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Performance Management for Efficient Road Freight Operations

Guide

Disclaimer: While the Department for Transport (DfT) has made every effort to ensure the information in this document is accurate, DfT does not guarantee the accuracy, completeness or usefulness of that information; and it cannot accept liability for any loss or damages of any kind resulting from reliance on the information or guidance this document contains.

Foreword
Freight Best Practice is funded by the Department for Transport and managed by AECOM Ltd to promote operational efficiency within freight operations in England. Freight Best Practice offers FREE essential information for the freight industry, covering topics such as saving fuel, developing skills, equipment and systems, operational efficiency and performance management. All FREE materials are available to download from www.businesslink.gov.uk/freightbestpractice or can be ordered through the Hotline on 0300 123 1250.

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Contents
Foreword Performance Management for Efficient Road Freight Operations
Who Should Use this Guide? How Should this Guide Be Used? Structure of the Guide

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What Is Performance Management?
What Should a Key Performance Indicator Be? Which KPIs Are Right for Me? Measuring Overall Performance Focusing on Key Components of Your Operation Summary

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How Do You Go about Measuring Performance?
A Step-by-step Approach to Measuring Performance Selecting the KPIs Setting and Reviewing Targets Data Collection Reviewing and Evaluation Reporting and Feedback External Benchmarking Results

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Improving Performance in Your Operation
Operational Efficiency

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Telematics Efficient Fuel Management Improving Fuel Efficiency at Thorntons plc Refrigerated Vehicles Efficient People through Developing Skills 26 26 27 29 32 A Checklist for Measuring and Improving Performance 36 KPIs Used in the Freight Best Practice Fleet Performance Management Tool and Information Needed to Calculate them 37 5 .

accurate and proportionate to the expected benefits • Measuring tools .it is important to analyse the data correctly and make best use of the findings. KPIs can be used to develop strategy. The main themes covered in this guide are: • Key performance indicators (KPIs) - performance is best measured on an on-going basis. the decision-maker. that save time and effort • Analysis of results . an understanding of performance management concepts in freight operations.there are a wide range of systems. and KPIs which use a small number of key measures in important operational areas provide a good way to do this and make decisions.as well as comparing your own drivers. Along the way. you can’t manage it. but the reality is. and to look out for the pitfalls that can occur during both data collection and analysis • Benchmarking . systems and people. benchmarking your operation against the performance of other similar operations in the same or even a different industry may reveal areas for improvement 6 . Understanding and monitoring the performance of each of these can be very challenging.the process or system used to measure performance should be clear. while at the operational level they can be a day-to-day or week-to-week management tool • Roles of management . Freight transport operations are made up of equipment. This guide gives you. from simple paper records to comprehensive computerised systems for data collection.Performance Management for Efficient Road Freight Operations Your freight transport operation may appear to be running smoothly.for more senior managers. vehicles and systems. if you don’t measure it. as well as advice on putting a performance management process in place. we’ll give you some examples and ideas to try out which will put you in a position to know if you can improve the way in which you are currently measuring the performance of your operation. plan • Measuring process .

Structure of the Guide • Chapter 2 looks at the benefits of measuring performance. Other members of staff may also find useful information within the guide to help them better understand their own roles and how they might help to contribute to improving efficiency.• Strategies to increase performance once you have understood your current performance you can then develop a strategy to identify reasons for good and bad performance. demonstrates the use of key performance indicators and shows KPIs relevant to different types of operation take for introducing performance measures can take to improve efficiency once you have measured current performance • Chapter 3 discusses the process you can • Chapter 4 identifies the practical steps you 7 . How Should this Guide Be Used? This guide should be used as a reference document. introducing good practice methods used by good performers. providing guidance on concepts relating to performance management in freight operations and introducing the types of key performance indicators that can be measured in an operation. and focusing training or investment specifically in the worst performing areas Who Should Use this Guide? This guide has been designed primarily for managers and decision-makers operating transport or distribution operations.

What Is Performance Management? If you want to make well-informed. Realistic and Timed.Specific. Weekly. they can be easily communicated across the business and there is no need for staff to have an in-depth knowledge of the area being measured. 8 . and turning this information into specific measures that can help you to identify areas for improvement . Individual measures and data need to be turned into information that can help you make decisions. This means setting a target. Measurable. Achievable. tactical and strategic decisions about your operation.for instance. Costs Service Measuring performance can allow you to strike the best balance between service and costs What Should a Key Performance Indicator Be? There are many different KPIs that can be used to measure performance in a freight transport operation and it can be difficult to know which ones might be right for you. Specific KPIs should be specific. simple to use and easy to understand. This means collecting data on key aspects of your operation. The starting point for any performance improvement programme should be to understand the current performance of your operation. A KPI on its own will not tell you much. These measures are known as key performance indicators. you will need to be able to accurately measure the resources you use to deliver your services. there are a number of things you can consider beforehand in order to decide which ones may be right for you. or KPIs. Complicated statistics and formulae can lead to confusion and uncertainty about what is actually being measured in the first place. However. monthly and annual reports allow you to monitor progress and see which areas need the greatest improvement. and measuring and monitoring KPIs over a period of time to see how you perform against this target. A KPI should be relevant and it should also be SMART . Only then can you identify areas for improvement and assess how effective any operational changes made have been. how much it costs you to deliver products to your customers. Producing graphs or charts will often be the best way of showing performance progress. This section is intended to explain the characteristics of useful KPIs that can be applied in various types of operation and by different people. how many miles your vehicles run empty or the number of late deliveries you make. If KPIs are specific and kept simple.

Measurable KPIs can show changes in performance over time. Similarly. An individual KPI can tell you how well you are performing at an operational level. The inner two rings on Figure 1 show the strategic functions of performance and a number of key business areas that can all be monitored using KPIs. this could be misleading. comparing drivers when they drive vehicles of substantially different age or vehicle type can also be deceptive. plan and make decisions. but people can become disillusioned when they continually fall short of the targets set for them. 9 . type and management structure of a company is likely to influence the range and type of KPIs you might use. Realistic Remember that decisions and management actions will be taken as a result of the data collected and presented. If one route is more demanding than the other. a picture can be provided of how you are performing in terms of revenue and profitability and overall fleet efficiency. so the data collection method needs to be realistic. It may seem beneficial to set high targets in the hope that this leads to greater improvements in performance. while at the operational level they can show clearly the areas that need improvement. KPIs can be used to help managers develop strategy. The outer ring and white text on Figure 1. when looked at in combination with other measures. as comparison over time forms the basis of benchmarking and then improving performance. on page 27. Regularly reviewing performance towards targets and then resetting the targets to encourage smaller incremental (but cumulative) improvements may work much better in the long run. such as rotating drivers onto different vehicles and different routes and then monitoring both driver and vehicle performance. or a change in approach. It is important that the data required to produce the particular KPI can be collected easily and on a regular basis. Timed The frequency of monitoring is an important consideration. It is easy to fall into the trap of comparing two drivers on different routes for time utilisation or miles per gallon (MPG). and in relation to customer service and legal obligations. to spot consistently high and poor performers. There are ways you can get around these problems however. daily delivery drops or nightly trunking volume. however. such as staff absences in the warehouse. Weekly or monthly monitoring is recommended for many KPIs but this can depend on the measure and the needs of a particular business. opposite. Which KPIs Are Right for Me? The size. reliable and consistent. shows a list of KPIs commonly used in transport operations and the data required to calculate them. For this to happen it is essential to compare like-with-like data. shows a range of different KPI’s and the data required to help you monitor performance in a range of important operational areas. Appendix 1. Some information may have to be collected on a daily basis. If certain measures are not recorded and presented to the agreed timescales. Achievable Any targets that are set should be achievable. the risk of changes in performance going unnoticed rises.

