KWIK FIT
TYRES AND SAFETY TECHNOLOGY
61


Profit leaders  


Many companies view the implementation of fleet risk management strategies as a cost, but a new report from Kwik-Fit Fleet will show company bosses
and fleet decision-makers how they can profit from safety


The report’s author, Professor Peter Cooke

"Risk management is for managers, hile fleet safety is the message to be transmitted to and implemented by drivers”
The health and safety-focused, fast-fit company will launch its second report on managing occupational road risk, entitled “Profit from Safety”, early in the New Year.
It follows last year’s report, “Business Car Risk Management: A Boardroom Briefing” – written by Professor Peter Cooke, of the Centre for Automotive Industries Management, Nottingham Business School at the Nottingham Trent University – which provided fleet decision-makers with the legal, moral and financial arguments for putting in place a comprehensive fleet risk management strategy.

The new Kwik-Fit Fleet publication will examine the stage beyond risk management in terms of the developing role of the fleet executive and the implementation of policies and procedures for a more cost effective, efficient, high performance fleet of cars and light commercial vehicles. The thesis of the new publication, according to author Professor Cooke is simple: “Risk management is for managers while fleet safety is the message to be transmitted to and implemented by drivers..”

He says: “The organisation may have a massive programme of risk management, reviewing and reporting on all of the incidents in which company vehicles are involved – but may not necessarily transmit the findings, their implications or implementation of the findings to the rest of the fleet to enhance personal business transport effectiveness. In some organisations, there is a communications gap between the processes for achieving best practice and the dissemination, understanding and implementation of that best practice.”

The new study will use a number of basic operational questions for fleet decision-makers to determine the current situation regarding risk management and fleet safety. It builds on those to achieve checklists of actions that organisations might consider using to monitor their fleets – and the use of results of monitoring to highlight needs for improvement and the improvement plans that might be used. Professor Cooke adds: “A huge amount has been written on duty of care and road safety over the past few years. This new study builds on that earlier work to seek to present ideas for moving forward in this critical area.”

The costs faced by companies that fail to implement a fleet safety strategy

• It is estimated that each fatality costs society more than £1 million, including over £300,000 in lost output
• Increased insurance premiums
• Claims administration
• Possible legal action
• Hire car cost
• Hire car administration
• High tyre wear
• High fuel consumption
• Poor vehicle residual values
• Towing charges
• Missed appointments
• Poor company image
• Late deliveries
• Lost staff time for injuries
• Stressed staff
Among the issues that will be reviewed in the report will be:

• How high are the organisation’s accident levels and do they differ between cars and LCVs? If so, what is the difference and how might the poorer group be improved?

• Duty of care – what does this philosophy actually mean? Just how important is it to the company and to the fleet decision-maker? How might that message be communicated to the drivers in their care – and what might be done if those drivers ignore the advice they are given?

• Ethos of care – it is all very well to talk about safety but it is critical that the company examines the “ethos of fleet safety”, how might that be done? What simple and ongoing steps might be taken to drive home that ethos to drivers – a marketing plan within the business?

• How does fleet safety fit into the corporate image? Does it have a value and how can that image/value be protected? Professor Cooke says: “None of the issues are rocket science – perhaps that is why they have been largely ignored, or perhaps people have become bored with them and moved on to look at more exciting issues within the fleet.

“The range of checklists shown in the new study should give fleet decision-makers and company bosses lots of ideas in terms of measuring and highlighting fleet safety and the profit opportunities – whether mo
netary or virtual,” he continues.

The Government and Health and Safety Commission-sponsored Work-Related Road Safety Task Group’s report published two years ago, which heralded the focus on fleet risk management, calculated that British business was losing up to £2.7bn a year as a consequence of at-work road traffic accidents, In addition, it claimed that society was paying out a further £ bn as a result of the 100,000 road accidents a year that took place involving staff driving on company business.

Kwik-Fit Fleet sales director Mike Wise says that companies were continually seeking ways to cut costs, but many appeared to actually turn a blind eye to the costs that are associated with at-work road accidents. But, he adds: “The business case for introducing methods to reduce road carnage is unarguable.”


"The business case for introducing methods to reduce road carnage is unarguable"
Industry experts say that by implementing a risk management strategy they would expect to see at least a 30% reduction in fleet accidents with a resulting cost saving, depending on the cost to the organisation of a typical accident, the costs associated with fleet insurance, the number of accidents currently being experienced and other detailed costings.

Calculations reveal that bent metal costs have an average repair price ranging between £750-£4,500 per insurance claim. But that cost is only the tip of an iceberg with most costs below the waterline. In addition, the Health and Safety Executive has calculated that, for every £1 recoverable from insurance, between £8 and £36 may be lost to the company in uninsured costs

The multi-billion pound costs of at-work road traffic accidents include medical costs, damage to property, lost production, sick pay, administration costs and the cost of higher insurance premiums. The spin-off benefits of reducing at-work road traffic accidents include less lost output, lower insurance costs, improved fuel consumption, lower vehicle repair costs, improved staff morale and companies legal obligations will be met.

Professor Cooke concludes: “Profit through safety was once described as being ‘something for the anoraks’ – not a bad description. It is not normally exciting; it is continuous; it is long term; but it can have a really positive benefit for the organisation over time.”

Copies of the report “Business Car Risk Management:
A Boardroom Briefing” are available free and to order
your copy of the new report “Profit from Safety”
telephone Kwik-Fit Fleet on 01727 840206
or e-mail: info@kwik-fitfleet.com


The savings companies gain by implementing a fleet safety strategy
• A reduction in insurance premiums of at least 15% depending on previous claims record, fleet size and composition at a time when insurance premiums are escalating at the rate of 20-30% annually
• Protection from prosecution
• Fewer accidents
• Less need for investigation
• Fuel consumption improvements of at least 7%
• Reductions of at least 5% in wear and tear on tyres, brakes and clutches, and so on
• Improved vehicle value of a minimum of 4% if a trained driver drives the car
• Improved business performance
• Less paperwork
• Less lost time
• Less requirement for work rescheduling
• Lower training costs
• Fewer missed orders
• Improved staff morale
• Improved public image

 

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