Van fleet management guide
cut business costs through improved van fleet management
4 billion miles in the same time frame. In 1990. In comparison.7 per cent of road traffic carbon dioxide emissions. Equally.Energy Saving Trust Van fleet management guide
Contents Business case Getting started: setting benchmarks Van choice Van management
02 03 04 07
Vans are the workhorse of our economy.
1 2 01
Transport Statistics Great Britain. numbers of cars and HGVs are forecast to grow by around 40 per cent over the same period. Assuming an average cost of 50 pence per mile. This guide aims to help you cut costs and emissions through: • procuring cost-effective vans • maximising fuel economy • minimising mileage. an increase of almost 30 per cent1. the HGV population declined by two per cent. Road Transport Forecasts 2011. vans contributed 10. The Government forecasts van traffic to rise by 88 per cent between 2010 and 20352. whereas today they are responsible for approximately 15 per cent1. The data suggests this is the case: • The number of vans registered to drive in the UK increased from 2.5 million in 2001 to 3. This shows the importance of managing your running costs and cutting your carbon emissions.
. over the same period. then the UK’s vans cost around £20 billion a year. Department for Transport. Results from the Department for Transport’s National Transport Model.2 million by 2011. January 2012. • Annual van use increased 25 per cent to 41.
with cutting carbon emissions and local Additionally. Reducing fuel consumption and costs goes hand-in-hand consumption.500 £398. achieving cost and carbon • Cutting operational mileage could savings will be difficult. 2.800
. Without this essential being monitored. 1. reduce accident levels and improve covering 15. but implementing several emissions and improving driver measures could deliver a sizeable saving.950 £99. Assumes a 10 per cent reduction in fuel • Environment. performance can enhance customer for example: perception and win more business. Consumer demand for savings could be as much as 30 per cent of corporate social responsibility and total costs. partly know how much they spend on fuel for each by making drivers aware they are van and driver.000
Potential Fuel savings/yr2 £995 £9. different fleets and the potential savings There are other benefits: solely from reducing fuel consumption: • Employee safety. downsizing vehicles and reducing mileage: • Company image. costs may be reduced by air pollutants.
Fleet Size 5 Vans 50 Vans 200 Vans
Fuel Costs/yr1 £9.950 £39.Energy Saving Trust Van fleet management guide
• Improving driver performance could Fuel costs are increasing the burden on achieve a 10 per cent reduction in fuel budgets.000 miles/yr and fuel at employee well-being. £1. • Downsizing vehicles where possible could cut total costs by 20 per cent over the replacement cycle (see graph on page 3). and therefore The table below shows typical fuel costs for fleet costs. starting point. controllable and should be carefully managed. reduce vehicle numbers. Reducing first glance.17 per litre ex VAT. It is crucial for fleet managers to • Using telematics could result in a 5 to 10 per cent reduction in costs. but fleet running costs are costs (three to four per cent of fleet costs). This may seem unrealistic at sustainability is increasing. Improving driver Based on a Ford Transit Connect with performance and reducing mileage will real world fuel economy of 40 mpg.
The chart below is a fictitious whole life cost comparison which illustrates the benefits from switching between comparable sized models. Environmental performance benchmarks should be established. for example in more expensive but more efficient vehicles to reduce whole life costs. departments) and individual vehicle types • mileage – including fleet total. Maintenance & Repair VED Depreciation
80 70 60 50 40 30 20 10 0
Pence per mile
Large Van A
Large Van B Medium Van Type of van
Determine which vehicles are right for you by auditing your fleet’s financial and environmental performance. per vehicle.Energy Saving Trust Van fleet management guide
Getting started: setting benchmarks
The first step is to audit your fleet’s current financial and environmental performance. sub-fleets (e. Financial performance is measured by reviewing whole life costs in pence per mile (ppm) for each vehicle type. or indeed downsizing. Good base data is essential when you make a business case to senior management for investment.g. or for investment in telematics. etc • carbon dioxide emissions – calculated from fuel consumption or mileage. per £ income.
Vehicle pence per mile analysis
Insurance & Accidents Fuel Servicing.
. such as: • average mpg data – for the whole fleet.
official figure. • Folding front passenger seats and • Lower powered engines are most suitable flexible bulkheads facilitate the transport for town and B-road driving. read the Energy Saving predominantly on motorways. actual consumption depends upon the type using spot-hire when the extra capacity is of use. following should be considered: • Fit lightweight. With better job scheduling. especially for vans fitted with start/stop technology. Trust guide: Interpreting weight plates for • Although most vans are used for urban light commercial vehicles (pdf). while a of long items in a smaller van. fuel is the greatest expense.