these could be measured by the following KPIs: • Overall cost of deliveries. Measuring Overall Performance A director or senior manager within a company is likely to be most interested in overall performance and bottom-line financial results. such as cost per case / pallet • Cost of maintenance • Total cost of warehouse operation 10 .Figure 1 Key Performance Wheel The Freight Best Practice Programme offers an easy to use Microsoft Excel© spreadsheet tool called the Fleet Performance Management Tool which allows you to measure 22 different KPIs. For transport or warehouse operations.

gov. assessing the effectiveness of the order process. KPIs help us forecast resource due to the semi seasonality of the business. Changing service levels can. We strive to constantly improve on past performance and when we do we demonstrate this to Premdor.Builders’ Merchants . Strategic KPIs at Premdor Ltd Customer Service: Number of failed deliveries due to: • Not loaded • Damaged • Driver out of time • Product not required • Delivery point problem Sales/Order Process: Premdor measures the effectiveness of its own sales force. “KPIs allow us to manage the business and measure our performance and associated costs month on month and year on year. Each month. Benefits: The benefits to Premdor have been increased service levels and better value for money from the contract.businesslink.” Ryder Plc is a major third-party logistics solutions provider which provides a dedicated distribution operation for Premdor. Ryder contract manager.uk/ freightbestpractice Customer service KPIs are also important because they can give you an idea about how your operation is perceived by the people that ultimately pay you.The Food Supply Chain . of course.Next Day Parcel Delivery Sector . Premdor requires Ryder to produce a set of KPIs covering the following areas: Transport Costs: • Total cost per trip • Total cost per drop • Total cost per unit • Miles per gallon 11 . Mark Saville. and the ‘product not required’ delivery failure reason is related back to performance measurement. one of the largest suppliers of joinery products in the world. have a direct impact on sales and ultimately profit as improvements in service levels can result in increased costs.See the Freight Best Practice Key Performance Indicators for: .Non-Food Distrubution . said the benefits for Ryder were that. Careful performance monitoring in these areas is therefore crucial to help strike the right balance. Important customer service KPIs could include the: • Percentage of deliveries on time • Number of customer complaints The following case study below illustrates strategic KPIs used by Premdor.The Pallet Sector A full list of the Free Freight Best Practice publications can be obtained from the Hotline 0300 123 1250 or by visiting the website at www. The costs per unit and per drop data collected by Ryder link into sales KPIs.

Planning efficiency could be measured by vehicle fill. and where the strengths and the weaknesses lie. Measures under this area could be average cost per unit delivered or average driver costs per kilometre. Use KPIs to measure your overall performance as an organisation as well as the performance of individual parts of your operation. fleets or depots might be performing. driver utilisation. 12 .Focusing on Key Components of Your Operation At an operational level. Reports and presentation of weekly and monthly data in the form of graphs can help to highlight areas for improvement. all of which could be presented by vehicle. they should always be specific. Summary Measuring performance can take time. Maintenance Maintenance performance is also important. operational. Measuring and monitoring fuel consumption is vital. Regardless of which KPIs you choose. measures can include number of late deliveries. vehicle traffic infringements and number of accidents. average vehicle fill and average time utilisation may be measured. service. Where some parts of an operation are consistently performing better than others. Try to identify relevant KPIs covering different areas of your operation. part of fleet or company wide. achievable and realistic. Service Knowing how operational performance impacts on customer service can dramatically influence your actions. levels of empty running and kilometres per drop. as well as average miles per gallon. compliance and maintenance). This can be done by collecting data relating to daily operations and costs. percentage of product damage and the number of customer complaints. but is well worth the time spent if it drives efficiency gains and improves operational performance. tyre wear and replacement rates. The starting point for any performance measurement system is to understand your current operational performance. it may be possible to use KPIs to understand why this is the case and point to how to improve performance where necessary. measurable. while being monitored on a regular and consistent basis. Compliance Achieving high standards of compliance is a prerequisite to operating an efficient vehicle fleet with measures such as number of overloads. KPIs for transport operations can be split into 5 main areas (costs. Operational Fuel represents around 30% of costs in the majority of transport operations. and the fleet maintenance manager might want to look at defect report completion and rectification. volume of breakdowns and MOT pass rates. This information can help you compare the effectiveness of the managers at all levels in your business. KPIs can give you a better idea of how drivers. Costs It can be useful to understand how overall business revenues or business volumes change but also how revenue from different parts of your business fair relative to one another.

Ryder is evaluating its driver and vehicle performances in order to improve the overall transport statistics that will form the basis of the strategic KPIs going to Premdor’s management each month. Vehicle Utilisation: Evaluating the planning function by monitoring how well vehicles are utilised in terms of time and vehicle fill. In this Premdor example. 13 . which the Ryder team produces for Premdor.Operational KPIs at Premdor Ltd Driver Utilisation: Comparing each driver with the scheduled time for the route. At the management level. Vehicle Performance: At this level. along with order errors. Driver Performance: Individual drivers can be compared to show how efficiently they drive the vehicle in terms of mpg and how safe they are by measuring accident and collision rates. the management KPIs go to a greater level of detail than the strategic KPIs. It is then possible to see whether there is an issue with certain customers. data is collected for each vehicle in terms of MPG and maintenance required. or drivers on particular routes. Customer Service: The number of failed and late deliveries can be measured for each route.

supported by people across your organisation. Are they specific. Each stage of the process is then further explained in this chapter. Staff who are the subject of your KPIs need to see real value in monitoring performance levels. fleet mileage and fuel consumption by vehicle. measurable. However. You may already have to produce a range of performance indicators for your company as a part of established procedures. the transport manager may decide to monitor fuel price. Think about what you want to know and then look at ways of measuring it. Armed with detailed information. Selecting the KPIs Chapter 2 describes the sort of KPIs that you might choose depending on the size and nature of your business or area of responsibility. the size and nature of the business and distribution operation will affect the way in which the plans are implemented. achievable and realistic and do they give you the information you need? There may be other KPIs that can better measure what you need to know. effective targets can be set and action taken to improve overall fuel efficiency. If they are part of the recording process and the burden of information collection interferes with the activity that is being measured.How Do You Go about Measuring Performance? Changing an aspiration to measure performance into a system that works in practice needs a well planned and consistent approach. In order to meet the fuel-spend target. they are likely to lose sight of the all-important wider operation. 14 . Take the example of an own-account company that requires a transport manager to account for overall fuel spend. it is useful to review the KPIs you currently use. Once again. A Step-by-step Approach to Measuring Performance Figure 2 opposite shows a basic outline of a step-by-step measuring performance process.

