1. www.wyg.com creative minds safe hands Implementing an Environmental Management System to ISO 14001 Standard Workshop 1 www.wyg.com creative minds safe hands Opportunities for reducing transport costs Presenters: Heather Gallagher, Principal Consultant Paul Burr, Associate Director WYG Environment

2. www.wyg.com creative minds safe hands Agenda Costs – hidden or accepted? Fleet Management Driver vehicle policy Other policies Route/travel planning Smarter Driving - top tips Driver training Green travel plans Performance monitoring Staff engagement Using technology Useful links and free resources

3. www.wyg.com creative minds safe hands Why? Commuter and business travel making up nearly 40% of miles driven by car in the UK Road transport is a major source of greenhouse gas emissions such as carbon dioxide and pollutants that affect human health approx 17% of energy related CO 2 emissions Reducing unnecessary vehicle use / fuel consumption is vital for businesses looking to make their operations more sustainable and efficient

4. www.wyg.com creative minds safe hands Costs Fixed Costs Vehicle Excise Duty Insurance Vehicle finance Depreciation Overheads Running Costs Fuel Oil Tyres Maintenance Driver Costs Road Charges / Tolls

5. www.wyg.com creative minds safe hands Transport costs – hidden or given? Norfolk food processing company  Issues: Rising packaging and transport costs  Solution: Changed packaging from wooden pallet plus shrink wrap  to cardboard boxes, more flexible transport method  Results: Annual transport reduced by half Do we accept rising transport costs or do we challenge them?

6. www.wyg.com creative minds safe hands Fleet Management Is your fleet company owned, leased or driver owned (grey-fleet)? Vehicle specification Fit for purpose Hybrid – Electric, LPG CO 2 emissions Aerodynamics As a general rule, the faster and further a vehicle travels, the greater the potential savings from aerodynamics.

7. www.wyg.com creative minds safe hands Driver vehicle policy Company car entitlement or car allowance Safety requirement NCAP (The European New Car Assessment Programme) 4 star rating for adult occupant safety CO 2 Emissions <140 gCO2/km or less Company car tax (“Benefit in Kind” tax) is based on a car’s CO2 emissions and its list price when new Lower CO2 emissions = less tax for employee and lower national insurance payments for the company

8. www.wyg.com creative minds safe hands Driver vehicle policy continued… What requirements are set for grey fleet - driver owned vehicle hire Fuel Reimbursement Expenses or fuel card Paid per mile or for number of litres Other criteria Vehicle meets both the company’s and your own general requirements, e.g. for carrying other passengers and/or carrying or towing equipment. Exclude two-seater, soft top and four wheel drive vehicles

9. www.wyg.com creative minds safe hands Other vehicle policies Do’s Driving Hours & Fatigue Driver Training Competence, safety, fuel efficiency Health checks Vehicle Checks Don’ts Mobile Phones Smoking Eating & Drinking Alcohol, Recreational Drugs & Medication

10. www.wyg.com creative minds safe hands Smarter driving – Top tips part 1 Change gears at low revs When accelerating change up through the gears before 2000 rpm for diesel cars or 2500 rpm for a petrol car Anticipate to minimise braking and accelerating Avoid excessive speeds At 85mph a car uses approximately 25% more fuel than at 70mph Use air conditioning sparingly At full blast a/c adds around 25% to fuel consumption Switch off As a general rule, turn your engine off if stationary for more than a minute

11. www.wyg.com creative minds safe hands Smarter driving – Top tips part 2 Remove roof racks, bike racks etc When not in use to avoid drag Drive off from cold Warming up the engine just wastes fuel Decelerating Vehicle maintenance and accident/damage reporting Avoid short journeys Vehicle checks Check tyre wear and pressure regularly Tyres under-inflated by 25% will add about 2% to fuel consumption