Many manufacturers have introduced model ranges which fill previously empty niches and offer a greater range of options within each model. load carried and driving style. or better. slightly more powerful engine may be more economical for vans used For more information. it is • Ensure vehicles are not being treated as important to consider factors that influence mobile store rooms for rarely needed spare the fuel economy a vehicle will achieve parts. Issues to consider during procurement include:
In working out whole life costs.35 per cent of whole life costs. will often dominate. one or the other our webinar .Energy Saving Trust Van fleet management guide
Van choice Minimise whole life costs
After depreciation. responsible for 25 .Vans: thinking inside the box. or watch and motorway driving.
. space-efficient racking systems to maximise load space. these under your operating conditions. Therefore choosing the best. in class in fuel economy can cut costs and emissions. Specify • Real-world fuel consumption is typically side loading doors and/or flexible bulkheads 15 per cent higher than the vehicle’s which make smaller vans more adaptable. fuel economy figures are for an empty van: • If larger vans are needed only occasionally. Use the most relevant fuel consumption figure (urban or extra urban) rather than the combined figure when comparing vehicles. The required could be cost effective. Official could be more efficiently stored at base.
dealers can programme limits into existing vehicles. your business reputation isn’t improved by a speeding van with your company name on it and there are duty of care issues if unsafe or illegal driving continues unchallenged. because of its lower fuel consumption.
Most manufacturers offer speed and/or rev limiters as a factory fitted option and. Many drivers say it’s much more relaxing when you’re not rushing to arrive at breakneck speed.Energy Saving Trust Van fleet management guide
Vehicle: Corsavan 1. Significant savings are possible: Ford demonstrated that a Transit 260 or 280 used 19 per cent less fuel at 60mph than 70mph. However. This will lead to significant financial and emissions savings. they have not been issued with a single speeding ticket in nearly three years. the start/stop vehicle has lower whole life costs despite a higher purchase price. That is plenty for most journeys and hasn’t led to delays in reaching jobs.
Case study: RME Services fit speed limiters RME Services’ vans ensure their team reaches jobs across the south east of England – often covering 30.” RME has seen a fall in its fuel consumption which. With less resistance from employees than anticipated.17/litre net of VAT
Type of van
The figure above shows whole life pence per mile (ppm) for a Corsavan 1. Operations Manager Keith Fort explains: “One or two drivers were concerned about the implications at first. is good news indeed. The other issue is that our drivers represent the company.3CDTi (75PS) with and without start/stop. during a period of escalating fuel prices. but the response after the limiters were installed has been positive. In addition. Additionally.3CDTi (75PS)
Insurance & Accidents Fuel
Pence per mile comparison for vehicles with and without Start/Stop
35 30 Pence per mile 25 20 15 10 5 0 Corsavan Start/ Stop Extra Urban Cycle Corsavan Extra Urban Cycle Corsavan Start/ Stop Urban Cycle Corsavan Urban Cycle
Servicing. so we want them to be responsible drivers. They have our name on the side of their vans. almost every RME van has been fitted with speed limiters set at a maximum speed of 65mph. under extraurban and urban driving conditions.000 miles per vehicle per year. the benefits are most noticeable in urban driving: the start/stop vehicle could save £1.
. Maintenance & Repair VED Depreciation
Assumptions: 3 years/60. Diesel = £1. In both scenarios. increasingly. and can reduce service and maintenance costs.000 miles.000 over three years.
which is produced from waste material. For more information on CNG and LPG. however. download our guide to alternative fuels.
Per mile LPG (liquefied petroleum gas) produces fewer NOx and PM emissions than diesel and lower carbon dioxide emissions than petrol.5t are typically require up to eight hours to charge fully. LPG costs less than conventional fuels. LPG tanks can reduce load space.Energy Saving Trust Van fleet management guide
Purchase costs for plug-in vans are usually higher than for conventionally fuelled equivalent models. there are associated emissions from electricity generation. CNG compatible vehicles will also run on biogas. Vans up to 3. although there is a developing petrol tank in case the CNG runs out. Electric vehicles diesel powered models. but you get fewer miles to the gallon. They are therefore most suited to urban use. particularly produce significantly less carbon dioxide and other emissions. Per mile LPG (liquefied petroleum gas) produces fewer NOx and PM emissions than diesel and lower carbon dioxide emissions than petrol. although these are significantly less than those from diesel and petrol fuelled engines. Plug-in vehicles produce zero emissions at the point of use. Because they draw power from the grid. but savings accumulate Compressed Natural Gas (CNG) vehicles from very low operating costs. recharging infrastructure with points available in car parks and on-street. and can be quieter than the reduced cost of fuel. The fuel is less widely available than petrol or diesel. and they have a range of around typically dual fuel and are designed to run on CNG. they have a small reserve 100 miles. per mile travelled it is about 25 per cent cheaper than petrol and around the same price as diesel.