Few companies will start from scratch so reviewing your existing process provides the first logical step. but until you have reviewed performance against targets you cannot know what action is necessary to improve performance. Figure 2 The Process of Selecting and Measuring KPIs Setting and Reviewing Targets Target setting is perhaps the most important part of measuring performance. If you fall well short of the target. the very act of setting a target and monitoring your progress towards achieving it is really the important process. The data can be collected manually or automatically using some form of system. Targets too high? No Yes Data Collection Collecting data to determine your KPIs is often the most difficult and expensive part of measuring performance. Any longer period than this can mean that targets lose their relevancy.See the Freight Best Practice publication Fleet Performance Management Tool for a full range of KPI spreadsheets. you should try to understand why this might have occurred and adjust your future target levels accordingly. Targets do not need to be perfect. you need to go back and consider ‘raising the bar’. KPI targets should be in line with the strategic goals of your business and should aim to move the company towards achieving those goals. Select KPIs Set and Review Targets Data Collection Review/Evaluation (Including Benchmarking) Reporting & Feedback Results Targets met? No Yes Tip Targets are often discussed and reviewed on a monthly basis. You cannot set targets until you have measured current performance. Once you understand your current performance. setting realistic targets for each KPI is the next logical step. Identify Strategy for Performance Improvement Take Action Implement Strategy A fuel management system is an integral part of gathering data which can be used to measure KPIs 15 . and they can be analysed within the company or outsourced. Always remember that monitoring and reviewing is an on-going process and if the target was met very easily.

See the Freight Best Practice Guides on Telematics and Information Technology for Efficient Road Freight Operations 16 . You may find that you can collect data and report on many of your selected KPIs. the higher the possibility that there will be errors. However. The cheapest approach to improving a current situation is to ensure that you have fully exploited the information available from current systems. for instance. These systems can then be used to report detailed and accurate real-time data. you may well find that information is being collected but is not fully analysed or utilised. so that a far more effective flow of information can take place. but is not able to get the most benefit because of existing systems not communicating with each other or not reporting in a way that allows comparisons to be made.A simple system with as few recording methods as possible is the safest starting point. The driver would also note down the amount of fuel put into the vehicle to fill up the tank at the end of the day. Specific Data Collection Systems It is possible that your company does not have any existing systems that could be used for data collection purposes. parcel carriers or service-orientated businesses such as utilities companies sometimes use hand-held terminals. which can then often be presented in standardised daily. that can do the hard work of collecting the data. When the drivers return to the depot. In this case. it is often the case that the reporting functions of these systems are not utilised. collecting data on kilometres run and the number of cases delivered and whether the delivery was on time. as the more complex the methods you use. then make sure that the system is fit for purpose and offers value for money. Automated Data Collection Many companies already have systems in place. Integrating Existing IT Systems A company may already have systems that can provide some of the information. such as warehouse management and route scheduling systems. weekly or monthly reports that will already be able to provide useful information on your chosen KPIs. It makes sense to view the performance management process in the same way as the fleet efficiency you are trying to measure: try to achieve the greatest output with the minimum of input. There are a number of IT suppliers that focus on bespoke systems which can link warehouse management systems to scheduling systems or to order systems. If you decide to do this. you might decide to buy a system with the main purpose of measuring performance. enabling the driver to key in details of drops completed at the time. they hand the sheets to an administration clerk who can capture the information into a computer spreadsheet. Real-time Data Collection Some operations may have specialised systems that can be used for the purpose of performance management. If you are reviewing and improving your performance monitoring. Manual Paper-based Data Collection Forms can be created so that data can be collected by drivers through filling in a daily driver sheet.

85 8. This reveals that the actual fleet performance is 8.74 MPG (52. 17 .57 MPG or 7%.189÷1.17 MPG (8.001. The following example of averaging the performance of six vehicles over a week demonstrates the problem: Vehicle Number 1 2 3 4 5 6 Distance Travelled 742 626 1746 1463 1562 2050 Gallons of Fuel Used 73. A conscious check on data collected is recommended.5 210 265. as each vehicle has run different mileages.8) .6 222. whereby any unusual figures can be checked for reliability.87 7. Human error at point of delivery can cause problems when invoicing the customer.44 7. Often.2 57.a difference of 0. Problems can result from human.14 10.8 gallons Simply averaging the individual vehicle weekly MPG figures gives a result of 8. the true fleet MPG is revealed by totalling all mileage and dividing by all fuel used. machine or system error.73 Total over the six vehicles over the week = 8. Tip Good housekeeping.001. strong procedures and a dedication to precision can help to reduce the problem of errors in data collection. intend to make better use of existing data collection systems or wish to put in place a new data collection system. It is also advisable to periodically monitor the accuracy of the data entry to spot any errors. Company X thought that its performance was better than it actually was.43 7.Data Collection Errors Whether you already collect KPI information. However. there will always be the opportunities for data collection errors to lead to incorrect performance information. The Perils of Averaging An Example of Errors in Data Processing By averaging MPG rather than using raw data. when evaluating the results of data collection.189 miles and 1. to consider error as one potential reason for recorded changes in performance. therefore.46÷6). time pressures can be the cause of data entry errors. It is important.1 Miles Per Gallon 10.4 173.

there could well be a marked difference between the resources available at each location • When benchmarking vehicle categories See the Freight Best Practice Fuel Management Guide which looks at vehicle versus vehicle and driver versus driver performance monitoring in more detail • When it comes to benchmarking depots. 18 . If your business has a number of comparable operations then benchmarking vehicles. shifts or depots can reveal areas where performance could be increased. expanding the customer base and improved route scheduling • Sometimes when company takeovers or See the Freight Best Practice Key Performance Indicators for the Next-day Parcel Delivery Sector benchmarking guide. For example. When comparing one part of your operation with another. it is also likely that these vehicles may have been run on longer distance trunking routes rather than smaller vehicles that may have been used for numerous urban multi-drop deliveries the type of operation could be significantly different. while another could involve multi-drop deliveries in urban areas. for example. different vehicle categories within a fleet can be benchmarked against one another to show how they perform on fuel consumption. Midlands and South). then this should suggest further investigation to review both vehicle maintenance and driver performance. This might be through looking for opportunities for back-loading. a transport operation could be primarily a trunking or single-drop operation. So.there may be efficiencies gained by virtue of the time of day when the vehicles run on the road. One company’s Midlands depot was the best at collecting parcels and bringing them into the regional depot. an understanding of the reasons for this can help the business improve efficiency. it is important to avoid the common pitfalls of not matching like for like.Reviewing and Evaluation The performance review period can take the form of weekly. encountering less traffic at night for fuel efficiency. monthly and yearly comparisons. it is possible that the results show the larger vehicles to be more fuel efficient. whereas the same company’s London depot had the poorest performance with only 17% cubic fill.e. In the Parcel Sector Benchmarking survey undertaken in 2005 a number of leading companies submitted data for three depots each representing different geographical regions of the country (North. i. having 36% cubic fill at the end of the journey. leading to misleading conclusions: • KPIs measuring the performance of different parts of a delivery fleet by shift should take into account where shifts are not rotated and are constant nightshifts or dayshifts . Where there are significant differences in performance. The type of product carried may differ. until the equipment is replaced. However. If two similar vehicles on similar routes undertaking similar activities have noticeably different fuel consumption performance levels. and in both the warehousing and transport operations it could be that certain products require a much longer loading and unloading time owing to the size or complexity of the product mergers take place there is a difference in the quality and age of equipment and.

