Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Mike Waters' Blog: April
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Mike Waters' Blog: April

Date: 25 April 2007

Mike Waters is senior insight & consultancy manager at Arval, the leading vehicle leasing and fleet management company.

Last week the Association of British Insurers called for learner drivers in London to complete a one-year course before being allowed to take their driving test. This week is the UN's Global Road Safety Week with a focus around young road users and the issue of road traffic injuries. The question is: are fleets doing enough to make sure their younger drivers are safe?

26 April 2007: The youth of today.

Last week the Association of British Insurers called for learner drivers in London to complete a one-year course before being allowed to take their driving test. This week is the UN's Global Road Safety Week with a focus around young road users and the issue of road traffic injuries. The question is: are fleets doing enough to make sure their younger drivers are safe?

The key to creating any fleet policy with young drivers in mind is controlling the risks, not just for the company but also the driver. Managing the driver's ability to spec vehicles can determine how the young handle themselves when out on the road. Reduction in engine size can often equal a reduction in high-speed crashes.

Another area of neglect is driver training. We give people training to work an internal computer system but how many fleets provide driver training to new employee, particularly those in high risk groups. Certainly the best will, but this is not by any means a universal practice. The question is why do we need to wait for new starters to have to identify themselves as a high risk.

It is also easy to forget those drivers who are either named on another's company vehicle or who drive various pool cars. These young drivers may not be presented with a car of their own, but the same risks apply.

The pressures put on young drivers in a work environment should not be underestimated and are exacerbated in many cases by a lack of higher mileage driving experience. The Road Safety Act has all but made it illegal to answer your phone behind the wheel. But how many businesses still frown upon staff that don't take work related calls whilst driving? Don't forget companies themselves can now be held legally accountable if one employee is found to have been on the phone to another at the time of a crash!

My advice is set out clear guidelines as part of your overall fleet policy which is focused towards younger drivers and new starters. Encourage commitment to a 'safer driving pledge' and ensure support and guidance with training is given frequently. It is not just a legal responsibility but a moral obligation to ensure that our young drivers remain safe whilst at work.

Until next time

Mike

19 April 2007: The Petrol Forecourt Still Evolving!

The petrol forecourt is probably one of those things many of you take for granted. It's one of those places that we only used to visit in a specific emergency. you were running out of petrol.

But times have changed and are continuing to change on our forecourts. For a start there are a lot less of them now, in 1994 there were nearly 17,000 petrol sites in the UK today that figure is down to only just over 9000 locations.

So what has driven this change and is it a bad thing?

Well firstly selling fuel is now a highly competitive business with the major supermarket chains all heavily involved in the market. In fact nearly four out of every 10 litres of fuel purchased in the UK are now bought at supermarket forecourts, this level of price competition has clearly had an effect on the number of sites.

Secondly running a petrol forecourt is an increasingly complex and expensive business to be in, health and safety and environmental costs abound and clearly its not enough any more to sell a few curled up sandwiches and a Mars bar to today's savvy consumer. All of these factors require increased investment and unfortunately for some the level of competition was too intense.

Certainly our current high volume high quality forecourts are a million miles away from the old days when you had to wear a glove to keep the smell of petrol off your hand.

Today visiting a forecourt in an emergency is as likely to be about milk and bread than petrol and diesel. Modern forecourts are effectively mini supermarkets with everything you would expect to find at your local Tesco. Certainly the phrase: "I'll pop to the petrol station" has become a recurring one in our house.

This is the nub of what has changed, perhaps today we don't really have a network of petrol stations we have a network of high quality convenience outlets that also sell fuel. You only have to look at modern forecourts to see the influence of companies such as Tesco and Marks and Spencer.

Speaking as someone who is a regular business traveller I welcome the changes we have seen that have dramatically improved the quality of forecourts and the price competition that must continue to be a feature of the market.

Till next time

Mike

13 April 2007: Don't forget about fuel!

Oil prices have been on the rise over the past month. As the situation with Iran remains unstable in the aftermath of hostage negotiations and nuclear debates, we are given a harsh reminder of just how volatile the market can be.

With other news stories taking up all the headline space rising oil prices have received scant coverage to date. This for many has made it all too easy to neglect diligent monitoring fuel prices, particularly since the drop in oil value towards the end of 2006 and into January this year.

