FLEET CASE STUDY |
 Jon York, fleet operations manager, Centrica |
Crashes cost Centrica, one of Britain’s biggest employers, millions of pounds a year in repair costs and personal injury payouts. As a safety-focused company operating one of the largest fleets in the UK, they are payouts which the leading energy provider is determined to cut alongside its £14 million annual fuel bill.
Championing the road safety cause at Centrica, formed in February 1997 following the demerger of British Gas, is fleet operations manager Jon York, who this year launched a multi-faceted occupational road risk management programme following two years of pilot schemes and trials.
The company employs almost 30,000 people of which 16,000 are business drivers. Centrica operates a fleet of almost 9,500 vans and 2,700 company cars with a further 1,300 senior managers being cash-alternative business users and other staff being casual business drivers as well as hirers of vehicles for work purposes.
Mr York’s long-term targets are to cut all key performance indicators by around 30% over the next four years with success based on 2005 data that reveals:
- British Gas engineers reported 4,229 motor vehiclerelated
incidents, an increase of 7.5% over 2004 with
the fleet size increasing by 6.7%.
- Centrica paid out £3,159,819 in own damage repair
costs for its van fleet. That excludes damage to thirdparty
vehicles and personal injury costs.
- There were 830 reported third-party incidents
resulting in repair costs of £2,759,248 and personal
injury costs of £1,469,639 involving Centrica cars
and vans.
- 87 vans were written off.
- 38 personal injuries related to road traffic incidents were reported by engineers, causing 387 days lost productivity.
In addition he hopes to trim the £14m annual fuel bill by up to 9% as a result of a comprehensive fuel-monitoring programme, with vehicles subject to fuel data analysis with feedback and practical advice to drivers on improving efficiency. Additionally, Centrica is working towards combining its vehicle collision data with fuel efficiency data to verify the relationship between excessive fuel use and poor road safety.
| “Centrica is working towards combining its vehicle collision data with fuel efficiency data to verify the relationship between excessive fuel use and poor road safety” |
Meanwhile, a soon-to-be-introduced aspect of Centrica’s environmental strategy, which is closely connected to the road risk policy, will see company car choice lists capped on the basis of carbon dioxide emissions. This is also aimed at reduced fuel bills as vehicles with lower CO2 emissions typically have better MPG. While Centrica is best known for its domestic engineers the group actually comprises the gas supply, services and retail businesses of British Gas, together with the gas production business of the North and South Morecambe gas fields.
“Image is everything to Centrica,” explains Mr York. “In the event of a fatality there could be massive PR implications for the business and we cannot afford that. In addition, customers expect work to be carried out at the appointed time; any delays because a vehicle is off the road reflects badly on the business. “Other benefits of improving road safety include a reduction in personal injury, at work and leisure; increased awareness of on-the-road risks; improved safety and reductions in potential vehicle collisions. Financial benefits include reductions in vehicle downtime and repair costs; and higher productivity of employees through reductions in absence through injury.”
The cost of the safety programme is around £2m over five years but, says Mr York: “The potential payback if we achieve our targets to both the company and the wider community will significantly outweigh the cost.” Before formally launching the occupational road risk policy earlier this year, Mr York, who in July was promoted from fleet compliance manager to fleet operations manager in recognition of his cutting-edge safety initiatives, had to win backing from Centrica bosses and trade union leaders.
“Communication was vital to gaining both senior management and trade union buy-in,” says Mr York. “There were sceptics but by raising awareness and outlining the benefits to both the company and all individual employees and customers we are now almost a year into the programme.” The breadth of the occupational road safety strategy is huge, but highlights include a four-year programme to fit 70mph speed limiters to Centrica’s near 10,000-strong light commercial vehicle fleet.
To date more than 3,000 fleet vans – Ford, Vauxhall, Citroen and Volkswagen vehicles are operated on a fouryear replacement cycle – are limited to 70mph. The initiative, says Mr York should “positively influence both road safety and fuel consumption, reducing the potential for drivers to be involved in high-speed incidents”. He adds: “With its level of buying power, Centrica has the potential to make vehicle manufacturers offer this as a standard option – contributing to wider road safety in the community.” With newly-qualified drivers being in the high crash risk category, 560 newly recruited Centrica apprentices in 2006 completed a young driver programme as part of their induction.
| “The programme is one of the largest young driver schemes of its type undertaken in the UK” |
The programme includes a one-to-one driving assessment with guidance provided by a fleet-approved driver-trainer and has been developed specifically with young workers in mind. Centrica has 15 employees dedicated to the training and contracts a number of external suppliers to provide vehicle-related services to support it. The company sees an on-the-road driving assessment as essential for young trainees with little experience. In addition, British Gas vans have restricted visibility as the rear doors and rear side windows are solid, so drivers must rely solely on their front side wing mirrors and be aware of blind spots. This means they must use increased observation before setting off or changing direction.
The driver’s vehicle, eyesight and licence are all checked as part of the induction process and a further road safety initiative see trainees undertake a paper-based RoadRISK assessment provided by Interactive Driving Systems, which takes into consideration the driver’s experience, knowledge, attitude, behaviour and hazard perception. The outcomes from this assessment feed into a management information system to record and monitor performance.
The next stage includes two briefings, one that familiarises the trainee with the operation and correct use of the vehicle to include purchasing fuel, maintenance checks, service providers for tyres, glass, maintenance, repair, breakdown and vehicle collision. There is also a classroom-based education session and the watching of a DVD documentary on the consequences of dangerous driving which includes real-life stories and images of road crashes and injured crash victims.
Mr York says: “The programme is one of the largest young driver schemes of its type undertaken in the UK and should be good for young driver safety in general. By highlighting this initiative we hope to spread such best practice and innovative initiatives to the wider transport and logistics industry.” Centrica ensures trainees have the appropriate licence, which is visually checked by the driver trainer, a number are then verified electronically with DVLA through an electronic licence check provided by Interactive Driving Systems. This ensures no trainee can drive unlicensed.
Jon York is happy to discuss Centrica’s road safety policy. For further information, e-mail: jon.york@centrica.com
