Organization and technology interventions to improve Safe and Eco driving 1 Organization and technology interventions to improve safe and eco driving P. D. Davis & I. S. Poonaji

Organization and technology interventions to improve Safe and Eco driving 2 Contents Page Nestle Global Safety Overview 3 Nestle USA Private Fleet 4 Cultural & Risk Mgmt – The Human Element 5 Technology & KPI’s, Driver Impact 6- 9 Using Technology to change driver behaviour Poland Telematics Project Conclusion14 Q & A Session

Organization and technology interventions to improve Safe and Eco driving 3 Nestle Global Safety Over-view Goal: To Become Industry Leader in Workplace Safety & Health Global Safe Driving Program & Committee Creating Shared Value –Responsible Behaviour –Safe Driving –Efficient Use Of Fuel –Care for the Environment Global Benchmarking Platform & Forum Global Emphasis - Technology & Metrics Safety KPI Alignment Best Practice Sharing Related to injury & vehicle collision prevention Risk Assessment Priority

Organization and technology interventions to improve Safe and Eco driving 4 McDonough, Ga. Allentown, Pa. Dekalb, Ill. Streetsboro, Oh. Mira Loma,– Calif million US miles 48 thousand loads 1.7 billion pounds Company & Owner Oprs 317mi Average length of Haul Nestlé USA Private Fleet Network

Organization and technology interventions to improve Safe and Eco driving 5 Safety Culture & Risk Mgmt. – “The Human Element” Strong Localized Networks –Safety, Health & Environment Functions Priority Focus & Balance – “Sky can be the Limit” –Safety, Family, General Public, Consumers, Risk Mgmt, Business & Regulatory Requirements, Environmental Impacts –Maximize Potential Country Specific Programs Defensive & Eco Driver training to maximize performance Internal Audits – Corporate Safety, Logistics & Zurich –Developing Self Audit program Individual “Risk Indexing” Progress & Successes Monitored & “Published” Multi-Faceted & layered Recognition Programs Pro-Active Culture of Risk Identification & Prevention Best In Class & Industry Culture

Organization and technology interventions to improve Safe and Eco driving 6 Technology, KPI’s & Driver Behavioural Impacts & Results Multi-Layered Support Network –World Head Quarters –Corporate & Logistics Safety - USA –Private Fleet Field Operations –Driver Level Regulatory Compliance Embedded Virtual Risk Safety Training –ECO Driving Module – Jan 09 Technology, Data Metric’s Mgmt can/does Impact Performance & Driving Behaviour Equipment Specifications –Aero-Dynamics & Ergonomics Focus –Smart way Blue Print Driver is Key Element to Success Safety, Fuel Efficiency & Environmental Impact Performance & Metrics

Organization and technology interventions to improve Safe and Eco driving 7 Fleet Safety & Efficiency Performance MPG TrendEngine Idle % Trend OSHAAccident Frequency

Organization and technology interventions to improve Safe and Eco driving 8 Nestle USA Private Fleet MPG Trend 2008

Organization and technology interventions to improve Safe and Eco driving 9 Trucking Industry Standard 2008 Turnover Rate: 124%

Organization and technology interventions to improve Safe and Eco driving 10 Using Technology to change driver behavior Primary Safety - avoiding the incident Poor Driving Behaviour has an impact, an important economical part Intervention: significant change in driver behaviour that clearly implies safer driving Use of innovative solutions - Telematics

Organization and technology interventions to improve Safe and Eco driving 11 Changing behaviour 3 step process 1.Turning an unconscious, risky habit into a conscious, self-directed, risky behaviour. 2.Changing a conscious, self- directed, risky behaviour into a conscious, safe, self- directed behaviour. 3.Changing a conscious, safe, self-directed behaviour into an unconscious safe habit

Organization and technology interventions to improve Safe and Eco driving 12 Poland Telematic Project Aims The project aimed to examine whether new technological advances in Telematics are actually able to change driver behaviour for improving driving safety and environment KPI’s.

Organization and technology interventions to improve Safe and Eco driving 13 Poland Telematic – some key results May 08; 21.8 l per 100 KM Sept 08: 18.8l per 100 KM - 14% FUEL ECONOMY L/100KMSWEET SPOT DISTANCE (%) May 08; Average 39,1% Sept 08: Average 87,9% + 125% HARSH BREAKING May 08; Average 5 Sept 08: Average %

Organization and technology interventions to improve Safe and Eco driving 14 Conclusion Facts Reduction in fuel costs Reduction in emissions Safer and more intelligent driving Operational efficiency Recognise need for constant monitoring + sustained training Behaviour Change Assumptions Lower vehicle servicing costs Longer vehicle-life expectancy Improved overall driving standards Improved vehicle security Reduction in risk of accidents / insurance claims