automated systems will effectively prescribe the reporting style and it will be up to you to take the available reports and tailor the information. Clarity and comparison are important. either for your own use. It would be misleading to compare these performances directly because of geographical and operational differences. This means choosing an appropriate style and format that interprets the data as well as reports. for communicating with those staff whose performance you are trying to influence.92 km per litre in the north and 2. thereby speeding up the time spent producing reports. Often a quick view of a chart can highlight the problem areas within an operation far more clearly than tables of data. Remember that a picture (in the form of a graph) can portray a thousand words. At operational levels within a business.56 km per litre in the south.e.more senior managers will usually want to deal with concise summarised information. On average. The reporting system must reflect this difference. and from these reports. or reporting to more senior staff. from strategic to front-line operations . a more indepth analysis showing a wider number of KPIs may be necessary. across all participating fleets. perhaps because of congestion and lower inter-drop distance. automated charts can be produced. 18 tonne rigids had fuel consumption of 3. In many cases. This has the added value of automatically building-in previous months’ data into the report.In the Parcel Sector Benchmarking survey there was the tendency for all London depots to have poorer fuel consumption figures. The reports can be designed to show actual figures against targets set for each of the KPIs. 19 . i. drivers. The value of KPIs can be converted into efficiency improvements only if they actually lead to changes in the behaviour of the people in your business. taken from the Fleet Performance Management Tool).this ensures that all staff members are aware of progress and can see the benefits of performance measurement. As a rule. For further details see the Freight Best Practice Benchmarking Guides Key Performance Indicators for: • The Food Supply Cahin • Non-food Retail Distribution • Builders’ Merchants Sector • The Next Day Parcel Delivery Sector • The Pallet Sector Tip Reporting and Feedback The way you report performance information can make a great difference to the success of a performance management programme. It will be influenced greatly by the intended audience . Reports can be set up in spreadsheet databases to read directly from input pages (see figure 3. feedback should be given to people at all levels of the business.

including degree of vehicle fill. deviations from schedule and percentage of on-time deliveries. by comparing operational efficiency with that of the average and indeed best in class.Figure 3 KPI Cumulative Summary List (Actual v Target) Figure 4 Pallet Sector Benchmarking Example External Benchmarking Testing the performance of your own operation against that of others is widely recognised as offering excellent ‘health checks’. where a Pallet Network Benchmarking Survey measured a range of KPIs. One example of this has been in the pallet sector (see figure 4). Participation in benchmarking with external organisations can be difficult to arrange and 20 .

• Judging the relative performance of your operation over time other practitioners performance • Comparing aspects of performance with • Identifying areas for improvement in • Seeking the best approach to bring about improvements in performance to match or exceed best in class Tip Always try to set achievable targets. shift or location levels set clear targets • Report back to those underperforming and • Introduce good practice methods. Tip Share good practice across other operations in the same company.uk Identify Strategy and Take Action • Look at reasons for good and bad performance at individual staff member. for instance. This information will be vital in determining actions for performance improvement. and that the factors that have come together to produce the higher performance level are recognised. simply email info@freightbestpractice. disseminated from high performers to the lower performers fill skills gaps External Benchmarking External benchmarking typically involves: • Consider providing appropriate training to Targets Set too High? It could be that the target has been set too high and that it actually de-motivates individuals. Freight Best Practice would like to hear from any companies that would like to undertake this type of benchmarking. Targets Achieved See the Freight Best Practice Key Performance Indicators for the Pallet Sector Benchmarking Guide. but it is known that other individuals. This is most likely to be the case within the public sector. Freight Best Practice has also carried out a number of time limited surveys whose results are available for you to compare your current operational performance. groups or businesses have achieved better performance. If you are interested. A particular manager or individual can have made a meaningful difference and this should be recognised. within NHS Logistics or between local authority vehicle fleets. Depending on the nature of your business there may be a benchmarking opportunity available. Results Failure to Meet Targets Where targets are not being met by individuals. 21 . detailed KPIs can show exactly in which areas performance has fallen below expectations. vehicle. thus people feel they would never be able to meet the target and less effort may be applied than if there were no targets at all. depots or by the business as a whole. the target should be reviewed and set at an achievable level. It is important that you acknowledge good performance. In this case.org.time consuming to complete.

Simple Microsoft Excel© sheets can be useful. • If no system is available for collecting • Accident damage (average cost per vehicle) • Vehicle downtime (average days per vehicle) • MPG . Key Points to Remember when Introducing Performance Management into Your Organisation • Relying on people to provide good Internal Multi-contract Benchmarking Example In Ryder plc’s Dedicated Contract Carriage division. so data collection systems need to be easy to understand and staff should be well briefed if you need them to collect data for you information you need to collect and how it should be collected management is critical . It is made possible by having full access to all the data available. Understanding and accounting for the influence of these factors is a necessary part of gauging the success of your actions targeted at improving performance.5-tonne.5-tonne. by combining a number of spreadsheets. This is where benchmarking against competitors in the marketplace can provide companies with common standards. benchmarking between different contracts takes place. taking regular snapshots over time can work well too. others may not be. Concerns felt by companies outsourcing their distribution to Ryder over sharing of operational data are addressed through the non-disclosure of financial information and the contracts being in different industry sectors.you cannot expect people throughout your business to give you good information if people at the top do not consider it to be important While continuous performance monitoring is best. 18-tonne. The Small Fleet Performance Management Tool shows how. a comprehensive performance measuring tool can be produced • Work with staff to decide on what • Getting support from company • Collecting data can be resource-intensive. It is worth continually asking the question. 7.comparison of each vehicle type • (3. however.Targets Set too Low If targets have been met easily it may be that they have been set too low. Each month a number of areas are benchmarked: information can cause difficulties. therefore they should be altered. tractor units) • Goods in transit • Sickness record • Collision frequency rate See the Freight Best Practice publication Fleet Performance Management Tool which provides a full range of KPI spreadsheets Understanding the Factors that Influence Performance Many factors affect performance. 22 . ‘How will this data help me measure performance?’ information. many may be directly under your control. make your own. unlike comparisons with competitors’ operations. This is a good way of comparing performance and management styles of different operations. Each operation benefits by becoming more efficient through using the best practice from one operation and transferring it to another.

