Transport Management and Technology

Assignment Title: Assignment 1 – Project  

Programmer title: Transport Management and Technology

Course No.: AUTO8007

Course title: Fleet Operations

Contents

Introduction …………………………………………………………………….……………4

Fleet Policies & Procedures…………………………………………………….……………5

Relevant Manufactures………………………………………………………….…………..8

Fleet Mix & Requirements……………………………………………………….………….11

Environmental Considerations ………………………………………………….…………..12

Fleet Maintenance……………………………………………………………………….….13

Documentation & Legal Requirements…………………………………………………….14

Conclusion………………………………………………………………………………….15

References…………………………………………………………………………………..16

Introduction

For this report we have been asked to look at a company that relies heavily on a fleet to conduct the services they provide or to distribute the products they develop. Many companies around the world have huge fleets of vehicles that travel thousands of miles every day delivering goods. For this report the company that has been chosen is Fastway couriers. Fastways was the company that was chosen because they have a specified need for a mix of fleet vehicles. The vehicles they would usually use would be high roofed vans, as these are the most affordable method of delivery lots of small packages to many different customers. With these types of vans you can get a large amount of space so that shelving can be erected and used to sort and organise packets that are being delivered. Fastway are a huge franchised business with franchises in four main countries across the world. These four countries are Ireland, Northern Ireland, New Zealand, Australia and South Africa. Fastway headquarters is based in Napier New Zealand and was founded in 1983 by Bill MacGowan. There are approximately 250 franchise partners across Ireland ranging from Cork to Belfast.

The methods that will be used to gather information for this report will be mainly the internet and books from the library. An email correspondence with Fastway will give an insight into how they produce and maintain policies and procedures. Calling into the local depot will show what mix of vehicles they use and how often they leave and come back to the depot. Being able to talk to Fastway staff will give very useful information about loading and unloading procedures and how often good come in.             

Fleet Policy & Procedures

The functions of this policy are to ensure the safety of the individuals who drive company fleet vehicles for the company and to provide direction about the correct use of the company fleet vehicles. When a vehicle has an accident it can be costly to the company, but more importantly, an accident could result in injury to the drivers or others. It is the driver’s duty to operate the vehicle to the best of their ability in a safe way and to drive carefully to prevent injury and damage to property. The way in which the drivers act when they are behind the wheel is one of the single most important factors for driving safely. Some of the elements which are included in the policy would include:

      The use of fleet vehicles and insurance requirements.

      Driver guidelines.

      Safety regulations.

      The reporting of accidents.

      Vehicle maintenance and selection programmes.

Vehicles and insurance requirements-

Company owned vehicles are only to be driven by authorized employees, the one exception to this rule is when a mechanic needs to test the vehicle after repairs.

Only employees who hold commercial driver’s licenses and up to date CPC licenses are authorized to operate light goods vehicles (LGV) and heavy goods vehicles (HGV).

Rental vehicles shall be hired from Cork Rent-A-Van.

Designated drivers and employees will not allow unauthorized individuals operate a company vehicle.

All vehicles within the fleet are all under the one insurance policy. Drivers are only insured to operate company vehicles, in the case of a hire vehicle a contract will be drawn up between the company and the hire company.

If a driver deems a vehicle unfit for work they have to report to the transport manager immediately as to prevent further damage and to get the vehicle fixed.

(companies, 2015) 

Driver guidelines-

All drivers that are hired by the company to operate fleet vehicles will have the basic skills and knowledge which is necessary to perform this task as is confirmed when the drivers a first selected.

Drivers must use turn signals to indicate to other drivers when they wish to turn right or left onto another road and when they wish to change lane.

Drivers must not exceed speeding limits. Drivers must maintain a safe distance back from the vehicle in front.

Drivers are responsible for carrying out daily walk around checks on their vehicles to ensure that they are within driving condition.

Drivers will have to notify the fleet manager if their license gets suspended or revoked.

Drivers will be required to attend a safe driving course on their own time and with their own money, if they are convicted of driving while under the influence of alcohol or drugs or if they obtain 2 or more minor road traffic offences such as speeding and running a red light within the space of a year.

Safety regulations-

All drivers must abide by the laws of the road.

Drivers and all other occupants are required to wear a safety belt when the vehicle is being driven or while passengers are getting a spin. The driver has to ensure that all passengers will wear their seat belts.