MPG data can feed into your whole life cost calculations to more accurately represent what is achieved within your operating environment. in order to compare the performance of vehicles and drivers and identify opportunities for efficiency improvements. Risk can be assessed using computer profiling tools and other indicators such as licence endorsements.Energy Saving Trust Van fleet management guide
Cost-effective van fleet management consists of maximising fuel economy and minimising mileage. coaching them in techniques that enable them to drive fuel efficiently. On average. to occasional competitions such as ‘the most improved driver of the month’. drivers achieve fuel savings of 15 per cent on the day of training. supported by disseminating fuel economy information to drivers (for example.
Other than the type of vehicle used. Training that focuses on driving economically is recommended. incentives can be used to maintain drivers’ focus. using league tables). Energy Saving Trust offers Smarter Driving for van drivers. Improving driver performance can reduce fuel costs. enabling corrective action to be taken. Training can be run from your premises by a highly experienced. MPG and tyre change frequency.distance covered and volume of fuel used . Companies are also advised to risk assess their drivers and select those deemed most at risk for additional training.uk/smarterdriving Finally.energysavingtrust. Poorly performing vehicles may require a defect to be repaired. Incentives can range from an annual bonus for all drivers and/or teams who meet MPG targets. accident rate. This will enable under-performing vehicles and drivers to be identified.org. the driver has the greatest influence on costs and emissions. Find out more at www. The most effective way to do this is through in-vehicle eco-driving training.must be captured on a regular basis. Drivers who consistently under-perform against their fuel economy benchmark can be identified for training. It is essential for you to develop a database of MPG and mileage. accredited driver trainer. accident rates and insurance premiums and minimise vehicle wear and tear. Driver behaviour can be influenced by raising and maintaining awareness.
. The two determinants of fuel economy .
while computerised routing and scheduling Vehicles with under-inflated tyres. as the burden of proof is on the company. Four tyres under-inflated by 25 per cent (for example 24 instead of 32 psi) will increase fuel consumption by approximately two per cent. or requiring software packages enable you to plan the most efficient vehicle movements. A common concern amongst drivers is that telematics will lead to management ‘spying’ on drivers. harsh driving and excessive idling. call our Transport Advice Line on 0845 602 1425. adding more pressure to the job. reducing safety. communicating the safety and security aspects of telematics can ease driver concerns. Accurate route planning. or vehicle trackers. maintenance and legislation. Minimising mileage essentially involves efficient routing and maximising vehicle utilisation to get the best performance from a vehicle. • Under or over inflation increases wear and therefore reduces tyre life. For impartial advice. Deteriorating performance be a powerful tool in reducing mileage. The importance of good mileage and journey recording should not be under-estimated. tailored to meet the needs of your van fleet. • Under inflation decreases fuel economy. can avoid traffic jams and
. can good condition.
Minimising mileage reduces costs and emissions increasing driver productivity. allowing corrective action to be • real time routing and scheduling of vehicles taken before the next planned service. Before introducing vehicle tracking.Energy Saving Trust Van fleet management guide
find the most efficient route. maintenance or which have damaged bodywork will use more fuel than vehicles in Telematics systems. • elimination of unauthorised private use of Possibly the most overlooked issue but one of vehicles. or separation of public and private the easiest to rectify is that of maintaining journeys where the latter is permitted correct tyre pressures. using sat-nav systems. Fleets must have detailed mileage records to prove there is no significant private usage (where this is not permitted). can be identified by monitoring fuel They offer advantages including: economy.
For more information watch our webinar on tyre choice. consult your employees and highlight the benefits that the system will deliver. For example. • Under or over inflation affects grip and braking. This is important for • elimination of unnecessary detours several reasons: • identification of inefficiencies due to speeding.
SW1H 9BP Phone: 0845 602 1425 energysavingtrust.uk/fleet TE812 © Energy Saving Trust January 2013
.Energy Saving Trust 21 Dartmouth Street.org. London.