always remember . they can alienate the drivers and lead to poor results your performance management system the ability to record changes.get everyone on board.When drivers leave the premises they are largely their own boss. it is important to nominate a person who has general responsibility for the project • Full participation .always build into • Individuals’ behaviour . Gaining their buy in to performance management is essential to your success • Technical issues . if performance comparisons are introduced in the wrong way. the more informative the results will be to take into account seasonality and other external factors when comparing ‘before’ and ‘after’ results weather on fleet performance it is best to carry out your trial over a 12-month period • Flexibility for unforeseen circumstances • Representative sample . such as new vehicles or equipment • Operational changes .the longer the period of measurement. without explanation and supportive management.from the outset.if you are measuring the performance of a new piece of equipment during a trial period.you will need to know your current costs to create a benchmark from which you can monitor progress • Weather . so one-off observations can be misleading 23 .human behaviour can always affect results. make sure you have support from the equipment or system supplier to ensure that you can make the most of the equipment • Understand your current costs .a degree of flexibility in the trial procedure is essential to incorporate any unforeseen factors • Ownership of intervention .to understand the effects of • Realistic timescale .

using CVRS can: • Reduce journey times and vehicle mileage • Improve the variety of delivery schedules • Plan the most effective route • Maximise the efficiency of deliveries • Reduce the number of journeys and vehicles required For more details. efficient fuel management. 24 . efficient equipment and systems and efficient people through developing skills. vehicle fill. kilometres per drop and time utilisation. These are broken down into four key areas: operational efficiency.Improving Performance in Your Operation This section looks at some of the actions you can take to improve efficiency in your own operation. for example. Operational Efficiency Vehicle Routing & Utilisation Medium-sized and larger fleets often use computerised vehicle route scheduling (CVRS) packages which can collect and provide data to help measure performance levels and. show where certain routes or depots are more efficient than others in terms of. in particular. see the Freight Best Practice Guide Computerised Vehicle Routing and Scheduling (CVRS) for Efficient Logistics. In general.

successful planning no longer depends on someone’s memory when planning routes. and improved the response to customer queries.000 customers across the UK. issues affecting different types of operation. completing between 500 and 600 orders every week. A Good Practice Guide to back-loading specifically for smaller operators is available which highlights operational benefits.Alstons Cabinets Alstons Cabinets supplies bedroom furniture from its base in Ipswich to over 2. One way to increase overall utilisation is through ‘back-loading’ . the information in electronically generated routes can be circulated widely. Improving Vehicle Utilisation Better vehicle utilisation is a straightforward and direct way of cutting costs by making more efficient use of vehicles and drivers’ time. There have also been a number of operational benefits. before being uploaded into the MRP system for production planning. Satellite Navigation ensures drivers know their way. The simultaneous introduction of Material Requirement Planning (MRP) and Paragon CVRS software has radically changed the process. If you do not use a vehicle routing and scheduling system you can collect information by other means. ways to find back-loads. without any negative effect on customer service. Orders are now downloaded into Paragon for routing. The vehicle fleet consists of 22 rigid vehicles and trailers. As customer time windows and delivery preferences are held in the CVRS system. and improved the efficiency and effectiveness of manufacturing planning. errors have been reduced and orders are no longer ‘forgotten’ because of people working under pressure. Consequently. 25 . and potential barriers and constraints to back-loading.making use of spare capacity on the return leg of a delivery. helping to prevent wasted time and fuel. Some companies regularly operate back-loading. Other areas have benefited from improved communication. Just a few years ago the whole order process was carried out manually using specific customer orders as the basis for manufacturing planning. With suitable system interfaces. Better routes and more effective use of vehicles have enabled the fleet size to be reduced by 20% (from 25 to 20 vehicles). These actions have drastically reduced internal queries and errors. quickly and accurately. bringing with it reductions in running costs and revisions to contract hire arrangements. while the nature of other operations means that it is not possible.

research has shown that the greatest single influence on fleet fuel efficiency is that of the driver. in terms of their driving style and technique. more precise measures that might affect freight fleet efficiency can be used.See the Freight Best Practice Guide Make Back-loading Work For You. levels of product damage. The management software in telematics systems can turn the data collected into information that will help you to manage vehicles. 26 . These might typically include the instances where order-taking error leads to redelivery or the number of late orders processed for delivery outside the agreed lead time. All of these areas are important. fleet performance can be dramatically affected by the operational efficiency of the warehouse. There is no substitute for a good working relationship and communication between operations and the sales department but this can be helped by impartial measurements of performance. those with mapping and text facilities. including pure reporting packages. Efficient Fuel Management Driver Training A fuel management programme is a series of actions you can take to better manage fuel throughout its life at your operation . performance of a range of operational components can be measured. See the Freight Best Practice Guide Working Together to Improve the Operational Efficiency of Regional Distribution Centres (RDCs) for more information on efficiency in warehousing operations. Performance measures may be put in place to help to monitor the on-going service levels between the fleet and warehouse. Improving Internal Communication The actions of the order processing or sales department can have a substantial impact on the operational efficiency of the warehouse and the distribution fleet. meeting loading deadlines. however. stock rotation efficiency and order completion i.from purchase and acquisition to storage and use. or ordertracking systems linked with ordering and accounting software. Measures might include productivity rates. on a network or via a website. drivers and operations more effectively. Improving Warehouse Operations In all fleets serviced by warehouse operations. ranging from individual warehouse staff to the performance of the whole combined operation. Telematics Telematics systems are applications that use computers to control and monitor remote devices or systems.e. Several kinds of management software are available. Depending on the nature and scale of warehousing operations. this may be internal to your company or a performance agreement between a vehicle fleet collecting or delivering to a third-party warehouse. The software may operate on a single PC. So as well as more typical sales-driven volume measures.

The company links manufacturing. leaks from the tank or pipework and even possible fraud. Fuel Recording Systems Fuel recording systems can help you to measure and monitor your fuel use. corresponding to a cost saving of £7. showing current fuel performance. Each driver’s performance is displayed on a notice-board.380. Staff running costs were £4.8% improvement in fuel efficiency worth £14.Improving Fuel Efficiency at Thorntons plc Thorntons is a major UK manufacturer and retailer of premium confectionery. warehousing and distribution operations in one location. which allows for some friendly competition and motivation.100. In recent years.200 per year. which allows individual drivers to raise issues and explain any underperformance on a weekly basis.040 for the production of weekly reports and £3. 27 .080 for the running costs for staff and data loggers. The success of this incentive scheme is due primarily to its careful management. taking into account £1.300 per year. it is possible to work out the MPG. power supply issues. Managers should be aware that there are a range of issues with fuelling systems that require close management . Phase 2 introduced data loggers which could measure the following indicators of fuel consumption: • Speed • Idling time • Harsh braking • Rapid acceleration The in-cab unit would warn drivers with a beep every time they moved out of pre-set parameters.users should be aware of the risks from data entry problems.500 per year. last year’s fuel performance and the driver’s individual target. Phase 1 of the fuel management programme measured fuel consumption data with data collected manually. The simplest fuel recording method is to record fuel pump readings manually for each vehicle and. A fuel management programme was originally implemented in 1995 as part of the company’s commitment to: A 3% improvement on fuel efficiency of the whole fleet was achieved in one year. and the violation is recorded. Net annual savings are £10. by combining these readings with vehicle distance travelled. Early warning of any of these issues can save the business a considerable amount of money. Phase 2 achieved a 5. packing. it has invested further in computerised fuel monitoring equipment and introduced a range of key driver performance indicators linked to financial bonuses. with more than 4.200 employees. • Reduce distribution costs • Improve operational efficiency • Reduce the environmental impact of its distribution operations The encouraging results achieved convinced Thorntons of the need to develop and refine the programme to maintain and increase savings and to achieve further environmental benefits. giving net annual savings of £3. League tables allow drivers to compare performance.

