Van Fleet Management Best Practice Guide

7/29/2019 Van Fleet Management Best Practice Guide

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Van eet manaement uide

cut business costs


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Energ Savin TrustVan feet management guide

01

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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02

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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03

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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04

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-vehicles


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05

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/


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06

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-fuels


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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.
http://www.energysavingtrust.org.uk/smarterdrivinghttp://www.energysavingtrust.org.uk/smarterdriving


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08

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/274884966


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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
http://www.energysavingtrust.org.uk/fleethttp://www.energysavingtrust.org.uk/fleet

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