel savins o 15 per cent on the
day o trainin. Find out more at
www.energsavintrust.or.uk/smarterdrivin
Finally, incentives can be used to maintain
drivers ocus. Incentives can rane rom an
annual bonus or all drivers and/or teams
who meet MPG tarets, to occasional
competitions such as the most improved
driver o the month.
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Maintenance
Vehicles with under-inated tyres, or requirinmaintenance or which have damaed
bodywork will use more uel than vehicles in
ood condition. Deterioratin perormance
can be identifed by monitorin uel
economy, allowin corrective action to be
taken beore the next planned service.
Possibly the most overlooked issue but one o
the easiest to rectiy is that o maintainin
correct tyre pressures. This is important orseveral reasons:
Under ination decreases uel economy.
Four tyres under-inated by 25 per cent
(or example 24 instead o 32 psi) will
increase uel consumption by
approximately two per cent.
Under or over ination increases wear
and thereore reduces tyre lie.
Under or over ination aects rip andbrakin, reducin saety.
For more inormation watch our webinar on
tyre choice, maintenance and leislation.
Mileae manaement
Minimisin mileae reduces costs and
emissions increasin driver productivity.
Minimisin mileae essentially involvesecient routin and maximisin vehicle
utilisation to et the best perormance rom
a vehicle. Accurate route plannin, usin
sat-nav systems, can avoid trac jams and
fnd the most ecient route, while
computerised routin and schedulin
sotware packaes enable you to plan themost ecient vehicle movements.
Telematics systems, or vehicle trackers, can
be a powerul tool in reducin mileae.
They oer advantaes includin:
real time routin and schedulin o vehicles
elimination o unauthorised private use o
vehicles, or separation o public and private
journeys where the latter is permitted
elimination o unnecessary detours identifcation o ineciencies due to
speedin, harsh drivin and excessive idlin.
A common concern amonst drivers is that
telematics will lead to manaement spyin
on drivers, addin more pressure to the job.
Beore introducin vehicle trackin, consult
your employees and hihliht the benefts
that the system will deliver. For example,
communicatin the saety and securityaspects o telematics can ease driver concerns.
The importance o ood mileae and journey
recordin should not be under-estimated.
Fleets must have detailed mileae records to
prove there is no sinifcant private usae
(where this is not permitted), as the burden
o proo is on the company.
For impartial advice, tailored to meet the
needs o your van eet, call our Transport
Advice Line on 0845 602 1425.
https://www3.gotomeeting.com/register/274884966https://www3.gotomeeting.com/register/274884966https://www3.gotomeeting.com/register/274884966https://www3.gotomeeting.com/register/2748849667/29/2019 Van Fleet Management Best Practice Guide
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Energ Savin Trust
21 Dartmouth Street,
London, SW1H 9BP
Phone: 0845 602 1425energsavintrust.or.uk/eet
TE812 Energ Savin Trust
January 2013
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