from delivery vehicles to fork-lift trucks and roll cages. After the system was installed MPG improved by 10% across the fleet.Example of an In-vehicle Fuel Recording System At Premdor’s depot in Barnsley. It has a card system operated by Keyfuels which links the fuel data for a vehicle regardless of whether it is refuelling at a depot or at a Keyfuels site. taking account of likely vehicle residual costs as well as on-going operating costs. Whole-life costing. Keyfuels then issues each depot with a weekly report giving fuel figures and MPG for each vehicle. However. over a period of time. engine power. MPG figures are measured using the Siemens VDO system. Tip When buying a new vehicle. Marshalls Construction is a leading UK manufacturer of paving for landscaping gardens. The company has installed tanks with Triscan monitoring equipment at a number of its depots. gearbox. vehicle. It is important to understand how each piece of equipment used in the operation is performing and to understand whether you have the best specification of vehicle or other piece of equipment for the job required. It may then be possible. thus influencing future purchases. paths and driveways. This worked out as a saving of £65. 28 . The system will benefit Marshalls by giving it more control over the operation through the ability to monitor drivers and vehicles from the report information provided. Efficient Equipment and Systems All freight transport operations rely on the performance of a variety of physical equipment. The advantage of this system is that it can measure the performance of each driver in terms of MPG. Owing to ongoing monitoring using KPIs. A vehicle key or card can be inserted and the amount of fuel dispensed is automatically recorded and submitted to a central system for analysis. There is a vehicle-mounted control box which measures the fuel going into the engine. A vehicle specified to meet your individual needs will cost you less to run and will perform more effectively. torque. it can be tempting to go for the least expensive option that will ‘do the job’. as well as walling and edging products. final drive ratios and the aerodynamic styling of the vehicle. vehicle size. Improving Vehicle Specification It is important to compare the performance of different vehicles by make and model and equipment specification.000 per year on a 35-vehicle fleet. Factors affecting efficiency might include maximum permissible weight. the marked improvement in fuel consumption has been maintained. to see the difference that vehicle specification makes. is the key to getting vehicle specification right from the outset. Example of an Electronic Fuel Pump System Vehicle MPG can also be measured through pump-based systems where fuel is bunkered on site. running costs add up to far more than initial purchase costs over the life of a vehicle.

which means it is all the more important to keep a check on the costs of maintenance. meaning that efficient vehicle fill is difficult to achieve. Hence. fuel and other operating expenses are taken into account. Performance measuring can help to verify that the introduction of double-deck trailers has had 29 . cryogenics (liquid nitrogen) or direct drive. such as enabling a reduction in the size of the fleet Refrigerated Vehicles Specialised vehicles such as refrigerated vehicles impose extra purchase and running costs. which include maintenance and fuel. • Halving working time. successful operational benefits. Focus (DIY) Ltd Focus (DIY) Ltd found that cubing out before weighing out is a particular problem with their range of products being delivered on a fleet of single-deck and fixed double-deck trailers. Buyers Guide to Refrigerated Transport Equipment.70 per litre) and lower CO2 emissions is required to deliver the same load vehicle required) The capital cost of refrigerated transport equipment may account for less than 50% of its whole-life cost when maintenance. Innovative vehicle specification can help to improve vehicle fill and increase productivity. as only one driver • Improved average utilisation (only one Double-deck Trailers Many businesses suffer from inefficiencies in their deliveries due to variable product sizes.17 per mile) a fuel price of £0. fuel and other operating costs. Fridge units can be powered from a number of sources including: electricity. A nine-month feasibility study with a prototype moving a double-deck semi trailer demonstrated its potential to improve operational efficiency. See the Freight Best Practice Case Study Focus on Double Decks for more information and the Focus (DIY) Ltd Case Study below. white diesel.See the Freight Best Practice Guide Truck Specification for Best Operational Efficiency for more information. red diesel. accurate specification of equipment will. can be analysed separately to the main motive power unit of the vehicle. lower fuel costs and shorter waiting times at loading docks. Other benefits included reduced overall mileage. which can save significant amounts of money. with the benefits being the potential to reduce the fleet size. over time. • Fuel costs reduced by £108 (based on saving £378 in operating costs (based on an operational cost of £1. Using the double-deck trailer compared to two single-deck trailers gave the following benefits: • Mileage reduced by 257 miles (413 km). result in greater operational efficiencies. the operating costs of running a unit. By using a continuous performance measurement process.

Christian Salvesen Padding Block Christian Salvesen delivers tyres for Dunlop on a national contract from Birmingham. each with three full 4. The company chose a system of ‘swap-body’ technology to help it trunk tyres efficiently around the motorway network whilst being able to use small. awkward-to-handle products are being transported between depots and transhipping is required. visiting the tyre distributors and returning to the regional yard at the end of the day in time for the night trunk. The company sends at night several drawbar lorries from the National Distribution Depot to eight regional locations. The night driver arrives at the regional centre. urbanfriendly rigid vehicles for the actual delivery of the tyres. parcel delivery. The operation also avoids the need to tranship the tyres from a large lorry to a small vehicle. The idea has been copied by other companies in the food. drops the legs on the full boxes and collects the three empty boxes for return to Birmingham. In terms of KPIs. retail and tyre industries. The main benefits are: • Reduced driver waiting time while loading takes place drop-off sites • Facilitating the use of unmanned • Fewer transfers of stock • Minimised storage requirements Demountable Bodies Demountable bodies offer another approach to improving operational efficiency through vehicle specification. Then next day small delivery vehicles take just one box each around the local urban area. Demountable bodies enable drivers and vehicles to be used more intensively owing to quicker turnaround times at the depot. Essentially. then looking at the statistics on damages can show whether it would be worth introducing a demountable operation to reduce the cost of damage. If high-value.7-metre demountable boxes. Efficiency gains can also be made with regard to reduced damage to products. 30 . drivers do not have to wait for the vehicles to be re-loaded. The company has 120 boxes and regularly uses more than 80 each night. a company can measure demountable efficiencies by analysing the loading times which would cause a standard vehicle to be standing in non-working activity. The prime mover has one box and the trailer two boxes.

