Running a van fleet in an evolving industry is no mean feat: fuel costs, driver training, residual values, and pressures for carbon reduction are just some of the elements that have to be considered daily.
To gain further insight into these pressures, we brought together three van fleet managers who are responsible for a combined fleet of more than 30,000 vehicles.
Around the table are: Gary Banister, operational services manager for United Utilities (4,000 vans, mostly Vauxhall); David Balderson, group asset manager at Interserve (1,200 vans, Citroën being pre-eminent); and Peter Howard, chief engineer for BT Fleet, a subsidiary of the BT Group (26,000 vans, dominated by Ford).
The recession has brought unwanted pressures, but it has also presented opportunities for these managers. Banister sets the scene: "Due to the recession, companies are cutting costs, and this has meant extending the lifecycle of a fleet. In the utilities sector, there's been an extension from three to five years, and this move can mean more downtime for the vehicles." However, recessionary pressures have compelled Banister to concentrate on improving driver behaviour, and therefore reduce fuel costs.
Those who think purchasing the cheapest vehicles is the best way forward should heed Balderson: he believes that having a fleet that's attractive to drivers remains important, which may help sustain a prolonged lifecycle. "What affects a vehicle's lifecycle is the style in which it's driven and driver acceptability; issues such as corrosion are no longer an issue, but trying to retain people is. The aspirations of the company car market are transferring to the van market; the guys want to be driving a decent vehicle."
Balderson is also concerned about weight: "Manufacturers are adding weight to vehicles with new technology, cabin accessories and restraints etc, effectively putting pressure on operators to move up a van weight to maintain payload and into the realms of the O-licence. I think it's disgraceful that we're stuck at 3.5-tonnes. O-licensing should start after 4.5-tonnes. Nobody seems to be talking to the government about that."
Howard agrees: "The demand to carry more kit in a vehicle is an ever-present issue; the perpetual question is: 'how do I use fewer vehicles but carry more stuff?'"
He also points to the problem of exchange rates, which have pushed up vehicle purchase prices, as well as maintenance costs, which in turn creates additional pressure when lifecycles are extended.
Telematics
To ensure drivers and vans are deployed effectively, telematics is a necessity.
Banister says: "Many fleet managers don't understand telematics as a whole and what it can achieve. They might use a degree of fleet monitoring technology, but there is a vast area that can be ignored, which may help with fleet efficiency."
Vehicle manufacturers are partly to blame, says Howard, as they focus on technology that's been proven in the car sector.
"So much gets dragged through from the other side, as it's assumed that the same will work on vans, but it doesn't."
Howard continues: "Secondary companies are working on it, asking us the question 'what is it you need to solve?' However, if the vehicle manufacturers get involved directly it will bring the cost down.
"You can't just set up a telematics system and expect it to deliver results. You have to focus on what it is you're trying to achieve."
To learn more about fleet management improvements, Balderson seeks out other van fleet managers. "I find it's extremely beneficial to talk to other peer groups to get information. There is a lot to be said for exchanging experiences with other people in the industry; it's good to tap into their knowledge. Also, getting together with vehicle manufacturers to find a solution to certain problems is worthwhile."
Banister concludes: "The van market is quite a cottage industry, and everyone is facing the same problems."
CO2 reduction
Another pressure is to reduce carbon emissions, and every major manufacturer now either offers or is developing alternative powertrains. Are these managers convinced of alternative fuels' viability?
Howard answers: "At the moment, you can't go out and source low-carbon vehicles at a competitive price. It's going to be a long time before there's going to be anything on the market that stands up in terms of the cost/emissions balance, particularly the electric route, which has yet to really make an impact."
Banister echoes his thoughts when considering hybrids: "We've tinkered with a few in the past, none has been really successful in terms of delivering the results we're looking for. However, we're getting far more tangible results in terms of carbon reduction by focusing on driver behaviour. Drivers are challenged to make a reduction, while managers have low carbon bonus incentives to make sure that best practice is adhered to."
Howard supports this approach: "You can't achieve change just by putting new vehicles out on the road. If you tap into driver behaviour, you get a much more substantial improvement across the whole fleet in a far shorter time scale."
Banister reveals that some of the fleets for which he is responsible benefit from speed limiters: "We needed to work with the trade unions to convince their members of the benefits of limiters. It was easier for one fleet, as they operated in a built-up area, so this wouldn't have had such an impact. However, with another that covered a lot of open roads, it took a little more convincing."
Howard adds: "The question is, what speed do you limit at? BT took the decision to fix it at 70mph, but this could be 60mph, or even 56mph; there's a balance to be considered." Balderson agrees: "It's a complex subject. Factors such as delivery times, the optimum vehicle running speed, etc, all have to be considered. Most fleet managers are only just getting to grips with this; however, many are not linking it to the sustainability of the actual vehicle. They should be asking themselves: 'Is that man and van actually essential?'
"Reducing fuel consumption is all about educating the drivers and the managers: does one van need to make that delivery when another can? Managers should be focused on planning ahead, seeing the big picture within the operation."
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