Case Study - Central Auto Supplies

Profile

Company Name: Central Auto Supplies
Business Sector: Autos
Postal Address: 7-11 Stewarts Road Finedon Road Ind Est Wellingborough Northants
Postcode: NN8 4RJ
Fleet Size Overall: 140
HGV: Nil
LGV: 104
Company Cars: 36
Private vehicles used for business purposes: 3 additional own cars used by staff on authorised Company business – all subject to same regime & checks as per Company owned vehicles

Company Overview

Central Auto Supplies (CAS), a division of S.T Piercy Ltd, was founded in 1967 in Wellingborough. An independent business, the company rapidly established an enviable reputation for the supply of quality parts allied to competitive pricing into the automotive aftermarket. Its aim from the outset, however, was to provide the very best service to customers, including an 'on demand' delivery service free of charge - a radical innovation 40 years ago.
Central Auto Supplies supply only quality branded car components, exhausts and engine management parts to all areas of the Motor Trade, including garages, fast fit outlets, national chains, technical specialists and retail DIY shops. Every product and support package is carefully selected to compliment and strengthen its service to the Central Auto Supplies customer base. A key ability of the business has always been able to re-invent itself to new markets and adapt successfully to change.

Nature of Operation and Driving Activities

Central Auto Supplies is committed to a policy of safe driving. The company regards its drivers as professionals and as valued members of staff. It expects them to exhibit the highest standard of driving at all times and to drive safely and within the law on company business. How company vehicles are driven has a significant impact on the reputation of Central Auto Supplies. Its vehicles and drivers represent the company’s most visible image.

As most of the vehicle incidents involved the company’s light commercial vehicle fleet, Central Auto Supplies switched to Renault Kangoo vans with ABS as standard. The average mileage across the fleet is 35000 miles a year per vehicle and the fleet total is 4 million miles a year. The company ensures that its vehicles are fit-for-purpose in terms of load carrying ability, have good safety features and are ergonomically sound to assist their drivers. All company vehicles are regularly serviced against a rigid maintenance schedule using our own service sheets ( SF1600 ), which are audited by senior management on branch visits to ensure conformity and safe equipment in use.

Organisational Structure

Central Auto Supplies has expanded to the current size of 19 branches in the network supported by a central distribution hub, making Central Auto Supplies the leading automotive parts distributor in the Midland and Eastern Regions.

The company has established an enviable reputation for its training excellence. Since 1998 Central Auto Supplies have been offering technical training to it’s customers as well, in conjunction with the leading systems manufacturers, such as Bosch, Lucas, Hella and Siemens covering every aspect of new vehicle technology and systems. This training is a fundamental and vital requirement for all those involved in vehicle repair and maintenance, regardless of previous experience. This is because the technology involved in new vehicle systems is changing more rapidly than ever before. All training is held at regionally based colleges and at the company’s Head Office in Wellingborough for customers’ convenience. Since starting this programme, Central Auto Supplies have become Bosch’s leading supplier of systems training and the numbers of technicians attending these courses are increasing, thus demonstrating the growing realisation, that training really is the way forward.

Work related Road Safety Policy and Procedures

Central Auto Supplies has developed its management processes to identify occupational road risk for all 250 staff members who are likely the drive on business. The process includes:

  • Managers look for the “right type of character behind the wheel” at the interview stage using character assessment guides.
  • All recruits have their driving licences checked and complete a day-long duty of care course, including safe driving practice, in a classroom setting.
  • Driver training is carried out by a senior driver as part of the induction process, following classroom training, with a nominated senior driver being at each branch ( who have been given additional training for that role ).
  • All incidents are reported.
  • All crashes are investigated and interviews are carried out with drivers to avoid repetitive failures.
  • A disciplinary process takes place after each driver error incident. Punishments range from fines up to £1000 (the company’s insurance excess) to dismissal.
  • Monthly driver guides are issued focussing on specific safety-related issues.
  • Drivers are reassessed every 12 months and employees involved in a driver error incident undergo an immediate training course.

Central Auto Supplies provides a handbook to all employees required to drive Company vehicles on business as part of their job, which covers a thorough description of their responsibilities within Company Policy and provides assistance to them as a reference at any time.