Maintenance costs should also be taken into account. Monitoring and maintaining the correct tyre pressure is essential and the potential for contributing to maintaining and improving standards is too important to ignore. (See the Moy park mini case study on page 23. This can then be set against the cost of the vehicle lease or purchase. or badly adjusted. the effects of using a vehicle that makes loading and unloading of the product difficult. but this saving has to be weighed against the cost of fitting aerodynamic styling products. one of which has good aerodynamics and one which does not. Ensuring the most appropriate vehicle specification for the tasks that are expected to be performed will improve both fuel and operational efficiency. However. Tyres Most operators know that improving the aerodynamic performance of their vehicles can reduce fuel consumption. However. In-fleet trials provide a basis for understanding these costs. such as age and general condition of the vehicle. especially in terms of engine. The Freight Best Practice programme offers a comprehensive and pocket-sized guide which: • Provides a brief introduction to • Helps you to work out which aerodynamic styling and its benefits aerodynamic features are suited to your operations savings from any features fitted to your vehicles Aerodynamic Styling Aerodynamic styling fitted to goods vehicles can significantly reduce fuel consumption. For example. There is often a financial trade-off between the initial investment required to buy a higher specification vehicle and the cost of operating the vehicle over a long period. axles and tyres. By collecting data on vehicle maintenance costs. it may be possible to test the benefits by benchmarking two similar vehicles.) 31 .Condition of Vehicle Fleet Other factors influence vehicle performance. did you know that the rolling resistance of the vehicle’s tyres can also have a significant impact on the amount of fuel used? Suppliers claim that fitting tyres with a 25% reduction in rolling resistance on all axles of a vehicle could improve its fuel consumption by at least 5%. or poor manoeuvrability of the vehicle in an urban environment may increase delivery time. a fleet manager can begin to work out the operational costs of running the vehicles in the fleet. aerodynamic equipment. • Shows you how to maximise the fuel • Points you to further information See the Freight Case Study Smoothing the Flow at TNT Express and Somerfield using Truck Aerodynamic for more information. Correctly fitted aerodynamics equipment can improve performance significantly Tip A truck specified or fitted with the correct aerodynamic styling can use 6-12% less fuel compared to a vehicle with little. You do not even have to replace your vehicles – there is a range of add-on features available that can significantly improve the aerodynamics of many vehicles on the road today. It is then possible to see the effectiveness of the aerodynamics for the particular transport operation. fuel used and average loading and unloading times.

Drivers and Operational Staff • In general. tyres or aerodynamic design. performance measuring needs to take on a positive and proactive nature. Once weaknesses in employees’ skills have been identified. where training is given to improve overall performance and enhance the employee’s skills.Safe and Fuel Efficient Driving. They can also create a healthy competitive atmosphere within the organisation. this method of performance measuring allows you to efficiently allocate your resources where training is actually needed. you can set about rectifying the problems. driver checklists and maintenance skills Communication and Team work Driver Legislation and hazardous goods • Personal Skills . helping to influence future decisions on the purchasing of equipment and systems. Training and development can also help you improve employee retention. The sections below provide an overview of how training can 32 . Effectively. number of accidents. While league tables can be very useful. and KPIs can also illustrate deficiencies in safe driving. which has been a significant problem in the transport and logistics sector. The Safe and Fuel Efficient Driving (SAFED) training programme was designed as a single scheme aimed at improving the driving techniques of heavy goods vehicle drivers Efficient People through Developing Skills Your employees are your main asset and play a vital role in delivering services. there are 3 key skill areas for drivers and operations staff: • Technical Skills . This is the concept behind manufacturers offering demonstration vehicles/units to operators for a period of time. and as a result identify training that could help your staff.Knowledge of the vehicle. Designated driver instructors can help to improve fuel efficiency by introducing simple driving techniques. product damage. or analysing the effectiveness of training approaches. A good method of achieving this for drivers and operational staff is to create league tables. League tables can measure performance in several different areas such as fuel efficiency. An in-fleet trial is the testing of a vehicle. help you improve performance.In-fleet Trials Many suppliers test their own products and give estimates of potential savings. Training and development should not be restricted to drivers and other operational staff. equipment or systems before embarking on a potentially expensive acquisition programme. Instead. EU Driver and operational training is vital to the successful performance of any operation. Therefore. equipment or systems in normal service as part of the day-to-day transport operation to see if it is suitable for the intended application and able to produce noticeable benefits to the operator. but these are likely to be variable in different applications. on-time deliveries and communication errors. Investing in training and development can help you adapt to technological changes and improve efficiency. • Knowledge . In-fleet trials can be used to measure any intervention from physical changes to vehicles. it is important that drivers do not become de-motivated as a result of performance being measured. but should be aimed at people across all levels of your organisation. Selecting the right KPIs can help you identify the areas within your business that are under performing. By establishing KPIs you can set a company standard and identify any problems that occur. such as changes to the gearbox. Driver training is not just restricted to fuel efficiency. Telematics and Computer skills. Tests can be carried out relatively easily and can provide valuable information.Customer Care. it is recommended that operators consider conducting an in-fleet trial to ensure the suitability of vehicles. or changes to the way the vehicles are driven through drivers undergoing driver training.

Transport policy.ciltuk. health and safety legislation and customer priorities Understanding new technology can maximise efficiency and performance. It is also important that all 33 . The trucks running on energy efficient tyres recorded a fuel saving of 8% over the competitor tyre fitted on the other vehicles. Running 20 vehicles on the energy tyres led to an annual fuel saving of nearly £7. TyreMiles. Garage Manager Nigel Nash explained “Despite the cost of tyres being 3% of running costs for commercial vehicles. then problems can be identified and tackled quickly. administration and managerial staff including SAFED. Comprised mainly of tractor units. All vehicles had similar working patterns during the trial and operated at 38 tonnes. Once again KPIs can be set to identify shortfalls in this area.5 energy low rolling resistance tyres and two with competitor’s tyres. team-building and customer service • Personal Skills . Certificates of Professional Competence and other accredited courses. but also raise the standard of your employees.skillsforlogistics. If carried out appropriately. • The Chartered Institute of Logistics and Transport (www. specifying the right tyre can have a significant impact on reducing one of our main expenditures . This process will identify weaknesses that can then be improved.Computer literacy.org. The company has been using Michelin tyres for over 10 years. performance management can encourage staff to become efficient in their everyday activities. General National Vocational Qualifications. personal skills and knowledge.uk/) It is imperative that every part of the business is involved to ensure full participation and ‘buy in’ to performance management • Knowledge . • SAFED (www.org. Managers should be able to effectively communicate instructions to team members and likewise administration staff should be able to communicate vital information to the drivers and operational staff. How Does Performance Management Encourage Staff? Everyone should have continual professional development in your organisation.Moy Park Ltd Derbyshire-based Moy Park Ltd operates a fleet of 42 commercial vehicles.Commercial awareness. and it is important that managers and administration staff are computer literate. If the information is collected correctly. for the purpose of a three-month trial.600. specified two with Michelin 295/80 R 22. This will not only benefit your business as a whole but employees will feel more fulfilled and be more likely to stay longer and work harder. the fleet is used for supplying poultry products to customers nationwide.uk) • Skills for Logistics (www.safed.40 4x2 units and. Administration and Management Administration and managerial staff also need technical. and Telematics skills communication. There is a large range of professional training courses available for drivers. The following organisations will help you identify relevant development courses for your staff. together with a number of rigids. org) Performance & Financial Management. Communication is a key skill in the success performance of any logistics company. the company took delivery of four new Mercedes Axor 18. but the specific skills they use from day to day are different to those of drivers: • Technical Skills . managed by local dealer.diesel”. administration staff and managers understand the concept of performance management so that they can correctly collect information that can help you improve your operation. In May 2003.