However, current geo-political concern has been the primary factor in encouraged acceleration in oil prices from a low of $52 a barrel to a worrying $67. For those of you who are strict price watchers, you will remember the outcry in September last year when oil prices tested the $80 mark before falling back. We are approaching levels that should worry fleets but many may have taken their eye off the ball in relation to fuel management.

Companies need to take control of their fuel procurement by implementing comprehensive fuel management policies. After all, any reduction in fuel bought will also lead to a corresponding reduction in CO2 output.

The benefits of having a formal fuel policy in place to tackle price fluctuations are becoming more evident year upon year. At Arval we recently conducted research within the sector that illustrated 65% of fleets in 2006 have a formal fuel policy in place compared with only 53% in 2005. On the face of it, this seems encouraging, but it still means a substantial proportion of companies have no fuel policy to speak of - talk about making yourself a hostage to fortune.

My advice is, if you haven't already done so, don't wait for fuel prices to hit the headlines, follow pricing trends and ensure you have a solid fuel policy in place. Otherwise you may find yourself on the receiving end of a rather hefty fuel bill.

Till next time

Mike

5 April 2007: Seeing through the haze

So it is finally with us, the smoking ban came into force this week in Wales with Northern Ireland next at the end of the month and England to follow in July. But despite becoming the law over the coming months across the UK, there remains confusion as to how businesses and their drivers will be affected by the ban and how Government intends to enforce it.

The Government website Smoke Free England is promising further advice and guidance this month to all businesses registered at Companies House, but what about companies already affected or those that are looking to prepare?

Essentially the new legislation states it will be an offence to smoke or to permit smoking in enclosed public spaces and workplaces, including most vehicles for work. The only exceptions will be convertibles - if the roof is fully down - and privately owned vehicles. Although smoking in private vehicles may be illegal if they are regularly used to carry colleagues, or if the vehicle is primarily used for business.

In terms of enforcement, it seems the regulation will be self-policing initially and be viewed as educational rather than punitive. However, local authorities should be expected to toughen up and focus on clear breaches of the legislation as they are instructed to stub out smoking at work.

Drivers or passengers who ignore the rules will be subject to a fixed penalty of £50, reduced to £30 fine if paid within 15 days. Cases going to court could result in a penalty of up to £1000.

But it is not just drivers and their passengers that are in the Government's sights over this. Companies that fail to ensure no-smoking signs are displayed in any vehicle covered by the regulations could incur a £200 fine per offence. Failure to prevent smoking in a smoke-free place could lead to conviction and a maximum fine of £2500.

Probably the best way to avoid any confusion is apply a firm no smoking policy in all company vehicles.

Till next time

Mike

2 April 2007: Food for thought.


Before the world was taken over by Gordon's big red briefcase, I story caught my eye and got me thinking.

A Manchester salesman was stopped, fined and given three penalty points by the police. His crime? Eating a sandwich behind the wheel.

According to media reports, Keith Pemberton was caught by police officers while driving in Cheshire on the way to a meeting. The police were monitoring drivers following the changes in mobile phone rules that came into force last month.

The arresting officers told Mr Pemberton that, under the new Road Safety Act, eating behind the wheel is punishable with the same severity as using a mobile phone. Mr Pemberton pleaded ignorance and my fear is that he will not be alone.

The fact is, despite the headlines, the new legislation does not only cover the use of mobile phones behind the wheel. Reading a map, business documents or drinking whilst driving are all included under the Road Safety Act penalty system, which bestows a mandatory 3 points and £60 fine.

It is still unclear how police in each region will enforce the new legislation but it will come down to the judgement of individual officers as to whether or not a driver is in full control of their vehicle at the time of the incident. Whether it is quick bite to eat, or a check on the best way to navigate Southampton's one-way system, drivers now could be viewed as committing an offence.

The best way for companies to manage this situation is to have a robust fleet policy and know what their drivers are doing behind the wheel at all times. While some may cry nanny state, if a road fatality is linked back to a business driver taking an ill-timed slug of water, a company could find 3 points and a £60 fine is the least of their problems.

Till next time

Mike



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