This handbook lays down those practices and guides to complete the successful delivery of goods to their destination, in line with those laid down in the Company Procedures Manual. The Company Procedures Manual is freely available to all staff to access via the computer system. In outline these are:

  • QP100 provides an index of all the subjects and topics with descriptions within each section of which drivers need to be aware.
  • QP200 series which is dedicated to vehicle use & driving while on Company business.

Licence Checks

It is a condition of employment that a driver holds a current relevant driving licence, which should be produced for the company on demand. Upon commencing employment, drivers’ original driving licences will be sent to Head Office, for inspection by a director and for copying and retention on file for insurance purposes. Thereafter every six months, or at the company’s discretion, drivers’ driving licences will be subject to a checking procedure to ensure company records are accurate. Drivers must be aged 21 or over to entitle them to drive a Company vehicle. Licences may be demanded should a driver have an accident.

Induction

As part of induction to the Company, all drivers will have their responsibilities explained and be subject to formal assessment during their probationary period. Drivers may be subject to re-assessment due to the Company’s appraisal process periodically, or as part of any safety training decided upon by management. All drivers must sign to say they have read and understood the instructions as laid down in the printed copy that each branch has in use. This policy is applicable to all staff members who drive a Company car or van and includes situations under which the vehicle(s) may be taken home overnight. All users are also directed to the Company’s comprehensive supporting documentation governing use of motor vehicles, contained in the Company procedures manual, in addition to this policy.

Aptitude Checks

It is a condition of employment that all drivers of Company vehicles will be assessed, during their probationary period, by a senior driver or authorised member of staff against pre-defined criteria on form SF8. This is to measure and record their aptitude and skill in driving a Company vehicle. This will be completed and signed by the employee and the assessor. Upon successful completion it will be placed in the employee’s staff file. Where a sub-standard performance is recorded, the employee will undertake further training and assessment to reach the standard laid down in TM011-020. Failure to complete this will result in re-assignment of duties or may lead to disciplinary action. The Company reserves the right to re-assess its drivers should their conduct give rise to concern or following an accident. No driver is allowed to drive a vehicle alone prior to the SF8 assessment.

Work related Road Safety Guidance for drivers

Vehicle Selection

Company vehicles are allocated to the business needs of the branch and of the individual. All vehicles are replaced when necessary according to a laid down schedule and this is subject to change at the discretion of a Director. All vehicles are purchased by the company, with regard to design of purpose, lifetime cost, and safety equipment levels. Vehicles issued to branches and individuals may not be new ones. All vehicles will be diesel powered unless otherwise stated.

Specific examples of procedures

Mobile Phones

For safety reasons drivers are not permitted to use mobile phones whilst driving at any time. It is a criminal offence to use a hand held mobile phone whilst driving – or stationary with the engine running. Any driver using a mobile phone to make and receive calls and /or texts that contravene this will be subject to dismissal. The company bans all use of mobile phones, along with smoking, eating, drinking or use of sat-navs whilst driving that may lead to distracting a driver. No mobile phone numbers will be on display and contact with a driver should be made to the site of the delivery or visit by use of the SF3A delivery schedule.

Auditing and review

All branches have a audit carried out by the Operations Manager at least twice per year for compliance with vehicle servicing standards being maintained locally. All RTAs are logged and documented with quarterly reviews and trends given out at Managers’ meetings ( generally every 2 months ). Training records are produced on an A1 wallchart and are checked to ensure staff attend relevant courses on company procedure and to chart their progress. These are produced each quarter.

Performance measures

Monthly MPG figures are calculated every month, which are cross indexed against drivers for individual results against laid down minimum standards. The company relates low MPG directly to poor /risk taking driving styles. Drivers with these attributes are subject to remedial training, instruction or disciplinary measures in accordance with the company’s regulations. All such service figures / costs are recorded and analysed for life expectancy – tyres, brakes, clutches & steering / suspension parts.

Accident reduction

In 1998 Central Auto Supplies operated a fleet of 86 vehicles. The fleet was involved in 38 vehicle crashes of which 75% were as a result of driver error. The company’s management was keen to improve the safety of its drivers and implemented the policy described above. Central Auto Supplies currently operate a fleet of 103 vans and 37 company cars, a 67% growth in the fleet size. In 2007, the fleet safety record show a total of 47 vehicle crashes of which only 30% were attributed to driver error. The incident rate for Central Auto Supplies has therefore dropped from 44% to 33%, while the sector norm as given by insurance companies is 66% (with 50% attributable to driver error). The company is committed to reducing further the incident rate because of the financial costs of repairs, insurance and administration.