The use of mobile phones while operating a vehicle is strictly prohibited. Any drivers caught on the phone while driving will face disciplinary action.

Drivers are liable for the security of fleet vehicles which are given to them.

No driver is permitted to operate a vehicle when their ability to do so safely has been impaired by illness, injury or any other substantial reason.

The reporting of accidents-

If an accident does occur, employees are permitted to carrying out the following steps:

1. If at all possible, move the vehicle away from the traffic and to a safe location. Call for medical attention if needs be.
2. Alert the authorities. Most if not all accidents should be reported to the guards.
3. Make sure to document names and addresses of other drivers, witnesses and any other relevant people at the scene.
4. Employees are not permitted to discuss details of the incident with anyone else besides the guards.
5. Complete the accident report form which is situated within the vehicle.
6. Provide all the other parties with your name, address, driver’s license number, and insurance information. 
7. All accidents have to be reported to the fleet manger and a copy of the accident report has to be given also.
8. A formal accident review will be conducted on each accident, as to determine the cause and how could of the accident been avoided.

(group, 2014) 

Vehicle maintenance and selection-

Appropriate vehicle maintenance is vital to any fleet safety programme. It ensures that the vehicle is road worthy and safe. It also avoids costly repairs and unexpected breakdowns.

A routine inspection is to be carried out every 35,000 km or sooner if a problem arises. The inspection should include safety checks of the brakes, tyres, lights, wipers, etc.

Oil and tyres are to be changed every 8,000 km.

At every 50,000 km a full service should be carried out. This involves the cooling system, transmission system, braking system and any other serviceable parts to be replaced.

Approval for work to be carried out on any fleet vehicle has to be obtained from the fleet manager.

The company will only purchase vehicles that are designed for their intended use. The selection of vehicles begins with understanding that buying the wrong equipment can lead to excessive breakdowns, costly delays, customer complaints and poor service. 

(Renault, 2018) 

Renault Master          

The Renault master is specially designed to adapt and overcome the most demanding requirements. It contains up to 17m² of volume and can carry payloads of up to 1,593kg and 2,167kg. It is a very practical van with a range of factory conversions to suit all needs. The specifications of the vehicle are:

5 years warranty & 5 years roadside assistance

Renault operate a 5 Year Unlimited Mileage Warranty. The warranty from Renault includes: breakdown assistance for five years, all warranty repairs are carried out by trained Renault technicians who will only use genuine Renault parts, there is no limit on the number of repairs under the terms of the warranty, the warranty will also cover the cost of repairs due to component failure as a result of a manufacturing defect and warranty is also transferable to a second owner if the vehicle is sold during the term.

As part of a Renault leasing programme you pay a fixed monthly instalment, a minimum deposit of 1-3 payments upfront and you can drive the vehicle during the agreement without any mileage limitations. VAT can also be reclaimed on the monthly lease of commercial vehicles with possibility of other tax relief.

Mercedes Sprinter                                                                                

(Mercedes-Benz, 2018) 

The Mercedes sprinter van is an investment into your business performance and your staff. Mercedes is one of the leading manufacturers of commercial vehicles across the world. The sprinter van has won international van of the year a number of times since 1995. The sprinter is chosen by many transport companies across the world due to its incredible fuel efficiency and ergonomic design. The specifications include:

3 year warranty

In comparison to the Renault master the sprinter warranty is 2 years shorter. Although the general van warranty is shorter, they give a 5 year warranty on both the van body and engine. In addition Mercedes have the Service24, which is a 24/7 breakdown and accident assistance service anywhere in Europe.

With a Mercedes operating lease you pay an advance rental upfront and then you pay monthly instalments based on the difference between initial value of the vehicle and the forecasted residual value at the end of the contract. This way only a proportion of the vehicles value is repaid, which in turns lowers the price of the monthly payments.

DAF XF

The new DAF XF model is built on the superb reputation of the Euro 6 trucks. The XF comes with a completely new powertrain with a highly efficient transmission and rear axle. With sophisticated software and optimized aerodynamics these new innovations can result in CO2 reduction of 7% and a fuel efficiency gain. Some of the specifications are as follows:

Warranty & breakdown assist

DAF’s warranty is 3 years and can be combined with a MultiSupport Care packages which can be available for up to 8 years. With this package you can get preventative maintenance, service repairs to the vehicles drivetrain and breakdown support. This will ensure that vehicles are kept in excellent condition which will reduce the risk of breakdowns. The MultiSupport offers a fixed, agreed price on repairs and maintenance needs.

