Case Study - Northgate plc

Profile

Company Name:	Northgate plc
Business Sector:	Autos - light commercial vehicle rental business
Postal Address:	Northgate plc, NORFLEX House, 20 Allington Way, Darlington
Postcode:	DL1 4DY
Fleet Size Overall:	130,000 (Total) 68,500 (UK and Ireland)
HGV:	2,100 (UK Only)
LGV:	57,300 + 1.100 minibuses (UK Only)
Cars:	8,000 (UK only)

Company Overview

Northgate plc, quoted on the London Stock Exchange and a FTSE 250 company, is Europe’s leading light commercial vehicle rental business with extensive operations in the UK, Republic of Ireland and Spain. There are plans to extend this coverage into new markets.

We operate a modern fleet of almost 130,000 vehicles from more than 125 sites in the UK, Ireland and Spain. The business in the UK and Ireland comprises 21 hire companies operating from 90 sites with a fleet of 68,500 vehicles. In addition, we sell former rental vehicles to both retail and trade customers. We also offer an increasing range of services and products to help customers manage their fleets effectively e.g. vehicle monitoring and parts procurement. For those customers who want to outsource part or all of their existing fleet whilst retaining ownership, our Fleet Technique business can assist them.

In Spain, we operate through two separate brands * Fualsa and Record. With 36 branches and a combined fleet of over 59,500 vehicles we are the market leaders in light commercial vehicle rental in Spain. Vehicle sales are again an important part of the business.

Since it was started in 1981, Northgate plc has, through the diligence and commitment of its Directors and employees, both past and present, built a reputation for conducting its business with honesty and integrity. This reputation is a valuable asset: once lost, it would be extremely difficult and take a long time to regain.

The Board considers that it is vital to the continued success of Northgate plc that we protect our reputation by conducting our business with honesty and integrity and in compliance with all applicable legal and regulatory requirements. This Code of Conduct sets out the fundamental standards to be followed by all Directors and employees throughout the Group and seeks to promote honest and ethical conduct when acting on behalf of the Company.

Nature of Operation and Driving Activities

In the UK and Ireland, Northgate plc has a network of 21 local hire companies operating from some 90 depots with a rental fleet of 68,500 vehicles, most of which are light commercial vehicles.

The company’s core business has been to provide business and corporate customers with NORFLEX – a completely flexible vehicle rental package which gives customers the ultimate freedom in managing their vehicle fleet without any contractual commitment or early termination penalties backed up by the largest support infrastructure offered by any UK rental company.

Since developing NORFLEX as a market-leading vehicle rental brand, Northgate plc has also extended its service offering to include:

Fleet Technique, which manages on behalf of fleet owners the maintenance and administration for more than 15,000 vehicles. More information can be found at www.fleet-technique.co.uk.
Van Monster, which operates from six main sites offering retail and trade customers a wide range of quality used vans with some 1,500 vehicles in stock most of which are less than three-years-old. For further information go to www.vanmonster.com
easyVan is a low cost van rental partnership between Northgate plc and easyCar providing more than 120 convenient locations through the UK. Visit easyVan.com for more details.

Work Related Road Safety Policy and Procedures

Northgate plc’s Board is committed to the delivery of outstanding performance in health and safety through a policy of co-operation, communication and competence applied consistently and continually throughout our operations.”

Health and safety initiatives adopted by Northgate plc include:

Implementing the Health and Safety Executive’s ‘Successful Health and Safety Management’ (HSG 65) guidance so ensuring consistent health and safety standards and disciplines are in place across all depots.
The formation of a head office steering group to review health and safety policy issues on a regular basis, and the recruitment of a chartered health and safety practitioner to provide technical advice and support.
The publication of health and safety procedures and vehicle user manuals alongside a rolling training programme, involving all employees, designed to promote a positive health and safety culture throughout the business.
The distribution to customers of best practice occupational road risk management advice and information.
Being the first daily rental company in the UK to license its mechanics through the Society of Operation Engineers IRTEC Licensing Scheme. The company’s entire fleet is serviced and maintained in-house.

Work Related Road Safety (WRRS) Guidance for drivers

Occupational driving is a key risk management objective for Northgate plc so we therefore carry out full and systematic reviews of our risk controls for at work driving at regular intervals. As research has shown work related road safety is likely to be improved by the introduction of integrated measures, which includes Policy and Driver education.