12. www.wyg.com creative minds safe hands Driver training Helps to identify bad driving habits and encourage more efficient driving techniques Drivers Reduced stress and enhanced satisfaction Increased confidence in driving performance Increased own-vehicle MPG Organisations Development of a health and safety culture Effective risk management Reduction of harmful emissions Reduction of accidents and incidents Fleet manager /owner-driver Reduced fuel spend (up to 10-15%) and running costs Improved resale value of fleet Potential reductions in insurance premiums Increased productivity and vehicle utilisation

13. www.wyg.com creative minds safe hands Driver training packages Energy Saving Trust offers ‘Smarter Driver’ Training £15 per driver for 50 minutes Subsided by the Department for Transport Free for electric car drivers www.energysavingtrust.org.uk/business/Business/Transport-in- business/Smarter-Driving www.energysavingtrust.org.uk/business/Business/Transport-in- business/Smarter-Driving AA Drive Tech provide training for HGVs and LGVs www.drivetech.co.uk

14. www.wyg.com creative minds safe hands Green travel plans Strategy for managing the travel generated by your organisation, with the aim of reducing its environmental impact. Advantages: Company Taking responsibility Improve image Cost saving – car parking spaces, fleet Employees and visitors Improved flexibility Reduced travel time and costs Local community Reduced congestion and pollution

15. www.wyg.com creative minds safe hands Case study: Essex County Council Staff Travel Plan Encouraged sustainable travel by offering options for commuting and business travel, including:  Teleconferencing facilities  Bike pool made available for use for off-site visits  A course of 5 free lessons run by Cycle Training East  Cycle parking is available at most Essex County Council offices  Public transport season ticket loans  Bus travel - 10% discount on all season tickets  Train travel - 10% discount on all season tickets

16. www.wyg.com creative minds safe hands Greener travel initiatives “No drive to work” day Encourage staff to find alternatives routes to work Flexible working including home working Video and teleconferencing Encourage use of public transport Advertise local/regional services Promote walking for short journeys Promote car sharing or car clubs Cycle to work schemes

17. www.wyg.com creative minds safe hands Performance monitoring If you’re not measuring it you’re not managing it Vehicle miles or kilometres travelled Empty miles travelled Total time vehicle has worked Litres of fuel Family-owned logistics business, Grimsby  Initiative: regular and accurate data collection process  Results:  Quick identification of vehicle performance issues  Increases focus across business towards MPG – improving performance  Data used for benchmarking purposes has encouraged competition  Reduced idling time  Reduction in CO2 emissions and safer, less stressful driving

18. www.wyg.com creative minds safe hands Staff engagement Fuel Champion Focal-point for fuel-saving programme Monitor performance Communications and change management Incentive schemes Borrow a brolley scheme – short term umbrella loan to encourage walking Free car sharing parking spaces available 5p/mile compensation for car share on business miles

19. www.wyg.com creative minds safe hands Using Technology Telematics- remote device fitted into vehicles Traffic information Systems Satellite Navigation Systems Vehicle and driver monitoring Communications systems Vehicle and trailer tracking IT systems Computerised vehicle routing & scheduling system Journey Planning Tools Low cost option Calculate time, distance and cost for individual journeys Armitage Shanks, the sanitary-ware manufacturer  Initiative: switched from manual planning to computer-assisted load planning and vehicle routing for its truck fleet  Results: cutting mileage by no less than 25%

20. www.wyg.com creative minds safe hands Other fuel saving techniques Back-loading and online freight exchanges Back-loading (also known as backhaul) is the practice of making use of spare capacity on the return leg of a delivery journey. Travis Perkins and Monsoon Speed limiters Set the speed limiters on your vehicles to the speed that yields the best fuel consumption for each one. Reducing the speed limiter from 56 to 54 mph can improve fuel usage by 2%.

21. www.wyg.com creative minds safe hands Useful links and free resources Useful links www.freightbestpractice.org.uk www.dft.gov.uk www.greengrantsmachine.co.uk Car sharing scheme www.carplus.org.uk Smarter driving training www.energysavingtrust.org.uk Cycle to work scheme www.cyclescheme.co.uk