(DAF, 2018) 

Fleet Requirements & Mix

The requirements for the fleet would include

a)      Purpose of the vehicle: what is the vehicle being used for. What kind of cargo does it have to carry and how heavy are the goods.

b)     Terrain: what kind of roads will the vehicles being travelling. Will they have to drive through harsh conditions and rough terrain.

c)      Uniformity of the fleet: this is when all the vehicles within a fleet look the same because of the livery on the vehicle, this makes them easy to identify.

d)     Size and area of operation: if the vehicles do not have to travel very far than smaller more fuel efficient vehicles can be used such as small vans.

e)      Availability: where is the closest main dealer. Does the dealer have a good reputation.

When looking at fleet requirements for fastways couriers the main requirement that would have to be considered is space, the more they can get into the van the more than can deliver. The vans also have to be somewhat agile as they have to cover a lot of ground usually within a small radius. A delivery driver could spend hours driving around making delivers and not get very far from where they started. This would determine the vehicles would have to be extremely fuel efficient and have low emissions. The vehicles also have to be extremely durable as they will be traveling rough country roads and towns full of speed bumps, which will rear out bushings and suspension components quite considerably.

Heavy goods vehicles are also needed as cargo has to be transported from distribution centres out to local depots. These vehicles need to be able to carry lots of payload to maximise fleet efficiency. Long 40ft curtain side trailers are used to transport pallets of goods along mostly motor way roads to local depots so that the goods can then be delivered to individual customers. The vehicles need to be highly fuel efficient as they will be covering long distances meaning they will be driven at high speed for long periods of time. The use of tear drop trailers has been able to reduce aerodynamic drag by up to 50% when compared to standard 40ft curtain side trailers.

Fleet mix

For Fastways fleet mix the vehicles that will be mainly used are high roofed vans as they can carry a large amount of payload and do not require a special license to be operated. These vans have lots of cubic meters of space allowing for large amounts of storage for parcels and items waiting for delivery. A lot more light goods vehicles rather than heavy good vehicles would suit the needs of Fastways, as they do not need big bulky vehicles congesting town centres and housing estates. That being said they still need heavy good vehicles to transport large amounts of cargo from distribution centres to local depots.

Environmental considerations

Many EU rules have been put in place to reduce the impacts the transport industry in Europe has on the environment, including its greenhouse gas emissions. One of the transport industries main goals is to reduce greenhouse gas emissions by up to 80-90% by 2050 as part of the EU’s overall goals.

Having a sustainable fleet can bring many advantages to a fleet manager and make their jobs somewhat easier. A sustainable fleet can address issues such as:

• Increasing fuel costs.
• Emission-based restrictions and low emission zones.
• Poor air quality.
• Climate change.
• ISO 14001.

Manage vehicles with the view of minimising how much fuel they use, their emissions and the cost. Being able to manage fuel usage and mileage is essential to the success of sustainable fleet. Vehicle selection has to be considered when looking at the environmental impacts of the fleet, as hybrids and other alternative fuelled vehicles are being introduced more and more every day.

Noise and vibrations can have quite an effect on people who either work or happen to live near main roads with a lot of traffic, railway lines, airports and sea ports or even under flight paths. The noise created from transport can have quite effect on the day to day lives of these people and can interfere with daily activities such as relaxing, watching TV, having a conversation or even sleeping. High levels of noise can reduce the price of a property quite dramatically. The road network which is used to transport goods takes up a considerable amount of land somewhere from 25-30% in most modern cities. The transport industry allows for the expansion of urban areas which consumes agricultural lands and natural habitats. With urban expansion comes congested roads and ineffective travel patterns. Habitats are fragmented by road ways or rail way tracks which can lead to the loss of biodiversity and can provide corridors weeds and pests to thrive. The transport industry also has a major environmental impact on soil as it causes soil erosion and contamination. When new roads and motor ways are being built the mud that is removed from the earth’s surface to build these roadways has suffered due the loss of fertility and productivity.

(R.K. Sharma, 2012 ) 

Fleet maintenance

There are two methods in which vehicle maintenance and repairs can be carried out:

1. Proactive: scheduled preventive maintenance
2. Reactive: unscheduled breakdown maintenance.

The scheduled vehicle service includes preventive maintenance, scheduled component repairs, and a driver inspection. When a breakdown occurs it is more than likely due to a lack of preventive maintenance.