The measures adopted at Northgate plc include:

Developing a ‘Safe System of Work’ for managing occupational road risk, fully integrated into our overall health and safety strategy.
Developing key policies, which protect employers and comply with legislative and industry best practice guidelines for WRRS.
By continually carrying out risk assessment and reviewing controls to ensure they remain suitable and sufficient.
By continually reviewing and assessing employee training needs and requirements for their at work driving needs.
Producing an employee’s vehicle user booklet that provides clear and concise information in relation to WRRS.

Specific examples of procedures

Northgate plc received a prestigious health and safety award from one of its major customers. The highways contractor Ringway Group, Europe’s leading road works and road maintenance company presented the award as part of its 2007 Supply Chain Awards presented to best practice suppliers.

Northgate plc has been a national supplier to West Sussex-based Ringway for almost three years. Previously Northgate plc supplied vehicles to the company via depots at a local level. At any one time Ringway has around 210 vehicles on hire from Northgate plc. Vehicles, which operate at construction sites across the UK, include Ford Fiesta and Vauxhall Astra vans, short and long wheelbase panel vans 3.5 tonne tippers and 7.5 tonne tippers.

Health and safety is at the top of Ringway’s agenda with the company pursuing an objective of reducing incidents to zero. As a result, Ringway expects suppliers to work in partnership to achieve tough annual reduction targets.

In presenting Northgate plc with the 2007 Health and Safety Supply Chain Award, Scott Wardrop, managing director of Ringway, said: “Northgate plc has shown real evidence of commitment from the top of the company towards health and safety. The company has in place a range of initiatives to ensure that customers can rent vehicles confident in the knowledge that cutting-edge health and safety best practice is being followed.

“Additionally, Northgate plc has developed a bespoke vehicle specification for Ringway to ensure duty of care policies and procedures are met.”

Equipment fitted to Ringway vehicles to maximise safety includes reversing cameras, reversing alarms, illuminated light bars, fire extinguishers, yellow bodies, hot water hand wash basins and tracking devices.

Mr Wardrop added: “Regular review meetings, monitoring of the service level agreement and working closely with our staff ensure vehicles supplied are not only suitable for each particular Ringway division but also ensures that all aspects of health and safety requirements are complied with.

“We believe the level of safety equipment fitted to Ringway’s hire vehicles sets a health and safety precedent in terms of daily rental and fulfils our responsibilities under duty of care. It is this type of partnership that ensures Ringway can exceed all customer requirements in terms of meeting duty of care policies and procedures when in contract negotiations.”

Auditing and review

Following HSE 65 guidance, Northgate plc ensures its WRRS controls are consistently reviewed as to their suitability. This forms as part of the company’s internal risk control management reviews. Where any improvements may be identified, requirements and performance measures are defined and agreed for implementation by appropriate persons.

Performance measures

Internal performance of WRRS is measured against a number of key performance indicators. These include a review of all employee occupational driving incidents following an accident. This allows structured and measured responses to be developed for the continuing safety of our employees whilst driving.

Accident reduction

Our objective is continually to improve standards in occupational driving and to reduce road traffic accidents involving our employees. Northgate plc collates the relevant information in relation to “at work” driving incidents. This is then analysed and further targets for reduction in work related road safety incidents are decided upon.

Financial and other benefits

Whilst there are undoubtedly financial benefits for managing WRRS, Northgate plc’s main focus is to protect employees and comply with our responsibilities under the Duty of Care we owe to our employees. Our objectives therefore are quite specific with regards WRRS and are outlined as follows:

Improved health & safety culture.
Increased staff morale.
Reduction in number of accidents / incidents.
Less absenteeism.
Reduction in insurance premiums.
Increased productivity.
Reduction in repair costs.

Lessons learned

Our internal management controls for WRRS ensure we systemically review all incidents so that where necessary we adopt the appropriate safeguards for employees. This pro-active approach has ensured that where necessary we’ve been able to change / amend our procedures to reflect our employees and operational needs. Some initiatives we have adopted in the past include road safety campaigns for employees and on road practical driver training for employees.

Current and future developments

As WRRS is a key risk area for our business we have produced clear policies and procedures for at work driving. This is supplement by providing information, instruction and training for employees. We continually strive to further develop the already good understanding of our WRRS controls by adopting any procedures we feel necessary. Previously we have provided driver training in conjunction with the Institute of Advanced Motorists. As this appointment demonstrates where we do not have the necessary internal expertise, we will continue to appoint external professional service providers to assist us in meeting our WRRS objectives.

Additional information

Northgate plc is a corporate member of the road safety charity Brake and the company’s safety focus has been recognised by the organisation with an Award of Excellence. Additionally, Northgate plc has also won awards from the Royal Society for the Prevention of Accidents for its health and safety management arrangements.

For more information on the Northgate plc Group please go to www.northgateplc.com

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