with considerable fuel savings achieved.Safe and Fuel Efficient Driving (SAFED) The Safe and Fuel Efficient Driving (SAFED) training scheme has been specifically developed to enable both vehicle operators and training providers to implement driver training within the road freight industry. Clugston Distribution Services Benefits highlighted: • Average fuel consumption improvement of 7.5% on the day Winfield Transport (Cannock) Ltd Benefits highlighted: • Average fuel savings of 3.500/year • One driver’s gear changes reduced from 109 to 70 over the same route • One driver’s fuel consumption improved by over 12% in the four weeks after training • Driving in a more relaxed way 34 . The training covers all of the following areas on which drivers can have focused training: The DfT SAFED driving scheme has benefited many companies.3% for 23 drivers • One driver trainer improved fuel • Useful refresher on safety • Adjustable aerodynamics • Braking • Clutch control • Cruise control • Exhaust brake • Forward planning • Gear selection • Hazards • Height of load • Positioning of load • Speeding • Low revs.2% • Projected fuel cost savings of £6. low noise and low emissions • Planning of route • Tyres • Weather conditions consumption by 13.

org.For more information on SAFED. SAFED for Vans: A Guide to Safe and Fuel Efficient Driving for Vans.uk SAFED for Vans Website: www.uk and click on the SAFED for Vans logo A full list of the FREE Freight Best Practice publications can be obtained from the Hotline 0300 123 1250 or by visiting the website at www.safed.gov. SAFED in the Aggregates Sector Website: www. Companies and Drivers Benefit from SAFED for HGVs: A Selection of Case Studies.businesslink.safed. see the following publications SAFED for HGVs: A Guide to Safe and Fuel Efficient Driving for HGVs.uk/freightbestpractice 35 .org.

This guide has aimed to give you.A Checklist for Measuring and Improving Performance Understanding and monitoring performance can be challenging. Measuring current performance is a fundamental first step you need to take before you can put measures in place to improve operational efficiency and reduce costs. achievable. realistic and to timescale Have you set targets for these KPIs? Do you know how well your operation is performing against your targets? Do you need to raise or lower them Have you considered external benchmarking to compare your operation’s performance with that of others? Have you reviewed or set up a data collection system to give you the information you need? Do you have a good system in place for analysing and reporting your KPIs? Do you use information technology systems to help you? Have you considered actions that can be taken to improve your operation’s performance and meet new. an understanding of the performance management concepts. The table below shows some important questions you can ask to help set up a performance measurement system in your organisation. advice on putting a performance management process in place and a range of initiatives you can introduce to improve your operation’s performance. measurable. Performance Management Checklist Have you reviewed your existing KPIs or looked at those that might be appropriate for your type of operation? Are they specific. higher targets in the future? or X 36 . the decision-maker.

distance travelled/number of trips Number of empty miles. distance travelled/number of trips Capacity. road fund licence cost. number of A/C periods. fuel costs. RFL. O Licence cost. fuel costs. distance travelled/number of trips Maintenance cost planned/unplanned distance travelled/number of trips Fuel litres. O Licence cost. distance travelled/number of trips Rent cost/depreciation. maintenance cost planned/unplanned. annual insurance costs. agency driver costs. units carried. distance travelled/number of trips Own driver costs.KPIs Used in the Freight Best Practice Fleet Performance Management Tool and Information Needed to Calculate them Area KPI Data Required Rent cost/depreciation. fuel costs. distance travelled/number of trips Rent cost/depreciation. odometer closing Number of empty miles. distance travelled/number of trips Maintenance cost planned/unplanned. number of trips. distance travelled/number of trips Average cost per unit delivered (£) Total whole vehicle cost (p per mile) Average running cost (p per mile) Average standing cost (p per mile) Average driver cost (p per mile) Total maintenance cost (p per mile) Total maintenance cost (£’000) Average miles per gallon Total miles run (‘000s) Total empty miles run (‘000s) Percentage empty running total Average vehicle fill Average time utilisation Cost Operational 37 . agency driver cost. maintenance costs planned/unplanned. tyre maintenance costs. distance travelled/number of trips Own driver cost. distance travelled/number of trips. distance travelled/number of trips Odometer opening. own driver costs. agency driver costs. no own driver costs. tyre maintenance costs. maintenance cost planned/ unplanned. O Licence costs. units carried Time vehicle available. tyre maintenance costs. agency driver costs. annual insurance cost. road fund licence cost. time vehicle used.

number of collections. distance travelled/ number of trips Number of driver infringements. number of complaints. number of collections. number of inspections overdue/failed. number of damages. number of collections. distance travelled/number of trips Number of overloads. distance travelled/number of trips Number of deliveries. number of defects rectified in last 24 hours. distance travelled/ number of trips Number of deliveries. number of late deliveries. distance travelled/number of trips Number of traffic infringements. number of nonblameworthy accidents.Area KPI Percentage of late deliveries total Data Required Number of deliveries. distance travelled/ number of trips Number of blameworthy accidents. distance travelled/number of trips Service Percentage of damages total Percentage of complaints total Total number of overloads Total number of vehicle traffic infringements Compliance Total number of drivers’ hours infringements Total number of traffic accidents Percentage of failed inspections total Maintenance Percentage of defects rectified in 24 hours total 38 . distance travelled/number of trips Number of defects. distance travelled/number of trips Number of inspections due.

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uk/freightbestpractice Saving FUEL Performance MANAGEMENT This guide provides step by step advice for creating a comprehensive CO2 inventory and the benefits this can bring.TOP TOP provides practical ‘every day’ support material to help operators implement best practice in the workplace and acts in direct support of tasks essential to running a successful fuel management programme Safe Driving Tips Written especially for commercial vehicle drivers.Freight Best Practice publications. FBP1047© Queens Printer and Controller of HMSO 2010. February 2010. Vans. Monitoring and Understanding CO2 Emissions from Road Freight Operations Fuel Efficiency Trials Guide This guide describes a 12-step standardised process for transport operators to use when considering the trial for a fuel efficiency intervention – an important starting point in understanding the operational efficiency savings that could be possible for your fleet. this pocket-sized guide provides essential safety hints and tips on all aspects of driving safely. Printed in the UK on paper containing 100% recycled fibre. Engine Idling – Costs You Money and Gets You Nowhere! This case study provides evidence from 4 operators that by implementing anti-idling strategies an operator can save money by reducing fuel consumption and at the same time decrease CO2 emissions. including those listed below. Developing . It provides templates to enable the reader to monitor the amount of CO2 produced by its Trucks.SKILLS Transport Operators’ Pack . Equipment & SYSTEMS Case STUDIES Truck Aerodynamic Styling This guide offers practical information on aerodynamically effective styling for trucks including appropriate add-on features.businesslink.gov. . Warehouses. MHE and Company Cars. can be obtained FREE of charge by calling the Hotline on 0300 123 1250 or by downloading them from the website www.