Whereas with reactive maintenance the vehicle does not get serviced until it breaks down. This can turnout to be costly and should be reduced by putting a proactive preventive maintenance program in place. The object is to have all of the vehicle maintenance and repairs done before something happens that could render a vehicle useless for days, which in turn will lead to profit losses. A preventive maintenance programme would include the following:

• A checklist of preventive maintenance task completed.
• Written up driver inspection sheets and complaints.
• A professional workshop with fully trained heavy diesel technicians either in-house or outsourced.

With fleet maintenance for Fastways the best option would be to outsource the maintenance as Fastways couriers is a worldwide company and has many depots and distribution centres across the world. Outsourced maintenance would be a viable option because it allows for Fastways to hire the least amount of staff they need to run an operation anywhere around the world. With this kind of thinking outsourced maintenance is a perfect option as it reduces the price of starting up a new franchise, eliminates the need for a large property, less staff needed and a constant turnover of vehicles can lead to a mix of brands within the fleet, each needing their own specialised servicing programmes completed by specifically trained technicians. With a large mix of vehicles it is very hard to have in-house maintenance because of all the technical information that has to be learned from each different manufacturing.

(Bartole, 2006)

Documentation & Legal Requirements

 Legal requirements would include the safety, health and welfare at work act 2005. This act requires:

a)      Any transport hazards that exist in the workplace have to be assessed as part of a risk assessment and correct steps taken to reduce the risks that were found.

b)     That the employees will conduct their work in such a way that ensures an environment of safety, health and welfare for all employees.

c)      That the vehicles used are designed for their intended purpose and that they are maintained in a condition that is safe and does not risk anyone’s health.

d)     The risk assessment is to be carried out by the employer of the business or whoever is in control of the place of work.

e)      All employees will be provided with training, information and instruction about operating work related vehicles.

(HSA, 2018) 

This legal document is a great example of legal requirements that Fastway have to meet to be able to operate their business in Ireland. When looking at what type of licenses the drivers need to operate the fleet vehicles, the 3.5 tonne high roof van does not require and additional categories on your license. The standard category BE license is all a driver needs to operate one of these vehicles, this is a huge advantage as it can allow for the availability of more van drivers looking for work.

When looking at the heavier goods vehicles, these have specialised licensing categories and require additional training and testing to ensure a professional standardisation. To operate the bigger fleet vehicles such as the DAF XF a category CE license is needed. This license allows for people to operate a “combination of drawing vehicles in category C and trailer where the MAM1 of the trailer is greater than 750 kg.” according to the NDLS. With this license drivers can transport thousands worth of cargo, long distances across countries so that parcels can get delivered faster across the world.

(NDLS, 2018) 

Fastway would have to obtain a road haulage operator’s license. This license allows you to carry goods for hire or reward in a vehicle or combination of vehicles which the maximum authorised weight is in excess of 3.5 tonnes.to obtain this license certain credentials have to be met. Some of these requirements include:

• Be of good repute.
• Have an establishment in the state.
• Be of appropriate financial standing.
• Satisfy professional competence.

These requirements are EU requirements and they have to be continued to be satisfied for the duration of the operator licence. If these requirements are not satisfied, than this can lead to the withdrawal or suspension of the operator licence.              (Department of transpor, 2018)

Conclusion

To conclude this report, the vehicles that have been selected above are very capable of fulfilling the needs for Fastway couriers. The diversity of the high roofed van allows them to carry a large amount of packages, so that can spend longer on the road making deliveries. This report illustrates the need there is for these vans when running a courier business. When looking at the fleet mix, it is quite self-evident that the high roofed van is the most common vehicle to be used but there is also a need for heavy goods vehicles such as articulated tractor units. These heavier vehicles are used to transport car from distribution centres to local depots. The environmental considerations for this company would be to keep emissions low as so to reduce their carbon footprint and be more sustainable. Fleet managers of Fastway have to make sure that all the vehicles within their fleet meet Euro 6 emission levels, so that they can operate in all major cities and towns across the world without being fined. Fastway couriers were a sufficient company to pick for this report, as they have very specific needs for certain types of vehicles and have straightforward/ easy to understand company policies and procedures.        

References

Bibliography

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