Central Auto Supplies incident data shows that in 1999 it suffered one driver error crash per 90322 miles driven. In 2007 that figure had declined to one driver error crash per 285,714 miles.

Financial and other benefits

Central Auto Supplies is concerned that crashes prove costly as a result of personal injury claims – the largest so far amounted to £11000. The company was concerned that these claims were likely to increase and affect its insurance premiums. As a result it introduced the procedures described above. The result has been that awareness of road safety among drivers has improved and Central Auto Supplies’ insurance premiums have been reduced by 33%.

Lessons learned

Training – particularly in group style discussion sessions favoured by Central Auto Supplies, is the best and most cost effective method of delivering results. Members of staff are able to recognise, relate to and express their views on driving situations faced under the various types of road and conditions. Training must be a continuous process, not just a one-off or once only task. The Central Auto Supplies process is based on:

  • conducting driver assessments.
  • getting drivers to read and sign the Branch Driving Handbook.
  • following up with monthly guides.
  • conducting an annual assessment ( November ).
  • following this appraisal by the Drivers’ Annual Appraisal, which uses factual information.

The process ensures that road safety continually remains fresh in Central Auto Supplies drivers’ minds. It is backed up by a fair and objective disciplinary procedure. Central Auto Supplies believes that incentives and trying to ‘sell’ road safety as an aspirational goal does not work.

Central Auto Supplies believes that its work related road safety policy and training process is clearly not just focussed on their drivers’ skills on the road, as such, but strives to challenge and then alter the drivers’ habits and beliefs on how they should conduct themselves on the road.

In general, the cost of deploying a training scheme is minimal – other than any time spent on collating the data and writing the presentations and preparing attendee packs etc. Central Auto Supplies believes that it is not always necessary to use external or specialist companies. Having utilised training, including courses and tests, provided by these companies, Central Auto Supplies’ experience is, that, left to their own devices, members of staff tend to revert back to their previous habits and failed to apply the techniques they had been taught. Central Auto Supplies’ continuous evaluation process helps overcome this.

In addition, the fitting of active rear sensor arrays to all vans in 2006, to assist in detecting other vehicles, people or objects in close proximity, has reduced reversing incidents by 75%.

Current and future developments

Central Auto Supplies intend to deploy further telematic systems to collate accurate data on actual movements to maximise routing, vehicle and driver efficiencies. They wish to enhance the role of the senior driver. Their aim is to improve their existing courses through more effective feedback to (and from) members of staff. Central Auto Supplies is to provide the senior driver with additional support in the form both of behavioural training to allow them to adopt a more focussed approach with particular individuals and of improve fault awareness and checking.

Central Auto Supplies is also to provide a monthly feedback to its branches on RTAs – ‘naming & shaming’ those branches whose record falls below its standard. It will follow this up with early an investigation on site. Central Auto Supplies’ RTAs for Jan-Apr 2008 are down by 16% overall on the same period in 2007, with a significant downward trend in own fault accidents, of which there were just two. Central Auto Supplies believes that this confirms the theory of continuous development upon which the company embarked last year.

Central Auto Supplies is to send out a letter directly to its underperforming drivers, before any managerial action, highlighting the errors they may be making and, in doing so, persuading them to agree to reach MPG targets set down by a prescribed date. Following analysis of the data for the first two months, 34% of those drivers who had previously shown below average figures, had demonstrated improvement in their MPG targets.

Central Auto Supplies is conducting an extensive study into the new generation of vans to determine which offers the optimum economy, performance, load, safety and operating characteristics against its requirements. The company intends that those drivers who show the best performance will be rewarded with replacement of ‘their’ vans.

Finally, Central Auto Supplies aims to reduce the turnover figures for its drivers, a consideration in its sector.

Additional information

Supporting Documentation:

  1. QP200 Vehicle Maintenance*..
  2. QP201 : Vehicle Security.
  3. QP202 : Private Use of a Company vehicle.
  4. QP203 : Vehicle Fuel & Mileage Records.
  5. QP204 : Vehicle Accidents / Insurance. *.
  6. QP205 / T68-HK4 : T5 Drivers Handbook on Use of Company Vehicles - Checks / Standing orders.*
  7. QP207 : Use of Barrel Trailers.
  8. QP208 : Tyre care and checks.
  9. QP209 : Company Policy

* Available from RoadSafe.

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